24.03.2008

• Political developments in our neighbourhood
• While Tibet is razing with anti-Chinese demonstrations, Bhutan and Pakistan are experimenting with democracy in their own characteristic ways.
• Remember the GNH concept? It stands for Gross National Happiness. It is championed by the King of Bhutan and has received accolades from the World Bank also. Bhutan is going to its first ever polls with two parties contesting the polls. Though the country was reluctant, the reform for democracy was taken up by the King. He abdicated power in December 2006.
• In Pakistan, a family loyalist of the PPP party Makhdoom Yousuf Raza Gillani is set to take over as Prime Minister when the Parliament is convened by the President. Incidentally he is the person who was arrested by President Musharraf on corruption charges and incarcerated in jail for about 5 years. We should see how the two get together during the short period the former is expected to stay keeping the seat warm for Mr. Zardari who is widely expected to take over as PM in course of time. It appears there is a constitutional hitch for him to take over as PM at the moment because he is not even an MP. Looks like one should be an MP before he can be called in as PM in Pakistan.
• Sixth pay commission report
• Papers are agog with hefty pay increases recommended by the Commission for Central government employees. Let’s look at an excerpt from the editorial comment in ET that tells something about what happened last time when the pay commission award was announced.
• The September 1997 decisions resulted in pay and pension increases of 40% and more to central government employees. And since state governments followed the Centre’s lead, the combined effect was to undo much of the progress made post reform in reducing the fiscal deficit.
• At the macro level, the combined fiscal deficit of the Centre and states rose from 6.4 % of GDP in 1996-97 to 9.9 % in 2001-02, while the revenue deficit doubled from 3.6% of GDP in 1996-97 to 7 % in 2001-02. About half this deterioration was the result of the Pay Commission hikes.
• Language lessons:
• “In the seminal ‘Shadowlines’, a book almost certain to survive the melange called Indian English writing…” reads a sentence in today’s paper. What is meant by ‘melange’ here?
• A motley assortment of things.
• Titbits about Bear Stearns
• Its stock took a free fall from $180 barely a year ago to $85.3 in January this year. On March 11 it touched $62.97. By March 17, it was trading at $3.30. It was finally acquired by JP Morgan for a mere $2 per share.
• Want some expert speak on oil economics? Who else can be a better bet than Mr. RS Sharma, the Chairman of ONGC to do that for us?
• I recommend a strong read of his piece in today’s ET. It is here. But some snippets from it for our record:
• International crude price doubled from $54 per barrel in January 2007 to $110 per barrel in March 2008.
• The fundamentals behind that spectacular rise are -- the booming energy demand, shrinking conventional resources and consequent shift in demand-supply axis. Associated dynamics like a weakening dollar, speculative activities and fear of supply disruptions from unstable resource centres have played a significant role.
• India’s demand for primary energy in 2030 is projected to be four times what we are consuming today (423 mn tonnes of oil equivalent).
• OPEC has around 73% of world’s proven reserves. One third of oil production comes from just three countries – Saudi Arabia, Russia and the US.
• Half of the world’s production comes from 100 largest fields. Most of them are more than 25 years old now.
• Out of the 85 mn barrels per day of oil that is produced, 15 mn bpd come from new finds. Incremental demand is outstripping incremental supply.
• On restructuring the US economy
• It is time for other world experts (read non US experts) to keep preferring advice on how to cure the US of its economic malady. Gives us lot of vicarious pleasure; isn’t it?
• Keeping the pleasure part of it apart, I find that the suggestions given are worth a consideration. Look at what Ramgopal Agarwala says on restructuring the world demand away from the US consumption.
• A must read for economics and finance people. The link is here.
• Why is the Rajasthan government’s bill on Freedom of Religion bad?
• Today’s Hindu editorial gives three solid reasons on this score. Look at them:
• One is that a similar bill enacted by it sometime back is awaiting President’s assent.
• Secondly, the real purpose of such bills is to pander to Hindutva sentiment and place restrictions on personal religious freedom.
• Lastly, laws that require notice and registration of conversions or otherwise intimidate and pull against the fabric of secularism and constitutionally guaranteed freedoms have no place in progressive 21^st century India.
• I know many of you may have your own reasons for agreeing or disagreeing with the above assessment. But one important point that we should know is that the Supreme Court also has ruled on the subject in its case Stanislaus vs. Madhya Pradesh, in 1977. Reportedly there are 7 states where there are anti-conversion laws. All are enabled by the SC ruling stated above.
• Justice KG Shah is dead
• He is one of the members of the Nanavati-Shah Commission probing into the post-Godhra communal riots.
• Agni III to be test fired in April 2008
• Having successfully test fired Agni I yesterday, the DRDO is planning to test fire Agni III in April. It has a range of 3500 km.
• Yesterday’s launch of Agni I was notable because it was all carried out by the user of the missile viz., the Indian Army.
• What is precision farming?
• A very good and detailed article on this appeared in today’s Hindu. Recommend a strong read of the article.
• Follow this link.