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Showing posts from August, 2008

FREE TRADE REGIME - A TRAP

Free trade regime – what is advocated by the developed countries in WTO; the developing nations are not agreed to that for several reasons. However, let us see how the worked for other countries in the globe who accepted it to the letters. Let us take very recent example of Ghana. Ghana implemented the “liberalized economic system” in the early 8s, at least 10 years before India. The country was projected by the World Bank and the IMF as success story of Africa. But the reality was exactly otherwise. The liberalized economy in Ghana has ruined its agriculture and at the same time failed to boost any substantial manufacturing industries. The mantra of consumerism has failed there too. The poor consumers in Ghana were denied the price stability and pushed to further predicament. The free trade meant lack of price stability for the people of Ghana, since the government has bowed out of price-setting to make way for the market. Likewise the poor producers face highly uncertain prices, they...

POOR INDIA; POORER WORLD !

Everyday those of us belong to third world or developing countries like India, Pakistan, China, Brazil, Russia or any countries in the continent of Africa come across of poor. In many of these countries they are found, living in shanties, ghettos either sitting idle with a vacant look or working hard to keep their soul with body. Since this I write for my blog, presumably the readers do have access to internet, so for all of us it is difficult to imagine how it is to earn only $1 or $1.25 per day or how to live with that paltry sum of money! Believe it, as per a recent World Bank report no less than 723 million people are just pulling on with that kind of earning, there are more who even do not earn that amount! Their plight is unimaginable. There have been big successes I the fight to overcoming extreme poverty but economic estimates show that there are now more poor people around the world than it was thought previously, the World Bank said in study recently. The revised estimates s...

STOCK MARKET TREND

Indian stock market after its long journey through bull phase, according to some experts, is entering its tryst with bears with mid to long term association. “We are likely to see a sideways movement for the next one year at least” says Edelweiss Capital Chairman and managing director Rashesh Shah, adding that the next 3-4 months could be tough. “There are no positive triggers in sight. Inflation and crude oil prices are still not under control, and corporate earnings are set to plateau over the next couple of quarters” he added. Bears seem to be tightening their grip over the stock prices, as evident in the recent trend and technical analysis of stock indices, and they are forwarding in for the kill. The micro as well as macro condition are in their favor. On the macro front inflation escalated to a new 16-years high to 12.63%, creating expectation that the interest rate is due for a further hike. The global situation is more gloomy since the experts feel that worst of sub-prime crisi...

BANKING AND TRADE UNIONS IN INDIA

In India, banking industries are taking a paradigm change to compete with the global and private banks playing here. In Indian nationalize banking s scenario the White elephant State Bank of India, with its largest network and manpower sharing the market share much lesser than emerging private banks like ICICI Banks, or HDFC Banks. Though the nationalize banks are off late trying to shake off their slumber but as it seems unless the dead woods are out it is difficult to fall in line. On 18th August the Officer`s Union of State Bank of India and its other associate banks have given a strike call, protesting against merger. The most surprising part of it that most the staff members of the Associated Banks are in favor of merger with State Bank of India, since that will accrue them lot of benefits, like pension as 3rd benefits, higher pay scale , local transfer et al. So how come the Unions have given strike call? The union leaders, who are primary from political parties and most of them...

GOLD VS LIQUID GOLD

Contrary to the apprehension global oil price instead of going higher is coming down. The reason being he demand supply scenario is changed as the experts believe and off course the speculative forces are receding as well. But there is another story cooking up behind the curtain. It is reported “ a powerful relationship measured by gold/oil ratio (GOR) --- has been a trigger for the sell-off in oil contracts by investors, mainly global hedge funds, on overseas exchanges”—by informed sources. It is believed that in addition to selling oil contracts, these investors have created long positions in gold. It is presumed that yellow metal is relatively inexpensive vis-a-vis the black gold. Most of the analysts think that gold may outperform oil in the near future. This is because yellow metal is considered a hedge against higher inflation, what is driven by higher oil price. Sean Darby, the Asia Pacific strategist of Nomura International says “ It (GOR) normally represents good tool for in...