The population problem in India has acquired such a serious dimension that the stage has arrived to realize that adherence to the principle of voluntariness will not do. A family planning programme based on only education, persuasion and access to contraceptive facilities is simply not enough. There is need to formulate a population control policy which would envisage supplementation of dedicated efforts in these areas. These schemes need a drastic change rather than the present incentives and disincentives – a carrot and stick approach just to nudge the country a two child family norm.
In recent past, there has been a spate of accidents involving school children getting plunged with their school bus or getting crushed under the cruel wheels of a speeding bus/truck. Such incidents really lacerate the psyche of any civilized society. Though the drivers of such vehicles do deserve severe punishments, but the other aspect of concern is the overcrowding in the buses. This is all due to increase in population without any considerations at any level or thought by the society. Overcrowding due to more population symbolizes the ugly face of a leadership that has displayed a mind – boggling abdication of responsibility. Even as the country is bursting at the seams every government getting power at the centre has done nothing but twiddle its thumbs. Although slated to become the most populous nation on Earth within the next two decades, India does not have a population control policy in place.
The incentives – disincentives scheme at the national level to control population can cover only the organized sector. Such organized sector consists of employees of the central and state governments as well as the corporate sector in initial stages of implementation. There are about seventeen million employees under central and state governments whereas the private and public sector under corporate have only 28 million working class. Thus incentive – disincentive scheme covers only 45 million couples which is a negligible gain as compared to the overall population of the country. Such a scheme of incentive – disincentive has been debated at many occasions at the national level in various forums. The Associated Chambers of Commerce and Industry (ASSOCHAM) also prepared a document called “Population and Socio – Economic Development in India” that lists various incentives and disincentives which can be applied for a better population control policy and would be widely accepted.
Under the population control policy through incentive – disincentive scheme, the best measures can be extension of retirement age and increase in pension, educational allowances, special maternity leave with full pay upto only two children, preferential treatment in respect of house rent allowance / housing loans / purchase of vehicle for transport and cash awards to acceptors of sterilization. Further free medical treatment or reimbursement of medical expenses up to two children would be a better incentive. However, more disincentives should be imposed on those who do not follow the norm of two children. There is a need for enactment of a law under which the central and state governments as well as all companies would be mandatorily required to implement an incentive – disincentives scheme and specifically pay some minimum cash to such of their employees who go in for sterilization.
The most important incentive for securing most viable results would be providing handsome cash awards to those who accept sterilization. Truly. It is the money that “makes the mare go”. Actually neither the state nor the central governments have any scheme of sufficient cash awards for workers undergoing sterilization. The corporate do almost nothing towards such schemes of cash incentives. Rather they would give some incentive on piecemeal basis. In some of the public sector undertakings there is a provision of monetary incentive to the acceptor of sterilization in the range of Rs. 200 after two children and Rs. 150 after three children. Such undertakings must also provide an incentive of Rs. 500 for accepting sterilization to an employee after the first child.
The government companies or the private sector don’t understand the traumatic experiences at a personal level faced by the workers both during vasectomy and tubectomy. The meager cash awards of Rs. 200 or Rs. 300 amounts to the mocking of the system. The cash incentive must be made very attractive with a base level fixed at minimum of Rs. 3000 for sterilization. The corporate sector has also shown very disappointing approach towards implementation of such incentive schemes in their companies. This is despite of the fact that all expenditure on promotion of family planning is eligible for 100 percent tax rebate under section 36(I) of the Income Tax.
In addition to the above method of population control, there are other incentives which can be given to employees who do not go for sterilization but use other methods of contraception like the pill, IUCD or condom. The only difference will be that the monetary benefit would be of a deferred nature. Under such schemes, certain fixed amount can be deposited by the organization periodically in an account to be opened in the name of the beneficiary. This accumulated amount can be given when the wife of the employee reaches the menopausal age of say 45 years. However, if the couple gets a third child, the accumulated amount must be forfeited altogether. This way, each employee will be having an inspiration that he can get so much accumulated sum after certain number of years. Such amounts will be available to the employees without contributing anything from their own pockets.
Wednesday, October 1, 2008
Computerization in Banks
Almost a decade ago, automation was introduced into the Indian Banks. During this time, personal computers and servers have been installed and are being continuously installed along with banking software packages at various branches. This has automatised many of the bank branches’ activities. But this has still to be met as per the banks expectations and help deliver enhanced customer service. We have to enter into new markets and deploy new products quickly to get the best out of this automatisation.
But the point to be seen is, whether all these products are friendly with the customers and profitable to the banks. Is this network enough to move both information and money efficiently. Is the top management of the banks getting the right information on time to enable them take better and faster decisions. Whether the technology which we are using today is open enough to integrate seamlessly with emerging technologies. Such type of questions are arising increasingly in the present liberalized and highly competitive environment. Many nationalized banks are not ready to accept the same. All the issues associated with the above automation stem from two main things. Firstly, the drawbacks of the existing branch banking software and secondly the lack of networking infrastructure are the main constraints. Both combine to create islands of information which do not help effective decision making.
Existing branch banking applications do not afford some very important facilities such as the bank cannot deploy new retail products and new delivery methods quickly and economically. And then the bank branch cannot have an enterprise – wide view of its assets, liabilities and profitability. Further the banks cannot integrate corporate and treasury operations to gain synergies. Only a centralized banking solution can enable the provision of facilities which are critical to the efficient and effective functioning of a bank. A centralized banking solution does not mean a main frame.
In fact, the latest advanced solutions run on powerful saleable, secure and cost effective systems. With such centralized solutions, the bank can retain or simply upgrade its existing software and hardware. These solutions give the bank the flexibility to start computerization at a lower scale with few branches and scale upwards afterwards and connect hundreds of branches in a multi – tier manner.
In the present Indian scenario, there is a preponderance of brick and mortar branches and any solution which does not provide for a minimum data base at a branch for operations purposes will not work when the number of branches multiply to higher numbers. Actually, the banks buy only when they need to expand services or add new facilities. Contrary to this, solutions available on proprietary mainframe technology do not enable the banks to start small and also have very high incremental costs. These solutions were designed in an older era and are hence rigid when it comes to customizing especially for Indian conditions. The proprietary mainframe based solutions do not provide for a smaller backup database at the branch level. The risk of having all customer data residing only at the head – office is well known.
A more realistic approach is provided by the open UNIX and Windows NT based solutions. In addition to the central database the head office, there are lean branch databases which allow customers to avail of banking services even during communication link failures which is not at all an uncommon phenomenon in India. And because of the cost effectiveness of the open technology, this combination of the central server and small branch servers alongwith their databases is far more economical than the expensive proprietary mainframe and proprietary database and cost – effective to maintain and upgrade in the longer run.
It is imperative that Indian banks start to seriously consider migrating to a centralized banking approach which is flexible and based on open technology. It is the most cost – effective way to increase back office efficiency which would enhance front – office effectiveness. With this centralized banking customers get more varied and faster services. The customer will have access to “anywhere banking” wherein anybody can transact against his account from any of the bank’s designated retail outlets/branches. The customer can have banking as per his convenient timings. Customers will be able to have comprehensive account sweep and on-line funds transfer facility which will enable better funds management for large corporate customers. This will remove time consuming inter branch reconciliation and transactions between branches is sorted and stored at the head office system and resolved before being posted. A relationship banking practice is possible with centralized information of the customers. The customers are treated in a more holistic manner rather than as a set of accounts.
With centralized banking, it is easily possible for the customers to avail custom made & innovative products more quickly. Centralized solutions are usually highly parameterized softwares and changing combinations of various parameters give rise to new banking products. Hence defining and implementing new banking products becomes much faster and easier for everybody. Further, a centralized system on open and latest technology insulates the bank from any type of obsolescence by providing a standard based architecture using client server, Web technologies and distributed objects. The bank also has the option of individually implementing forex, securities operations and money markets in day to day operations.
But the point to be seen is, whether all these products are friendly with the customers and profitable to the banks. Is this network enough to move both information and money efficiently. Is the top management of the banks getting the right information on time to enable them take better and faster decisions. Whether the technology which we are using today is open enough to integrate seamlessly with emerging technologies. Such type of questions are arising increasingly in the present liberalized and highly competitive environment. Many nationalized banks are not ready to accept the same. All the issues associated with the above automation stem from two main things. Firstly, the drawbacks of the existing branch banking software and secondly the lack of networking infrastructure are the main constraints. Both combine to create islands of information which do not help effective decision making.
Existing branch banking applications do not afford some very important facilities such as the bank cannot deploy new retail products and new delivery methods quickly and economically. And then the bank branch cannot have an enterprise – wide view of its assets, liabilities and profitability. Further the banks cannot integrate corporate and treasury operations to gain synergies. Only a centralized banking solution can enable the provision of facilities which are critical to the efficient and effective functioning of a bank. A centralized banking solution does not mean a main frame.
In fact, the latest advanced solutions run on powerful saleable, secure and cost effective systems. With such centralized solutions, the bank can retain or simply upgrade its existing software and hardware. These solutions give the bank the flexibility to start computerization at a lower scale with few branches and scale upwards afterwards and connect hundreds of branches in a multi – tier manner.
In the present Indian scenario, there is a preponderance of brick and mortar branches and any solution which does not provide for a minimum data base at a branch for operations purposes will not work when the number of branches multiply to higher numbers. Actually, the banks buy only when they need to expand services or add new facilities. Contrary to this, solutions available on proprietary mainframe technology do not enable the banks to start small and also have very high incremental costs. These solutions were designed in an older era and are hence rigid when it comes to customizing especially for Indian conditions. The proprietary mainframe based solutions do not provide for a smaller backup database at the branch level. The risk of having all customer data residing only at the head – office is well known.
A more realistic approach is provided by the open UNIX and Windows NT based solutions. In addition to the central database the head office, there are lean branch databases which allow customers to avail of banking services even during communication link failures which is not at all an uncommon phenomenon in India. And because of the cost effectiveness of the open technology, this combination of the central server and small branch servers alongwith their databases is far more economical than the expensive proprietary mainframe and proprietary database and cost – effective to maintain and upgrade in the longer run.
It is imperative that Indian banks start to seriously consider migrating to a centralized banking approach which is flexible and based on open technology. It is the most cost – effective way to increase back office efficiency which would enhance front – office effectiveness. With this centralized banking customers get more varied and faster services. The customer will have access to “anywhere banking” wherein anybody can transact against his account from any of the bank’s designated retail outlets/branches. The customer can have banking as per his convenient timings. Customers will be able to have comprehensive account sweep and on-line funds transfer facility which will enable better funds management for large corporate customers. This will remove time consuming inter branch reconciliation and transactions between branches is sorted and stored at the head office system and resolved before being posted. A relationship banking practice is possible with centralized information of the customers. The customers are treated in a more holistic manner rather than as a set of accounts.
With centralized banking, it is easily possible for the customers to avail custom made & innovative products more quickly. Centralized solutions are usually highly parameterized softwares and changing combinations of various parameters give rise to new banking products. Hence defining and implementing new banking products becomes much faster and easier for everybody. Further, a centralized system on open and latest technology insulates the bank from any type of obsolescence by providing a standard based architecture using client server, Web technologies and distributed objects. The bank also has the option of individually implementing forex, securities operations and money markets in day to day operations.
Pen is Mightier than the Sword
Pen stands for expression, for literature, for what comes out of a writer’s pen. And it is true that literature or writing wields far more power than arms can ever wield. Battles are fought over a certain period time and within a particular area. They certainly affect and influence events but in a limited way. The effect of the pen or literature is wide. Sometimes it is universal. The messages of Buddha, Christ, Confucius, Gandhi and Marx are universal in their appeal. They are valid for all times and for all climes. The sword has a physical effect, it hardly affects times and for all climes. The sword has a physical effect, it hardly affects the mind and the spirit, while the pen affects the mind, intellect and spirit. The latter can shape the minds, hearts and spirit of people in a desired way if only the wielder has the mastery of its use in the required measure.
The pen is a source of power and inspiration for all times and for people in all walks of life. The fact of superiorty of the pen over the sword should not lead us to believe that the sword has no value. Arms have changed history. Sometimes only force brings about results. When everything fails, when persuasion negotiations etc., fail, the use force to teach Ravan a lesson. Arms were used to ensure the victory of the forces of good over the forces of evil. If the great war of Mahabharat had not been fought, the forces of evil which the Kauravas represented would have continued to plague the kingdom and the rule of justice and righteousness could never have been established. Lord Krishna, therefore, induced Arjuna to fight a violent war to destroy the forces of evil and rehabilitate the rule of the right.
There is might in the sword, nobody can gain say this, but there is more might in the pen. The American Revolution of 1776 was the product of the writings of a host of political philosophers and statesmen. The very slogan of liberty, equality and pursuit of happiness raised in their writings by the American revolutionaries and almost the identical slogan liberty, equality and fraternity raised in the writings of French revolutionaries not only did much to change the history of these two countries, but also revolutionized the very thought and outlook of the people about the role of the state. It is a matter of common knowledge for a student of History that, what Benjamin Franklin, Hamilton and Thomas Jefferson in America and Rousseau, Voltaire and Motesquieu in France, could do by their writings could never have been achieved by was an outburst of the centuries old people’s grievances, but the background for it had been prepared by the writings of a host of creative writers as well as statesmen like Trotsky and Lenin.
Erroneous view is held by some people that the sword is mightier than the pen. They actually do not understand the meaning of pen. When comparing with the sword they have in mind only some object six inches long with which one can write. This object of six inches in length and about one inch in thickness compares ridiculously in power with the one or two feet long sword with sharp edges, the very sight of which sends shudders of fear down the spine.
What Gandhi could achieve by the use of his pen could never be achieved by thousand of strong emperors ruling by the force of their arms. The writings of a host of patriotic writers and men of literature contributed very significantly to burning of the fire of patriotic zeal in the hearts of the multitudes of people and inspiring them to sacrifice their lives for the sake of freedom. V.D. Savarkar’s ‘Indian war of Independence’, Lala Lajpatrai’s ‘Unhappy India’, the fiery messages of Swami Vivekanand exercised much greater power than the actual thought which issued from the minds of a host of individuals and liberal writers has done more in democratizing and socializing our attitudes.
An important role in preserving human civilization from the onslaught of barbarism can be played by the strength of a pen only. A writer can make the whole world see things in their true light and facts of life. They can really make the world aware of the tragic horrors of wars, racial wars and ideological wars of all types. It is only false propaganda that cause of spread of violence. Only a writer can conquer such a lie. Writers can move the soul and touch the hearts of the affected people in great depth. The writings can serve a powerful and swift force waging a relentless struggle for the dignity and glory of human soul.
It is the strength of the pen only, which can stress the similarity rather than the differences between people living at distant places. A writer can create a better understanding of each other’s problems and thus lessen strife and conflicts. All types of wars and battles emerge from misunderstandings which can be resolved by a powerful instrument of the writer’s pen. The concept of ‘One world’ becomes real and effective only through the words of a writer.
The pen is a source of power and inspiration for all times and for people in all walks of life. The fact of superiorty of the pen over the sword should not lead us to believe that the sword has no value. Arms have changed history. Sometimes only force brings about results. When everything fails, when persuasion negotiations etc., fail, the use force to teach Ravan a lesson. Arms were used to ensure the victory of the forces of good over the forces of evil. If the great war of Mahabharat had not been fought, the forces of evil which the Kauravas represented would have continued to plague the kingdom and the rule of justice and righteousness could never have been established. Lord Krishna, therefore, induced Arjuna to fight a violent war to destroy the forces of evil and rehabilitate the rule of the right.
There is might in the sword, nobody can gain say this, but there is more might in the pen. The American Revolution of 1776 was the product of the writings of a host of political philosophers and statesmen. The very slogan of liberty, equality and pursuit of happiness raised in their writings by the American revolutionaries and almost the identical slogan liberty, equality and fraternity raised in the writings of French revolutionaries not only did much to change the history of these two countries, but also revolutionized the very thought and outlook of the people about the role of the state. It is a matter of common knowledge for a student of History that, what Benjamin Franklin, Hamilton and Thomas Jefferson in America and Rousseau, Voltaire and Motesquieu in France, could do by their writings could never have been achieved by was an outburst of the centuries old people’s grievances, but the background for it had been prepared by the writings of a host of creative writers as well as statesmen like Trotsky and Lenin.
Erroneous view is held by some people that the sword is mightier than the pen. They actually do not understand the meaning of pen. When comparing with the sword they have in mind only some object six inches long with which one can write. This object of six inches in length and about one inch in thickness compares ridiculously in power with the one or two feet long sword with sharp edges, the very sight of which sends shudders of fear down the spine.
What Gandhi could achieve by the use of his pen could never be achieved by thousand of strong emperors ruling by the force of their arms. The writings of a host of patriotic writers and men of literature contributed very significantly to burning of the fire of patriotic zeal in the hearts of the multitudes of people and inspiring them to sacrifice their lives for the sake of freedom. V.D. Savarkar’s ‘Indian war of Independence’, Lala Lajpatrai’s ‘Unhappy India’, the fiery messages of Swami Vivekanand exercised much greater power than the actual thought which issued from the minds of a host of individuals and liberal writers has done more in democratizing and socializing our attitudes.
An important role in preserving human civilization from the onslaught of barbarism can be played by the strength of a pen only. A writer can make the whole world see things in their true light and facts of life. They can really make the world aware of the tragic horrors of wars, racial wars and ideological wars of all types. It is only false propaganda that cause of spread of violence. Only a writer can conquer such a lie. Writers can move the soul and touch the hearts of the affected people in great depth. The writings can serve a powerful and swift force waging a relentless struggle for the dignity and glory of human soul.
It is the strength of the pen only, which can stress the similarity rather than the differences between people living at distant places. A writer can create a better understanding of each other’s problems and thus lessen strife and conflicts. All types of wars and battles emerge from misunderstandings which can be resolved by a powerful instrument of the writer’s pen. The concept of ‘One world’ becomes real and effective only through the words of a writer.
Role of India Towards World Peace
India is a peace – loving country and has been the member of the United Nations from the very existence of the United Nation Organisation. India has always played a key role in bringing peace to various countries on war and thus fulfilling the objective of the UNO. It has also been an active member of the various agencies of the UNO like the UNESCO, the WHO and the UNICEF. Once the President of the General Assembly of the UNO was Mrs. Vijayalakshmi Pandit. India has also been elected as a member of the Security Council.
Soon after the World War II, it was observed that many countries of the world got divided into two major groups. These two groups of various countries could not tolerate any development or progress of the member nations of the other group which was lead by the then Soviet Union. Many countries were tempted to join these groups based on the military pacts. It was appearing that there could be another war the way things were moving. Such a war would have stopped the progress and new development activities taking place in India. Poor countries were poised for a great danger to their existence. It was our late Prime Minister Panidt Jawahar Lal Nehru who foresaw the danger and was deeply concerned. He started consultations and discussions with leaders of various countries like Egypt and Yugoslavia. At the same time, he began to caution the poor nations about the disastrous impacts and consequences of the war and danger to the freedom of these nations. Thus leaders of these countries joined under one umbrella and jointly laid down five principles of cooperation with each other. Thus the Non – Aligned Movement took birth and it became a big movement.
The starting of Non-Aligned Movement at the initiative of India prevented the small nations from joining military pacts and leading to world peace. With the passage of time, more and more countries realized its importance and joined in this movement for security of their country. As on date, more than one hundred member nations of the UNO are the members of the Non – Aligned Movement. All these countries want to have peace and get assurance that their freedom is not lost. India has contributed its maximum in echoing the concern of the poor and small nations in the United Nations.
During the conflict of Iran – Irag, India had sent its forces to ensure peace. At the request of the UNO, India deputed its soldiers in Korea to bring about peace in that part of the World. Similar work was also carried out in Zaire.
India has always raised its voice against injustice taking place anywhere in the world so that each one has peace. The oppression of the Blacks by the Whites minority in South Africa was strongly opposed by India. A world opinion was formed against South African policy of apartheid (discrimination based on colour) for the Blacks. It argued for equal rights for them and no discrimination against them. Even the cause of freedom for Palestinians from the Israel has been widely supported by the Government of India.
Soon after the World War II, it was observed that many countries of the world got divided into two major groups. These two groups of various countries could not tolerate any development or progress of the member nations of the other group which was lead by the then Soviet Union. Many countries were tempted to join these groups based on the military pacts. It was appearing that there could be another war the way things were moving. Such a war would have stopped the progress and new development activities taking place in India. Poor countries were poised for a great danger to their existence. It was our late Prime Minister Panidt Jawahar Lal Nehru who foresaw the danger and was deeply concerned. He started consultations and discussions with leaders of various countries like Egypt and Yugoslavia. At the same time, he began to caution the poor nations about the disastrous impacts and consequences of the war and danger to the freedom of these nations. Thus leaders of these countries joined under one umbrella and jointly laid down five principles of cooperation with each other. Thus the Non – Aligned Movement took birth and it became a big movement.
The starting of Non-Aligned Movement at the initiative of India prevented the small nations from joining military pacts and leading to world peace. With the passage of time, more and more countries realized its importance and joined in this movement for security of their country. As on date, more than one hundred member nations of the UNO are the members of the Non – Aligned Movement. All these countries want to have peace and get assurance that their freedom is not lost. India has contributed its maximum in echoing the concern of the poor and small nations in the United Nations.
During the conflict of Iran – Irag, India had sent its forces to ensure peace. At the request of the UNO, India deputed its soldiers in Korea to bring about peace in that part of the World. Similar work was also carried out in Zaire.
India has always raised its voice against injustice taking place anywhere in the world so that each one has peace. The oppression of the Blacks by the Whites minority in South Africa was strongly opposed by India. A world opinion was formed against South African policy of apartheid (discrimination based on colour) for the Blacks. It argued for equal rights for them and no discrimination against them. Even the cause of freedom for Palestinians from the Israel has been widely supported by the Government of India.
Tuesday, September 30, 2008
The Stock Market Scandal: Role of Banks
The Indian economy is in the throes of a recession. But its fundamentals are still strong. But the Indian stock market is not going with a steady rise and it is more or less fluctuating towards a downward trend. The forex exchange situation of the country has slid a wee bit from $30 billion to $27 billion, but that still is a strong position. Inflation is low. Interest rates are pretty low, but picking up nevertheless. Short term interest rates have hardened, which is a sign of improving economic activity. However, capital expenditure and project financing have taken a beating, chiefly because excess capacities were built up during the heady days preceding the current slowdown. Since demand has not lived up to expectation, these capacities have remained idle.
It was a paradox to observe select non-banking finance companies (NBFC) stock rising on the bourses when Reserve Bank of India unleashed tighter norms regulating these companies accepting public deposits. The outcome of the regulations would be to make the scenario more competitive and reduce the overall spreads thereby impairing profitability. On the other hand, RBI has failed to stipulate what action would be taken against those who default in repayment of fixed deposits, fail to meet the required criteria or exceed the prescribed limits. Surprisingly, fixed deposits accepted by an manufacturing companies have not been touched by the fresh set of regulations. As a result, the objective with which RBI initiated new regulations is not clear. It seems to be just to reduce the number of NBFCs in the country. Rather the objective should have been to discipline the companies accepting the fixed deposits and initiate strict punitive measures against those defaulting in repayments and those exceeding the prescribed limits. The only good step is that companies getting owe than A rating would not be allowed to access deposits from the market.
The year 1997 could probably be looked at as one of the worst years for the primary market in the recent times. During this year, only 128 number of offers could tap the market through corporates mobilized Rs. 5032 crores against 1445 issues in the year’95 which mobilized Rs. 14576 crores and 1183 issues raised Rs. 12400 crores in the year ’96. it seems to be the repercussion of plethora of issues that had tapped the market in last three years and thereafter left their investors in the lurch. All types of companies flooded the market with many issues during the last three years. Investors invested their hard earned money in hope of high returns, but contrary to their expectations there were no buyers for their investments. This resulted in no quotation of these companies today leaving aside any returns on investments. Belatedly, regulatory body awoke from its slumber and tightened the entry barriers, specifically related with finance business. Now as per the SEBI guidelines a manufacturing company needs to have three years dividend paying track record to tap the market. A new company can come to market only if it has five percent participation of FIs / Banks in their projects.
From the face of the Indian stock – market, the small investor has been virtually wiped off. It is evident from a recent survey by the Federation of Indian Chamber of Commerce that the household’s sector investments in shares and debentures have dipped since 93 – 94 and now account for just 0.5% of the gross domestic product. Much of the apathy of the small investor can be attributed to the poor state of the country’s primary and secondary markets. While some of the basic reasons behind the decline of the primary market are macro-economic, such as the credit squeeze in the economy. In the secondary market also, excessive speculation, sharp volatility, and systemic problems played havoc with the small investors’ confidence in the capital markets.
As a direct sequel to the present debacle, record competitiveness is a persistent argument for a weaker rupee. And how, as an extreme measure, the Reserve Bank of India has hardened its stand to prevent a further downfall in the rupee. From this standpoint, it is time to look at the fundamental issues which intrinsically guide the movement of a currency, like interest rates which can affect stock markets to a greater extent. Clearly, some banks are yet to learn their lessons. In the circumstances, it would be a gross mistake to assume that the round of hikes in Prime Lending Rates is due to any lack of liquidity in the system at large. We must distinguish between what is essentially the consequence of an asset – liability mismatch in individual banks and a systemic problem for banking sector as a whole.
It was a paradox to observe select non-banking finance companies (NBFC) stock rising on the bourses when Reserve Bank of India unleashed tighter norms regulating these companies accepting public deposits. The outcome of the regulations would be to make the scenario more competitive and reduce the overall spreads thereby impairing profitability. On the other hand, RBI has failed to stipulate what action would be taken against those who default in repayment of fixed deposits, fail to meet the required criteria or exceed the prescribed limits. Surprisingly, fixed deposits accepted by an manufacturing companies have not been touched by the fresh set of regulations. As a result, the objective with which RBI initiated new regulations is not clear. It seems to be just to reduce the number of NBFCs in the country. Rather the objective should have been to discipline the companies accepting the fixed deposits and initiate strict punitive measures against those defaulting in repayments and those exceeding the prescribed limits. The only good step is that companies getting owe than A rating would not be allowed to access deposits from the market.
The year 1997 could probably be looked at as one of the worst years for the primary market in the recent times. During this year, only 128 number of offers could tap the market through corporates mobilized Rs. 5032 crores against 1445 issues in the year’95 which mobilized Rs. 14576 crores and 1183 issues raised Rs. 12400 crores in the year ’96. it seems to be the repercussion of plethora of issues that had tapped the market in last three years and thereafter left their investors in the lurch. All types of companies flooded the market with many issues during the last three years. Investors invested their hard earned money in hope of high returns, but contrary to their expectations there were no buyers for their investments. This resulted in no quotation of these companies today leaving aside any returns on investments. Belatedly, regulatory body awoke from its slumber and tightened the entry barriers, specifically related with finance business. Now as per the SEBI guidelines a manufacturing company needs to have three years dividend paying track record to tap the market. A new company can come to market only if it has five percent participation of FIs / Banks in their projects.
From the face of the Indian stock – market, the small investor has been virtually wiped off. It is evident from a recent survey by the Federation of Indian Chamber of Commerce that the household’s sector investments in shares and debentures have dipped since 93 – 94 and now account for just 0.5% of the gross domestic product. Much of the apathy of the small investor can be attributed to the poor state of the country’s primary and secondary markets. While some of the basic reasons behind the decline of the primary market are macro-economic, such as the credit squeeze in the economy. In the secondary market also, excessive speculation, sharp volatility, and systemic problems played havoc with the small investors’ confidence in the capital markets.
As a direct sequel to the present debacle, record competitiveness is a persistent argument for a weaker rupee. And how, as an extreme measure, the Reserve Bank of India has hardened its stand to prevent a further downfall in the rupee. From this standpoint, it is time to look at the fundamental issues which intrinsically guide the movement of a currency, like interest rates which can affect stock markets to a greater extent. Clearly, some banks are yet to learn their lessons. In the circumstances, it would be a gross mistake to assume that the round of hikes in Prime Lending Rates is due to any lack of liquidity in the system at large. We must distinguish between what is essentially the consequence of an asset – liability mismatch in individual banks and a systemic problem for banking sector as a whole.
The United Nations
The United Nations came into existence in the year 1945 i.e. the year in which World War II came to an end. The World War Ii had caused great miseries and destruction throughout the world. Cities and towns were ruined and industries destroyed. Hundreds and thousand of people lost their lives and livelihood. Then mankind could understand that waging wars of this magnitude was the greatest folly. It became clearly evident that the next world war would be far more fierce which could destroy the whole of humanity and the world. It was thought that enormours wealth which is spent on wars could be used to bring happiness, prosperity and development for all the nations. It was this very though that gave birth to the establishment of the United Nations.
The first and foremost aim of United Nations Organisation (UNO) known as U.N. is to promote peace and security for every nation by avoiding every kind of war. UNO also made a declaration of human rights which included right of every human being to live as a free citizen and have equal rights to education, travel, worship and no discrimination based on religion or sex. The UNO has been trying very hard to implement these human rights through the active support and cooperation of the member nations. During the last fifty eight years of its existence, UNO, through its most important organ the Security Council, is trying its best to maintain peace among the member countries. It is always ready to listen to the problems of the member countries and tries to sort out them through discussions at various forums. During this period, UNICEF which another agency of UNO is helping various countries in programmes of education of children, in teacher training, in the education of disabled children etc.,
Many countries have been benefited from the works of UNICE. One such programme in India is ‘Anganwadi’ for the development of poor children for their education, health and entertainment. Another important organization of the UNO is the World Health Organisation (WHO) which is helping nations to improve their health services by preventing spread of diseases.
UNO has still on hand various problems with which it started fifty eight years back. These problems are many and varied out of which world peace and security of each nation are the basic problems. Then there are problems of poor health, lack of education, uncontrollable population growth, poverty in many countries and illiteracy. Now everything depends upon how all these problems are tackled. The UNO has taken the lead role in preventing the use of atomic and other destructive weapons. Now there are signs that the world is gradually realizing the dangers in production and piling up of destructive weapons.
The outbreak of war on various occasions has been prevented by U.N.O. A war between England and Egypt over the question of Suez Canal was prevented and it checked the Korean war & Arab – Israel war from turning into a world war. In fact, UNO is the only hope of world peace in the present scenario. It is the efforts of UNO that ceasefire could be achieved between Irag and Iran and thus a decade old war was stopped from turning into a World War. It has also tried to solve the problem of Kashmir between India and Pakistan, though this issue is still lingering on and Pakistan is trying to take advantage of everything and at the same time creating terror in the valley.
Many countries think that UNO is dominated by the US block and it is not able to work impartially. They believe that UNO could not do anything to solve the problem of Vietnam which was attacked by USA in a very severe manner. Also the genocide of East Bengal could not be stopped by it. Even Israel invaded Leabanon and massacred thousands of innocent Palestininians and UNO could not do anything. The big five countries make the working of UNO ineffective by exercising their veto power at the time of crucial decisions. It was only after twenty – five long years of efforts that Red China got its appropriate status in this organization. However, in spite of all such shortcomings, the membership of UNO is increasing with the passage of time and always more & more countries are opting to be member of the UNO. To make it a big success, it requires the help and cooperation of all the member nations. It is essential that membership of the Security Council should be increased so as to give this organization a universal look for welfare of mankind. No single country (USA) should be allowed to dominate the proceedings of this organization. This world power rather should work with a constructive and progressive attitude towards all the nations.
The first and foremost aim of United Nations Organisation (UNO) known as U.N. is to promote peace and security for every nation by avoiding every kind of war. UNO also made a declaration of human rights which included right of every human being to live as a free citizen and have equal rights to education, travel, worship and no discrimination based on religion or sex. The UNO has been trying very hard to implement these human rights through the active support and cooperation of the member nations. During the last fifty eight years of its existence, UNO, through its most important organ the Security Council, is trying its best to maintain peace among the member countries. It is always ready to listen to the problems of the member countries and tries to sort out them through discussions at various forums. During this period, UNICEF which another agency of UNO is helping various countries in programmes of education of children, in teacher training, in the education of disabled children etc.,
Many countries have been benefited from the works of UNICE. One such programme in India is ‘Anganwadi’ for the development of poor children for their education, health and entertainment. Another important organization of the UNO is the World Health Organisation (WHO) which is helping nations to improve their health services by preventing spread of diseases.
UNO has still on hand various problems with which it started fifty eight years back. These problems are many and varied out of which world peace and security of each nation are the basic problems. Then there are problems of poor health, lack of education, uncontrollable population growth, poverty in many countries and illiteracy. Now everything depends upon how all these problems are tackled. The UNO has taken the lead role in preventing the use of atomic and other destructive weapons. Now there are signs that the world is gradually realizing the dangers in production and piling up of destructive weapons.
The outbreak of war on various occasions has been prevented by U.N.O. A war between England and Egypt over the question of Suez Canal was prevented and it checked the Korean war & Arab – Israel war from turning into a world war. In fact, UNO is the only hope of world peace in the present scenario. It is the efforts of UNO that ceasefire could be achieved between Irag and Iran and thus a decade old war was stopped from turning into a World War. It has also tried to solve the problem of Kashmir between India and Pakistan, though this issue is still lingering on and Pakistan is trying to take advantage of everything and at the same time creating terror in the valley.
Many countries think that UNO is dominated by the US block and it is not able to work impartially. They believe that UNO could not do anything to solve the problem of Vietnam which was attacked by USA in a very severe manner. Also the genocide of East Bengal could not be stopped by it. Even Israel invaded Leabanon and massacred thousands of innocent Palestininians and UNO could not do anything. The big five countries make the working of UNO ineffective by exercising their veto power at the time of crucial decisions. It was only after twenty – five long years of efforts that Red China got its appropriate status in this organization. However, in spite of all such shortcomings, the membership of UNO is increasing with the passage of time and always more & more countries are opting to be member of the UNO. To make it a big success, it requires the help and cooperation of all the member nations. It is essential that membership of the Security Council should be increased so as to give this organization a universal look for welfare of mankind. No single country (USA) should be allowed to dominate the proceedings of this organization. This world power rather should work with a constructive and progressive attitude towards all the nations.
Terrorism The Social Evil
Terrorism has become a world wide phenomenon these days. What precisely do the terrorists prefer to call themselves when they gain nothing by attacking common, innocent people whose death or maiming does not better the strategic or tactical position of terrorists. Common man begins to hate them and is ready to denounce them as soon as he thinks it safe. Thus terrorism becomes a social evil.
Terrorist acts can hardly help their perpetrators towards realizing political plans and programmes. Unless, of course, the terrorists are funded by outside powers that have no considerations and sympathy for their slated cause but are interested in destablilising the victim nation. Today, those governments which support terrorism in adjacent areas and think that the result would develop into a Vietnam like situation, are heading for rude disillusionment.
Terrorist groups have usually sought to justify their cowardly attacks on uninvolved persons and destructions by claiming that it is done for the “patriotic purpose of freedom and sovereignty” Debate has often tended to centre on ways of looking at it. In fact, crime by one is considered as a revolution by the other. This appears to be more and more of non-sense.
The killing, maiming and kidnapping of innocent and unconcerned persons in terrorist act, such as recent bomb blasts in Delhi, is just plain crime. United Nations has also now given its seal of authorization to this view. The bomb blasts are in addition to terrorists killing by gunfire and destruction of places of worship. There is no reason for the killings other than, apparently, to create panic and instability in the local administration. Innumerable killings by gunfire or bomb explosions have taken place in Assam, Jammu & Kashmir and in other parts of the north – east, and various other cities.
The evil of terrorism has grown basically in two kinds namely political terrorism and criminal terrorism. Political terrorism seeks to achieve its political gains by spreading panic and creating fear in the hearts of people on a large scale. Their ultimate aim is to get political power through there muscle power. Then there is criminal terrorism which indulges in extracting large amounts of money as ransom by kidnappings and hijackings etc. Very often it is found that terrorists have received their training and guidance in using various weapons from various terrorists outfits. Terrorists operating in Punjab were found to have all training, weapons and other forms of material assistance from a neighbouring country. Also all terrorist groups, which are active in Jammu & Kashmir, receive their assistance in all respects from an adjoining country.
The unity and integrity fo our country has always been threatened by the forces of terrorism. For dealing with terrorists, our government passed the Anti terrorist Act which provides for deterrent punishment for terrorist acts. The Act has also provision to punish anyone indulging in “disruptive activities” which may lead to harm the sovereignty or the territorial integrity of our nation. The use of religious places for political gains, for taking shelter by anti-social elements and for creating communalism has also been prohibited by enactment of laws. Terrorists actually continuously change their hide – outs and their tactics to prevent arrest and punishment. Even if they get arrested they try to commit suicide using poisonous capsules or they are killed by their own associates so that, no information is passed on to the police under severe punishment.
The law enforcing agencies alone cannot curb the acts of terrorism. To remove this social evil, terrorism needs to be controlled through negotiations to usher in an era of co-operation instead of confrontation. The UN General Assembly also adopted a twenty – four article International Convention for the Suppression of Terrorist Bombings by means of a resolution : “Criminal acts intended to provoke terror in the general public or a group of persons are unjustifiable, whatever be the considerations political, religious, ethnic or ideological.
To tackle the problem of terrorism in India, it would be worth while to identify its causes in order to work out a strategy. It is observed that terrorism is direct action not for achieving something but for quenching the fire of vengeance against those who are responsible for their misery. A conciliatory approach is the need of the hour. Confrontationist measures will not solve the problem in our contry. It is essential that the warm – blooded youth, especially those who have a tendency to take to terrorism must be involved in decision making processes. There should be quick and right decisions. No injustice should be done with anybody. Good examples of honesty and integrity will have to be set forth by the leaders themselves. Their actions must be faithful and above board in order to inspire confidence in one and all.
Our whole educational system also needs to be restructured and streamlined. It should use each ounce of energy of youth for constructive purposes so that they may not be induced to adopt violence as their creed and dead.
Terrorist acts can hardly help their perpetrators towards realizing political plans and programmes. Unless, of course, the terrorists are funded by outside powers that have no considerations and sympathy for their slated cause but are interested in destablilising the victim nation. Today, those governments which support terrorism in adjacent areas and think that the result would develop into a Vietnam like situation, are heading for rude disillusionment.
Terrorist groups have usually sought to justify their cowardly attacks on uninvolved persons and destructions by claiming that it is done for the “patriotic purpose of freedom and sovereignty” Debate has often tended to centre on ways of looking at it. In fact, crime by one is considered as a revolution by the other. This appears to be more and more of non-sense.
The killing, maiming and kidnapping of innocent and unconcerned persons in terrorist act, such as recent bomb blasts in Delhi, is just plain crime. United Nations has also now given its seal of authorization to this view. The bomb blasts are in addition to terrorists killing by gunfire and destruction of places of worship. There is no reason for the killings other than, apparently, to create panic and instability in the local administration. Innumerable killings by gunfire or bomb explosions have taken place in Assam, Jammu & Kashmir and in other parts of the north – east, and various other cities.
The evil of terrorism has grown basically in two kinds namely political terrorism and criminal terrorism. Political terrorism seeks to achieve its political gains by spreading panic and creating fear in the hearts of people on a large scale. Their ultimate aim is to get political power through there muscle power. Then there is criminal terrorism which indulges in extracting large amounts of money as ransom by kidnappings and hijackings etc. Very often it is found that terrorists have received their training and guidance in using various weapons from various terrorists outfits. Terrorists operating in Punjab were found to have all training, weapons and other forms of material assistance from a neighbouring country. Also all terrorist groups, which are active in Jammu & Kashmir, receive their assistance in all respects from an adjoining country.
The unity and integrity fo our country has always been threatened by the forces of terrorism. For dealing with terrorists, our government passed the Anti terrorist Act which provides for deterrent punishment for terrorist acts. The Act has also provision to punish anyone indulging in “disruptive activities” which may lead to harm the sovereignty or the territorial integrity of our nation. The use of religious places for political gains, for taking shelter by anti-social elements and for creating communalism has also been prohibited by enactment of laws. Terrorists actually continuously change their hide – outs and their tactics to prevent arrest and punishment. Even if they get arrested they try to commit suicide using poisonous capsules or they are killed by their own associates so that, no information is passed on to the police under severe punishment.
The law enforcing agencies alone cannot curb the acts of terrorism. To remove this social evil, terrorism needs to be controlled through negotiations to usher in an era of co-operation instead of confrontation. The UN General Assembly also adopted a twenty – four article International Convention for the Suppression of Terrorist Bombings by means of a resolution : “Criminal acts intended to provoke terror in the general public or a group of persons are unjustifiable, whatever be the considerations political, religious, ethnic or ideological.
To tackle the problem of terrorism in India, it would be worth while to identify its causes in order to work out a strategy. It is observed that terrorism is direct action not for achieving something but for quenching the fire of vengeance against those who are responsible for their misery. A conciliatory approach is the need of the hour. Confrontationist measures will not solve the problem in our contry. It is essential that the warm – blooded youth, especially those who have a tendency to take to terrorism must be involved in decision making processes. There should be quick and right decisions. No injustice should be done with anybody. Good examples of honesty and integrity will have to be set forth by the leaders themselves. Their actions must be faithful and above board in order to inspire confidence in one and all.
Our whole educational system also needs to be restructured and streamlined. It should use each ounce of energy of youth for constructive purposes so that they may not be induced to adopt violence as their creed and dead.
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