30.10.2007

• It does pay to have a quick recap of some important issues appearing in current affairs from time to time, in a form/language slightly different from what we have noted already. It will reinforce our understanding.
• PNs i.e., participatory notes are derivative instruments that have as underlying a basket of Indian stocks and are issued by affiliates of foreign portfolio investors registered in India to overseas investors who are not eligible to invest directly in the Indian markets.
• The holder of such an instrument will be able to gain from the capital appreciation of the underlying shares.
• Close to 34 sub-accounts of foreign portfolio investors have issued PNs to hedge funds and other investors.
• Karnataka’s murky politics
• President’s rule was imposed on October 9 and the assembly was placed in suspended animation after a power-sharing pact between the JD(S) and the BJP collapsed.
• But now both the opportunistic parties have come together to tell the Governor that they will form the government and that they have the requisite numbers.
• Karnataka clearly sets an example in practicing Machiavellian politics.
• Even if the Governor accepts the JD(S)-BJP combine’s claim, he can only report the matter to the union cabinet. It is the cabinet which can recommend to the President to revoke the proclamation of President’s rule and suspension of the assembly.
• Karwa Chauth
• It is a traditional Indian festival in which married women fast to pray for their husbands’ long life.
• Do you see any inequality there? Can anybody from North throw some light on whether we have an equivalent fast for men? Praying for the wife’s longevity and happiness?
• PM to head committee on land reforms
• This one really had me bowled!!!
• Why do we need a committee to be headed by a PM? Can’t he go ahead and implement land reforms as felt best by his government?
• This to me is the highest form to which procrastination can be taken to.
• What are BJP’s objections to the Indo-US nuclear deal?
• In the context of BJP’s giving its view to the US ambassador on the deal, let’s take a look at two of its major stances:
• It says that the deal should not be strategic in nature.
• It feels that the deal would deprive India of its right to conduct nuclear tests and infringe on India’s independent foreign policy.
• India’s expenditure on R&D
• India’s industry spends only about 0.5% of its sales turnover on R&D. This accounts for just about 20% the country’s total R&D expenditure.
• In contrast, the share of industry’s spend in the EU, US and Japan is 52%, 68% and 72% respectively.
• Coffee varieties – Arabica and Robusta
• Instant coffee is derived from Robusta. Non-instant coffee (the traditional home brewed variety) is derived from Arabica.
• Remember RK Narayanan’s essay on making coffee?
• BTW, Karnataka grows 70% of India’s coffee.
• Commentary on MFI bill
• The microfinance bill is under consideration of the parliamentary standing committee on finance. In a very good essay Prabhu Ghate explains various shortcomings of the bill. Read it in full here. Then remember these points for your reference:
• Savings. The bill limits permissible savings to what it calls ‘thrift’, or small, compulsory savings of uniform size made by members organized in groups.
• Exclusion of certain entities from the definition of MFIs. It excludes MFIs registered as NBFCs and Section 25 companies. These actually account for a larger portion of the total microcredit in the country.
• The bill violates the spirit and intent of the new liberal, alternative cooperative Acts enacted in 10 states which reduce the role of government in cooperation.
• The bill does not provide the sector with a form of registration uniquely suited to microfinance.
• The proposed Microfinance Development Council will be dominated by government with a purely advisory role. The MFI industry itself is not represented on this body.
• Language lessons
• “A policy striving for more orderly flows cannot be termed dirigiste” reads a sentence in today’s ET. What does dirigiste mean?
• Dirigism is an economic term signifying direction of the economy by the state, through economic planning and other types of intervention. It is the opposite of laissez-faire.
• Argentine first lady wins Presidential poll!!!
• In a first of its kind the country’s first lady Senator Cristina Kirchner won the Presidential race. Her husband Nestor Kirchner is the current President of Argentina. What a role reversal?
• Cricket
• South Africa clinches the ODI series against Pakistan with a 3-2 lead.
• Graeme Smith lead South Africa. Shoab Malik lead the Pakistan team.
• Did you ever wonder what are these ‘left’ and ‘right’ or ‘centrist’ political parties?
• At times these labels do confuse even seasoned observers of political developments. Take a look at this Wikipedia article and do navigate some links found therein to get a clear picture.