Archive for the ‘WTO’ Category

Mandela and Mugabe

April 29, 2014

Mugabe was opposite of Mandela. Mandela allowed the colonials to control the wealth and resources of the country, while the natives had their freedom. Also he made some humiliating compromises in TRC, which allowed the most heinous crimes of the apartheid regime go unacknowledged. For it he won the Nobel and other accolades. Mugabe did the opposite. He snatched the wealth and resources from the colonials and distributed them among natives. Recently, it became public that he gets only four thousand dollars a month as salary and has no account in a Swiss bank. He rightly said that he deserves the Nobel prize. The academic world can not ignore Mugabe for long. The way he survived the protracted economic sanctions will be a subject of research. Also, many former colonies should take a leaf out of his book. To learn how to become truly independent. Any University worth its name must hurry to honour him.

The post colonial history of Zimbabwe is unlike any other country. This unique experiment of doing away with colonial institutions and replacing them with indigenous should be studies closely. For it the Zimbabwean should be proud of their country and its leader. Having a dispassionate debate about this nation is almost impossible as the economic sanctions making life of the country arduous. Mugabe survived all it. So he is no common leader. As I said, in the times ahead it will become more obvious.

The unsolicited advice

April 28, 2014

WB and IMF officials have gone jobless here, as Nepal no more needs their money. They are criticising the government policies, which resulted in rendering the economy one of the healthiest around.
Recently they are advising the Nepal Rastra Bank to not reduce the disparity in the spread rate. The banks here are highly profitable for the good of the economy and have eschewed investing in the manufacturing or developmental sector. They are willing to finance either the real estate or automobile purchase only. So they are sitting on a pile of cash.
In such a scenario, IMF and WB should not lobby for the Nepalese private banks to increase their profit.
But they are probably securing their job in the future.

WTO Bali round

December 4, 2013

WTO was a non starter all the way. It assumed that by lobbying with the governments in power the developed world could con the developing. It should be not discussed any more. Without it the global trade in recent years has flourished like never before. Any unequal, binding agreement like WTO might have only impeded it.
Noncompetitive European nations will lose the trade war with a country like China, which will exact technology transfer through arm-twisting. No future trade agreement should try to protect the noncompetitive.

Money Meltdowm, A book by Judy Shelton; A review of a book that falls short of being golden than the gold

April 4, 2010

I laboured over past several months to read this book, which is more like a reaserch paper. But it ends up, almost after every few pages, emphasising the perils of the world economy due to the fluctuating value of the US dollar, often those that are artificially orchestrated by the political compulsions of the USA, as per the author. And, as a recourse, Judy insistently recommends that each dollar printed in paper should be backed by gold, as was the prectice before, when the paper currency was brought into practice.

I have yet to finish the last quarter of the book, as the author seems to be repeating her recommendations in it as well. The basic flaw of the book or of the author, is her ability to exclude the potential of human ingenuity and enterprise. Today, or at anytime, the worth of the US dollar is nothing else but the credibility of the US as an economy, which is continuously renewed by its technology and industry. A bad politics has less chance of prevailing in the USA, as it is the domain of some tyrannical systems still ruling people promising falsely a security and prosperity, in some parts of the world. These nations are often in league with each other to limit the influence of the USA. But the only way it could be possibly done is playing the way the USA does.

Imagine a scenerio when, anxious about the plummeting value of dollar of late, Bill Gates sells all his stocks in the market and starts buying gold. Which China has done lately. Being a communist nation Chinese seem to have excellant instincts of a capitalist one-however, to have invested so heavily in the US economy, expecting security. Once it is threatened, they go the reliable way of keeping gold as reserve. Though they still have one of the highest reserves of US dollars in cash. Had that cash backflowed into the US economy, which so liberally buys the Chinese manufactures, the stability of Dollar might not have been questioned. Though there have been discovered some inconsistencies in the domestic economical and financial institurions of the the USA, the current crisis there has a foreign dimension that could not be ignored. That is why it is the USA, which will continue to show the way one has to follow, notwithstanding the economical mess into which it is presently: That the trade has to be a two way process, and mutual confidence between the trading partners is the only security, which gold can not sustitute. The USA has a system that will correct its flaws without needing a cover up hopefully, but the same can not be said about its trading paretners, who sit on the largest reserves of its money-which speculatively is spread more outside of the USA. And When it has no choice but to print more of the dollars, it is not only the USA that will suffer.

So, the book of Judy is a limited perspective for someone looking for security of the capital one has acquired. If one goes by its logic, after the earth’s reserve is exhausted, the mankind will explore the other planets only to harvest gold. Which is only valuable for its scarcity and does not compensate for technological development and enterprise of its product. Imagine what happens if we find a planet where gold is available as we have iron or aluminium here. But the book is informative, for someone looking for how the existing monetary system of the world came into being. It is more about history than about insight into the future, in a very crafty prose. This I said almost fiftten years of the said book published. May be when it was published it was a remarkable book.

I will try to read the remainder of it. Though the book falls short of being golden than the gold.

Jet: A Birthday Gift of a House wife

November 5, 2007

A recent news widely made headlines that A leading industrialist of India bought her wife an executive jet as birthday present, costing tens of millions of dollars.

In a country where 35% people survive on less than a dollar day and 70% on less than two dollars a day, out of one billion plus people, being rich is not as glamorous as it is made out to be.

May be investing the money into starting more industries might have helped the economy and poor, instead of buying a jet for a house wife; who could deserve the biggest pack of fancy washing powder at the most. Where she may have to go?

The money through jet purchase might only return as investment that will benefit the economy of the Jet making country – more than to India. Talking of investments, India attracts FDI in a year what China gets in a week. But ten times of the investment-that comes in-flows out of India, in mostly buying assets that are not expected to make profit in the short or medium term. And this trend is applauded as the success of globalization by some Indian intellectuals, while the foreign ones applaud the democracy in India.

This particular businessman is currently eyeing the retail sector and may help in eroding a few of the jobs of 45 million retailer in India. He may not look as glamorous as Bill Gates, who makes his money while continuously adding to the intellectual capital as well. So, to buy a jet for his wife on her birthday may suit to Bill Gates, but not an Indian businessman, as executive jets are also made in the USA.

And it is the Bollywood – an industry that survives mostly on black money – stars, who are mostly on tours abroad to present a dance show to the NRI community and at times to the Mafia dons, for the better pert of the year, who end up paying the highest tax to the government of India and not this jet-gifting businessman, (who later described his wealth as Maya).