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Books on India
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Update No: 045 - (29/10/07)
CHINA LUKEWARM ON INDIA'S BID TO THE SECURITY
COUNCIL
According to a report in the International Herald Tribune, China's foreign
minister offered "tepid" support for India's bid for a permanent U.N.
Security Council seat. Yang Jiechi affirmed India's rising diplomatic and
economic clout, saying both nations "are major countries in Asia and
countries with important influence in the world." However, when asked if
Beijing fully backed India for a permanent seat in the Security Council, the
minister said nothing. He did add that, "reform of the Security Council is
an issue that everybody needs to negotiate on" While Yang expressed some
faith in Chinese beliefs of supporting India playing a larger role in the UN, he
was unsure about what kind of role India ought to play. China is one of the
current five permanent Security Council members, along with Russia, the United
States, France and Britain. All have taken a mostly cautious view to any changes
to the global system set in place more than 50 years ago. India has meanwhile
expressed concerns over China's military buildup, seen by some as pushing New
Delhi closer to Washington. Fast growth in both economies has also been a source
of competition for resources and markets. Yang was convinced that both countries
would move towards something that would be "mutually beneficial."
SAARC CONFERENCE
SAARC is an association of economic and political organization of eight
countries across South Asia. It was established on December 8, 1985 by India,
Pakistan, Bangladesh, Sri Lanka, Nepal, Maldives and Bhutan. In April 2007,
Afghanistan became its eighth member at the Association's 14th summit. The three
day South Asian Association for Regional Cooperation (SAARC) Conference of Home
Ministers and senior officials from SAARC countries has begun in New Delhi
placing greater emphasis on cooperation between the SAARC members to fight
terrorism. Since almost all South Asian countries have been affected by the
threat of terrorism, the SAARC countries are particularly concerned about
eradicating and fighting organized crimes, narcotics, smuggling and human
trafficking in their respective countries. The network of countries is seeking
to develop stronger legal channels to check trans-border terrorism and the
trafficking of women and children. According to the Home Ministry sources, the
Police Chiefs of SAARC nations will discuss on these issues on the opening day
on October 23 while the Home Ministers of these countries will take up the
matters on the second day. The meeting holds special significance in the light
of a series of terrorist attacks in India, Pakistan and Bangladesh, where the
respective governments are trying to stabilize the situation and prevent future
occurrences.
INDIA-NIGERIA
The Indian Prime Minister Manmohan Singh visited Nigeria recently providing a
platform to build stronger ties between the two countries. The Abuja Declaration
on Strategic Partnership adopted by both nations last week includes exchanges
among parliamentarians, and a steady interaction between the political classes
of both countries that could help develop Nigeria's capacity for sustainable
growth in representative governance. India has issues a grant of $900 million to
Nigeria in support of the implementation of the seven-point agenda of the
President Umaru Yar'Adua administration. These programs, if successful would
help strengthen democratic institutions in Nigeria. Nigeria also has to draw
from India's methods to combat poverty. The two sides signed a Memorandum of
Understanding on defense cooperation and three other documents. These cover a
protocol on foreign office consultations, MoU between Indian Council of World
Affairs and Nigerian Institute of International Affairs and another MoU between
the Foreign Service Institute and its Nigerian counterpart. It was agreed that
the two countries would sign within next six months an extradition treaty,
agreements on double taxation avoidance and bilateral investment promotion and
protection. The two countries will also work out a bilateral air services pact,
a mutual legal assistance treaty and an agreement on cooperation against drug
trafficking. A three-year cultural exchange program beginning next year is also
being set up.
ABBAS WANTS INDIA AT MIDDLE EAST SUMMIT
Palestinian Authority President Mahmoud Abbas has expressed his desire of having
India being present at the international peace summit. During a brief stopover
in India for re-fuelling of his aircraft en route to the West Bank from Brunei,
Abbas said India could play a greater role in facilitating a lasting peace in
the Middle East. He told reporters that India as a key regional power had good
ties with all and this could help in pushing the peace process forward. The
conference called by US President George W Bush is expected to take place in
Annapolis, Maryland, by the year-end to revive the peace process between Israel
and the Palestinian Authority. Abbas was met by Indian envoy for Middle East
peace process Chinmaya Gharekhan at the Hyderabad airport. When asked about
India's role in the peace process, Abbas said that "India has been our
friend for a long time, helping us in all spheres including economic and
political. We expect their help here as well." Gharekhan briefed Abbas
about India's position on the peace process and renewed Prime Minister Manmohan
Singh's invitation to him to visit India. The invitation was accepted.
OECD SEEKS 10 PERCENT GROWTH FOR INDIA
The Organization for Economic Cooperation and Development has said that India's
economy could achieve a growth of 10 per cent in 2011 if the government
continues with its reforms which include the privatization of state firms. In
its first survey of the Indian economy, the Paris-based Organization for
Economic Co-operation and Development said that India needed to loosen its labor
laws, remove a cap on foreign investment in the insurance sector, and undertake
wide-ranging reforms to boost growth and reduce poverty. In its report, the OECD
said that "the impressive response of the Indian economy to past reforms
should give policymakers confidence that further liberalization will deliver
additional growth dividends." The Indian economy has grown at an average
8.6 per cent in the past four years but reforms such as further opening the
economy to foreign investment and the privatization of state firms have got
mired in the opposition from supporters of the ruling coalition. The economy is
expected to grow by 8.5 per cent in the financial year ending in March 2008,
according to the Reserve Bank of India (RBI), slowing from 9.4 per cent in the
previous fiscal year. OECD said "India's privatization program needed to be
revitalized as there were many loss-making state enterprises and both the
productivity and profitability of publicly owned firms had been lower than those
in the private sector." Also, "Privatization would thus appear to
offer considerable possibilities for improving productivity. Privatizing firms
in sectors where the government share of output is larger (banking, insurance,
coal and electricity) would also be desirable." The OECD has also called
for the insurance and retail sectors to be opened up further. The government has
expressed its intention to raise the cap on foreign direct investment (FDI) in
the insurance sector to 49 per cent from 26 per cent but this has also been
blocked by the left. (SOURCE: Hindustan Times).
PAULSON SAYS INDIA KEY TO DOHA TRADE DEAL
U.S. Treasury Secretary Henry Paulson has said that India could play a key role
in reaching a deal in the Doha round of international trade talks if it were
willing to open up non-agricultural sectors of its economy. Therefore, there
appears to be condition contingent upon opening up non-agricultural sectors of
society. Paulson, directly ahead of his four day visit to India, said that
"Doha is within reach and I think India can play a leadership role in
helping us get there." Paulson said access to the services sectors in India
and other major emerging economies was important for a Doha deal to be reached.
Moreover, "in those industries where they haven't been as regulated or they
have been liberalized, they've competed very, very well -- software, airlines
and certain manufacturing areas." Paulson also said a controversial deal
that would provide India access to civilian nuclear technology would benefit
both countries and had U.S. commitment, but he acknowledged domestic political
pressure in India against it. Paulson lauded India's flexible currency exchange
rate regime, adding that China and India are "two very different
nations." However, despite endorsing his promise in India's future, opening
up non-agricultural sections of economy is a decision that rests solely with the
Indian government. There would be a trade-off in opening up these sectors, which
New Delhi may be unwilling to do. Therefore, it will be interesting to see if
the Indian government accepts Paulson's suggestions constructively to reduce the
possibility of another deadlock in the Doha trade deal.
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