Friday, July 22, 2011

Codex Alimentarius: The 100'th post

Note: This is the 100'th post on this blog and I am glad that I have come this far. Further I feeling very happy that my 100'th post is on a topic which is so near to the hearts of millions i.e. food and agriculture.


Codex Alimentarius: The 100'th post

The Codex Alimentarius Commission was created in 1963 by FAO and WHO to develop food standards, guidelines and related texts such as codes of practice under the Joint FAO/WHO Food Standards Programme.

The main purposes of this Programme are protecting health of the consumers and ensuring fair trade practices in the food trade, and promoting coordination of all food standards work undertaken by international governmental and non-governmental organizations.

Critics:
Codex Alimentarius is recognized by the World Trade Organization as an international reference standard for the resolution of disputes concerning food safety and consumer protection, which is unfair to countries not recognizing it.
Codex Alimentarius has "codified policies designed to serve the interest of global agribusiness above all others, while actively undermining the rights of farmers and consumers



Wednesday, July 13, 2011

Microfinance Institutions (Development and Regulation) Bill

The Microfinance Institutions (Development and Regulation) Bill: An analysis

Need of the Bill: About a year ago, the government of Andhra Pradesh — the State that accounts for nearly a third of microfinance business in the country — introduced tough rules to clamp down on such practices as overcharging customers and employing coercive methods to recover loans.
Neither self-regulation nor regulation by Nabard, which also lends to the MFIs, has been found viable. Hence the onus has fallen squarely on the RBI.

Advantages:

Proposes that all microfinance institutions with net-owned funds of over Rs.5 lakh register with it.

The RBI will define and fix what the Bill calls “an annual percentage rate”, to be charged by private MFIs, and also set the range within which it can operate. That rate will include interest, processing fees, service charges and any other charges or fees that are payable by the borrowers.

Difficulties in implementation:

Extremely cumbersome and will be difficult to enforce.

Given the low threshold for registration envisaged under the Bill, the number of MFIs that will come under the regulatory scanner will be too large for any meaningful supervision.

Even if the RBI became the principal regulator, it would be well within the State government's jurisdiction to exercise control over money lenders and check usurious practices

Wednesday, July 6, 2011

Koya Commandos: Violation of Art 14, 21

Both Article 21 and Article 14 of the Constitution of India have been violated, and will continue to be violated, by the appointment of tribal youth, with very little education, as SPOs engaged in counter-insurgency activities.

Article 14 — equality before the law and equal protection of the laws — is violated because subjecting these youths to the same levels of danger as members of the regular force, who have better education and training and possess a better capacity to benefit from training, “would be to treat unequal as equals”, the court explained.

Article 21 — protection of life and personal liberty — was violated because youngsters with such poor educational qualifications “cannot be expected to understand the dangers that they are likely to face, or skills which are needed to face such dangers”

Saturday, June 4, 2011

Buddhism

Buddhism (Pali/Sanskrit: बौद्ध धर्म Buddha Dharma) is a religion and philosophy encompassing a variety of traditions, beliefs and practices, largely based on teachings attributed to Siddhartha Gautama, commonly known as the Buddha (Pāli/Sanskrit "the awakened one"). The Buddha lived and taught in the northeastern Indian subcontinent some time between the 6th and 4th centuries BCE.

Two major branches of Buddhism : Theravada ("The School of the Elders") and Mahayana ("The Great Vehicle"). Theravada—the oldest surviving branch—has a widespread following in Sri Lanka and Southeast Asia. Mahayana is found throughout East Asia and includes the traditions of Pure Land, Zen, Nichiren Buddhism, Tibetan Buddhism, Shingon, Tendai and Shinnyo-en. In some classifications Vajrayana—a subcategory of Mahayana practiced in Tibet and Mongolia—is recognized as a third branch

Buddhist Concepts: Karma, Sansara, Rebirth
4 Noble truths: Dukha, Craving, Liberated State, Path
Buddhist Texts: Pali Tipitaka, Mahayana Sutra

Insurance Sector in India

Insurance in its current form has its history dating back until 1818, when Oriental Life Insurance Company was started by Anita Bhavsar in Kolkata to cater to the needs of European community. The pre-independence era in India saw discrimination between the lives of foreigners (English) and Indians with higher premiums being charged for the latter. In 1870, Bombay Mutual Life Assurance Society became the first Indian insurer.

At the dawn of the twentieth century, many insurance companies were founded. In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary that the premium-rate tables and periodical valuations of companies should be certified by an actuary. However, the disparity still existed as discrimination between Indian and foreign companies. The oldest existing insurance company in India is the National Insurance Company Ltd., which was founded in 1906. It is in business.

The Government of India issued an Ordinance on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The Life Insurance Corporation (LIC) absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. In 1972 with the General Insurance Business (Nationalisation) Act was passed by the Indian Parliament, and consequently, General Insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commenced business on January 1st 1973 (with its four subsidiaries)

The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. Before that, the industry consisted of only two state insurers: Life Insurers (Life Insurance Corporation of India, LIC) and General Insurers (General Insurance Corporation of India, GIC). GIC had four subsidiary companies. Until 1999, there were not any private insurance companies in India. The government then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies. Furthermore, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies

With effect from December 2000, these subsidiaries have been de-linked from the parent company and were set up as independent insurance companies: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited.

Central Administrative Tribunal

With a view to easing the congestion of pending cases in various High Courts and other Courts in the country, Parliament had enacted the Adminisitrative Tribunals Act, 1985 which came into force in July, 1985 and the Administrative Tribunals were established in November, 1985 at Delhi, Mumbai, Calcutta and Allahabad. Today, there are 17 Benches of the Tribunal located throughout the country wherever the seat of a High Court is located, with 33 Division Benches. In addition, circuit sittings are held at Nagpur, Goa, Aurangabad, Jammu, Shimla, Indore, Gwalior, Bilaspur, Ranchi, Pondicherry, Gangtok, Port Blair, Shillong, Agartala, Kohima, Imphal, Itanagar, Aizwal and Nainital.

The Central Administrative Tribunal has been established for adjudication of disputes with respect to recruitment and conditions of service of persons appointed to public services and posts in connection with the affairs of the Union or other local authorities within the territory of India or under the control of Government of India and for matters connected therewith or incidental thereto. This was done in pursuance of the amendment of Constitution of India by Articles 323A. In the statement of objects and reasons on the introduction of the Administrative Tribunals Act, 1985, it was mentioned that the setting up of such Administrative Tribunals exclusively would go a long way in reducing the burden on the various courts and reduce pendency and would also provide to the persons covered by the Administrative Tribunals a speedy and relatively cheap and effective remedy. In addition to Central Government employees, the Government of India has notified 45 other organizations to bring them within the jurisdiction of the Central Administrative Tribunal. The provisions of the Administrative Tribunals Act, 1985 do not, however, apply to members of paramilitary forces, armed forces of the Union, officers or employees of the Supreme Court, or to persons appointed to the Secretariat Staff of either House of Parliament or the Secretariat staff of State/Union Territory Legislatures.

A Chairman who has been a sitting or retired Judge of a High Court heads the Central Administrative Tribunal. Besides the Chairman, the authorized strength consists of 16 Vice-Chairmen and 49 Members. The conditions of service of Chairman, Vice-Chairmen and Members are governed by the provisions of the Central Administrative Tribunal (Salaries and Allowances and Conditions of Service of Chairman, Vice-Chairmen and Members), Rule, 1985, as amended from time to time. As per Rule 15-A, notwithstanding anything contained in Rule 4 to 15 of the said Rules, the conditions of service and other perquisites available to the Chairman and Vice-Chairmen of the Central Administrative Tribunal shall be same as admissible to a serving Judge of a High Court as contained in the High Court Judges (Conditions of Service) Act, 1954 and High Court Judges (Traveling Allowances) Rules, 1956, as amended from time to time

Special Purpose Vehicle / Entity

A special purpose entity (SPE; or, especially in Europe, special purpose vehicle/SPV, in Ireland – FVC financial vehicle corporation) is a legal entity (usually a limited company of some type or, sometimes, a limited partnership) created to fulfill narrow, specific or temporary objectives. SPEs are typically used by companies to isolate the firm from financial risk. A company will transfer assets to the SPE for management or use the SPE to finance a large project thereby achieving a narrow set of goals without putting the entire firm at risk. SPEs are also commonly used in complex financings to separate different layers of equity infusion. In addition, they are commonly used to own a single asset and associated permits and contract rights (such as an apartment building or a power plant), to allow for easier transfer of that asset. Moreover, they are an integral part of public private partnerships common throughout Europe which rely on a project finance type structure.[1]

A special purpose entity may be owned by one or more other entities and certain jurisdictions may require ownership by certain parties in specific percentages. Often it is important that the SPE not be owned by the entity on whose behalf the SPE is being set up (the sponsor). For example, in the context of a loan securitization, if the SPE securitisation vehicle were owned or controlled by the bank whose loans were to be secured, the SPE would be consolidated with the rest of the bank's group for regulatory, accounting, and bankruptcy purposes, which would defeat the point of the securitisation. Therefore many SPEs are set up as 'orphan' companies with their shares settled on charitable trust and with professional directors provided by an administration company to ensure that there is no connection with the sponsor.

In his Budget speech, finance minister P Chidambaram has proposed the setting up of a financial special purpose vehicle (SPV) to fund projects in the infrastructure sector. The proposed SPV is expected to lend funds, especially debt funds of longer maturity, directly to eligible projects to supplement loans from banks and financial institutions. The SPV, according to the proposal, will become a vehicle for channelising funds for projects in the roads, ports, airports, and tourism sectors.

SPV is also called special purpose entity (SPE) or special purpose corporation (SPC). In the recent past, it was the Enron debacle that popularised this word, though for the wrong reasons. The collapse of the Enron SPV notwithstanding, the term SPV continues to be a buzzword in the financial sector. FE takes aCloser Look at the concept of the SPV and its implications for the sponsoring company, investors and infrastructure:

Wednesday, June 1, 2011

Stages of Economic Integration: PTA, FTA, etc.

The degree of economic integration can be categorized into six stages:

  1. Preferential trading area
  2. Free trade area, Monetary union
  3. Customs union, Common market
  4. Economic union, Customs and monetary union
  5. Economic and monetary union,
  6. Complete economic integration

These differ in the degree of unification of economic policies, with the highest one being the political union of the states.

(1) A Preferential trade area (also Preferential trade agreement, PTA) is a trading bloc which gives preferential access to certain products from the participating countries. This is done by reducing tariffs, but not by abolishing them completely. A PTA can be established through a trade pact. It is the first stage of economic integration.

These tariff preferences have created numerous departures from the normal trade relations principle, namely that World Trade Organization (WTO) members should apply the same tariff to imports from other WTO member

(2) A "free trade area" (FTA) is formed when at least two states partially or fully abolish custom tariffs on their inner border. To exclude regional exploitation of zero tariffs within the FTA there is a rule of certificate of origin for the goods originating from the territory of a member state of an FTA. It eliminates tariffs, import quotas, and preferences on most (if not all) goods and services traded between them. It can be considered the second stage of economic integration. Countries choose this kind of economic integration if their economical structures are complementary.

(3) A "customs union" introduces unified tariffs on the exterior borders of the union (CET, common external tariffs). Purposes for establishing a customs union normally include increasing economic efficiency and establishing closer political and cultural ties between the member countries. It is the third stage of economic integration.

If their economical structures are competitive, they are more likely to form a customs union


Note: A "monetary union" introduces a shared currency. A "common market" adds to a FTA the free movement of services, capital and labor. An "economic union" combines customs union with a common market. A "fiscal union" introduces a shared fiscal and budgetary policy.

(4) An economic union is a type of trade bloc which is composed of a common market with a customs union. The participant countries have both common policies on product regulation, freedom of movement of goods, services and the factors of production (capital and labour) and a common external trade policy. Purposes for establishing a economic union normally include increasing economic efficiency and establishing closer political and cultural ties between the member countries.Economic union is established through trade pact.

(5) An economic and monetary union is a type of trade bloc which is composed of an economic union (common market and customs union) with a monetary union. It is to be distinguished from a mere monetary union (e.g. the Latin Monetary Union in the 19th century), which does not involve a common market. This is the fifth stage of economic integration. EMU is established through a currency-related trade pact. An intermediate step between pure EMU and a complete economic integration is the fiscal union

(6) Complete economic integration is the final stage of economic integration. After complete economic integration, the integrated units have no or negligible control of economic policy, including full monetary union and complete or near-complete fiscal policy harmonisation.

Complete economic integration is most common within countries, rather than within supranational institutions. A good example of this is a country like the United States of America which can be viewed as a series of highly integrated quasi-autonomous nation states. In this example it is true that complete economic integration results in a federalist system of governance as it requires political union to function as, in effect, a single economy.

In order to be successful the more advanced integration steps are typically accompanied by unification of economic policies (tax, social welfare benefits, etc.), reductions in the rest of the trade barriers, introduction of supranational bodies, and gradual moves towards the final stage, a "political union".

Linguistic Provinces Committees 1948, States Reorganisation Committees

Set up in 1948 after demands of separate states of Karnataka, Andhra, Maharashtra and Kerala.
Chairman: S.K. Dar
Members: Panna Lal, Jagatnarain Lal
Secretary: B.C. Banerjee
Predictably, its report dated December 10, 1948, recommended that linguistic reorganisation of provinces “is not in the larger interests of the Indian nation"

JVP Committee:
However due to pressure from the public to revive the case of reorganization of the States, the All India Congress Committee in 1948 at Jaipur constituted the JVP Committee. The JVP (Jawaharlal Nehru, Vallabhabhai Patel and Pattabhi Sitaramaiah) Committee recommended "to postpone the formation of new provinces for a few years, so that we might concentrate during this period on other matters of vital importance and not allow ourselves to be distracted by this question"

The JVP report contained a perceptive analysis of the situation. Two of its sentences reflect the committee’s own difficulties as well as the dilemma racking India. “We feel that the present is not an opportune moment for the formation of new provinces.” Yet, the members also believed that “if public sentiment is insistent and overwhelming, we, as democrats, have to submit to it, but subject to certain limitations in regard to the good of India as a whole”. The supporters of linguistic provinces knew a half-open door when they saw one. They publicly welcomed the JVP report and continued to press their claim.

The foundation for the second significant happening of the century, and first one after the Independence of the country, was laid on 22nd December 1953 with Jawaharlal Nehru's announcement in the Parliament of the Constitution of the States Reorganization Commission.

The Resolution of the Government of India relating to the reorganization said that

"The language and culture of an area have an undoubted importance as they represent a pattern of living which is common in that area. In considering a reorganization of States, however , there are other important factors which have also to be borne in mind. The first essential consideration is the preservation and strengthening of the unity and security of India. Financial, economic and administrative considerations are almost equally important, not only from the point of view of each State, but for the whole nation".4

The four principles that the State Reorganization Commission followed are:

1) Preservation and strengthening of the unity and security of India;
2) Linguistic and cultural homegeneity;
3) Financial, economic and administrative considerations; and

4) Successful working of the national plan


Monday, May 30, 2011

Mahalwari, Ryotwari and Zamindari systems

Mahalwari System:
In 1833, the Mahalwari Settlement was introduced in the Punjab, the central provinces and parts of north western provinces (Present UP). Under this system the basic unit of revenue settlement was the village or the mahal. As the village land belonged jointly to the village community the responsibility of paying the revenue rested with the entire mahal or the village community. So the entire land of the village was measured at the time of fixing the revenue. A modified Mahalwari system called Gram Vyavastha or Village Settlement was introduced in the Punjab.
Though the Mahalwari system eliminated the middlemen between the govt. and the village community & brought about improvement in irrigation facility yet its benefit was largely appropriated by the govt.
Whereas the Zamindari the Ryotwari settlements were inferior adoptions respectively of English & French systems the Mahalwari settlement was an improvisation of the traditional India system of an economic community

Ryotwari System:
Where the land revenue was imposed directly on the ryots -- the individual cultivators who actually worked the land—the system of assessment was known as ryotwari. Under the Ryotwari System every registered holder of land is recognised as its proprietor, and pays directly to Government. He is at liberty to sublet his property, or to transfer it by gift, sale, or mortgage. He cannot be ejected by Government so long as he pays the fixed assessment, and has the option annually of increasing or diminishing his holding, or of entirely abandoning it. In unfavourable seasons remissions of assessment are granted for entire or partial loss of produce. The assessment is fixed in money, and does not vary from year to year, in those cases where water is drawn from a Government source of irrigation to convert dry land into wet, or into two-crop land, when an extra rent is paid to Government for the water so appropriated; nor is any addition made to the assessment for improvements effected at the Ryot's own expense. The Ryot under this system is virtually a Proprietor on a simple and perfect title, and has all the benefits of a perpetual lease without its responsibilities, inasmuch as he can at any time throw up his lands, but cannot be ejected so long as he pays his dues; he receives assistance in difficult seasons, and is irresponsible for the payment of his neighbours. . . . The Annual Settlements under Ryotwari are often misunderstood, and it is necessary to explain that they are rendered necessary by the right accorded to the Ryot of diminishing or extending his cultivation from year to year. Their object is to determine how much of the assessment due on his holding the Ryot shall pay, and not to reassess the land. In these cases where no change occurs in the Ryots holding a fresh Potta or lease is not issued, and such parties are in no way affected by the Annual Settlement, which they are not required to attend

Zamindari System:

Zamindari system was a way of collecting taxes from peasants. The zamindar was considered a lord, and would collect all taxes on his lands and then hand over the collected taxes to the British authorities (keeping a portion for himself). The similarities to medieval feudalism are evident.
Under the British, they resembled landed gentry (although they lived similarly privileged lives under the Mughals) and sometimes styled themselves as little kings, or rajas. Some new Zamindars were old Rajas.

Sunday, May 29, 2011

UNESCO's Man and Biosphere Programme

The Man and the Biosphere Programme (MAB) of UNESCO was established in 1971 (same as year of start of Ramsar Convention) to promote interdisciplinary approaches to management, research and education in ecosystem conservation and sustainable use of natural resources.

The MAB programme’s primary achievement is the creation of the World Network of Biosphere Reserves since 1977. This World Network is more than a listing - biosphere reserves exchange knowledge and experiences on sustainable development innovations across country and continent borders - they exist in more than 100 countries all across the world.

Biosphere reserves: They are areas that are supposed to develop innovative approaches, test them and share the results; more importantly to combine many different approaches in a vast diversity of policy and management fields, towards a balanced relationship between mankind and nature.

In order for an area to be included into the World Network of Biosphere Reserves, work on the ground has to have started, appropriate information about the region gathered, the population needs to have agreed. Nominations then are prepared and submitted to UNESCO by national governments, in most cases through MAB national committees. Benefits gained from being part of the network include access to a shared base of knowledge and incentives to integrate conservation, development and scientific research to sustainably manage ecosystems.

MR NATARAJAN ISHWARAN is the current Director, Division of Ecological and Earth Sciences, Secretary, Man and the Biosphere (MAB) Programme.


Madrid Action Plan:

In order to address these challenges, thus strategically contribute to the achievement of the relevant Millennium Development Goals, the 20th Session of the MAB-ICC and the Third World Congress of Biosphere Reserves adopted the Madrid Action Plan, setting out the following agenda for the MAB Programme for the period 2008–2013:

  • develop mechanisms to encourage the sustainable development of biosphere reserves carried out in partnership with all sectors of society to ensure the well-being of people and their environment;
  • test and apply policies for adaptation to and mitigation of climate change in coordination with other intergovernmental programmes;
  • use the experience of the WNBR, the MAB Networks and interdisciplinary approaches to develop and test policies and practices to address the issues impacting key ecosystem types, namely coastal zones, islands, oceans, mountains, drylands, tropical forests, freshwater ecosystems and areas of increasing urbanization;
  • develop scientific programmes of research to follow on from the Millennium Ecosystem Assessment (MA) to define approaches that secure ecosystem services into the future.

Saturday, May 28, 2011

Parliamentary Ethics Committee

Government of the day appointed on 9 July, 1993, a Committee headed by Shri N.N. Vohra, the then Home Secretary, Government of India, to take stock of all available information about
the activities of crime syndicates/mafia organizations who allegedly had developed links
with and were being protected by some Government functionaries and political
personalities.

The committee report suggested setting up of a nodal agency under the Ministry of Home
Affairs, Government of India, to be handled directly by the Union Home Secretary, who
would be assisted by one or more selected officers of the Ministry for the collation and
compilation of all information received from different intelligence agencies.
Subsequently, an All-Party Meeting was held on 15 September 1995, under the
Chairmanship of the then Union Home Minister, Shri S.B. Chavan, to look into the whole
gamut of criminal-politician nexus and the related issue of declaration of assets and
liabilities by the Members of Parliament and Ministers. The points, which inter alia,
constituted the agenda, among others, were :
1. Setting up of a Parliamentary Committee on Ethics as distinct from the
Committee of Privileges which would act as a guardian on the activities of
members of Parliament.
Thus the Ethics Committee, Rajya Sabha, the first such Committee by any
legislature in India was constituted by the Chairman, Rajya Sabha on 4 March 1997, to
oversee the moral and ethical conduct of the Members and to examine the cases referred
to it with reference to ethical and other misconduct of Members.

Ethics Committee, Rajya Sabha consists of ten members, including its Chairman,
who are nominated by the Chairman, Rajya Sabha. Chairman of the Committee is from
the largest party in the House. Other members normally are the Leaders, Deputy
Leaders/Chief Whips of their parties/groups in Rajya Sabha

The Ethics Committee of the Lok Sabha was constituted on 16 May 2000.

Friday, May 27, 2011

Group of 4 : G4 and Coffee Club

The G4 is an alliance among Brazil, Germany, India, and Japan for the purpose of supporting each other’s bids for permanent seats on the United NationsSecurity Council. Unlike the G8 (formerly known as G7), where the common denominator is the economy and long term political motives, the G4's primary aim is the permanent member seats on the UN Security Council.
The G4 suggested that two African nations, in addition to themselves, be included in the enlarged UNSC. In several conferences during the summer of 2005, the African Union was unable to agree on two nominees: Egypt, Nigeria and South Africa all lay claim to a permanent African UNSC seat

Coffee Club: Countries that strongly oppose the G4 countries' bids have formed the Uniting for Consensus movement, or the Coffee Club, now comprising over 40 nations

Generic Drugs

A generic drug (generic drugs, short: generics) is a drug defined as "a drug product that is comparable to brand/reference listed drug product in dosage form, strength, route of administration, quality and performance characteristics, and intended use."[1] It has also been defined as a term referring to any drug marketed under its chemical name without advertising.[2]

Although they may not be associated with a particular company, generic drugs are subject to the regulations of the governments of countries where they are dispensed. Generic drugs are labelled with the name of the manufacturer.

In most cases, generic products are available once the patent protections afforded to the original developer have expired. When generic products become available, the market competition often leads to substantially lower prices for both the original brand name product and the generic forms. The time it takes a generic drug to appear on the market varies. In the US, drug patents give twenty years of protection, but they are applied for before clinical trials begin, so the effective life of a drug patent tends to be between seven and twelve years.


Source: Wikipedia

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