INDIA
Land – 32,87,263 sq km; 7th largest in the world. 16.7% of World
Population – 102.87 Cr. (2001 Census); 2nd most populated country after China
Sex Ratio-933 Growth Rate- 21.24 ( 1991-2001)
Density- 324 Literacy- 65.38 %
Maximums- Literacy-Kerala, Density- W.Bengal, Growth Rate- Nagaland
Minimums- Literacy- Bihar, Density- Arunachal pradesh
28 states, 7 UTs including 1 NCR (Delhi)
Chhattisgarh, Uttarakhand and Jharkhand – 3 new states in order of their formation.
--------------------------
National symbols
Jana Gana Mana: adopted on Jan 24, ‘50, 1st sung on Dec 27, ‘11, at INC, Calcutta, originally in Bengali
Vande Mataram: 1st sung at 1896 INC session, originally in Sanskrit by Bankim C Chatterji
Saka Era (AD 78), adopted on March 22, 1957
Tiger -Animal, Peacock-Bird, Lotus-Flower
Indian economy is MIXED ECONOMY
Contribution of major sectors of Indian economy (At the end of 11th five year plan)
Primary – Agriculture & allied - 20%
Secondary – Industry, which includes mining & quarrying; manufacturing; electricity, gas & water supply, and construction. 26%
Tertiary – Services, which includes trade, hotels, transport & communication; financial services, and community, social & personal services. 54%
Imp Economic data
GDP – 1 Trillion . ON APRIL 25,2007 India has joined the elite club of 12 countries with a trillion dollar economy, thanks to the continuing rally in rupee against the US dollar.
The country's GDP crossed the trillion-dollar mark for the first time in history when rupee appreciated to below 41-level against the US greenback
- 12th largest economy in world
At $3.13 trillion, 4th largest by PPP, after US, Japan, & China
2nd fastest growing among large economies
Growth Rate- 9.3 in Q1 & 8.9 per cent in Q2 (2006-07)
External Debt - $138 billion , 15.8% of GDP (April 2007)
U.P. is most debted state in India
Revolutions in Indian Economy
Green-Agri
White- Milk
Blue- Fish
Yellow-Oilseeds
Pink- Shrimps
Grey-Wool
Golden- Horticulture
Agriculture in India
Green Revolution in India- M.S. Swaminathan ( Evergreen Revolution-recent)
Norman Bourlog Received Nobel for Peace for his Contribution In food security at Global level
About 64% labour dependent on agriculture
Contributes 20% to GDP
Targeted Foodgrain production in 2006-07 - 220 MT (Actual production 209 MT in 2005-06)
Net sown area – 1412 lakh hectares (2000) 46.8%
Area under forest – 690 lakh hectares (2000) 22.6%
Arunachal- Largest % of area under forest cover
Madhya Pradesh- Largest Area under forest cover
Harvesting Seasons in India
3 harvesting seasons – Rabi, Kharif, & Zaid
Major Rabi crops: wheat, barley, mustard, gram
Major Kharif crops: rice, jowar, bajra, cotton
Foodgrain cropping share comes down to 65 per cent of gross cropped area (2000)
Rice – highest cropped area followed by Wheat
Agricultural Credit
National Cooperative Bank Of India-1993
RRB’s-1975
LDB
National Bank for Agriculture And Rural Development . July 12, 1982
National Agriculture Policy -2000
Dairy development ( White Revolution)
NDDB – chairperson Dr Amrita Patel
AMUL started by Dr Verghese Kurien, who also launched Operation Flood (White Revolution)
229 MT of milk production (2004-05), World no. 1
UP – largest milk producer, also largest milch bovine population
485 million livestock population, world no.1
----------------------
Agri and related activities
NDDB – chairperson Dr Amrita Patel
AMUL started by Dr Verghese Kurien, who also launched Operation Flood (White Revolution)
229 MT of milk production (2004-05), World no. 1
UP – largest milk producer, also largest milch bovine population
485 million livestock population, world no.1
institutions
Central Sheep Breeding Farm, Hissar (Haryana)
National Research Centre on Pigs at Rain (Guwahati)
Central Agriculture Research Inst., Port Blair
Locust Warning Center, Jodhpur (Rajasthan)
National Plant Protection Training Institute, Hyderabad
Education
Sarva Shiksha Abhiyan
Launched in 2001, 75:25 expenditure sharing during 10th Plan between Centre & states
All children in 6-14 yrs bracket in school
Bridge all gender & social category gaps at primary stage by 2007 & elementary stage by 2010
Universal retention by 2010
Schemes
Mid-Day Meal Scheme – Launched in 1995, aims to increase enrolment & retention in schools
Operation Blackboard – Launched 1987-88, 2 large classrooms, 2 teachers, essential teaching material
Lok Jumbish – Launched in Rajasthan with assistance from Sweden, aims for education for all
Shiksha Karmi Project – aims at universalition & qualitative improvement of primary education in remote places of Rajasthan, special emphasis on girl child
Environment
22.6% area under forest cover
Forest Survey of India – HO at Dehra Dun
13 Biosphere Reserves, 3 recognized by UNESCO viz., Nilgiri, Sunderbans, & Gulf of Mannar
Forest Policy – 1894, revised 1952 & 1988
Project Tiger – 1973; 281 Tiger Reserves in 17 states
Project Elephant – 1992; 14 reserves
Eco-mark – to label environment-friendly consumer products
Most polluted city - Howrah
Welfare schemes
Antyodaya Anna Yojana (2000) – Poorest of the poor, 35 kg of foodgrain at highly subsidised rates (Rs 2 - rice, Rs 3 – wheat)
Annapurna Scheme (2000-01) – poor over 65 yrs of age with no pension are eligible, 10 kg of rice per month
Sampoorna Grameen Rozgar Yojana (2001) – Universal Food for Work scheme in all UTs / states, who are supplied with 50 lakh tonne food grain free of cost by MoRD
NREGS – Food for Work programme in 200 most backward districts; 100 days employment guarantee for ONE member of a poor household or else compensation provided; Minimum Wage at Rs 60 per day
-------------
employment
Total labour force – Estimated 498 million
Services – 23 per cent; Industry – 17-19 per cent
Unemployment for males in 2004
Increases to 9% in rural areas (5.6. % in '93-94)
and 8.1% in urban areas (6.7% in '93-94)
Unemployment for females in 2004
Increases to 9.3% in rural areas (5.6% in '93-94) and 11.7% in urban areas (10.5% in '93-94)
National Rural Emplyoment Guarantee Programme 2005-06
Poverty Alleviation programmes in India
1) P.M. Gramodaya Yojana for sustainable human development 2000-2001
2) Swarnajayanti Gram swarojgar Yojana self employment 1999
3) Sampurna Gramin Rojagar Yojana for wage employment in rural areas 2001
4)Bharat Nirman Yojana for rural infrastructure 2005
5) Baramati initiative for e-Agriculture
6) Drought Prone Area Development Programme 1973-74
7) Antyodaya Anna Yojana under TPDS 2000
Population
Population growth – 1.91% (annual) 2006
Decadal growth – 21.24 (1991 – 2001)
Crude Birth Rate (CBR) – 25; CDR – 8.1
IMR – 64 (2002); MMR – 487
Total Fertility Rate (TFR) – 3.2
Life Expectancy at Birth – 63.8 yrs (M); 66.9 yrs (F)
Highest TFR – Bihar with 4.5
National health policy 2002
We need to Eliminate
Malaria, Yaws, & Leprosy – 2005
Kala Azar – 2010; Filariasis – 2015
Achieved zero level growth of HIV / AIDS – 2007
We need to Reduce
IMR to 30 / 100 & MMR 100 / lakh by 2010
Prevalence of Blindness to 0.5% by 2010
Mortality by 50% on a/c of vector diseases like TB / malaria
Facts
India is home to
highest HIV-infected population (5.5 million)
highest blind population
highest polio-afflicted population
highest TB population (1/3rd of global TB pop)
highest diabetic population (nearly 15%)
National health programmes
National Malaria Control Programme (1953)
National Filaria Control Programme (1955)
National TB Control Programme (1962)
National Leprosy Control Programme (1955)
National Programme for Control of Blindness (1953)
National AIDS Control Programme (1987)
National Goitre Control Programme (1962)
National Mental Health Programme (1955)
National Surveillance Programme for Communicable Diseases (1997-98)
Transportation
17 Railway Zones; 11 International Airports
14 Major Ports including one at Ennore (TN) – India’s first corporatised port, about 196 other ports
219 National Highways; longest NH 7 between Kanya Kumari & Varanasi;shortest is NH 47A between Willingdon Island & Kochi (Kerala)
P.M. Bharat jodo pariyojana
P.M. Gram sadak yojana
Golden Quadrilateral – 5,846 km (D-M-C-K)
North-South Corridor ( Sri- Kanya) &
East-West Corridor ( Silchar-Porbander) – 7300 km
12 International Airports
Setusamudram progect
Facts
Arvind Kejriwal – Ramon Magsaysay Award 2006 winner for Emergent Leadership
Uttarakhand is the new name of Uttaranchal
Sector wise electricity consumption
Industry- Irrigation- Domestic- Commercial
Sector wise gas consumption
Power- Fertilizers- Petrochemicals- Industrial
Friday, June 18, 2010
Sunday, June 13, 2010
Some science and tech for 2010 mains
1)Magnetic Resonance Imaging-
http://en.wikipedia.org/wiki/Mri#Applications
MRI is an application of Cryogenics,& Cryogenic Technology was in the news very recently...
http://beta.thehindu.com/opinion/lead/article397441.ece
2)Thermographic Camera-
http://en.wikipedia.org/wiki/Imaging_infrared..
Imaging Infrared is the technology in use in the Anti-Tank missile "Nag" that was test-fired recently...
http://beta.thehindu.com/news/national/article448188.ece
3)HDTV-
http://en.wikipedia.org/wiki/HDTV
DTH operators plan to launch it in India to coincide with the Commomwealth Games...
http://beta.profit.ndtv.com/news/show/dth-operators-to-launch-hdtv-for-cw-games-32366
Rust Spore-Website launched by FAo to track Ug99
http://beta.thehindu.com/sci-tech/agriculture/article447507.ece
Fuel Cell
http://en.wikipedia.org/wiki/Fuel_cell
1)Bloom Box Technology-
http://www.thehindu.com/2010/02/26/stories/2010022655871800.htm
2)Solar Flare-
http://beta.thehindu.com/sci-tech/science/article22247.ece?textsize=small&test=2
Wiki link-
http://en.wikipedia.org/wiki/Solar_flare
3)Robodog-
http://www.hindu.com/seta/2008/09/18/stories/2008091850031500.htm
4)MQ-1 Predator
Used very frequently by the US Air Force to carry out strikes inside Pakistani territory..
Wiki link-
http://en.wikipedia.org/wiki/MQ-1_Predator#Pakistan
bacteria to clear oil spill
http://publication.samachar.com/pub_article.php?id=9308350&nextids=9308350|9308351|9308352|9308353|&nextIndex=1
)Digital Imaging-(Is a major technological application of CCD sensors,Nobel Prize for Physics 2009)
Wiki link-
http://en.wikipedia.org/wiki/Digital_imaging
2)RT-LAMP methodology(Detection of Swine Flu)
http://www.thehindu.com/2010/03/24/stories/2010032466902200.htm
3)Biosensors-
http://expressbuzz.com/Cities/Kochi/biosensors-for-quality-control/138221.html
Wiki link-
http://en.wikipedia.org/wiki/Biosensors
4)Probiotics-
http://www.thehindu.com/mag/2009/03/01/stories/2009030150200600.htm
Rfid- Radio-frequency identification. this the tech. is being used for radio colloring of tigers and elephants in india.
http://en.wikipedia.org/wiki/Radio-frequency_identification
1)Carbon Footprint-
http://beta.thehindu.com/news/cities/Chennai/article451195.ece
Wiki link-
http://en.wikipedia.org/wiki/Carbon_footprint
2)Norin-10(Used by Norman Borlaug,the crossed varieties played a vital role in India's Green Revolution..Borlaug died in Sep 2009)..
http://en.wikipedia.org/wiki/Norin_10_wheat
3)LBS Technolgy
http://www.thehindubusinessline.com/2010/03/15/stories/2010031550960200.htm
Wiki link-
http://en.wikipedia.org/wiki/Location-based_service
4)LIDAR Technology(In the news recently in Haiti & also because this technolgy uses laser pulses...Laser technology completes the 50th year of it's existence in 2010)..
http://beta.thehindu.com/sci-tech/technology/article93862.ece
Wiki link-
http://en.wikipedia.org/wiki/LIDAR#Applications
1)Cloud Computing-
http://www.thehindu.com/2009/05/10/stories/2009051059651300.htm
Wiki link-
http://en.wikipedia.org/wiki/Cloud_computing
2)Green Dam Youth Escort-
http://www.thehindu.com/2009/07/01/stories/2009070160561300.htm
Wiki link-
http://en.wikipedia.org/wiki/Green_Dam_Youth_Escort
3)Voice over Internet Protocol(Technology used by the Pakistani handlers to communicate with the terrorists during the Mumbai attacks)
http://en.wikipedia.org/wiki/Voip
4)God's particle,also known as Higgs-Boson(LHC Experiment at CERN)
http://en.wikipedia.org/wiki/God%27s_particle
)Link Hoffman Bush Technology
http://www.thehindu.com/2009/07/28/stories/2009072850390200.htm
2)Distributed Denial of Service attacks(Allegedly used by Chinese hackers & also by Russsia against Georgia in the recent past)
Wiki link-
http://en.wikipedia.org/wiki/Ddos#Distributed_attack
Indigenous vaccine for Swine flu developed by India.. Vaxiflu
http://www.dnaindia.com/india/report_onset-of-monsoon-winter-may-see-return-of-swine-flu-say-experts_1391374
1)X-Ray Crystallography(Ramakrishnan used X-ray crystallography — the same method used by the discoverers of DNA — to map the thousands of microscopic atoms that make up a ribosome...Nobel Prize for Chem 2009)
http://en.wikipedia.org/wiki/X_ray_crystallography
2)Solar Pond(News article on November 13th 2009,The Hindu)
http://en.wikipedia.org/wiki/Solar_pond
3)JWST-James Webb Space Telescope(5th Jan 2010,The Hindu)
http://beta.thehindu.com/sci-tech/technology/article75641.ece
Fibertect : As British Petroleum struggles to contain the oil spill in the Gulf of Mexico, an Indian-origin scientist from Texas University has created a special cotton fabric that can clean up crude oil up to 40 times its weight and help in cleaning efforts.Seshadri Ramkumar, has created a non-woven, environment-friendly cotton carbon absorbent wipes called Fibertect.
http://www.hindu.com/2010/06/15/stories/2010061561002400.htm
E-waste (Cobalt -60 irrdiation in DL)
1)Magnetic Levitation-
http://en.wikipedia.org/wiki/Magnetic_levitation
Technology used to run High-Speed Rail Networks/Bullet Trains in many countries..
The Govt of India plans to introduce such Bullet Trains in the country too..
http://timesofindia.indiatimes.com/city/patna/Bullet-train-Rlys-studying-feasibility-report/articleshow/5600996.cms
2)Scatterometer-
http://en.wikipedia.org/wiki/Scatterometer
Forms an important component of the Payload system aboard Oceansat-2,which was launched in Sept 2009..
http://www.thehindubusinessline.com/2009/09/23/stories/2009092351321700.htm
3)Free and open source software
http://beta.thehindu.com/education/article42059.ece
Wiki link-
http://en.wikipedia.org/wiki/Free_and_open_source_software
http://en.wikipedia.org/wiki/Mri#Applications
MRI is an application of Cryogenics,& Cryogenic Technology was in the news very recently...
http://beta.thehindu.com/opinion/lead/article397441.ece
2)Thermographic Camera-
http://en.wikipedia.org/wiki/Imaging_infrared..
Imaging Infrared is the technology in use in the Anti-Tank missile "Nag" that was test-fired recently...
http://beta.thehindu.com/news/national/article448188.ece
3)HDTV-
http://en.wikipedia.org/wiki/HDTV
DTH operators plan to launch it in India to coincide with the Commomwealth Games...
http://beta.profit.ndtv.com/news/show/dth-operators-to-launch-hdtv-for-cw-games-32366
Rust Spore-Website launched by FAo to track Ug99
http://beta.thehindu.com/sci-tech/agriculture/article447507.ece
Fuel Cell
http://en.wikipedia.org/wiki/Fuel_cell
1)Bloom Box Technology-
http://www.thehindu.com/2010/02/26/stories/2010022655871800.htm
2)Solar Flare-
http://beta.thehindu.com/sci-tech/science/article22247.ece?textsize=small&test=2
Wiki link-
http://en.wikipedia.org/wiki/Solar_flare
3)Robodog-
http://www.hindu.com/seta/2008/09/18/stories/2008091850031500.htm
4)MQ-1 Predator
Used very frequently by the US Air Force to carry out strikes inside Pakistani territory..
Wiki link-
http://en.wikipedia.org/wiki/MQ-1_Predator#Pakistan
bacteria to clear oil spill
http://publication.samachar.com/pub_article.php?id=9308350&nextids=9308350|9308351|9308352|9308353|&nextIndex=1
)Digital Imaging-(Is a major technological application of CCD sensors,Nobel Prize for Physics 2009)
Wiki link-
http://en.wikipedia.org/wiki/Digital_imaging
2)RT-LAMP methodology(Detection of Swine Flu)
http://www.thehindu.com/2010/03/24/stories/2010032466902200.htm
3)Biosensors-
http://expressbuzz.com/Cities/Kochi/biosensors-for-quality-control/138221.html
Wiki link-
http://en.wikipedia.org/wiki/Biosensors
4)Probiotics-
http://www.thehindu.com/mag/2009/03/01/stories/2009030150200600.htm
Rfid- Radio-frequency identification. this the tech. is being used for radio colloring of tigers and elephants in india.
http://en.wikipedia.org/wiki/Radio-frequency_identification
1)Carbon Footprint-
http://beta.thehindu.com/news/cities/Chennai/article451195.ece
Wiki link-
http://en.wikipedia.org/wiki/Carbon_footprint
2)Norin-10(Used by Norman Borlaug,the crossed varieties played a vital role in India's Green Revolution..Borlaug died in Sep 2009)..
http://en.wikipedia.org/wiki/Norin_10_wheat
3)LBS Technolgy
http://www.thehindubusinessline.com/2010/03/15/stories/2010031550960200.htm
Wiki link-
http://en.wikipedia.org/wiki/Location-based_service
4)LIDAR Technology(In the news recently in Haiti & also because this technolgy uses laser pulses...Laser technology completes the 50th year of it's existence in 2010)..
http://beta.thehindu.com/sci-tech/technology/article93862.ece
Wiki link-
http://en.wikipedia.org/wiki/LIDAR#Applications
1)Cloud Computing-
http://www.thehindu.com/2009/05/10/stories/2009051059651300.htm
Wiki link-
http://en.wikipedia.org/wiki/Cloud_computing
2)Green Dam Youth Escort-
http://www.thehindu.com/2009/07/01/stories/2009070160561300.htm
Wiki link-
http://en.wikipedia.org/wiki/Green_Dam_Youth_Escort
3)Voice over Internet Protocol(Technology used by the Pakistani handlers to communicate with the terrorists during the Mumbai attacks)
http://en.wikipedia.org/wiki/Voip
4)God's particle,also known as Higgs-Boson(LHC Experiment at CERN)
http://en.wikipedia.org/wiki/God%27s_particle
)Link Hoffman Bush Technology
http://www.thehindu.com/2009/07/28/stories/2009072850390200.htm
2)Distributed Denial of Service attacks(Allegedly used by Chinese hackers & also by Russsia against Georgia in the recent past)
Wiki link-
http://en.wikipedia.org/wiki/Ddos#Distributed_attack
Indigenous vaccine for Swine flu developed by India.. Vaxiflu
http://www.dnaindia.com/india/report_onset-of-monsoon-winter-may-see-return-of-swine-flu-say-experts_1391374
1)X-Ray Crystallography(Ramakrishnan used X-ray crystallography — the same method used by the discoverers of DNA — to map the thousands of microscopic atoms that make up a ribosome...Nobel Prize for Chem 2009)
http://en.wikipedia.org/wiki/X_ray_crystallography
2)Solar Pond(News article on November 13th 2009,The Hindu)
http://en.wikipedia.org/wiki/Solar_pond
3)JWST-James Webb Space Telescope(5th Jan 2010,The Hindu)
http://beta.thehindu.com/sci-tech/technology/article75641.ece
Fibertect : As British Petroleum struggles to contain the oil spill in the Gulf of Mexico, an Indian-origin scientist from Texas University has created a special cotton fabric that can clean up crude oil up to 40 times its weight and help in cleaning efforts.Seshadri Ramkumar, has created a non-woven, environment-friendly cotton carbon absorbent wipes called Fibertect.
http://www.hindu.com/2010/06/15/stories/2010061561002400.htm
E-waste (Cobalt -60 irrdiation in DL)
1)Magnetic Levitation-
http://en.wikipedia.org/wiki/Magnetic_levitation
Technology used to run High-Speed Rail Networks/Bullet Trains in many countries..
The Govt of India plans to introduce such Bullet Trains in the country too..
http://timesofindia.indiatimes.com/city/patna/Bullet-train-Rlys-studying-feasibility-report/articleshow/5600996.cms
2)Scatterometer-
http://en.wikipedia.org/wiki/Scatterometer
Forms an important component of the Payload system aboard Oceansat-2,which was launched in Sept 2009..
http://www.thehindubusinessline.com/2009/09/23/stories/2009092351321700.htm
3)Free and open source software
http://beta.thehindu.com/education/article42059.ece
Wiki link-
http://en.wikipedia.org/wiki/Free_and_open_source_software
Sunday, May 30, 2010
G20
GROUP OF Twenty Finance Ministers and Central Bank Governors
ESTABLISHED DATE:
·December 15-16, 1999 at Berlin, Inaugural meeting is hosted by German and Canadian finance ministers.
WHY G-20 CAME INTO EXISTENCE:
·Came into existence following the financial crises of 1990s in emergent market economies (EMEs).· Emerging economies were not presented popularly in Global economic discussions and Governance.
MEMBERS:
There are 20 members of the G-20. These include the finance ministers and central bank governors of 19 countries.
·Argentina·Australia·Brazil·Canada·China·France·Germany·India·Indonesia·Italy·Japan·Mexico·Russia·Saudi Arabia·South Africa·South Korea·Turkey·United Kingdom·United States of America 20th member of G-20 is European Union, which is represented by the rotating Council presidency and the European Central Bank.
OTHER BODIES PARTICIPATION IN G-20 MEET:
·The European Central Bank ·The Managing Director of the International Monetary Fund. ·The Chairman of the IMFC ·The President of the World Bank ·The Chairman of the Development Committee
MAIN FOCUS:
·Development of the global economic and financial system.·Reducing abuse of the financial system.·Dealing with financial crisis.·Reform of the international financial architecture
Chairs:
·
* 1999: Berlin, Germany
* 2000: Montreal, Canada
* 2001: Ottawa, Canada
* 2002: Delhi, India
* 2003: Morelia, Mexico
* 2004: Berlin, Germany
* 2005: Beijing, China
* 2006: Melbourne, Australia
* 2007: Cape Town, South Africa
* 2008: São Paulo, Brazil
* 2008: Washington, D.C., United States[14]
* 2009: London, United Kingdom
* 2009: Pittsburgh, United States
* 2010: Muskoka District Municipality,Canada
* 2010: South Korea
Canada’s Minister of Finance, Paul Martin, is the acting chairman of the G20 (as on July 2009).
ESTABLISHED DATE:
·December 15-16, 1999 at Berlin, Inaugural meeting is hosted by German and Canadian finance ministers.
WHY G-20 CAME INTO EXISTENCE:
·Came into existence following the financial crises of 1990s in emergent market economies (EMEs).· Emerging economies were not presented popularly in Global economic discussions and Governance.
MEMBERS:
There are 20 members of the G-20. These include the finance ministers and central bank governors of 19 countries.
·Argentina·Australia·Brazil·Canada·China·France·Germany·India·Indonesia·Italy·Japan·Mexico·Russia·Saudi Arabia·South Africa·South Korea·Turkey·United Kingdom·United States of America 20th member of G-20 is European Union, which is represented by the rotating Council presidency and the European Central Bank.
OTHER BODIES PARTICIPATION IN G-20 MEET:
·The European Central Bank ·The Managing Director of the International Monetary Fund. ·The Chairman of the IMFC ·The President of the World Bank ·The Chairman of the Development Committee
MAIN FOCUS:
·Development of the global economic and financial system.·Reducing abuse of the financial system.·Dealing with financial crisis.·Reform of the international financial architecture
Chairs:
·
* 1999: Berlin, Germany
* 2000: Montreal, Canada
* 2001: Ottawa, Canada
* 2002: Delhi, India
* 2003: Morelia, Mexico
* 2004: Berlin, Germany
* 2005: Beijing, China
* 2006: Melbourne, Australia
* 2007: Cape Town, South Africa
* 2008: São Paulo, Brazil
* 2008: Washington, D.C., United States[14]
* 2009: London, United Kingdom
* 2009: Pittsburgh, United States
* 2010: Muskoka District Municipality,Canada
* 2010: South Korea
Canada’s Minister of Finance, Paul Martin, is the acting chairman of the G20 (as on July 2009).
Committees
Committees on Education:
* 1854 = Charles Wood dispatch
* 1882 = Hunter Commission
* 1902 = Raleigh Commission
* 1917 = Sadler Comission
* 1929 = Hartog Commission
* 1944 = Sergeant Plan
Committees On Famine:
* 1866 = Campbell Commission
* 1880 = Stratchy Commission
* 1896 = Lyall Commission
* 1900 = Mac Donnel Commission
Committees on Public Service
* 1886 = Mansfield Commission
* 1912 = Islington Commission
* 1923 =Lee FarenhamCommission
Committees on Currency
* 1886 = Mansfield Commission
* 1893 = Herschel Commission
* 1898 = Fowler Commission
* 1919 = Babington Smith Commission
* 1939 = Hilton Young Commission
Committees on Army
* 1920 = Escher Commission
* 1925 = Skeen Commission
* 1932 = Garran Commission
* 1939 = Chatfield Commission
Committees on Railways
* 1892 = Acworth commission
Other Committees
* 1878 = Amini Commission on land revenue & famine
* 1919 = Hunter commission on punjab disturbances
* 1918 = Rowlett Commission on sedition
* 1902 = Fraser Commission on agriculture
* 1935 = Sapru Commission on unemployment
* 1929 = Whitley Commission on Lahore
* 1927 = Butler Commission on indian states
* 1940 = Flood Commission interrogated Dadabhai Nauroji on the drain of wealth charges.
* 1854 = Charles Wood dispatch
* 1882 = Hunter Commission
* 1902 = Raleigh Commission
* 1917 = Sadler Comission
* 1929 = Hartog Commission
* 1944 = Sergeant Plan
Committees On Famine:
* 1866 = Campbell Commission
* 1880 = Stratchy Commission
* 1896 = Lyall Commission
* 1900 = Mac Donnel Commission
Committees on Public Service
* 1886 = Mansfield Commission
* 1912 = Islington Commission
* 1923 =Lee FarenhamCommission
Committees on Currency
* 1886 = Mansfield Commission
* 1893 = Herschel Commission
* 1898 = Fowler Commission
* 1919 = Babington Smith Commission
* 1939 = Hilton Young Commission
Committees on Army
* 1920 = Escher Commission
* 1925 = Skeen Commission
* 1932 = Garran Commission
* 1939 = Chatfield Commission
Committees on Railways
* 1892 = Acworth commission
Other Committees
* 1878 = Amini Commission on land revenue & famine
* 1919 = Hunter commission on punjab disturbances
* 1918 = Rowlett Commission on sedition
* 1902 = Fraser Commission on agriculture
* 1935 = Sapru Commission on unemployment
* 1929 = Whitley Commission on Lahore
* 1927 = Butler Commission on indian states
* 1940 = Flood Commission interrogated Dadabhai Nauroji on the drain of wealth charges.
Tuesday, May 11, 2010
Wavell plan and shimla conference
In May 1945, Lord Wavell, the Viceroy of India, went to London and discussed his ideas about the future of India with the British administration. The talks resulted in the formulation of a plan of action that was made public in June 1945. The plan is known as Wavell Plan.
The Plan suggested reconstitution of the Viceroy's Executive Council in which the Viceroy was to select persons nominated by the political parties. Different communities were also to get their due share in the Council and parity was reserved for Cast-Hindus and Muslims. While declaring the plan, the Secretary of State for Indian Affairs made it clear that the British Government wanted to listen to the ideas of all major Indian communities. Yet he said that it was only possible if the leadership of the leading Indian political parties agreed with the suggestions of the British Government.
To discuss these proposals with the leadership of major Indian parties, Wavell called for a conference at Simla on June 25, 1945. Leaders of both the Congress and the Muslim League attended the conference, which is known as the Simla Conference. However, differences arose between the leadership of the two parties on the issue of representation of the Muslim community. The Muslim League claimed that it was the only representative party of the Muslims in India and thus all the Muslim representatives in the Viceroy's Executive Council should be the nominees of the party. Congress, which had sent Maulana Azad as the leader of their delegation, tried to prove that their party represented all the communities living in India and thus should be allowed to nominate Muslim representative as well. Congress also opposed the idea of parity between the Cast-Hindus and the Muslims. All this
resulted in a deadlock. Finally, Wavell announced the failure of his efforts on July 14. Thus the Simla Conference couldn't provide any hope of proceeding further
by vishal
The Plan suggested reconstitution of the Viceroy's Executive Council in which the Viceroy was to select persons nominated by the political parties. Different communities were also to get their due share in the Council and parity was reserved for Cast-Hindus and Muslims. While declaring the plan, the Secretary of State for Indian Affairs made it clear that the British Government wanted to listen to the ideas of all major Indian communities. Yet he said that it was only possible if the leadership of the leading Indian political parties agreed with the suggestions of the British Government.
To discuss these proposals with the leadership of major Indian parties, Wavell called for a conference at Simla on June 25, 1945. Leaders of both the Congress and the Muslim League attended the conference, which is known as the Simla Conference. However, differences arose between the leadership of the two parties on the issue of representation of the Muslim community. The Muslim League claimed that it was the only representative party of the Muslims in India and thus all the Muslim representatives in the Viceroy's Executive Council should be the nominees of the party. Congress, which had sent Maulana Azad as the leader of their delegation, tried to prove that their party represented all the communities living in India and thus should be allowed to nominate Muslim representative as well. Congress also opposed the idea of parity between the Cast-Hindus and the Muslims. All this
resulted in a deadlock. Finally, Wavell announced the failure of his efforts on July 14. Thus the Simla Conference couldn't provide any hope of proceeding further
by vishal
Sunday, April 25, 2010
Small facts
10WHAT IS PRISONER'S DILEMMA?
ANS)The prisoner's dilemma is a fundamental problem in game theory that demonstrates why two people might not cooperate even if it is in both their best interests to do so. It was originally framed by Merrill Flood and Melvin Dresher working at RAND in 1950. Albert W. Tucker formalized the game with prison sentence payoffs and gave it the "prisoner's dilemma" name.
2)what is game theory?
ANS)What economists call game theory psychologists call the theory of social situations, which is an accurate description of what game theory is about. Although game theory is relevant to parlor games such as poker or bridge, most research in game theory focuses on how groups of people interact. There are two main branches of game theory: cooperative and noncooperative game theory. Noncooperative game theory deals largely with how intelligent individuals interact with one another in an effort to achieve their own goals.
3)WHAT IS PARETO OPTIMALITY?
Named after Italian sociologist and economist Vilfredo Pareto (1848-1923), Pareto optimality is a situation which exists when economic resources and output have been allocated in such a way that no-one can be made better off without sacrificing the well-being of at least one person.
4)What is Balkanization?
Ans)Balkanization or balkanisation is a geopolitical term originally used to describe the process of fragmentation or division of a region or state into smaller regions or states that are often hostile or non-cooperative with each other.
ANS)The prisoner's dilemma is a fundamental problem in game theory that demonstrates why two people might not cooperate even if it is in both their best interests to do so. It was originally framed by Merrill Flood and Melvin Dresher working at RAND in 1950. Albert W. Tucker formalized the game with prison sentence payoffs and gave it the "prisoner's dilemma" name.
2)what is game theory?
ANS)What economists call game theory psychologists call the theory of social situations, which is an accurate description of what game theory is about. Although game theory is relevant to parlor games such as poker or bridge, most research in game theory focuses on how groups of people interact. There are two main branches of game theory: cooperative and noncooperative game theory. Noncooperative game theory deals largely with how intelligent individuals interact with one another in an effort to achieve their own goals.
3)WHAT IS PARETO OPTIMALITY?
Named after Italian sociologist and economist Vilfredo Pareto (1848-1923), Pareto optimality is a situation which exists when economic resources and output have been allocated in such a way that no-one can be made better off without sacrificing the well-being of at least one person.
4)What is Balkanization?
Ans)Balkanization or balkanisation is a geopolitical term originally used to describe the process of fragmentation or division of a region or state into smaller regions or states that are often hostile or non-cooperative with each other.
Thursday, April 8, 2010
RBI
When a government agency reaches its 75th year, does this call for veneration? In the case of RBI, it is a wake up call for reform.
Age is a problem
Arms of government are monopolies and do not face a market test. Creative destruction of laws and government agencies does not happen by itself: it requires a special push called economic reform. A continual and harsh scrutiny is required, of each agency and law, asking whether it has reinvented itself adequately to reflect the needs of today’s India. The older an agency is, the bigger the shortcomings are likely to be.
Problems of role and function of RBI
The design of the RBI Act is rooted in British government committee reports of 1914 and 1925. As a consequence, there are two fatal flaws: (a) the designers did not intend a central bank for a free India, and, (b) essentially nothing about monetary economics was known at the time. To some extent, the age of RBI is worse than 75 years: in a few years there will be the 100th anniversary of the 1914 committee.
The role and function of RBI was further distorted in the decades of Indian socialism, and put under great stress with bank nationalisation. Far from maturing into a genuine central bank, it became a central planning agency for finance. When central planning died, the rationale for the existence of this central planner ended.
New thinking in public administration in India
We now do things very differently in India, when compared with the age of colonialism or the age of socialism. SEBI (which is 18 years old) presents a useful comparison of the present ethos of public administration:
SEBI regulates a competitive ecosystem of exchanges and depositories – it does not own or run them. RBI has the conflict of interest of owning and running a exchange and depository, thus combining (monopoly PSU) service provision with regulation in the manner of the old DOT.
SEBI does not trade on the markets that it regulates. The RBI is a big market manipulator on the very markets where it is supposed to be a regulator.
SEBI’s world is one with rule of law where all orders are public, and there is a vigorous appeals mechanism at the SAT. RBI’s world is one where actions are not public, where the same rule is interpreted differently for different supplicants, and where financial firms have neither an effective mechanism, nor the courage, to appeal.
RBI scores in the bottom decile of the central banks of the world on the question of transparency. The agenda papers of SEBI board meetings are on the SEBI website.
SEBI has overseen the greatest success in Indian finance — the rise of a world class equity market. This is the only area where India appears in top 10 rankings in global finance. RBI has overseen the greatest failures of Indian finance — the Bond-Currency-Derivatives Nexus and banking.
Looking forward
It is now time to reinvent RBI, drawing on what we have learned in recent decades worldwide about central bank reform, and what we have learned in recent decades about law, regulation and public administration through success stories such as SEBI. Such change will, of course, be resisted by the incumbent. The DOT did not support telecom reform; the Ministry of Steel resisted decontrol of steel prices; the EPFO detests pension reform. The RBI is no different. It comes up with many different elaborate arguments but always the same predictable conclusion: the RBI is always right and nothing should be done by way of reform. The views of RBI staff or loyalists are hence not useful in thinking about RBI reform.
Age is a problem
Arms of government are monopolies and do not face a market test. Creative destruction of laws and government agencies does not happen by itself: it requires a special push called economic reform. A continual and harsh scrutiny is required, of each agency and law, asking whether it has reinvented itself adequately to reflect the needs of today’s India. The older an agency is, the bigger the shortcomings are likely to be.
Problems of role and function of RBI
The design of the RBI Act is rooted in British government committee reports of 1914 and 1925. As a consequence, there are two fatal flaws: (a) the designers did not intend a central bank for a free India, and, (b) essentially nothing about monetary economics was known at the time. To some extent, the age of RBI is worse than 75 years: in a few years there will be the 100th anniversary of the 1914 committee.
The role and function of RBI was further distorted in the decades of Indian socialism, and put under great stress with bank nationalisation. Far from maturing into a genuine central bank, it became a central planning agency for finance. When central planning died, the rationale for the existence of this central planner ended.
New thinking in public administration in India
We now do things very differently in India, when compared with the age of colonialism or the age of socialism. SEBI (which is 18 years old) presents a useful comparison of the present ethos of public administration:
SEBI regulates a competitive ecosystem of exchanges and depositories – it does not own or run them. RBI has the conflict of interest of owning and running a exchange and depository, thus combining (monopoly PSU) service provision with regulation in the manner of the old DOT.
SEBI does not trade on the markets that it regulates. The RBI is a big market manipulator on the very markets where it is supposed to be a regulator.
SEBI’s world is one with rule of law where all orders are public, and there is a vigorous appeals mechanism at the SAT. RBI’s world is one where actions are not public, where the same rule is interpreted differently for different supplicants, and where financial firms have neither an effective mechanism, nor the courage, to appeal.
RBI scores in the bottom decile of the central banks of the world on the question of transparency. The agenda papers of SEBI board meetings are on the SEBI website.
SEBI has overseen the greatest success in Indian finance — the rise of a world class equity market. This is the only area where India appears in top 10 rankings in global finance. RBI has overseen the greatest failures of Indian finance — the Bond-Currency-Derivatives Nexus and banking.
Looking forward
It is now time to reinvent RBI, drawing on what we have learned in recent decades worldwide about central bank reform, and what we have learned in recent decades about law, regulation and public administration through success stories such as SEBI. Such change will, of course, be resisted by the incumbent. The DOT did not support telecom reform; the Ministry of Steel resisted decontrol of steel prices; the EPFO detests pension reform. The RBI is no different. It comes up with many different elaborate arguments but always the same predictable conclusion: the RBI is always right and nothing should be done by way of reform. The views of RBI staff or loyalists are hence not useful in thinking about RBI reform.
Wednesday, March 31, 2010
India-Mayanmar relation
India will seek to accelerate the path-breaking Kaladan multi-modal transit project that will provide an alternative route to the north-eastern states and later to South-East Asian countries through Myanmar. India will seek to hold discussions to ensure that the project is completed by May 2012, a year ahead of schedule.
This project will provide a shorter route to many north-eastern states. At present, all traffic is routed through the narrow and congested chicken neck corridor via Assam and West Bengal.
India will also sign four economic cooperation agreements, including a Bilateral Investment Promotion Agreement (BIPA) . The second pact would be for a $64 million credit line agreement for financing three transmission lines in Myanmar.
The third agreement would be for a $20 million credit line for an aluminium conductor steel reinforced wire manufacturing facility. The United Bank of India and the Myanmar Economic Bank would sign the fourth agreement for providing a banking arrangement to implement the border trade agreement at Moreh in Manipur.
India also donated $200,000 (about Rs.80 lakh) to the trustees of the sacred Shwedagon Pagoda in Yangon. The contribution will assist in the repair of the holy shrine following damage caused to it by the recent Hurricane Nargis. India was among the very first countries to send relief supplies as well as team of doctors to Myanmar in the aftermath of Hurricane Nargis.
This project will provide a shorter route to many north-eastern states. At present, all traffic is routed through the narrow and congested chicken neck corridor via Assam and West Bengal.
India will also sign four economic cooperation agreements, including a Bilateral Investment Promotion Agreement (BIPA) . The second pact would be for a $64 million credit line agreement for financing three transmission lines in Myanmar.
The third agreement would be for a $20 million credit line for an aluminium conductor steel reinforced wire manufacturing facility. The United Bank of India and the Myanmar Economic Bank would sign the fourth agreement for providing a banking arrangement to implement the border trade agreement at Moreh in Manipur.
India also donated $200,000 (about Rs.80 lakh) to the trustees of the sacred Shwedagon Pagoda in Yangon. The contribution will assist in the repair of the holy shrine following damage caused to it by the recent Hurricane Nargis. India was among the very first countries to send relief supplies as well as team of doctors to Myanmar in the aftermath of Hurricane Nargis.
India-indoneisa relation
India played an important role in helping Indonesian nationalists establish full national sovereignty over what was the former Dutch East Indies during the four years of struggle between August 17, 1945, when Indonesian independence was formally announced, and December 9, 1949, when freedom was finally wrested from the Dutch in an agreement signed between the two parties at The Hague under the auspices of the United Nations. Amongst the first political contacts made by the Indonesian nationalists after 1945 were with the leaders of the Indian National Congress, particularly with Jawaharlal Nehru, who had a personal relationship with Indonesian nationalist leaders like Mohammad Hatta and Soetan Sjahrir.
All India Radio functioned as the official ‘freedom radio’ of the Indonesian republic in the first years of its existence. India played an important role in the internationalisation of the Indonesian cause, first by giving it prominence at the Inter-Asian Relations Conference sponsored by the provisional government under Nehru in New Delhi in March 1947, and subsequently by bringing the issue before the United Nations later that year.
In January 1949, Nehru, on the urging of Prime Minister U Nu of Burma, convened a second conference, this time of independent Asian and African states, to discuss the Indonesian question. Its resolution and the general force of India’s moral authority amongst nations emerging from colonial rule helped galvanise international opinion against The Netherlands, leading finally to the independence of Indonesia.
. Indonesia is India’s third largest trading partner in ASEAN, with its trade valued at $6.5 billion in 2007. It has substantial Indian investments, particularly in the textile sector.
During the visit of President Susilo Bambang Yudhoyono to India in November 2005, a Joint Declaration on the Establishment of a New Strategic Partnership between India and Indonesia was signed, followed in 2007 by an Action Plan between the two countries for its implementation.
All India Radio functioned as the official ‘freedom radio’ of the Indonesian republic in the first years of its existence. India played an important role in the internationalisation of the Indonesian cause, first by giving it prominence at the Inter-Asian Relations Conference sponsored by the provisional government under Nehru in New Delhi in March 1947, and subsequently by bringing the issue before the United Nations later that year.
In January 1949, Nehru, on the urging of Prime Minister U Nu of Burma, convened a second conference, this time of independent Asian and African states, to discuss the Indonesian question. Its resolution and the general force of India’s moral authority amongst nations emerging from colonial rule helped galvanise international opinion against The Netherlands, leading finally to the independence of Indonesia.
. Indonesia is India’s third largest trading partner in ASEAN, with its trade valued at $6.5 billion in 2007. It has substantial Indian investments, particularly in the textile sector.
During the visit of President Susilo Bambang Yudhoyono to India in November 2005, a Joint Declaration on the Establishment of a New Strategic Partnership between India and Indonesia was signed, followed in 2007 by an Action Plan between the two countries for its implementation.
India-EU relation
India has been maintaining a cordial foreign policy that can be extended even to a non-friendly nation. As we have a sovereign power in making our own policy but drawing the policy in an inter-related way that depends upon the different nations of the world. It has been shifting a dramatic way in its policy from the Western centric to the East Policy in the name of ‘Look East Policy’. Out of the eastern countries which it tries to make friendly relations, Bangladesh is considered as one of the most important to it. Especially, India is focusing upon the South Asian countries over the few years. Inspite of many efforts and initiatives like South Asian Association for Regional Co-operation (SAARC), Gujral Doctrine, Look East Policy, the relations between India and its neighbours have been far from satisfactory.
In case of Indo-Bangladesh relations, it is not only sharing its socio-cultural affinity with India. Even the credit of formation of Bangladesh goes to India, when the history dated back to December 1971. Earlier to that Bangladesh was called as East Pakistan, a part of Pakistan nation. It became independent with the help of India, by making a long liberation war. After the formation of Bangladesh, it made its first treaty of friendship and peace with India, by its founder and father of Afghanistan Mr. Mujib-ur-Rehman.
Out of 38 years of its Independence, it has been ruled by military rulers for 15 years – from 1975 to 1990. Again the restoration of democracy in 1991 revived hopes for better relations between the two countries. But it appears that the domestic politics of Bangladesh has infiltrated into its foreign policy establishment. Whenever, the Awami League (one of the three national parties), led by Sheikh Hasina, the daughter of father of Bangladesh, Mujib-ur-Rehman, is in power in Bangladesh, the relations between the two countries are cordial and friendly. On the other hand, when the Bangladesh Nationalist Party, BNP, led by Khalida Zia is in power in Bangladesh, the relations between the two countries are acrimonious and conflictual.
However, Awami League has regained its power in 1996, it lost it to the BNP by the year 2001, which led a major problem between the Indo-Bangladesh relations. The BNP government has been instrumental in developing warm ties with China, particularly in the last decade. Between the years 2006-07, trade between China and Bangladesh rose by 28.5% and there have been agreements between the two countries to grant various Bangladesh commodities tariff free access to Chinese market. Cooperation between the military of Bangladesh and the Chinese Army is also increasing with joint military agreements signed between the two countries. China’s growing influence on Bangladesh is a cause of worry for India.
At present, the Awami League has regained its power in December 2008, as the ruler of Bangladesh by its party leader Shiekh Hasina Wajed, the daughter of Mujib-ur-Rehman, which is also supported by another national party Jatiya Party, led by H. M. Ersad. This time, the Awami League has come to power with a 2/3 majority in its parliament, which led it to take independent decisions upon the foreign policy, which is a major determinat of cordial relations between India and Bangladesh.
Recent Visit of Bangladesh Prime Minister and Agreements
Earlier, the problem of Ganga Water sharing arose in 1975 when India consturcted Farakka Dam on the Ganga River to increase the supply of water for maintaing the navigabilityof Hoogly River. With many ups and downs, the two countries signed Ganga Water sharing agreement in 1996, which would guide the water sharing between the two countries for next 30 years. However, the sharing of water of other tributaries of Ganga between the two countries still remains unclear.
The Teen Bigha corridor is a small piece of Indian Territory which joins Bangladeshi enclaves of Dahagram and Angorpota. Agreements for the use of this corridor by Bangladesh were signed in 1972 and 1982. Following the Indian Supreme Court judgement, the Teen Bigha corridor was given to Bangladesh on perpertual lease, without any rent in 1992. However, this perpetual lease provided for the retention of Indian sovereignty over Teen Bigha with free movement of Indian Citizens living on either side of the corridor.
Both countries signed Chakma Hill Tract Agreement in 1997 which paved way for the repatriation of more than 50000 Chakma refugees living in Tripura. The repatriation of these refugees is almost complete. To check the further infiltration of Bangladeshi refugees, the Government of India has decided to put barbed wire fencing along the 3300 km border between the two countries. Bangladesh resents the fencing of the border. As a goodwill gesture, Kolkata-Dhaka Bus service was also initiated in 1999. More recently, Bangladesh has handed over some Indian insurgent leaders, notably Arbind Rajkhova, the chief of ULFA to India in December 2009.
Recent Five Agreements
Recently in January 2010, Bangladesh Prime Minister made a first visit to India. This visit has proved instrumental in reviving the friendly relations between India and Bangladesh. Further improvement, India and Bangladesh signed five agreements to enhance mutual co-operation. These agreements are:
Agreement to provide mutual legal assistance in criminal matters.
Transfer of persons, who are sentenced by each other.
Agreement to fight against terrorist activities, organised crimes and illegal drug-trafficking.
Agreement in the form of memorandum of understanding to enhance cooperation in the field of power generation.
Agreement to enhance cultural exchange programme.
And there was a memorandum of understanding (mou) on co-operation in Power sector, signed between the two countries is very significant. India has also promised $ 1 Billion line of credit to Bangladesh for building railway tracks in Bangladesh.
Both India and Bangladesh share common history and culture and that should reflect in the common sharing of interests, which can pave way for further development and peace in both of the nations.
In case of Indo-Bangladesh relations, it is not only sharing its socio-cultural affinity with India. Even the credit of formation of Bangladesh goes to India, when the history dated back to December 1971. Earlier to that Bangladesh was called as East Pakistan, a part of Pakistan nation. It became independent with the help of India, by making a long liberation war. After the formation of Bangladesh, it made its first treaty of friendship and peace with India, by its founder and father of Afghanistan Mr. Mujib-ur-Rehman.
Out of 38 years of its Independence, it has been ruled by military rulers for 15 years – from 1975 to 1990. Again the restoration of democracy in 1991 revived hopes for better relations between the two countries. But it appears that the domestic politics of Bangladesh has infiltrated into its foreign policy establishment. Whenever, the Awami League (one of the three national parties), led by Sheikh Hasina, the daughter of father of Bangladesh, Mujib-ur-Rehman, is in power in Bangladesh, the relations between the two countries are cordial and friendly. On the other hand, when the Bangladesh Nationalist Party, BNP, led by Khalida Zia is in power in Bangladesh, the relations between the two countries are acrimonious and conflictual.
However, Awami League has regained its power in 1996, it lost it to the BNP by the year 2001, which led a major problem between the Indo-Bangladesh relations. The BNP government has been instrumental in developing warm ties with China, particularly in the last decade. Between the years 2006-07, trade between China and Bangladesh rose by 28.5% and there have been agreements between the two countries to grant various Bangladesh commodities tariff free access to Chinese market. Cooperation between the military of Bangladesh and the Chinese Army is also increasing with joint military agreements signed between the two countries. China’s growing influence on Bangladesh is a cause of worry for India.
At present, the Awami League has regained its power in December 2008, as the ruler of Bangladesh by its party leader Shiekh Hasina Wajed, the daughter of Mujib-ur-Rehman, which is also supported by another national party Jatiya Party, led by H. M. Ersad. This time, the Awami League has come to power with a 2/3 majority in its parliament, which led it to take independent decisions upon the foreign policy, which is a major determinat of cordial relations between India and Bangladesh.
Recent Visit of Bangladesh Prime Minister and Agreements
Earlier, the problem of Ganga Water sharing arose in 1975 when India consturcted Farakka Dam on the Ganga River to increase the supply of water for maintaing the navigabilityof Hoogly River. With many ups and downs, the two countries signed Ganga Water sharing agreement in 1996, which would guide the water sharing between the two countries for next 30 years. However, the sharing of water of other tributaries of Ganga between the two countries still remains unclear.
The Teen Bigha corridor is a small piece of Indian Territory which joins Bangladeshi enclaves of Dahagram and Angorpota. Agreements for the use of this corridor by Bangladesh were signed in 1972 and 1982. Following the Indian Supreme Court judgement, the Teen Bigha corridor was given to Bangladesh on perpertual lease, without any rent in 1992. However, this perpetual lease provided for the retention of Indian sovereignty over Teen Bigha with free movement of Indian Citizens living on either side of the corridor.
Both countries signed Chakma Hill Tract Agreement in 1997 which paved way for the repatriation of more than 50000 Chakma refugees living in Tripura. The repatriation of these refugees is almost complete. To check the further infiltration of Bangladeshi refugees, the Government of India has decided to put barbed wire fencing along the 3300 km border between the two countries. Bangladesh resents the fencing of the border. As a goodwill gesture, Kolkata-Dhaka Bus service was also initiated in 1999. More recently, Bangladesh has handed over some Indian insurgent leaders, notably Arbind Rajkhova, the chief of ULFA to India in December 2009.
Recent Five Agreements
Recently in January 2010, Bangladesh Prime Minister made a first visit to India. This visit has proved instrumental in reviving the friendly relations between India and Bangladesh. Further improvement, India and Bangladesh signed five agreements to enhance mutual co-operation. These agreements are:
Agreement to provide mutual legal assistance in criminal matters.
Transfer of persons, who are sentenced by each other.
Agreement to fight against terrorist activities, organised crimes and illegal drug-trafficking.
Agreement in the form of memorandum of understanding to enhance cooperation in the field of power generation.
Agreement to enhance cultural exchange programme.
And there was a memorandum of understanding (mou) on co-operation in Power sector, signed between the two countries is very significant. India has also promised $ 1 Billion line of credit to Bangladesh for building railway tracks in Bangladesh.
Both India and Bangladesh share common history and culture and that should reflect in the common sharing of interests, which can pave way for further development and peace in both of the nations.
India Bangladesh relations
India has been maintaining a cordial foreign policy that can be extended even to a non-friendly nation. As we have a sovereign power in making our own policy but drawing the policy in an inter-related way that depends upon the different nations of the world. It has been shifting a dramatic way in its policy from the Western centric to the East Policy in the name of ‘Look East Policy’. Out of the eastern countries which it tries to make friendly relations, Bangladesh is considered as one of the most important to it. Especially, India is focusing upon the South Asian countries over the few years. Inspite of many efforts and initiatives like South Asian Association for Regional Co-operation (SAARC), Gujral Doctrine, Look East Policy, the relations between India and its neighbours have been far from satisfactory.
In case of Indo-Bangladesh relations, it is not only sharing its socio-cultural affinity with India. Even the credit of formation of Bangladesh goes to India, when the history dated back to December 1971. Earlier to that Bangladesh was called as East Pakistan, a part of Pakistan nation. It became independent with the help of India, by making a long liberation war. After the formation of Bangladesh, it made its first treaty of friendship and peace with India, by its founder and father of Afghanistan Mr. Mujib-ur-Rehman.
Out of 38 years of its Independence, it has been ruled by military rulers for 15 years – from 1975 to 1990. Again the restoration of democracy in 1991 revived hopes for better relations between the two countries. But it appears that the domestic politics of Bangladesh has infiltrated into its foreign policy establishment. Whenever, the Awami League (one of the three national parties), led by Sheikh Hasina, the daughter of father of Bangladesh, Mujib-ur-Rehman, is in power in Bangladesh, the relations between the two countries are cordial and friendly. On the other hand, when the Bangladesh Nationalist Party, BNP, led by Khalida Zia is in power in Bangladesh, the relations between the two countries are acrimonious and conflictual.
However, Awami League has regained its power in 1996, it lost it to the BNP by the year 2001, which led a major problem between the Indo-Bangladesh relations. The BNP government has been instrumental in developing warm ties with China, particularly in the last decade. Between the years 2006-07, trade between China and Bangladesh rose by 28.5% and there have been agreements between the two countries to grant various Bangladesh commodities tariff free access to Chinese market. Cooperation between the military of Bangladesh and the Chinese Army is also increasing with joint military agreements signed between the two countries. China’s growing influence on Bangladesh is a cause of worry for India.
At present, the Awami League has regained its power in December 2008, as the ruler of Bangladesh by its party leader Shiekh Hasina Wajed, the daughter of Mujib-ur-Rehman, which is also supported by another national party Jatiya Party, led by H. M. Ersad. This time, the Awami League has come to power with a 2/3 majority in its parliament, which led it to take independent decisions upon the foreign policy, which is a major determinat of cordial relations between India and Bangladesh.
Recent Visit of Bangladesh Prime Minister and Agreements
Earlier, the problem of Ganga Water sharing arose in 1975 when India consturcted Farakka Dam on the Ganga River to increase the supply of water for maintaing the navigabilityof Hoogly River. With many ups and downs, the two countries signed Ganga Water sharing agreement in 1996, which would guide the water sharing between the two countries for next 30 years. However, the sharing of water of other tributaries of Ganga between the two countries still remains unclear.
The Teen Bigha corridor is a small piece of Indian Territory which joins Bangladeshi enclaves of Dahagram and Angorpota. Agreements for the use of this corridor by Bangladesh were signed in 1972 and 1982. Following the Indian Supreme Court judgement, the Teen Bigha corridor was given to Bangladesh on perpertual lease, without any rent in 1992. However, this perpetual lease provided for the retention of Indian sovereignty over Teen Bigha with free movement of Indian Citizens living on either side of the corridor.
Both countries signed Chakma Hill Tract Agreement in 1997 which paved way for the repatriation of more than 50000 Chakma refugees living in Tripura. The repatriation of these refugees is almost complete. To check the further infiltration of Bangladeshi refugees, the Government of India has decided to put barbed wire fencing along the 3300 km border between the two countries. Bangladesh resents the fencing of the border. As a goodwill gesture, Kolkata-Dhaka Bus service was also initiated in 1999. More recently, Bangladesh has handed over some Indian insurgent leaders, notably Arbind Rajkhova, the chief of ULFA to India in December 2009.
Recent Five Agreements
Recently in January 2010, Bangladesh Prime Minister made a first visit to India. This visit has proved instrumental in reviving the friendly relations between India and Bangladesh. Further improvement, India and Bangladesh signed five agreements to enhance mutual co-operation. These agreements are:
Agreement to provide mutual legal assistance in criminal matters.
Transfer of persons, who are sentenced by each other.
Agreement to fight against terrorist activities, organised crimes and illegal drug-trafficking.
Agreement in the form of memorandum of understanding to enhance cooperation in the field of power generation.
Agreement to enhance cultural exchange programme.
And there was a memorandum of understanding (mou) on co-operation in Power sector, signed between the two countries is very significant. India has also promised $ 1 Billion line of credit to Bangladesh for building railway tracks in Bangladesh.
Both India and Bangladesh share common history and culture and that should reflect in the common sharing of interests, which can pave way for further development and peace in both of the nations.
In case of Indo-Bangladesh relations, it is not only sharing its socio-cultural affinity with India. Even the credit of formation of Bangladesh goes to India, when the history dated back to December 1971. Earlier to that Bangladesh was called as East Pakistan, a part of Pakistan nation. It became independent with the help of India, by making a long liberation war. After the formation of Bangladesh, it made its first treaty of friendship and peace with India, by its founder and father of Afghanistan Mr. Mujib-ur-Rehman.
Out of 38 years of its Independence, it has been ruled by military rulers for 15 years – from 1975 to 1990. Again the restoration of democracy in 1991 revived hopes for better relations between the two countries. But it appears that the domestic politics of Bangladesh has infiltrated into its foreign policy establishment. Whenever, the Awami League (one of the three national parties), led by Sheikh Hasina, the daughter of father of Bangladesh, Mujib-ur-Rehman, is in power in Bangladesh, the relations between the two countries are cordial and friendly. On the other hand, when the Bangladesh Nationalist Party, BNP, led by Khalida Zia is in power in Bangladesh, the relations between the two countries are acrimonious and conflictual.
However, Awami League has regained its power in 1996, it lost it to the BNP by the year 2001, which led a major problem between the Indo-Bangladesh relations. The BNP government has been instrumental in developing warm ties with China, particularly in the last decade. Between the years 2006-07, trade between China and Bangladesh rose by 28.5% and there have been agreements between the two countries to grant various Bangladesh commodities tariff free access to Chinese market. Cooperation between the military of Bangladesh and the Chinese Army is also increasing with joint military agreements signed between the two countries. China’s growing influence on Bangladesh is a cause of worry for India.
At present, the Awami League has regained its power in December 2008, as the ruler of Bangladesh by its party leader Shiekh Hasina Wajed, the daughter of Mujib-ur-Rehman, which is also supported by another national party Jatiya Party, led by H. M. Ersad. This time, the Awami League has come to power with a 2/3 majority in its parliament, which led it to take independent decisions upon the foreign policy, which is a major determinat of cordial relations between India and Bangladesh.
Recent Visit of Bangladesh Prime Minister and Agreements
Earlier, the problem of Ganga Water sharing arose in 1975 when India consturcted Farakka Dam on the Ganga River to increase the supply of water for maintaing the navigabilityof Hoogly River. With many ups and downs, the two countries signed Ganga Water sharing agreement in 1996, which would guide the water sharing between the two countries for next 30 years. However, the sharing of water of other tributaries of Ganga between the two countries still remains unclear.
The Teen Bigha corridor is a small piece of Indian Territory which joins Bangladeshi enclaves of Dahagram and Angorpota. Agreements for the use of this corridor by Bangladesh were signed in 1972 and 1982. Following the Indian Supreme Court judgement, the Teen Bigha corridor was given to Bangladesh on perpertual lease, without any rent in 1992. However, this perpetual lease provided for the retention of Indian sovereignty over Teen Bigha with free movement of Indian Citizens living on either side of the corridor.
Both countries signed Chakma Hill Tract Agreement in 1997 which paved way for the repatriation of more than 50000 Chakma refugees living in Tripura. The repatriation of these refugees is almost complete. To check the further infiltration of Bangladeshi refugees, the Government of India has decided to put barbed wire fencing along the 3300 km border between the two countries. Bangladesh resents the fencing of the border. As a goodwill gesture, Kolkata-Dhaka Bus service was also initiated in 1999. More recently, Bangladesh has handed over some Indian insurgent leaders, notably Arbind Rajkhova, the chief of ULFA to India in December 2009.
Recent Five Agreements
Recently in January 2010, Bangladesh Prime Minister made a first visit to India. This visit has proved instrumental in reviving the friendly relations between India and Bangladesh. Further improvement, India and Bangladesh signed five agreements to enhance mutual co-operation. These agreements are:
Agreement to provide mutual legal assistance in criminal matters.
Transfer of persons, who are sentenced by each other.
Agreement to fight against terrorist activities, organised crimes and illegal drug-trafficking.
Agreement in the form of memorandum of understanding to enhance cooperation in the field of power generation.
Agreement to enhance cultural exchange programme.
And there was a memorandum of understanding (mou) on co-operation in Power sector, signed between the two countries is very significant. India has also promised $ 1 Billion line of credit to Bangladesh for building railway tracks in Bangladesh.
Both India and Bangladesh share common history and culture and that should reflect in the common sharing of interests, which can pave way for further development and peace in both of the nations.
Friday, March 19, 2010
Initail public offering
Definition
is a method to raise funds by a company which has been so far privately owned but now wants to offer its shares to the general public throughthe share market.
What Type of Companies do it?
Usually companies which have made a fair bit of progress and want to get to the next level adopt this method.
Advantage
It allows the company to reach a largepool of investors to acquire a substantal amount of money to finance its upcoming projects.
Disadvantage
The existing shareholders have to dilute their shares in order to accommodate the investor's share in the hope that additional capital and resultant boost in the company's performance will enhance the value of company's share.
How is it different from the normal share trading?
It is the first step of the company in going public..ie raising funds through the general public.
IPO
Share/ Secondary Market
The funds go directly from the share buyer to the company
money just exchanges hands between various investors in the market.
This is one reason why the IPO market is also referred to as the Primary Market.
The company is not obliged to repay the capital, but the investor has a right to future profits distributed by the company and the right to a capital distribution in case of a dissolution.
How it is done?
the companies cannot directly enter the market and offer shares to the public.
For this they need an underwriter.
Underwriters
The job of the underwriter is to determine the form, priceand structure for the IPO.
he works on a commission basis, based on a percentage of the value of the shares sold.
Underwriters, therefore, take many factors into consideration when pricing an IPO, and attempt to reach an offering price that is low enough to stimulate interest in thestock, but high enough to raise an adequate amount of capital for the company.
The process of determining an optimal price usually involves the underwriters arranging share purchase commitments from leading institutional investors (insurance companies, mutual funds etc.)
by mrunal
is a method to raise funds by a company which has been so far privately owned but now wants to offer its shares to the general public throughthe share market.
What Type of Companies do it?
Usually companies which have made a fair bit of progress and want to get to the next level adopt this method.
Advantage
It allows the company to reach a largepool of investors to acquire a substantal amount of money to finance its upcoming projects.
Disadvantage
The existing shareholders have to dilute their shares in order to accommodate the investor's share in the hope that additional capital and resultant boost in the company's performance will enhance the value of company's share.
How is it different from the normal share trading?
It is the first step of the company in going public..ie raising funds through the general public.
IPO
Share/ Secondary Market
The funds go directly from the share buyer to the company
money just exchanges hands between various investors in the market.
This is one reason why the IPO market is also referred to as the Primary Market.
The company is not obliged to repay the capital, but the investor has a right to future profits distributed by the company and the right to a capital distribution in case of a dissolution.
How it is done?
the companies cannot directly enter the market and offer shares to the public.
For this they need an underwriter.
Underwriters
The job of the underwriter is to determine the form, priceand structure for the IPO.
he works on a commission basis, based on a percentage of the value of the shares sold.
Underwriters, therefore, take many factors into consideration when pricing an IPO, and attempt to reach an offering price that is low enough to stimulate interest in thestock, but high enough to raise an adequate amount of capital for the company.
The process of determining an optimal price usually involves the underwriters arranging share purchase commitments from leading institutional investors (insurance companies, mutual funds etc.)
by mrunal
Chronology of Moghul Kings
Babur
1483
Babur is born in Fergana
1526
Babur defeats Ibrahim, the sultan of Delhi at Panipat
1530
Death of Babur and Humayun assumes power
1540
Afghan Leader Sher Shah defeats Humayun and seizes the empire
1555
Humayun re-conquers Delhi
Akbar the Great
1556
Humayun dies, young Akbar is enthroned
1562
Akbar, a free thinking Muslim, marries Padmini, a Hindu princess of powerful kingdom Rajaputana
1564
Akbar abolishes Jizya, a tax on non-Muslims
Janangir
1605
Death of Akbar and succession of son Jahangir
1617
Revolt in the Southern states of the empire breaks out. Jahangir sends son Khurram to pacify them. Khurram received the title of Shah Jahan.
Shah Jahan
1627
Jahangir dies and Shah Jahan assumes the throne, crushing his rivals
1631
Shah Jahan's queen Mamtaz dies during childbirth; Shah Jahan commissions the building of her tomb, the Taj Mahal
Aurangjeb
1658
Shah Jahan's son Aurangajeb executes his brothers, imprisons his father and ascends to the throne of Delhi.
1666
Death of Shah Jahan
1679
Jijya is re-imposed; Aurangjeb's accesses into Deccan
1707
Aurangjeb dies
1739
Invading Persians massacre Delhi Weak Mogul Empire Collapses.
End of Mogul Empire
1862
Bahadur Shah II the last of the Mogul rulers dies. India becomes a British Colony.
by mrunal
1483
Babur is born in Fergana
1526
Babur defeats Ibrahim, the sultan of Delhi at Panipat
1530
Death of Babur and Humayun assumes power
1540
Afghan Leader Sher Shah defeats Humayun and seizes the empire
1555
Humayun re-conquers Delhi
Akbar the Great
1556
Humayun dies, young Akbar is enthroned
1562
Akbar, a free thinking Muslim, marries Padmini, a Hindu princess of powerful kingdom Rajaputana
1564
Akbar abolishes Jizya, a tax on non-Muslims
Janangir
1605
Death of Akbar and succession of son Jahangir
1617
Revolt in the Southern states of the empire breaks out. Jahangir sends son Khurram to pacify them. Khurram received the title of Shah Jahan.
Shah Jahan
1627
Jahangir dies and Shah Jahan assumes the throne, crushing his rivals
1631
Shah Jahan's queen Mamtaz dies during childbirth; Shah Jahan commissions the building of her tomb, the Taj Mahal
Aurangjeb
1658
Shah Jahan's son Aurangajeb executes his brothers, imprisons his father and ascends to the throne of Delhi.
1666
Death of Shah Jahan
1679
Jijya is re-imposed; Aurangjeb's accesses into Deccan
1707
Aurangjeb dies
1739
Invading Persians massacre Delhi Weak Mogul Empire Collapses.
End of Mogul Empire
1862
Bahadur Shah II the last of the Mogul rulers dies. India becomes a British Colony.
by mrunal
How to answer question in mains
How to Write Answers
The civil services main exam consists of descriptive type of questions. It focusses on testing the candidate on various levels. The time limit for the essay paper is 3 hrs without a word limit, but for the optional paper, there are questions with specific word limit like 250 words in optional subjects and 250 words, 150 words and 20 words in general studies. The candidate then has to prepare himself to answer all types of questions. The most important thing to be kept in mind is the time constraint. Therefore it becomes necessary to answer these questions quickly and effectively and in minimum words. One common doubt that students have is with regard to the style of answering questions, whether to adopt the paragraph or the point style of answering questions. Though there is no set rule, it is wise to adopt a style depending on the question asked. If the question says to discuss, analyse or critically examine, it would be better to answer the question the paragraph format. On the other hand, if the question asks you to list the advantages or give reasons for/ against etc., it is better to go in for the point format of answering.
HOW TO WRITE A GOOD ANSWER:
It is just not enough to know all the facts and information but the most important thing to be kept in mind is to write an answer which has a clear and a logical frame, which presents information in a clear and concise manner, which does not contain any irrelevant or piling up of information, which is interesting and able to hold one's attention. So the next logical step is to know how to write a good answer. The first step is to prepare the framework where one can list all ideas, thoughts and facts and write them down. It is important to adopt an answering style which is natural, original and to the point. Emphasis should be given to the kind of language used, one which is simple and clear without unnecessary use of nouns and verbs. Use of archaic and fancy words or language should be avoided at all costs. Care should be taken to avoid grammatical mistakes which will give a negative opinion however good the answer may be. Last but not the least, it is very important to have a good and a legible handwriting.
Try to give answers in accordence with the logic of questions.
If a question seems to ask positive answer, then give a positive answer.,
if it seems to be negative approach, carefully approach the question to give a negative writing.
"never try to give a challenging answer to a challenging question ie against Constitution / govt policy"
for ex: Analyse the impact of SEZ , is it creating political charisma?
2.emergency provisions need to be revamped. comment
3.gandhianism, practically ignored concept in the constitution. Critically analyse
4. Critically analyse the indian foreign policy with US
you may feel that these questions are simple and need a wide kowledge. You are right but the trap of UPSC is there in hyde. for this question we have to give positive or balanced approach. Giving negative answer is not good. We are not officers or policy makers to criticise the emergency provision/indian forign policy, but we are just candidates to go by with the constitution/policy.
Give a continuty to the answer when you sift over to next page.
by sivaramani from IO.com
The civil services main exam consists of descriptive type of questions. It focusses on testing the candidate on various levels. The time limit for the essay paper is 3 hrs without a word limit, but for the optional paper, there are questions with specific word limit like 250 words in optional subjects and 250 words, 150 words and 20 words in general studies. The candidate then has to prepare himself to answer all types of questions. The most important thing to be kept in mind is the time constraint. Therefore it becomes necessary to answer these questions quickly and effectively and in minimum words. One common doubt that students have is with regard to the style of answering questions, whether to adopt the paragraph or the point style of answering questions. Though there is no set rule, it is wise to adopt a style depending on the question asked. If the question says to discuss, analyse or critically examine, it would be better to answer the question the paragraph format. On the other hand, if the question asks you to list the advantages or give reasons for/ against etc., it is better to go in for the point format of answering.
HOW TO WRITE A GOOD ANSWER:
It is just not enough to know all the facts and information but the most important thing to be kept in mind is to write an answer which has a clear and a logical frame, which presents information in a clear and concise manner, which does not contain any irrelevant or piling up of information, which is interesting and able to hold one's attention. So the next logical step is to know how to write a good answer. The first step is to prepare the framework where one can list all ideas, thoughts and facts and write them down. It is important to adopt an answering style which is natural, original and to the point. Emphasis should be given to the kind of language used, one which is simple and clear without unnecessary use of nouns and verbs. Use of archaic and fancy words or language should be avoided at all costs. Care should be taken to avoid grammatical mistakes which will give a negative opinion however good the answer may be. Last but not the least, it is very important to have a good and a legible handwriting.
Try to give answers in accordence with the logic of questions.
If a question seems to ask positive answer, then give a positive answer.,
if it seems to be negative approach, carefully approach the question to give a negative writing.
"never try to give a challenging answer to a challenging question ie against Constitution / govt policy"
for ex: Analyse the impact of SEZ , is it creating political charisma?
2.emergency provisions need to be revamped. comment
3.gandhianism, practically ignored concept in the constitution. Critically analyse
4. Critically analyse the indian foreign policy with US
you may feel that these questions are simple and need a wide kowledge. You are right but the trap of UPSC is there in hyde. for this question we have to give positive or balanced approach. Giving negative answer is not good. We are not officers or policy makers to criticise the emergency provision/indian forign policy, but we are just candidates to go by with the constitution/policy.
Give a continuty to the answer when you sift over to next page.
by sivaramani from IO.com
Sunday, February 7, 2010
Money Market
What is money market
· In simple terms, if I borrow money from you for less than 1 year = the place where we do this deal is Money market
· For long term loans = Capital market.
Technical definition
· market refers to the market for short-term funds, i.e., up to one-year maturity.
· money market is the place where lending and borrowing is done through instruments having an original maturity of up to one year.
Use of money market
· money market provides a mechanism to balance the demand for and supply of short-term funds.
· the opportunity for players to invest their short-term surplus funds and to borrow short-term funds in case of deficit.
· Its interlinked with Foreign Exchange market (read my article on currency devaluation for more on this)
Call/ Notice/Term Money Market
· It is the market for borrowing and lending for short-term periods (usually upto 14 days, but at times more than that)
· The deals mostly by commercial banks.
· It is a telephonic market, i.e., deals are struck over telephone and reported to RBI. (that’s why its ‘call’ market)
· Commercial banks often face temporary shortages of funds (e.g., to meet CRR and SLR requirements, or sudden outgo of funds) or temporary surpluses.
· When a bank is in shortage of funds, it telephones & borrows from another bank which is in surplus.
3 types of deals in Call Market
Call Money
· If borrowing (or lending) is made for one day (overnight), it is known as “Call Money”.
· This segment is also called overnight money market.
Notice Money
· If the maturity of borrowing (or lending) is more than 1 day but up to 14 days, then it is known as “Notice Money”.
Term Money
· “Term Money” refers to money borrowed (or lent) for more than 14 days but less than one year. In Indian money market, most of the transactions are of call money and notice money.
Players in Call Market
· commercial banks and primary dealers can both borrow and lend,
· LIC, UTI, GIC, IDBI, NABARD, ICICI & Mutual Fund managers can lend money in this market (but they’re not allowed to borrow from this market)
· RBI, as regulator, routinely participates in the market to inject liquidity (lend) or to mop up liquidity (borrow).
Repos/Reverse Repos
· repo (also known as ready forward contract) transaction,
Example
· Suppose I write on a piece of paper “anyone who gives me 100 Rs. I’ll give him 120 Rs. After 1 year”
· this piece of paper is security.
· Now I give that paper to you and collect 100 Rs. And tell you that I’ll buy (repurchase) that paper after 6 months and give you 110 Rs.
· This is called repo-contract
· And this period (6 months) is repo period.
Now remember the ‘mirror’ – in the mirror my left hand will show as my right hand.
Same is for ‘Reverse Repo Rate’
· When you buy a security and sign contract that you’ll sell it after 6 months = this is reverse repo contract.
· one party borrows funds for a specific period (known as repo period) against the collateral of specific securities at pre-determined rate (known as repo rate)
for buyer its reverse repo rate (RRR) and for seller its repo rate.(RR)
And whether the transection is RRR or RR is classified by who initiated the deal?
If the buyer initiated the deal– then its RRR
If the seller initiated the deal then its RR
To prevent the topic getting confusing and complicated. Lets take an example
First the easy example-
I’m the RBI manager.
· When I give you security (paper) & take money from you – this is Repo.
· When I buy the security (paper) from you and give you money- this is reverse Repo.
Now the more correct example
I’m the RBI manager.
· When I give you security (paper) & take money from you & promise you that I’ll buy the same paper back from you after few months – this is Repo.
· When I buy the security (paper) from you and give you money & you promise me that you’ll buy back that paper from me after few months- this is reverse Repo.
The players in Repo / Reverse Repo Rate
· RBI, Scheduled banks & Primary dealers can borrow and lend
· Non-Bank participants (Finacial institutions) + companies listed in stock market can only lend , they can’t borrow.
Lets rewind the liquidity tape
Liquidity = How much money in the market? = if money is plenty= easy to get loans @ cheaper interest rate = this is called cheap / easy money.
When there is less liquidity =hard to get loans and the interest rate will be higher = this is Dear money.
Where there is too much money= inflation
When there is too less money= bad to business as you can’t get loans easily to run your works.
So RBI’s work is to fine tune the liquidity (money supply.) = tuning the dear money / easy money policy based on the situation.
RBI & Repo
· absorption of short-term liquidity, RBI carries out overnight (one day) repo auction at a fixed rate.
· Currently, fixed-rate repo and reverse repo auctions are conducted by the RBI on a daily basis (excluding Saturdays, Sundays and other public holidays) for 1 day (overnight) tenor.
· This means, RBI is ready to sell as much securities as is demanded by the participants at the fixed rate.
· This rate is fixed in the sense that it does not change on a daily basis depending upon the supply-demand condition of short-term liquidity
· Changes in the fixed repo rate are usually made in the Annual Monetary and Credit Policy or in the Mid-Term Review of the Monetary and Credit Policy.
RBI & Reverse Repo
· In order to inject liquidity into the system, RBI conducts fixed rate auctions of reverse repo at a rate higher than the repo rate.
· The reverse repo rate is linked to the repo rate in the sense that it is set at specific percentage point above the repo rate.
Definition difference from international market.
· Keep in mind, the terms repo and reverse repo have been defined above, is just opposite to the international practice.
· That is, what is repo in Indian terminology is reverse repo in international parlance, and what is reverse repo in India is internationally known as repo.
· In a fast globalising environment, this may create confusion.
· Consequently, RBI has changed the definitions of repo and reverse repo to bring them in line with international practice with effect from 27th October 2004.
· However, in this article, we have throughout followed the older (Indian) definition.
Money market topic doesn’t stop here, there are other remaining items like Commercial papers, Treasury bills, Certificate of Deposits etc which will be dealt in some other article.
by mrunal
· In simple terms, if I borrow money from you for less than 1 year = the place where we do this deal is Money market
· For long term loans = Capital market.
Technical definition
· market refers to the market for short-term funds, i.e., up to one-year maturity.
· money market is the place where lending and borrowing is done through instruments having an original maturity of up to one year.
Use of money market
· money market provides a mechanism to balance the demand for and supply of short-term funds.
· the opportunity for players to invest their short-term surplus funds and to borrow short-term funds in case of deficit.
· Its interlinked with Foreign Exchange market (read my article on currency devaluation for more on this)
Call/ Notice/Term Money Market
· It is the market for borrowing and lending for short-term periods (usually upto 14 days, but at times more than that)
· The deals mostly by commercial banks.
· It is a telephonic market, i.e., deals are struck over telephone and reported to RBI. (that’s why its ‘call’ market)
· Commercial banks often face temporary shortages of funds (e.g., to meet CRR and SLR requirements, or sudden outgo of funds) or temporary surpluses.
· When a bank is in shortage of funds, it telephones & borrows from another bank which is in surplus.
3 types of deals in Call Market
Call Money
· If borrowing (or lending) is made for one day (overnight), it is known as “Call Money”.
· This segment is also called overnight money market.
Notice Money
· If the maturity of borrowing (or lending) is more than 1 day but up to 14 days, then it is known as “Notice Money”.
Term Money
· “Term Money” refers to money borrowed (or lent) for more than 14 days but less than one year. In Indian money market, most of the transactions are of call money and notice money.
Players in Call Market
· commercial banks and primary dealers can both borrow and lend,
· LIC, UTI, GIC, IDBI, NABARD, ICICI & Mutual Fund managers can lend money in this market (but they’re not allowed to borrow from this market)
· RBI, as regulator, routinely participates in the market to inject liquidity (lend) or to mop up liquidity (borrow).
Repos/Reverse Repos
· repo (also known as ready forward contract) transaction,
Example
· Suppose I write on a piece of paper “anyone who gives me 100 Rs. I’ll give him 120 Rs. After 1 year”
· this piece of paper is security.
· Now I give that paper to you and collect 100 Rs. And tell you that I’ll buy (repurchase) that paper after 6 months and give you 110 Rs.
· This is called repo-contract
· And this period (6 months) is repo period.
Now remember the ‘mirror’ – in the mirror my left hand will show as my right hand.
Same is for ‘Reverse Repo Rate’
· When you buy a security and sign contract that you’ll sell it after 6 months = this is reverse repo contract.
· one party borrows funds for a specific period (known as repo period) against the collateral of specific securities at pre-determined rate (known as repo rate)
for buyer its reverse repo rate (RRR) and for seller its repo rate.(RR)
And whether the transection is RRR or RR is classified by who initiated the deal?
If the buyer initiated the deal– then its RRR
If the seller initiated the deal then its RR
To prevent the topic getting confusing and complicated. Lets take an example
First the easy example-
I’m the RBI manager.
· When I give you security (paper) & take money from you – this is Repo.
· When I buy the security (paper) from you and give you money- this is reverse Repo.
Now the more correct example
I’m the RBI manager.
· When I give you security (paper) & take money from you & promise you that I’ll buy the same paper back from you after few months – this is Repo.
· When I buy the security (paper) from you and give you money & you promise me that you’ll buy back that paper from me after few months- this is reverse Repo.
The players in Repo / Reverse Repo Rate
· RBI, Scheduled banks & Primary dealers can borrow and lend
· Non-Bank participants (Finacial institutions) + companies listed in stock market can only lend , they can’t borrow.
Lets rewind the liquidity tape
Liquidity = How much money in the market? = if money is plenty= easy to get loans @ cheaper interest rate = this is called cheap / easy money.
When there is less liquidity =hard to get loans and the interest rate will be higher = this is Dear money.
Where there is too much money= inflation
When there is too less money= bad to business as you can’t get loans easily to run your works.
So RBI’s work is to fine tune the liquidity (money supply.) = tuning the dear money / easy money policy based on the situation.
RBI & Repo
· absorption of short-term liquidity, RBI carries out overnight (one day) repo auction at a fixed rate.
· Currently, fixed-rate repo and reverse repo auctions are conducted by the RBI on a daily basis (excluding Saturdays, Sundays and other public holidays) for 1 day (overnight) tenor.
· This means, RBI is ready to sell as much securities as is demanded by the participants at the fixed rate.
· This rate is fixed in the sense that it does not change on a daily basis depending upon the supply-demand condition of short-term liquidity
· Changes in the fixed repo rate are usually made in the Annual Monetary and Credit Policy or in the Mid-Term Review of the Monetary and Credit Policy.
RBI & Reverse Repo
· In order to inject liquidity into the system, RBI conducts fixed rate auctions of reverse repo at a rate higher than the repo rate.
· The reverse repo rate is linked to the repo rate in the sense that it is set at specific percentage point above the repo rate.
Definition difference from international market.
· Keep in mind, the terms repo and reverse repo have been defined above, is just opposite to the international practice.
· That is, what is repo in Indian terminology is reverse repo in international parlance, and what is reverse repo in India is internationally known as repo.
· In a fast globalising environment, this may create confusion.
· Consequently, RBI has changed the definitions of repo and reverse repo to bring them in line with international practice with effect from 27th October 2004.
· However, in this article, we have throughout followed the older (Indian) definition.
Money market topic doesn’t stop here, there are other remaining items like Commercial papers, Treasury bills, Certificate of Deposits etc which will be dealt in some other article.
by mrunal
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