Reality Shows: Is Drama Happens?

 

 
Reality television is a genre of television programming that     presents purportedly unscripted dramatic, entertaining or humorous situations, documents real events, and usually features ordinary people instead of professional actors. Reality television often portrays a modified and highly influenced form of reality, utilizing sensationalism to attract viewers to generate advertising profits. Participants are often placed in exotic locations or abnormal situations, and are sometimes coached, to act in certain scripted ways by off-screen “story editors” or “segment producers,” with the portrayal of events and speech manipulated and contrived to create an illusion of reality through editing and other post-production techniques. . However, the desire to gain maximum viewer ship has led to the entry of well-known television and film personalities into the reality television.
There are two things about reality shows that attract viewers and generate controversy: the concept of reality or realism; and the shock effect. The concept of reality TV draws from realism (the art cinema movement) in cinema. So, it’s a format that presents ordinary people in live, supposedly unscripted (though often deliberately manufactured) situations, and monitors or judges their emotions, behaviour or talent. Such formats usually invoke competition and offer big money as rewards.
The idea of reality television programs is not new on Indian television. Meri Awaz Suno, Sa Re Ga Ma and Kaun Banega Cororepati are some of the programs which caught the imagination of whole of the nation. But recently, with rising competition in recent months, non-fiction-based programs have made a stunning comeback, albeit in a new avatar—titillating reality programming. After an overdose of saas-bahu (daughter-in-law-mother-in-law) soaps, the producers and also the audience seem to be happy lapping up more realistic soaps (fiction) and reality (non-fiction) programs.
Types of Reality Shows:
· Celeb-Reality: Reality shows with celebrities are a rage with the audience. Examples: Big Boss
· Prank-Reality: Reality shows that involve pranks played on ordinary people and capturing their candid reaction. Examples: MTV Bakra
 · Game Shows: Reality shows that are based on games. Examples: Kaun Banega Crorepati, Kamzor Kadi Kaun
 · Talent Hunts: Reality shows that are looking for talented people be it singers, dancers or even actors. Example: Indian Idol, Little Champs.
 · Job-hunts: Shows that are synonymous with live on air interviews are listed under this category. Example: Business Bazigar.
· Makeovers: Reality shows with make over stories. Be it a personal makeover or a home make over, these shows are very popular with the audience. Example: Pati Patni or Woh
 · Dating-Shows: Reality shows that gave a platform for dating men and women on air. Example: Splitsvilla.
· Adventure/Fear based shows: A genre of TV shows that challenges the participants with difficult and weird tasks. Example: Iss Jungle Se Mujhe Bachao.
 However, the shock factor of these programs is proving to be its nemesis as well. Recently, the issue of reality television echoed in the parliament. Some politicians raised this in Parliament, bringing to the fore issues such as content regulation and morality. Unfortunately, most politicians seem to get tangled in moral issues when it comes to content. A petition was moved in the Delhi High Court against the content of the shows. Court felt that the petition was more of a ‘moral policing’ and dismissed the petition against the show.
Producers and liberals say there is nothing wrong with such reality programs and that realism on TV screens is merely holding up a mirror to happenings in society. Extremes coexist in India and it’s difficult to answer if television does indeed mirror reality. Still, it is clear that the mirror is selective in its distortions because of economic pressures. Whether its reality or any other genre of programming, the tendency to sensationalize and even misuse is a commercial exigency in television. But this is only one part of the story. We all know that a business is run by profit motive and business of entertainment is no different. In order to increase TRP of the program, the producer overdoses the theme of shocking the audiences. This is of course one wonderful way to break through the clutter. The result: reality shows are becoming more and more provocative and outrageous. But the end result is often not very desirable. This becomes like washing one’s dirty linen in public (prime time).
But content is not the only issue that has raised the eye brows. There are people who claim that in order to boost TRPs, the program producers toy with the script of reality. According to a poll by CNN, 57% of the people interviewed believe that Reality TV shows provide a distorted picture of events while another 23% say the shows are “totally phony”. The amount of pressure for TV ratings pushes people to make the show more interesting.
Another dark side to these reality shows is the sharp comments and criticism received from the judges. Many contestants lose their confidence when they are subjected to harsh comments. In one of the past incidents, Shinjini Sengupta of Kolkata lost her ability to speak and move after she was shown the door in the elimination round of a reality show. The voting system through SMS has its own pitfalls. Many good singers do not win due to the voting system as people vote on the basis of regions. The viewers prefer that a contestant of their state should win. (It became an issue during the voting for the Indian Idol show) In this case, talent takes a back seat. Reality shows seem to be the new age entertainment recipe. They might be selling controversies or cashing upon peoples emotion; but at the end of the day, they are the most poplar shows with the highest TRPs.
 But, the most serious allegation against the reality shows is that they are in no way related to reality. Most of the situations and emotions are tempered. The producers of the show create controversies during the shows to lure the viewer. This is done to gain maximum TRP and hence, maximum revenue. This questions the entire concept of the reality shows.
Clearly, reality television is another attempt to test all boundaries of entertainment and tolerance. Without clear guidelines and no regulation or accountability in the broadcasting sector, the tendency of producers and broadcasters to push the envelope is obvious. Taking forward the Parliament discussion, as suggested by eminent director Shyam Benegal, we need an independent broadcast regulator in place at the earliest to look into these contentious issues. Irrespective of this ongoing debate, television is an all-pervasive popular medium that does play a critical role in our society. Television is a reality in our country and we have to learn to live with it ( Such Ka Saamna).

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Copenhagen: Basic Instincts

Reading the lines that Environment Minister Jairam Ramesh delivered in the Rajya Sabha on Tuesday and between them, the message is evident. “We have been successful in defending India’s national interests,” he said. “I didn’t go to Copenhagen with the mandate of saving the world or humanity. My mandate was to defend India’s right to develop at a faster rate. For Western countries, it is an environmental issue but for us, it is a development issue.”

Ramesh is articulating what a section of India’s elite fervently believes: that it is entirely in our interests to align ourselves with the United States and other major emitters of greenhouse gases. Hence the unholy alliance of four, which China cobbled together, known as BASIC — Brazil, South Africa, India and China. These are what the US and European Union were targeting in the build-up to Copenhagen as “major emerging countries or economies”, a term which doesn’t figure anywhere in UN negotiations that have been painstakingly proceeding since Bali two years ago.

These four countries are certainly going to be powers to reckon with in the future, in part due to their large populations and natural resources. However, does this mean that they are no longer developing countries? Even China has a per capita income of only $3,000 and as many as 150 million Chinese live below the poverty line. The contradictions between the elites (till recently, exclusively white) of South Africa and Brazil and their majorities are too well-known to bear repetition; by some reckoning, Brazil has the worst class differentials of any society.

Where does that leave India? While there are ongoing debates about how many live below the poverty line — ranging from 50 per cent to 27 per cent — some common sense can help cut through the wrangling. Mumbai is surely one of the richest cities in India: if 55 per cent of its 16 million population lives in slums, they are obviously below the poverty line in not being able to afford decent housing, one of three essentials (roti, kapda aur makaan). By the same token, isn’t the rest of India far worse off than Mumbai’s citizens? The Arjun Sengupta Committee reported in 2007 that 836 million Indians spend no more than Rs 20 a day. The ‘poverty line’ measured in calories should be redefined as the starvation line.

Ramesh and others of his ilk ought to know that it is entirely in India’s interests to align ourselves with G77 — the group of 130 developing countries, with or without China. That is our common future, not the interests of  the 250 million Indians whom New York Times columnist Tom Freidman dubs ‘Americons’, consumers on a US scale within this country, which would include all of us. The right to grow doesn’t only restrict itself to the GDP increase, in which India is admittedly a star performer, but the distribution of that growth. On that score, as the country with some of the world’s most abysmal human development indices — it figures 134th out of 182 countries in this year’s United Nations list, down from 126 in 2008 — it certainly deserves to be reckoned as a very poor country. Indeed, in terms of the absolute numbers of poor, it has the most in the world.

Ramesh’s second thesis only confirms the belief that some sections are seeking to redefine India’s status. He stated: “We don’t want international aid. Let us stop this technology transfer mantra. In the next five to ten years, we will be transferring technology to other countries.”  In recent years, India has sought to project itself as an aid-giving rather than receiving country, at least as far as its immediate neighbours are concerned.

To argue the same in relation to the Copenhagen outcome is totally to deviate from India’s repeatedly-stated position. As
the Kyoto protocol underlines, all countries have a “common but differentiated responsibility” to tackle climate change. Furthermore, as our negotiators have been repeating ad nauseam, even in Copenhagen, India won’t agree to any compulsory commitments without industrial countries first providing funds and technology for this and other developing nations, which are the victims of global warming.

Ramesh’s much-vaunted ‘flexibility’ is one thing, elasticity is another matter altogether. Do we really believe that India has the technological prowess to become an exporter of renewable energy in the near future? We may have the fifth largest installed wind energy capacity, but the technology is imported, as is that for solar power. China may have three of the top ten solar companies, but they have invested billions in such technologies. Meanwhile, will it be impertinent to remind the minister that 600 million Indians have to make do without commercial energy altogether and half of these have no access to electricity? What has prevented the government from providing these most essential forms of energy — a clean stove to cook with, a light to read with, all these 60 years?

Darryl D’Monte is Chairperson, Forum of Environmental Journalists of India (FEJI).

Source:HT.

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Indian Foriegn Policy:2009 to 2014(Indepth Research)

 

 

This article is equally important for MBA-International Business, Civil Services, Banks & Other Examinations.

 

Abbreviations:

FTP - Foreign Trade Policy

EPCG : Export Promotion Capital Goods Scheme

FMS- Focus Market Scheme

FPS - Focus Product Scheme

MLFPS - Market Linked Focus Product Scheme

VKGUY: Vishesh Krishi & Gram Upaj Yojna

MDA : Market Development Scheme

MAI - Market Access Initiative

TEE- Towns of Export Excellence

EOU - Export Oriented Units

STPI - Software Technology Parks of India

ECGC - Export Credit Guarantee Corporation (of India Ltd)

TPS - Target Plus Scheme

DFRC - Duty Free Replenishment Certificate

DFCE - Duty Free Certificate of Entitlement

APEDA - Agricultural & Processed Food Products Export Development Authority

MPEDA - Marine Products Export Development Authority

DTA - Domestic Tariff Area

EDI : Electronic Data Interchange

SION: Standard Input Output Norms

EO-Export Obligation

DFIA - Duty Free Import Authorisation

DGFT : Directorate General of Foreign Trade

FOB : Free on Board.

 

 

 

What is Foreign Trade Policy?
The Union Commerce Ministry, Government of India announces the integrated Foreign Trade Policy FTP in every five year. This is also called EXIM policy. This policy is updated every year with some modifications and new schemes. New schemes come into effect on the first day of financial year i.e. April 1, every year. The Foreign trade Policy which was announced on Thursday August 28, 2009 is an integrated policy for the period 2009-14.

Objectives of Foreign Trade Policy 2009-14 :

1. To arrest and reverse declining trend of exports is the main aim of the policy. This aim will be reviewed after two years.
2. To Double India's exports of goods and services by 2014.
3. To double India's share in global merchandise trade by 2020 as a long term aim of this policy.India's share in Global merchandise exports was 1.45% in 2008.
4. Simplification of the application procedure for availing various benefits
5. To set in motion the strategies and policy measures which catalyse the growth of exports
6. To encourage exports through a "mix of measures including fiscal incentives, institutional changes, procedural rationalisation and efforts for enhance market access across the world and diversification of export markets.

Aim in General : The policy aims at developing export potential, improving export performance, boosting foreign trade and earning valuable foreign exchange. FTP assumes great significance this year as India's exports have been battered by the global recession. A fall in exports has led to the closure of several small- and medium-scale export-oriented units, resulting in large-scale unemployment.

Targets:

1. Export Target : $ 200 Billion for 2010-11
2. Export Growth Target : 15 % for next two year and 25 % there after.

EPCG Scheme:

1. Obligation under EPCG scheme relaxed.
2. To aid technological upgradation of export sector, EPCG Scheme at Zero Duty has been introduced.
3. Export obligation on import of spares, moulds etc. under EPCG Scheme has been reduced by 50%.

Refixation of Annual Average Export Obligation:
Taking into account the decline in exports, the facility of Re-fixation of Annual Average Export Obligation for a particular financial year in which there is decline in exports from the country, has been extended for the 5 year Policy period 2009-14. Support for Green products and products from North East extended.

Announcements for FPS, FMS, MLFPS:

1. 26 new markets added in this scheme.
2. Incentives under FMS raised from 2.5 % to 3 %
3. Incentive available under Focus Product Scheme (FPS) raised from 1.25% to 2%.
4. Extra products included in the scope of benefits under FPS
5. Market Linked Focus Product Scheme (MLFPS) expanded by inclusion of products like pharmaceuticals, textile fabrics, rubber products, glass products,auto components, motor cars, bicycle and its parts.etc. (However , benefits to these products will be provided, if exports are made to 13 identified markets (Algeria, Egypt, Kenya, Nigeria,South Africa, Tanzania, Brazil, Mexico, Ukraine, Vietnam, Cambodia, Australia and New Zealand).
6. Focus Product Scheme benefit extended for export of ‘green products’and some products from the North East.
7. A common simplified application form has been introduced to apply for the benefits under FPS, FMS, MLFPS and VKGUY.

Announcements for MDA & MAI
Higher allocation for Market Development Assistance (MDA) and Market Access Initiative (MAI) has been announced.

Towns of Export Excellence (TEE)
The following cities have been recognized as towns of export excellence (TEE)

1. Handicrafts : Jaipur, Srinagar and Anantnag
2. Leather Products : Kanpur,Dewas and Ambur
3. Horticultural Products: Malihabad

Scheme for Status Holders (Status Holders means star status holders)

1. Additional Duty Credit Scrips shall be given to Status Holders @ 1% of the FOB value of past exports accelerate exports and encourage technological upgradation.
2. This facility shall be available for sectors of leather (excluding finished leather), textiles and jute, handicrafts, engineering (excluding Iron & steel & non-ferrous metals in primary and intermediate form, automobiles & two wheelers, nuclear reactors & parts, and ships, boats and floating structures), plastics and basic chemicals (excluding pharma products).
3. This facility shall be available up to 31 March, 2011.
4. Transferability for the Duty Credit scrips being issued to status holders under VKGUY Scheme permitted only for the procurement of cold chain equipments.

Extension of Income Tax Exemption to EOU and STPI :

Income Tax exemption to 100% EOUs and to STPI units under Section 10B and 10A of Income Tax Act, has been already extended for the financial year 2010-11 in the Budget 2009-10.

Extension of ECGC :

The adjustment assistance scheme initiated in December, 2008 to provide enhanced ECGC cover at 95%, to the adversely affected sectors, is continued till March, 2010.

Announcements For Marine sector :

1. Fisheries exempted from maintenance of average EO under EPCG Scheme (along with 7 sectors) however Fishing Trawlers, boats, ships and other similar items shall not be allowed for this exemption.
2. Additional flexibility under Target Plus Scheme (TPS) / Duty Free Certificate of Entitlement (DFCE) Scheme for the marine sector.

Announcements for Gems & Jewellery Sector:

1. Duty Drawback is allowed on Gold Jewellery exports to neutralize duty incidence.
2. Plan to establish "Diamond Bourse (s) with an aim to make India and International Trading Hub announced.
3. Introduction of a new facility to allow import on consignment basis of cut & polished diamonds for the purpose of grading/ certification.
4. 13 value limits of personal carriage have been increased from $ 2 million to US$ 5 million in case of participation in overseas exhibitions.
5. The limit in case of personal carriage, as samples, for export promotion tours, has also been increased from US$ 0.1 million to US$ 1 million.
6. Time limit of 60 days for re-import of exported gems and jewellery items, for participation in exhibitions has been extended to 90 days in case of USA.

Announcements for Agro Exports:

1. Introduction of a single window system to facilitate export of perishable agricultural produce with an aim to reduce transaction and handling cost.
2. This system will involve creation of multi-functional nodal agencies. These agencies will be accredited by APEDA.

Announcements for Leather Exports :
On the payment of 50 % applicable export duty, Leather sector shall be allowed re-export of unsold imported raw hides and skins and semi finished leather from public bonded ware houses.

Announcements for Tea Exports:

1. The existing Minimum value addition under advance authorisation scheme for export of tea is 100 %. It has been reduced from the existing 100% to 50%.
2. DTA (Domestic Tarriff Area) sale limit of instant tea by EOU units increased from 30% to 50%.
3. Export of tea has been included under VKGUY Scheme benefits.

Announcements for Pharma Exports :

1. Export Obligation Period for advance authorizations issued increased from existing 6 months to 36 months.
2. Pharma sector included under MLFPS for countries in Africa and Latin America & some countries in Oceania and Far East.

Announcements for Handloom Exports:
The claims under Focus Product Scheme, the requirement of " Handloom mark" was required earlier. This has been removed.

Scheme for Export Oriented Units:

1. EOUs have been allowed to sell products manufactured by them in DTA (Domestic Tariff Area) upto a limit of 90% instead of existing 75%, without changing the criteria of ‘similar goods’, within the overall entitlement of 50% for DTA sale. (This means that instead of 75% these units can sell up to 90 % of their products in the domestic markets)
2. EOU allowed to procure finished goods for consolidation along with their manufactured goods, subject to certain safeguards.
3. Extension of block period by one year for calculation of Net Foreign Exchange earning of EOUs kept under consideration.
4. EOU allowed CENVAT Credit Facility.

Announcements for Value Added Manufacturing (VAM)

• To encourage Value Added Manufactured export, a minimum 15% value addition on imported inputs under Advance Authorization Scheme.

Announcements for Project Exports:

• Project Exports and a large number of manufactured goods covered under FPS and MLFPS.

Fuel included in DEPB Scheme:

• Custom duty component on fuel where fuel is allowed as a consumable in Standard Input-Output Norm included in factoring.

Easy Import of samples:

• Number of sample pieces has been increased from the existing 15 to 50. This will facilitate the the duty free import of samples by exporters.
• Convertibility of Shipping Bills
  Greater flexibility has been permitted to allow conversion of Shipping Bills from one Export Promotion scheme to other scheme. Customs shall now permit this conversion within three months, instead of the present limited period of only one month.

Reduction in Transaction Costs:

1. Dispatch of imported goods directly from the Port to the site has been allowed under Advance Authorisation scheme for deemed supplies. (Presently the duty free imported goods could be taken only to the manufacturing unit of the authorisation holder or its supporting manufacturer.
2. Maximum applicable fee for 18 Authorisations/ licence applications (except those mentioned in Chapter 3 of FTP) has been reduced to Rs. 100,000 from the existing Rs 1,50,000 (for manual applications) and Rs. 50,000 from the existing Rs.75,000 (for EDI applications).
3. No fee shall now be charged for grant of incentives under the Schemes in Chapter 3 of FTP.

Disposal of Manufacturing Wastes:

1. Disposal of manufacturing wastes / scrap will now be allowed after payment of applicable excise duty also before fulfillment of export obligation under Advance Authorisation and EPCG Scheme. Earlier it was allowed after fulfillment of export obligation.

Announcements for Sports Weapon:

1. Licenses for the import of sports weapon will be issued now by Regional Authorities provided a NOC (No Objection Certificate) is issued by Ministry of Sports & Youth Affairs. (Earlier DGFT Headquarters had to be approached for this)

Announcements for Medical Devices

1. To solve the problem of medical device industry, the procedure for issue of Free Sale Certificate has been simplified and the validity of the Certificate has been increased from 1 year to 2 years.

Announcements for Automobile Industry

1. Those Automobile industries which have their R&D establishment will be allowed free import of reference fuels (petrol and diesel), upto a maximum of 5 KL per annum, which are not manufactured in India. Simplification in EPCG for automobile industry.

Announcements for EDI Initiatives

1. Export Promotion Councils & Commodity Boards have been advised to issue RCMC through a web based online system.
2. It is expected that issuance of RCMC would become EDI enabled before the end of 2009.

Inter Ministerial Committee

• Mr. Anand Sharma announced that an Inter Ministerial Committee will be formed to redress/ resolve problems/issues of exporters.

Set up of Directorate of Trade Remedy Measures Announced

• A Directorate of Trade Remedy Measures shall be set up, which will enable support to Indian industry and exporters, especially the Micro Small & medium Enterprises MSMEs in availing their rights through trade remedy instruments,

Duty Credit Scrips

• Earlier the payment of customs duty for Export Obligation (EO) shortfall under Advance Authorisation , DFIA or EPCG Authorisation was allowed in cash only. Now this payment can be done in the way of debit of Duty Credit scrips.

Import of Restricted Items

• Restricted Items can be imported now (as replenishment) against transferred DFIAs (Duty Free Import Authorisations) as the present DFRC (Duty Free Replenishment Card) scheme.

Dollar Credits

• There is a provision for state-run banks to provide dollar credits.
   
   
  
  
   

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Google v/s Microsoft & Yahoo: It’s time for Tech-war

 

 

 

 

It is said, “The enemy’s enemy is friend” it can be seen in case of Microsoft & Yahoo both companies are coming together to give tough competition to Google. On July 29, 2009, Microsoft and Yahoo! announced a deal in which Bing would power Yahoo! Search. It includes:

1. Microsoft’s Bing will now be the search engine on all Yahoo sites.
2. Yahoo will provide the relationship sales force for both companies’ premium search advertisers.
3. Each company will maintain its own separate display advertising business.

4. Self-serve advertising for both companies will go through Microsoft’s AdCenter platform.
5. Microsoft will compensate Yahoo through a revenue sharing agreement on traffic generated on Yahoo’s network.
6. The term of the agreement is 10 years.

It might be surprising why king of Operating system joins hand with formerly No #1 Portal yahoo. It is because Google has more than 72% market share in Internet Search and to maintain its position, Google launched Chrome explorer & planning to enter in Microsoft’s core business function (Operating system) by June 2010, as light weighted open source Operating system that can be run in net books & notebooks. It forces Microsoft to join hands with yahoo so that it can steal Google’s core business function (Internet Search).

As we are aware - Microsoft never bothered about Internet search and so failed in this area many times. Bing is forth incarnation of Microsoft Search. Microsoft hopes it will be successful as this is the time for do or die. Let us have a look of detailed analysis between two tech enemies.

Microsoft also announced that it will provide MS Office 2010 free of cost along with its Operating Systems to deals with Google’s open office.

As I said, it is a technology war and everything is fare in war, both are ready to do anything to be in race and to win the war. It is very hard to decide who will be real king, but one thing is sure we as users going to be benefitted finally, after all we are king maker.

Microsoft also announced that it will provide MS Office 2010 free of cost along with its Operating Systems to deals with Google’s open office.

As I said, it is a technology war and everything is fare in war, both are ready to do anything to be in race and to win the war. It is very hard to decide who will be real king, but one thing is sure we as users going to be benefitted finally, after all we are king maker.

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Bharti MTN Deal: Timeline,The Deal, Intricacies & Hurdles:All history

Background:

                              

• In May 2008, it emerged that India's telecommunication company Bharti Airtel was exploring the possibility of buying MTN Group of South Africa.
  
  
• At that time it was reported that Bharti was considering offering US$19 billion for a 51% stake in MTN, which would be the largest overseas acquisition ever by an Indian firm.
  
  
• However, talks fell through after a few days and Bharti Airtel pulled out of the proposed deal on May 24, 2008.
  
  
• Two days later, it was reported that, Reliance Communications is in talks with MTN for a "potential combination of their businesses." However these talks also failed.
  
  
• The talks resumed in May 2009 and situation is still unclear.
  
  

About MTN:

 

• MTN Group is a South Africa-based multinational mobile telecommunications company, operating in many African and Middle Eastern countries.
  
  
• MTN describes itself as "the leader in telecommunications in Africa and the Middle East" and as of early 2007 is active in 21 countries.
  
  
• Since 2004, Africa has been the fastest growing mobile phone market in the world and attracted major players of the world due to Low penetration in the market.
  
  

About Bharti Airtel :

 

 

• Bharti's business is structured into three individual strategic business units (SBU’s) - Mobile Services, Airtel Telemedia Services & Enterprise Services.
  
  
• The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities and has recently launched a Direct-to-Home (DTH) service, Airtel digital TV.
  
  
• The company provides end-to-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station.
  
  
• Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom.
  
  
• In India, the company has a 24.6% share of the wireless services market, followed by 17.7% for Reliance Communications and 17.4% for Vodafone Essar.
  
  

Timeline of Events:

• May 5, 2008: It emerged that Bharti Airtel, an India-based telecommunications company, was exploring the possibility of buying MTN Group. MTN says it is in talks with Bharti Airtel. The Financial Times reported that Bharti was considering offering US$19 billion for a 51% stake in MTN, which would be the largest overseas acquisition ever by an Indian firm.
  
  
• May 24, 2008: Bharti said that it has ended talks with MTN. The reason told was failing to agree on which firm will control a combined entity.
  
  
• May 26, 2008: Reliance Communications comes into the scene. Reliance said that It has started a 45-day exclusive talks with MTN to discuss potential combination of their businesses. The talks were extended by two weeks in July 2008. The Talks were called off in July 2008.
  
  
• May 25, 2009: Another announcement by Bharti and MTN to revive the merger talks.
  
  
• May 27, 2009 : MTN's 4 top shareholder said that they will reject the tie-up.
  
  
• However on a day after MTN's no. 2 shareholder Lebanon's Mikati family said that It will support merger talks with Bharti.
  
  
• After a week, No. 1 shareholder of MTN, Public Investment Corporation said that it would support the deal provided there is a improvement in price.
  
  
• July 3, 2009: State Bank of India offered a loan of up to $1 billion to Bharti to partly fund the Bharti's planned deal.
  
  
• SEBI said that MTN and its shareholders can buy 36 per cent in Bharti Airtel via GDRs (Global Depository Receipts) , without triggering a mandatory open offer.
  
  
• On July 14, Sunil Mittal said that he will resign from the board of Standard Chartered with effect from July 31. Standard Chartered is advising Bharti in the merger talks with MTN. Talks were extended.
  
  
• August 3, 2009: Talks were extended till August 31, 2009. As per the proposal, Bharti would acquire 49 per cent shareholding in MTN and in turn MTN and its shareholders would acquire about 36 per cent economic interest in the Indian firm.
  
  
• August 20, 2009: Bharti Airtel and South Africa's MTN once again extended their talks till Sep 30, 2009 with no final pact in sight even as the revised deadline of Aug 31.
  
  

What is the Deal:

• This deal would create the world's third-largest mobile operator.
• A merger of Bharti and MTN, the top mobile operators in both countries, would create an emerging markets giant with more than 200 million customers across India, Africa and the Middle East.
  
  
• A combined entity would be the third-biggest mobile operator based on subscribers, behind China Mobile and Vodafone, although its annual sales of $20 billion would be dwarfed by China Mobile's $60 billion and Vodafone's $65 billion.
  
  
• Africa being the last of less-penetrated markets in terms of mobile growth presents a big opportunity for global mobile firms.
  
  

Comparing the Figures:

Here is a comparison between Bharti Airtel and MTN Group. All figures in Million. For MTN [Dec ending FY07] and for Bharti Airtel [Mar ending FY08]

1. Wireless Subscribers base--MTN – 68 mn Vs Bharti Airtel 62 mn
   
   
2. Revenues – MTN $9,624 Vs Bharti Airtel $6,658
   
   
3. Net Profit – MTN $1,396 Vs Bharti Airtel $1,669
   
   

• The deal is a complex one. Bharti will own 49 percent of MTN, and MTN will own 36 percent of Bharti.
  
  
• Of that 36 percent, 25 percent will be held by MTN itself and 11 percent by its shareholders.
  
  
• Bharti will buy 36% of MTN shares for 86 SAR + 0.5 new Bharti Share Each. The news share will be in the form of GDR. (Global Depository Receipts).
  
  
• MTN will buy 25% in Bharti and will pay $ 2.9 Billion in Cash + 25% of its current share capital in newly issued shares.
  
  
• In this deal Bharti will pay S 13 Billion $7.4 billion in cash and $5.6 billion in shares. Roghly MTN will spend $ 10.5 Billion. So the two numbers make it a deal worth $ 23 billion.
  
  

What are the Hurdles:

• In India the foreign companies are allowed to be listed on Indian bourses through Indian depository receipts (IDRs), the Indian equivalents of American Depository Receipts (ADRs) or global depository receipts (GDRs).
  
  
• Under this, the shares of companies registered overseas will be deposited with a custodian and the receipts issued against these shares will be traded on bourses.
  
  
• However South African government has sought dual listing for MTN that would allow MTN shares – not depository receipts – to be traded on Indian and South African bourses simultaneously with equal voting rights.
  
  
• Under dual listing securities are listed on more than one exchange for the purpose of adding liquidity to the shares and offering investors a choice on where they want to trade.
  
  
• The South Africans want dual listing of Bharti-MTN shares for the deal between the telecom firms to go through, while India does not permit such a listing, as it would tantamount to capital account convertibility.
  
  
• South African government asked the government of India to enter into an agreement before the September 30 deadline that would allow dual listing of MTN.
  
  
• Dual listing needs major changes in the Indian legal system such as changes in the listing norms and allowing capital account convertibility and also changes under FEMA Act, it seems to be difficult implement such a changes under the current scenario.
  
  

What is the Current Situation?

• On 23 September 2009, India's finance minister Pranab Mukherjee said that dual listing of a firm was not possible as per the existing laws.
• On September 24, 2009 a a South African delegation met senior officials of Securities and Exchange Board of India and Reserve Bank of India to discuss matters related to the proposed Bharti-MTN deal.
  
  
• The meeting, called by the ministry of finance to discuss the multi-billion dollar deal, is understood to have deliberated regulatory hurdles holding back the mega deal, including the issue of dual listing.
  
  
• Finance Minister said that welcome the deal, but it should be in context of existing laws of the land. These have to be kept in mind.
  
  
• However he said that the government is looking at the legal issues being faced in the merger, including dual listing.
  
  
• Market regulator SEBI had recently amended takeover rules, making a 20 per cent additional offer mandatory for an investor who acquires 15 per cent of an Indian firm through American depository receipts or global depository receipts with voting rights.
  
  
• The latest deadline for Bharti's exclusive talks with MTN will come on the last day of this month, September 30.
  
  
• The deadline has earlier been extended twice.
  
  
• What will be the outcome is unpredctable as the governments of the two countries, regulators, labor unions and shareholders all in the picture.
  
  
  
  
  
  
  
  
  
  
  

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Right To Education Bill :The Right of Children to Free and Compulsory Education Act

Recently India's parliament passed Right to Education Bill 4 August 2009. This act describes the modalities of the provision of free and compulsory education for children between 6 and 14 in India under Article 21A of the Indian Constitution.

What is Article 21?

• Article 21. Protection Of Life And Personal Liberty: No person shall be deprived of his life or personal liberty except according to procedure established by law.
• Article 21A Right to Education: - “The State shall provide free and compulsory education to all children of the age of six to fourteen years in such manner as the State may, by law, determine.”

Salient Features:

• Every child between the ages of 6 to 14 years has the right to free and compulsory education.
• This is stated as per the 86th Constitution Amendment Act added Article 21A. The right to education bill seeks to give effect to this amendment
• The government schools shall provide free education to all the children and the schools will be managed by school management committees (SMC).
• Private schools shall admit at least 25% of the children in their schools without any fee.
• The National Commission for Elementary Education shall be constituted to monitor all aspects of elementary education including quality.
• No child shall be held back, expelled, or required to pass a board examination until completion of elementary education
• A child who completes elementary education (upto class shall be awarded a certificate
• Calls for a fixed student-teacher ratio
• Will apply to all of India except Jammu and Kashmir
• Provides for 25 percent reservation for economically disadvantaged communities in admission to Class One in all private schools
• Mandates improvement in quality of education
• School teachers will need adequate professional degree within five years or else will lose job
• School infrastructure (where there is problem) to be improved in three years, else recognition cancelled
• Financial burden will be shared between state and central government

History:

• 1950: Constitution of India contained Article 45, as one of the directive principles of State policy, which states that: "The State shall endeavor to provide within a period of ten years from the commencement of this Constitution, for free and compulsory education for all children until they complete the age of fourteen years."
• 1968: First National Commission for education under Dr. Kothari submits its reports. It introduced several far-reaching changes as uniform curriculum for both boys and girls, mathematics and science as compulsory subjects etc. It also proposed a Common School System.
• 1976: Constitution amendment making education a concurrent subject (responsibility of both state and center) was passed.
• 1986: National policy on Education (NPE) endorsing Common School System (CSS) was formulated. Subsequent NPE’s endorsed CSS but it has never been implemented.
• 1993: The Supreme court in the case Unnikrishnan vs State of Andhra Pradesh ruled that the right to education is a fundamental right that flows from the Right to life in Article 21 of the Constitution.
• 1997: Constitution Amendment making Education a fundamental right was introduced.
• 2002: 86th Constitution Amendment added Article 21A stating that “The State shall provide free and compulsory education to all children of the age six to fourteen years in such as a way as the State may, by law, determine.” The 86th Amendment also modified Article 45 which reads as “The state shall endeavor to provide early childhood care and education for all children until they complete the age of 6 years”.
• 2005: CABE committee report constituted to draft the Right to Education Bill submits its report.
• Every time a new version was placed till it was tabled in Parliament in 2008.
• The bill was approved by the cabinet on 2 July 2009.
• Rajya Sabha passed the bill on 20 July 2009 and the Lok Sabha on 4 August 2009.
• It received Presidential assent and was notified as law on 3 Sept 2009 as The Children's Right to Free and Compulsory Education Act 2009.

Right to Education in UN Declaration:

• As per article 26 of UN declaration of Human Rights, it has been clearly stated that "Everyone has the right to education…directed to the full development of the human personality and to the strengthening of respect for human rights and fundamental freedoms".

India's Problems:

• India is yet to achieve credible accomplishments in various segments of education - literacy, universal enrolment, lowering the dropout rate, improving quality and making the system more relevant.
• 50% students in the Indian education system fail at the secondary level. They often do not continue with their studies.
• Only six per cent of the youth in the 18-23 years bracket go in for higher education in India. The quality of many primary schools is appallingly low.
• One in five children is over or under age, one in three children drops out before completing the primary cycle; and one in two children does not have clean drinking water at school.
• A recent study in rural India found that not a single grade 5 student had mastered grade 2 competencies in Hindi or mathematics.
• Vulnerable groups are often deprived of educational opportunities.
• The literacy rate in India varies from 90 percent for rich urban males to a mere 17 per cent for the poor.
• The difference between the primary enrolment rate of landless peasant households and medium to large landowners is almost 20 percentage points.
• About three-quarters of children denied education live in six states - Andhra Pradesh, Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh and West Bengal.

The elusive goal of providing free and compulsory education until the age of 14 within a few years has been regularly reiterated, without any effective steps being taken to reach it- Amartya Sen.

 
The development of a tree depends on where it is planted.' Edward Joyner.
 

'We each create our world by what we choose to notice, creating a world of distinction that makes sense to us. We then 'see' the world through the self we have created.' Margaret Wheatley and Kellner Roger.

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Latest Article: Doha Round : Issues , Implications & Challenges

What this article is about ?
Trade ministers from about 35 countries met in Delhi recently to give impetus to the Doha round of trade talks. This article covers in a condensed form the background of the stalled Doha round of Trade negotiations, understanding the issues of the developing countries and challenges ahead. Before You read this article Here are a few helpful links. This article is the extension of the fourth link 'Genesis of WTO & Doha Round" . 

1. What is Tariff?
   
    A tariff is synonym to tax. It is a duty imposed on goods when they are moved across a political boundary. Normally tariffs apply to imports.
   

   1. Ad valorem Duty: pre decided percentage of the value of the good that is being imported. vulnerable to prices of the goods.
      
      
   2. A specific Tariff: It is a tariff of a specific amount of money that does not vary with the price of the good. These tariffs are vulnerable to changes in the market or inflation unless updated periodically.
      
      
   3. A revenue Tariff : A set of rates designed primarily to raise money for the government. A tariff on coffee imports imposed by countries where coffee cannot be grown, for example raises a steady flow of revenue.
      
      
   4. Prohibitive tariff: It means that the tariff is so high that nearly no one imports any of that item.
      
      
   5. Protective Tariff : It is intended to artificially inflate prices of imports and protect domestic industries from foreign competition (see also effective rate of protection,) especially from competitors whose host nations allow them to operate under conditions that are illegal in the protected nation, or who subsidize their exports.
      
      
   6. Environmental tariff or Green Tariff or 'eco-tariff': It is placed on products being imported from, and also being sent to countries with substandard environmental pollution controls.
      
      

   
   
   
   
   
2. What is Protectionism?
   Protectionism is the economic policy of restraining trade between nations through qualitative and quantitative methods such as tariffs on imported goods, restrictive quotas, and a variety of other restrictive government regulations.
   
   They are designed to discourage imports, and prevent foreign take-over of local markets and companies.This is a policy of antiglobalization and almost opposite to free trade. The term protectionism is used because this doctrine protects the business and labour within a country by restraining trade with foreign countries.
   Thus, Protectionism is the economic policy of restraining trade between nations, through methods such as high tariffs on imported goods,restrictive quotas, and anti-dumping laws in an attempt to protect domestic industries in a particular nation from foreign take-over orcompetition.
   A variety of policies can be used to achieve protectionist goals. These include:Tariffs, Import Quotas, Administrative Barriers, Export subsidies, Government subsidies & exchange rate manipulation.
   
   
   
   
   
3. What is GATT?
   Background:
   
   World War–II lasted from 1939 to 1945. The was left many countries in Europe and Asia totally battered. Their economies were shattered; there was tremendous stain on political and social systems resulting in wide spread annihilation and migration of people. Intentional peace was ruffled. Something had to be done to put these war-ravaged economies back in shape. Simultaneously, the various colonies in Asia and Africa were acquiring political freedom. And there was urgent pressure on them for rapid economic development and political stabilization. In this background the United Nations Organisation (UNO) was born on the collective wisdom of the world.
   
   UNO came to encompass the concerns for development in economic, commercial, scientific, social and cultural sphere of the member nations. It formed various forums and agencies. One such forum under the UNO was the General Agreement on Tariffs and Trade (GATT) which was
   established in 1947.
   
   GATT which emerged from the “ashes of the Havana Charter” was formed in 1947 and lasted until 1994, when it was replaced by the World Trade Organization in 1995. In International Conference on Trade and Employment in Havana in the winter of 1947-48, fifty-three nations drew up and signed a charter for establishing an International Trade Organisation (ITO). But the US Congress did not ratify the Havana Charter with the result that the ITO never came into existence (1950).
   
   At the same time 23 nations agreed to continue extensive tariff negotiations for trade concessions at Geneva, which were incorporated in a General Agreement of Tariffs and Trade. This was signed on 30th October 1947 and came into force form 1st January 1948 when other nations had also signed it.
   
   The critical juncture was reached during the Uruguay Round of multilateral trade negotiations, which may be called the final act. It was signed by 12 countries in which India was signatory. Popularly known as Dunkel agreement, It finally emerged as the World Trade Organisation (WTO) on 1st January, 1995.
   
   4. What was the main objective of GATT?
   The GATT's main objective was the reduction of barriers to international trade. This was achieved through the reduction of tariff barriers, quantitative restrictions and subsidies on trade through a series of agreements. The GATT was a treaty, not an organization although a small secretariat occupied what is today the Centre William Rappard in Geneva, Switzerland. The functions of the GATT were taken over by theWorld Trade Organization which was established during the final round of negotiations in early 1990s.
   
   
   Rounds of Global Trade Talks under GATT:
   First Round:Geneva April 1947
   In the first round of talks held in Geneva in 1947, 23 countries, which had formed GATT, exchanged tariff concessions on 45,000 products worth 10 billion US dollars of trade per annum.This affected 10% of total Global Trade.
   
   
   Second Round : Annecy Round - 1950
   The second round took place in 1949 in Annecy, France. 13 countries took part in the round. The main focus of the talks was more tariff reductions, around 5000 total..
   
   
   Third Round Torquay Round - 1951
   The third round occurred in Torquay, England in 1951. 38 countries took part in the round. 8,700 tariff concessions were made totaling the remaining amount of tariffs to three-fourths of the tariffs which were in effect in 1948. The contemporaneous rejection bythe United States of the Havana Charter signified the establishment of the GATT as a governing world body.[4]
   
   
   Fourth Round Geneva Round - 1955-1956
   The fourth round returned to Geneva in 1955 and lasted until May 1956. 26 countries took part in the round. $2.5 billion in tariffs were eliminated or reduced.
   
   
   Fifth Round Geneva (Dillion) Round - 1960-1962
   The fifth round occurred once more in Geneva and lasted from 1960 to 1962. The talks were named after U.S. Treasury Secretary and former Under Secretary of State, Douglas Dillon, who first proposed the talks. 26countries took part in the round. Along with reducing over $4.9 billion on 4400 items in tariffs, it also yielded discussion relating to the creation of the European Economic Community (EEC).
   
   Sixth Round Kennedy Round - 1964-1967
   With the formation EEC, the US had been put at a disadvantage. As a reaction to this, the US Congress passed the Trade Expansion Act in October 1962 which authorised the Kennedy administration to make 50 per cent tariff reduction in all commodities. This paved the way for the opening of the Kennedy round of trade negotiations at Geneva in May 1964, which were to be completed by 30 June 1967.This round had the participation of 62countries and negotiated tariff reductions of approximately $ 40 billion, covering about four-fifths of the world trade. The major industrialcountries in this group applied substantial cuts on their dutiable imports, e.g. as much as 64 per cent cuts in the case of the United States, 3 per cent in case of Britain, 30 per cent in case of Japan, 24 per cent in case of Canada. They left the US and European tariff on the manufactured goods in the range of 5 to 15 per cent. However, with regard to agricultural products, the negotiations had lesser success. They agreed on an average duty reduction of 25 per cent on agricultural items. Non-tariff obstacles, too remained untouched and scant attention was paid to the problems of developingcountries .In IMF study revealed that weighted average tariff for all industrial products had been reduced to 7.7 per cent, 9.8 per cent on finished manufactured products, 8 per cent on semi-finished products and 2 per cent on raw materials. Thus trade in industrial products after the completion of Kennedy Round was substantially free of restrictions.
   
   Seventh Round Tokyo Round - 1973-1979
   Reduced tariffs and established new regulations aimed at controlling the proliferation of non-tariff barriers and voluntary export restrictions. 102countries countries took part in the round. Concessions were made on $190 billion worth. The Seventh Round of Multilateral Trade Negotiations (MTN) was launched in September 1973 under the auspices of GATT. Its objectives were laid down in the Tokyo Declaration. The Declaration set out a far-reaching programme for the negotiations in six areas. These are
   
   
   
   
4. tariff reduction
   
   
5. reduction of elimination of non-tariff barriers
   
   
6. coordinated reduction of all trade barriers in selected sectors
   
   
7. discussion on the multilateral safeguard system
   
   
8. trade liberalisation in the agricultural sector taking into account the special characteristics
   
   
9. special treatment of tropical products.
   
   
10. It also emphasized that MTN must take into account the special, interests and problems of developing countries.
    
    

Eighth Round Uruguay Round - 1986-1993
The Eighth Round of GATT negotiations which began at Punta Del Esta in Uruguay in September 1986 ought to have been concluded by the end of 1990. But at the ministerial meeting in Brussels in December 1990, an impasse was reached over the area of agriculture and the talks broke down. The talks were restarted in February 1991 and continued till August 1991. On 20 December 1991. AurthurDunkel, the then Director-General of GATT tabled a Draft Final Act of the Uruguay Round, known as the Dunkel Draft Text. This was a take-it-or-leave-it” document which was hotly discussed at various fora in the member countries through 1992 till July 1993 when the then Director General, Sutherland relaunched the negotiations in Geneva. On 31 August 1993, the Trade Negotiations Committee (TNC) passed a resolution to conclude the Uruguay Round by 15 December. On 15 December 1993 at the final session, Chairman Sutherland declared that seven years of Uruguay Round negotiations had come to an end. Finally, on 15 April 1994, 123 Ministers of membercountries ratified the results of the Uruguay Round at Marrakesh (Morocco) and the GATT disappeared and passed into history and it was absorbed by theWorld Trade Organization (WTO) on 1 January 1995. The Uruguay Round of trade negotiations undertaken by the GATT since its establishment in 1947 had a wide agenda. The GATT originally coveredinternational trade rules in the goods sector only. Domestic policies were outside the GATT purview and it operated only at international border. In the Uruguay Round, the GATT extended to three new areas, viz. Intellectual property rights services and investment. It also covered agriculture and textiles, which were outside the GATT jurisdiction.




The final year embodying the results of the Uruguay Round of Multilateral Trade Negotiations comprises 28 Agreements. It had two components: the WTO Agreement and the Ministerial decisions and declarations. The WTO Agreement covers the formation of the organisation and the rules governing its working. Its Annexures contain the Agreements covering trade in goods, services, intellectual property rights, plurilateral trade, GATT Rules 1994, dispute settlement rules and trade policy review. The Uruguay Round was concerned with two aspects of trade in goods and services. The first related to increasing market access by reducing or eliminating trade barriers. Reductions in tariffs, reductions in non-tariff support in agriculture, the elimination of bilateral quantitative restrictions, and reductions in barriers to trade in services met this. The second related to increasing the legal security of the new levels of market access by strengthening and expanding rules and procedures and institutions.


What is the difference between GATT & WTO?
The WTO is not an extension of the GATT but succession to the GATT. It completely replaces GATT and has a very different character. The major
differences between the two are:
1. The GATT had no status whereas the WTO has a legal status. It has been created a by international treaty ratified by governments and legislatures
of member states.
2. The GATT was a set of rules and procedures relating to multilateral agreements of selective nature. There were separate agreements on separate issues, which were not binding on members. Any member could stay out of the agreement. The agreements, which form part of the WTO, are permanent and binding on all members.
3. The GATT dispute settlement system was dilatory and not binding on the parties to the dispute. The WTO dispute settlement mechanism is
faster and binding on all parties.
4. GATT was a forum where the member countries met once in a decade to discuss and solve world trade problems. The WTO, on the other hand, is
a properly established rule based World Trade Organization where decisions on agreement are time bound.
5. The GATT rules applied to trade in goods. Trade in services was included in the Uruguay Round but no agreement was arrived at. The
WTO covers both trade in goods and trade in services.
6. The GATT had a small secretariat managed by a Director General. But the WTO has a large secretariat and a huge organizational setup.

Issues & Priorities of Developing Countries

1. The agenda of Developing countries includes agriculture, services (financial, telecommunications, information technology, etc.), intellectual property rights, electronic commerce, investment, government procurement, and competition policy.
   
   
2. The developing countries assert that the agenda of the WTO, the implementation of its agreements, and the much-praised dispute settlement system all serve to advance the interests of developed countries and sidelining those of the developing countries.
   
   
3. The least developed countries (LDCs) are marginalized in the world trade system, and their products continue to face tariff escalations.
   
   
4. Rules uniformly applied to WTO members have brought about inequalities because each member has different economic circumstances.
   
   
5. Until the Uruguay Round, which ended in 1994, the trade negotiations focused on nonagricultural goods, mainly because the U.S. always wanted to protect its farm sector.
   
   
6. Most developing country economies are in one way or another dependent on the U.S., the EU, or Japan in terms of imports, exports, aid, security, etc. Any obstruction of a consensus at the WTO might threaten the overall well-being and security of dissenting developing nations.
   
   
7. Trade negotiations are based on the principle of reciprocity or "trade-offs." This means that if one country gives a concession in an area, such as the lowering of tariffs for a certain product, in return for another country acceding to a certain agreement. However this bartering benefits the large and diversified economies, because they can get more by giving more. (The focus of Develped countries has always been Yeh Dil Maange More !!!)
   
   
   
8. Developing countries have fewer human and technical resources. Hence they often enter negotiations less prepared than their developed country counterparts.
   
   
9. Developing countries have discovered that seeking recourse in the dispute settlement system is costly and requires a level of legal expertise that they may not have. Besides, the basis on which the system is run—whether a country is violating free trade rules—is not the most appropriate for their development needs.
   
   
10. America has promoted free trade principles only in sectors that benefit the U.S. economy; in other sectors, like textiles, protectionism reigns.
    
    
11. Further liberalization in some areas will give Developed countries more access to the resources of the Developing countries thereby further debilitating the domestic economies of developing countries.
    
    
12. U.S. influence in the WTO has more often meant U.S. domination than responsible leadership.
    
    
13. Instead of promoting beneficial goals for all, America is too often concerned with aggressively expanding its own markets.
    
    
14. America's agenda is always it own benefits. It goes with Liberalization if it benefits or goes with protectionism if it. So it is ultimately US interest for US that counts.
    
    
15. Exports from developing countries face significant market access impediments in Developed countries.
    
    
16. The developed nations have imposed new agreements in telecommunications, information technology, and financial services for the benefits of MNC's and TNC's , so that they get new market access in Developing countries.
    
    
17. America has always interpreted WTO agreements to protect its key industries. In textiles and clothing, the U.S. has selectively opened its markets, but this liberalization has proved of little benefit to developing nations.
    
    
18. Using creative calculations and interpretations of the Agreement on Agriculture (intended to reduce domestic support and open up markets), the U.S. made a few relatively insignificant changes in its policies to comply with its commitments under the agreement. This makes difficult for thedeveloping countries to enter the US market.
    
    
19. The 1996 Farm Bill reduced direct payments to U.S. farmers, but it increased expenditure for export subsidies, thereby providing a net benefit to U.S. agroexporters.
    
    
20. Implications of TRIPS: Trade Related Intellectual Property Rights Agreement (TRIPS) fiercely protects the rights of corporations but easily allows the shared knowledge of indigenous communities to be patented by others. When fully implemented,developing countries will lose billions in rent transfers to rich countries, as TNCs will continue to control virtually all the patents of developing countries.
    
    
    
21. Genetically modified seeds and plants (GMOs) raise costs for farmers and promote monocropping, which increases the incidence of diseases and pests, encourages the use of chemicals, and threatens the biodiversity and genetic purity of plant species.TheDeveloping countries will be unable to halt their imports unless those countries can present scientific proof of harmful effects. In sum, TRIPS will be catastrophic for both health and sustainable agricultural systems indeveloping countries.
    
    
22. Investment Issues: Agreement on investment seeks to gain national treatment and rights for corporations operating in all countries. Small- and medium-sized enterprises indeveloping countries are unlikely to be able to withstand such competition, leading to the destruction of domestic economies in the LDCs.
    
    
23. Issues with Transparency in Government Procurement: Such an agreement will eventually bring about the full-scale opening of government procurement--a trillion dollar business--to foreign companies. Like theinvestment agreement, this will be detrimental for developing countries, whose enterprises will not be ready for such intense competition.
    
    
24. The WTO should consider its top priority to be the development needs of its members.
    
    
25. Sections of agreements that work to the disadvantage of developing countries must be changed, including agriculture, TRIPS, textiles, and the dispute settlement system.
    
    
26. U.S. domination should end, decisionmaking should be democratic, and each government should consult regularly with its broader society on trade deliberations.
    
    
27. A change from a "trade creates wealth" perspective to one that stresses broad-based development is necessary if trade is to improve the living standards of the world's poor and ensure the long-term sustainability of resources.
    
    
28. The WTO should emphasize greater self-sufficiency of economies nationally and regionally.
    
    
29. Domestic markets, rather than foreign markets, should be the main stimulus of growth.
    
    
30. Resources should be used sustainably to support local and national communities.
    
    
31. People and the preservation of the environment, rather than capital, should be the primary objectives of any expansion of global trade.
    
    
32. Countries must be free to choose if they want overseas investments and, if so, what kind of investments.
    
    
33. They must also be able to decide on their tariff rates and other trade barriers in order to protect their industries, as the developed countries have been doing.
    
    
34. The U.S. and other developed economies should use its influence to encourage the WTO to become a democratic institution that provides space for a diversity of economic interests.
    
    
35. Certain practices and rules in the WTO must be changed to incorporate the realities and broader development agenda of the Developed Countries.
    
    
36. All members should be equipped with the technical expertise and human resources to participate fully in the multilateral negotiations.
    
    
37. Decisionmaking in the WTO must involve all members. This has not been the case to date; instead the "quad" (U.S., EU, Japan, and Canada) has made many decisions on behalf of all.
    
    
38. The dispute settlement system must consider the development needs of countries (especially the most vulnerable & LDCs), not just whether free trade rules have been violated.
    
    
39. If developed and developing country farmers are to compete in the same markets, then annual subsidies that developed countries provide to their farmers should be reduced to the negligible amounts near to thosedeveloping countries provide. Or developing countries should be allowed to increase both their subsidies and their tariffs to protect their markets from the highly subsidized exports of the developed countries.
    
    
40. Small farms in both developed and developing countries should be encouraged, not squeezed out--especially in developing countries, where farming is the source of livelihood for millions.
    
    
41. Developed countries should eliminate the tariff escalation on product chains of interest to developing countries. And if the WTO continues to force all countries down the liberalization path, the protected sectors in the U.S. must also be liberalized to open up new export markets for developing nations
    Genesis of WTO and Doha Round
    
    Uruguay Round of Multilateral Trade Negotiations comprised 28 Agreements. It had two components: the WTO Agreement and the Ministerial decisions and declarations.
    
    The WTO Agreement covers the formation of the organisation and the rules governing its working. Its Annexures contain the Agreements covering trade in goods, services, intellectual property rights, plurilateral trade, GATT Rules 1994, dispute settlement rules and trade policy review.
    The Uruguay Round was concerned with two aspects of trade in goods and services. The first related to increasing market access by reducing or eliminating trade barriers. Reductions in tariffs, reductions in non-tariff support in agriculture, the elimination of bilateral quantitative restrictions, and reductions in barriers to trade in services met this.
    
    The second related to increasing the legal security of the new levels of market access by strengthening and expanding rules and procedures and institutions.
    
    So, the World Trade Organization (WTO) was foundeed to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakesh Agreement, replacing the General Agreements on Tariffs and Trade (GATT). The WTO has 153 members which represent more than 95% of total world trade and 30 observers, most seeking membership. The WTO is governed by a ministerial conference, meeting every two years; a general council, which implements the conference's policy decisions and is responsible for day-to-day administration; and a director-general, who is appointed by the ministerial conference. The WTO's headquarters is at the Centre William Rappard, Geneva, Switzerland.
    
    
    WTO deals with
    

    1. Regulation of trade between participating countries
       
       
    2. Providing a framework for negotiating and formalising trade agreements
       
       
    3. Dispute resolution process aimed at enforcing participants' adherence to WTO agreements which are signed by representatives of member governments and ratified by their parliaments.
       
       

    What is Doha Development Agenda?
    WTO is currently endeavouring to persist with a trade negotiation called the Doha Development Agenda (or Doha Round), which was launched in 2001 to enhance equitable participation of poorer countries which represent a majority of the world's population.
    
    However, the negotiation has been dogged by "disagreement between exporters of agricultural bulk commodities and countries with large numbers of subsistence farmers on the precise terms of a 'special safeguard measure' to protect farmers from surges in imports. At this time, the future of the Doha Round is uncertain."
    
    Ministerial conferences & bulwark of disagreements
    

    First ministerial conference - Singapore 1996
    After birth of The inaugural ministerial conference was held in Singapore in 1996. Disagreements between largely developed and developing economies emerged during this conference over four issues initiated by this conference, which led to them being collectively referred to as the "Singapore issues".
    The sigapore issues were:
    

    1. Transparency in government procurement
       
       
       
    2. Trade facilitation (customs issues),
       
       
    3. Trade and investment
       
       
    4. Trade and competition.
       
       

    The developing countries opposed these issues as they were not in their favours. The European Union, Japan and Korea favoured these issues and pushed them in successive conferences. US said that it could accept some or all of them at various times, but preferring to focus on market access.
    
    Second ministerial conference : Geneva 1998
    Third ministerial conference : Seattle 1999
    The two conferences nothing notable could happen except that at Seattle, with massive demonstrations and police and National Guard crowd control efforts drawing worldwide attention failed the conference.
    
    Fourth ministerial conference Doha 2001
    The Doha Development Round was launched at the conference. The talks are stalled even today and impetus is on reaching a final agreement. The major impediment is different interests of developed and developing nations.
    
    Fifth ministerial conference, Cancun Mexico 2003
    This minieterial conference was called for to reach an agreement on the Doha round. However, an alliance of 22 southern states, the G20 developing nations (led by India, China and Brazil), demanded agreements on Singapore issues and called for an end to agricultural subsidies within the EU and the US. There was no progress made in this round too.
    
    Sixth ministerial conference: Hong Kong 2005:
    The sixth WTO ministerial conference was held in Hong Kong from 13 December – 18 December 2005 with an aim to reach an agreement on Doha Round by 2006. In this meeting, countries agreed to phase out all their agricultural export subsidies by the end of 2013, and terminate any cotton export subsidies by the end of 2006. Further concessions to developing countries included an agreement to introduce duty free, tariff free access for goods from the Least Developed Countries, following the Everything But Arms initiative of the European Union — but with up to 3% of tariff lines exempted. Other major issues were left for further negotiation to be completed by the end of 2010
    
    Seventh ministerial conference : Geneva 2009
    This will held in Geneva from 30 November–December 2009.
    
    
    
    

What was the Objective of Delhi Meeting?
The objective of the Delhi meeting was neither to focus on negotiations on specific topics nor to reach an agreement .The objective was to concentrate on working on a timetable for the talks. India's Foreign trade minister, Anand Sharma had invited the leaders to get some momentum into the negotiations.

The Echo of the Issues:
The core issues were echoed in G20 summits in Washington in November and London in April as well as the G8+ summit in L'Aquila in July apart from a meeting of farm exporters in June at Bali and again at the Organisation for Economic Cooperation and Development (OPEC) in Paris and in July at a meeting of the Asia-Pacific APEC grouping.


Is America taking Much Interest ?
United States which is key to any deal , is expected by many other countries to start engaging in the negotiations , however the key focus of Obama Administration seems to be upon economic crisis and health care besides to be able to point to new opportunities for U.S. business.

What is Emphasis of Developed Countries?

Developed countries emphasize the big emerging countries like China, India and Brazil to open their markets and not make excessive use of special arrangements fordeveloping countries in a Doha deal to shield their industries from competition.


Who came for the Meeting?
About 35 trade ministers, representing major developed economies, such as the United States and European Union; the big emerging countries, such as China, India, Brazil, Indonesia and South Africa; and developing countries who coordinate regional alliances, such as Mauritius for the African, Caribbean and Pacific countries, and Burkina Faso for the cotton producer apart from WTO Director-General Pascal Lamy. (TOI)


What are the core Issues & Challenges?

1. There are gaps and unresolved issues on agriculture and non-agriculture market access (Nama). The center point of talks involves efforts to open up trade in agriculture and industrial goods.
   
   
2. The involves rich countries to open their protected markets for agriculture produce and cutting their heavy subsidies they provide to their farmers & agro exporters , as they are able to wipe out the farmers in poor /developing countries out of the market.
   
   
3. The richer developing countries will also cut industrial tariffs in return so that it opens up their markets for industrial goods to do business with both rich and poor countries.
   
   

What is center point of issues?

1. There are some exceptions to these cuts which are called flexibilities. The flexibilities are the major difficulty.
   
   
2. The developing countries are being led by Brazil. Developing countries say that rich nations are using these flexibilities to protect farmers and prevent any competition at their domestic market in such commodities like farm produces which are politically sensitive everywhere.
   
   
3. The developed countries also see that developing nations may use some flexibilities to shield some sectors. The United States says it would not move further until it has a better idea how the developing nations like India, China , Brazil will use the flexibilities.
   
   
4. Special safeguard mechanism : This is an agreement that would allow developing countries to raise agricultural tariffs temporarily to help their farmers cope with a sudden flood of imports.
   
   
5. US and some developing countries such as Costa Rica which exports food said that the safeguard must not be used to choke off the normal growth in trade, and that tariffs must not rise above "pre-Doha" levels.
   
   
6. India and other big countries such as Indonesia said they needed a quick and powerful safeguard to protect their millions of subsistence farmers from the unforeseen impact of market opening, even if that meant big rises in tariffs.
   
   
7. The United States wants to push for agreements that would go beyond any general cut in industrial tariffs to eliminate duties altogether in some sectors, such as chemicals or electronic goods.
   
   
8. China and India say they are resisting efforts to strong arm them into sector deals, which they insist must be purely voluntary.
   
   
9. African countries want the United States to make bigger cuts in its cotton subsidies than in other agricultural products. They say that U.S. cotton subsidies make it uneconomic for their farmers to produce, and they cannot afford similar state aid.
   
   

What did WTO Director General Pascal lamy Said?

1. WTO Director General Pascal Lamy pointed out that in the Hong Kong ministerial in 2005, it was decided that the modalities (formulae for calculating tariff and subsidy cuts and levels of flexibilities) for agriculture and NAMA (NonAgriculture Market Access) would be concluded first and then the final offers in services negotiations would be exchanged.
   
   
2. However, in July 2008, a number of developing countries, including India, wanted to make sure while the NAMA (Non Agriculture market Access) and agri talks moved towards conclusion, services were also made part of the package so that offensive interests are met.
   
   

What is the Current Situation?

1. The 36 invitees (excluding India) included the Brazil-led members of the G-20 alliance of developing countries, the G-33 Group, the coordinators of the Least Developed Countries group, African group, Caribbean and Pacific countries, Nama-11, Small and Vulnerable Economies, Cotton-4, and the G-10. The US, European Union, Japan, Australia and New Zealand.
   
   
2. A deadline has been already fixed to conclude the Doha round by the 2010, however it seems difficult as WTO's decision-making process works on the basis of consensus even if one member decides not to join a proposed agreementtalks get stalled.
   
   
3. Trade ministers are now working on the a ‘single undertaking’, which means decisions have to be made on all important issues like agriculture, services and NAMA.
   
   
4. This means that nothing gets inked till everything is decided.
   
   
5. There seems to be a more of a split between the developing and the developed nations.
   
   
6. G20 summit will held in Pittsburgh in September 25-25 for further continuing the talks. 
Source:wikipedia,IMF.

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