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PMO Archives India Original article ›
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Jan 22, 2003 in New Delhi, Atal Bihari Vajpayee, who revived Gandhiji's Indian vision for the 21st century, said on the Golden Jubilee of India's Parliament-  "If the 20th century saw the global growth of democracy, the new century should see its further expansion and enrichment. Especially, we should develop democracy as an effective instrument for fulfilling people's aspirations and resolving conflicts and contentious issues. History has proved time and again that free and democratic societies are the ones that are creative, self-corrective and self-regenerative. The holding of regular elections, the victories and defeats of individuals and parties, and the periodic change of governments have many benefits. These make elected representatives accountable; keep the rulers in check if they develop hunger for power; prevent rigidity in governance; and dislocate social and economic interests that would otherwise get vested."   "At the same time, we cannot overlook the many ways in which the Parliamentary system, including ours, needs to be strengthened. All democracies, especially in developing countries that have considerable diversities and carry the burden of developmental imbalances, have had to grapple with one paramount challenge. And that is: how to harmonise the legitimate self-assertion of communities that suffered deprivation and disempowerment in the past with the imperatives of good governance?"   "One obvious answer lies in the need to protect and further strengthen the institutions of democracy. Our ancient seers taught a guru mantra: Dharmo Rakshati Rakshitah. Dharma, protected, protects. In the same way, institutions, protected, protect. They can function well only if each of us adheres to the norms that are the essence of each institution. If we adhere to the norms of our institutions, the effectiveness of democracy would go up ten fold, even a hundred fold. If we don't, it is imperiled."   "There is a second imperative. Our economies are becoming increasingly integrated. The demands of our people are ever more pressing. Thereby governance has become more complex, demanding newer competencies from elected representatives. All parliamentary democracies, therefore, face a common challenge: how are we to ensure that the rough and tumble of electoral politics brings such persons to office who can actually handle the complex tasks of governance?" ...
New York Times Original article ›
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Significant results for the ruling Congress party in India as the voters reelect Sheila Dikshit for a third term for Delhi city state, and as Congress wins election in Rajasthan state and in Mizoram. The election results showed that the local issues played a bigger part, and the voters did not respond to communal ideas or to vote against the central government because of the terrorist attacks in Bombay. This is overall a good sign as voters were turned off against all politicians when it comes to their ability to ensure public safety, and economic and other issues as well as accountability for public safety and not a kneejerk reaction to events like the Mumbai atttacks is what determined the results in these states. As elections for the whole country's central government take place before May, 2009, this is an oportunity for the Congress to look to voters for support of its economic agenda and for the opposition parties including the BJP to show what they could do better in the present global financial crisis that is affecting both China and India's growth rates....
Wall Street Journal Original article ›
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Diesel prices are regulated and subsidized by the Indian government, but gasoline prices are deregulated since 2010, resulting in gasoline costing 64% more than diesel in India. As a result buyers are staying away from gasoline cars and shifting to diesel creating distortions in demand. The government is considering a tax on diesel cars and SUV's of between $3000 to $4600 to correct the distortion. Because lower income people woud be hurt by increasing the price of diesel it continues to be subsidized. Because of the uncertainty car manufacturers are shutting down production to reduce growing inventory of gasoline vehicles. High interest rates of 12% on car loans also reduces demand. Suzuki Maruti sales declined 6% in May 2012, Ford and GM showed sales declines of 14% and 20%. The year ending March 2012 shows Indian car sales growing only slightly by 2.2% to 2 million cars. Sales were rising at 29% only about a year ago. Gasoline costs 68 rupees a liter in New Delhi after a 11.5% increase in May 2012, compared to 41 rupees per liter for diesel. The increase in gasoline prices is a result of the government having difficulty paying the rising imports of oil, costing $141 billion for the year ending March 31, 2012. The sharp slowdown in the car industry and the problems in the energy sector have affected India's growth rate....
The Times of India Original article ›
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Based on certain criteria of the number of seats and number of states India's Election Commission says the Aam Aadmi Party in Delhi and Punjab gets status as national party. The Trinamool Congress or TMC of West Bengal, and the NCP of Maharashtra, the CPI, are no longer considered national parties. India's evolution as a modern industrialized country following the pattern set by Japan in the 1960's, South Korea in the 1990's, China by 2019, is at stake. The regional parties based in one state are a new phenomenon. Under Jawaharlal Nehru India lacked a pool of capital and techological resources large enough for this kind of industrialization similar to the situation in China under Mao. Non alignment under Nehru and Communism under Mao deprived India and China of the resources and foreign investment of the west including the absence of infrastructure and policies that would encourage foreign investment. China set about removing these obstacles. Yet one obstacle would not stand up against these efforts in China as it would in India. There was no prospect of coalition governments that would be indecisive and be built on various compromises damaging to rapidly building infrastructure. In India coalition governments would emerge because of the 22 language structure in its makeup and the language based division of the country that Nehru was forced to make by linguistic demands. As a result without a core philosophy of principles common to all parts of the country rapid development could not happen over a period 1990-2014 when the party of Nehru lost many northern states and when states in the south such as Tamilnadu, Andhra and Telengana, and states in the northeast such as West Bengal, Orissa, states in the west such as Maharashtra moved into language based regional identities and parties running these states. This is the significance of the changes since 2014 of one strong party in a number of northern states and in the west and northeast of the country that is making rapid industrialization and infrastructure building to attract foreign investment similar to China's experience happen. In India this core of common principles has evolved around the Ancient Path of Vedanta and Buddhism that has provided essential aspect of good governance and the discipline for finding a path to the kind of rapid infrastructure development that has happened in neighboring Japan and China. ...
New York Times Original article ›
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The anti-corruption bill for creation of a Lokpal agency passed the lower and upper house of the Indian parliament in December 2013. It was stalled for two years after the efforts of political activist Anna Hazare's protest movement for passage of the bill. With national elections approaching in 2014 and the ruling Congress party's image bruised badly in state elections of Dec. 2013, party leaders decided to support the bill. In the elections in the capital Delhi a anti-corruption party, Aaam Aadmi (for the common man), created only recently, won a major part of the seats. In India corruption hurts not only at the national and local level as in China, but affects the daily life of the common man as bribes are required from ordinary people for anything to get done that requires approval from the huge government bureaucracy. In that sense it takes a toll on economic development and affects the quality of services received by the vast majority of people, which is why the party calls itself "common man."...
WSJ Original article ›
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Greg Ip in the WSJ says India is shifting towards  becoming an important partner with the US and the European Union in trade under the Modi government. This report reflects the situation upto 2021 and the changes in Indian and American perceptions during the pandemic. It does not reflect the rapidly evolving situation under president Biden.US president Biden and Jake Sullivan National Security Advisor see rapidly expanding US trade and investment in India. The recent Raisina Dialogue  brings together 26 countries- named after Raisina Hill in New Delhi where India's administration is located- in dialogue with Indian leaders. Finance Minister Sitharaman in an interview at Raisina Dialogue stated that Janet Yellen, US Treasury Secretary, was with her during a G-20 meeting, and Yellen called for friendshoring- foreign investment in democracies that respect the rule of law and provide the right conditions for investment. The right conditions are now being created in India, including infrastructure and logistics, trade practices, and assistance to foreign companies, to invest in Indian manufacturing. The conditions are being created for shifting significant number of manufacturing facilities to India in a complete redesign of the supply chain. A look at the period 1950-2015 in US-EU India relations says little of the newly evolving situation in trade in the way that looking at the US-EU China relations 1950-1990 during the Cold War would tell one little about how that relationship evolved in trade after 1990 in the 1990-2019 period for massive trade with China. The pandemic and the inflation from existing supply chain bottlenecks has led to a realization in US-EU that the existing concentration of manufacturing in one country  was a mistake and is a serious problem that needs correction.  This means an acceleration in the effort to build rapidly over the next 5-10 years a strong US-EU manufacturing presence in India for advanced technologies. India under prime minister Modi is creating the infrastructure and logistics for this to happen with large domestic investment, the help of Denmark's Maersk in port logistics, and from other countries.  Fo India manufacturing and infrastructure building is the only way to create the jobs needed to meet the aspirations of its young population. For the US-EU the redesign of the supply chain is the highest priority to cut inflation, remove potential bottlenecks, and provide a stable supply chain.    ...
New York Times Original article ›
Washington Post Original article ›
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The Indian public from retired businessmen, farmers, students, and the press are coming out in support of anti-corruption leader Anna Hazare's call for effective legislation to control corruption of public officials in India. This comes after a number of corruption scandals and lack of action from the Congress government. The government's bill in parliament - introduced after pressure from public opinion- sets up an ombudsman or Lokpal agency, which would exclude from its jurisdiction the very public officials over whom it was meant to exercize oversight. Under the government's bill the prime minister, the public officials in the bureaucracy and the judiciary would be excluded. This has set up a confrontation with an increasingly exasperated public, with Hazare's protest fast in central New Delhi as the catalyst for protest across the country. The Prime Minister Manmohan Singh told parliament that he sees it as an issue of parliamentary sovereignty, as Hazare's protest is for a version of the bill that he has drafted to be adopted. But the public's sense is that Hazare is only responding with his own draft of the bill because of the government's effort to make only a token effort by not giving the anti-corruption body the powers it needs to function effectively. The response has brought thousands of demonstrators from around the country to Tihar jail where Hazare is being held by the government after his arrest. The situation is reminiscent of the protests against the British imperial government by Mohandas Gandhi, and in this sense has serious implicatons for how the country is governed. Corruption was prevalent in India during the days of the license Raj in the period 1950-1990 when business needed government permits in the closed economy of the Nehru period, and corruption existed in the bureaucracy in its delivery of public services. Since 1990 as the economy opened up and the growth rate increased corruption at all levels of government has in some ways increased and become embedded in the bureaucracy and government. This hurts the poor and the middle class the most, as corruption acts as a tax on the delivery of public services and infrastructure development, both badly needed in an emerging market country....

How to run a continent

Economist Original article ›
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This article in the Economist Report on India focusses on politics, and the implementation of a state devolution of powers and finances. This is the big idea referred to by the prime minister's Economic Advisor, Arvind Subramanium. The Modi administration is providing the direction at the federal level for a development push at the state level. The states will now get 42% of federal tax revenus and with state revenues this increases to 62% of total revenues, giving the states leverage to compete for talent, capital, and investment for economic growth. This element of competition will be strong to attract different industries and foreign investment similiar to the experience of Gujarat and now pushed at all levels of government. It also introduces the idea of "competitive federalism" as India is a country with states at various stages of development from Gujarat to Punjab and Bihar. The new NITI Aayog replaces the old command economy Planning Commission from the Congress administrations since 1947, and supports "competitive federalism" as a think tank that provides advice and help to the centre and states. Rising aspirations in India helps the Modi government with voters who are incresingly urban and better educated, looking for jobs. The election in Delhi suggests voters will always be open to new ideas to fight corruption and bring better delivery of public services, and wins by parties offering positive change for improvement will always be a part of India's democracy, introducing competition in politics for who can do a better job at the regional level. ...
Wall Street Journal Original article ›
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India's airlines together will lose $1 billion to $2 billion in 2008, twice what they lost in 2007, according to aviation analysts. The airlines face a glut of domestic overcapacity. Until recently therre were 50 flights between Bombay and Delhi with 4 seats chasing each passenger according to Keskar, Boeing vice president in charge of sales in India. Boeing and Airbus are advising airlines in India to delay deliveries of planes so that the overcapacity does no lasting damage and the industry can recover from this as they see India as a boom market in the future. Boeing expects India will need 1001 aircraft till 2027. Reasons for the airline losses are that in the 12 months ending April 2008 passenger traffic increased by only 7%, and in the 12 months before that by 31%, and in the 12 months prior by 59%. Air India is cutting its domestic flights by 15% returning 14 leased jets to their owners as the leases expire and freezing the size of its fleet. Worldwide the airline industry could lose $6.1 billion in 2008 with a third of the losses in the USA. Passenger volumes fell in China for the second straight month in June but China's airlines appear stable because of milder competition and government support....
Economist Original article ›
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The Hazare fast in New Delhi for a Lokpal, an anti-corruption body, with appointment of members of high integrity who are not politicians. After a series of corruption scandals the public mood supports the movement for a impartial investigator of corruption in the government.
Wall Street Journal Original article ›
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T.S.R.Subramanium, India's most senior civil servant and his thoughts about Indian development, the civil service politicians and the judiciary, expressed in abook titled GovernMint in India. He was Cabinet Secretary under three prime ministers. He is interviewed here by the WSJ New Delhi Bureau chief, Paul Beckett. He talks about the timidity of the civil service in the face of political ineptitude and the political class using government to benefit themselves without the checks on them. He says the politicians have come to dominate the civil service , have no checks on what theydo, and are twisting the civil service for their own gain. He knows of three cabinet level ministers in the last government that made money from their positions, with nothing done about them. Proble here could be that the framers of the constitution had some tough problems to deal with. If they made the civil service all powerful, could it turn out that the civil service like in Japan would not bend to the wishes of the people? And if they made the civil service subject to the wishes of the people the politicians could use it for their own narrow purposes and affect the task of delivering essential services and progress to the people. They chose the latter. Its true that the British civil service was disciplined and honest but they did not have to respond to the wishes of the people. The only safety valve left by the framers was in the electoral process and the wisdom of the people in throwing out politicians who did not deliver. The problem of dignity and national purpose in politics had to be left to the people themselves, their leaders and the thinking public in the society. He sees the judiciary as having failed too, in controlling the politicians. And he sees part of the problem in that the judiciary stems from the same English educated class as the bureaucrats. Says T.S. R. Subramanium, the political class is the only one that is not constrained by checks and balances, follws no effective code of conduct, and considers itself king. Subramanium's solution of a messiah type figure, is quickly disapproved of by all his colleagues, and he takes pains to clarify that what he means is someone who can get the public backing to cleanse it. ...
Wall Street Journal Original article ›
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The effort and agitation of Gujjars, a backward class, to obtain preferential status similar to Scheduled castes and tribes like the Meenas, has spilled into New Delhi from the western state of Rajasthan. This is an effort to get a bigger piece of the development pie through government quotas for hiring and other prefernetial treatment.
The Hindu Original article ›
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The US sees no contradiction to India looking for bargain priced oil from Russia to meet the growing needs of its economy and is actually furthering the goals of the G-7 by lowering the price Russia gets for its oil. It helps the economy of 1.2 billion people that like the rest of the world has struggled to fight the pandemic and has incurred the kind of heath costs that even China is now struggling to pay for. President Biden clearly understands and supports this. Democracies an only succeed if they fulfill the aspirations of their people. On this point Biden made clear in his State of the Union that he will generate what it takes from large corporations that paid no tax, to invest in America. Rather than fuel the profits of large oil companies India has increasingly chosen to use Russian discounted oil to invest in India. The Biden and Modi policies are identical generate savings and invest big time in trillions of dollars over the next few years to put democracies ahead in meeting rising aspirations that have been unfulfilled for far too long, which is where the real battles are being fought and will be won, and rightly so. US Assistant Secretary of State for Energy Resources, Geoffrey Pyatt,  said during a visit to New Delhi on Feb. 16-17- "Our experts now assess that India right now is enjoying a discount of about USD 15 a barrel in the price that it is paying for its imports of Russian crude. So by acting in its own interest, by driving a hard bargain to get the lowest price possible, India is furthering the policy of our G7 coalition, our G7 plus partners in seeking to reduce Russian revenues."  Looking at the bigger picture the problem was created by Germany under Merkel who built Germany's over dependency on Russian oil to power a cheap fuel economy it thought was in Germany's interest. This is now being reversed by the hard work of Mr. Habeck of the Green party in the coalition government of Scholz in securing alternative supplies in record time for the EU to avoid a recession. In this sense the perception created early of India which has suffered itself from invasions in 1962 and incursions in the Himalayas more recently, it is not a problem India can solve by becoming energy short at a time when it has invested so much in fighting the pandemic. A similar problem was created by Republican and Democratic administrations of the past that concentrated the supply chain in one country. India lost much investment in the last 8 years as a result of the policies of Merkel's Germany and past Republican Democratic administrations in concentrating the supply chain in one country. ...
Wall Street Journal Original article ›
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Problems facing India as it searches for a way to modernize the country, build infrastructure, and create strong jobs growth. Glaring weaknesses are evident in a number of areas which have not been addressed: a weak public education system, food poverty for people at the lower end worsening with today's 10% food inflation, child malnutrition, weak infrastructure building capabilities, growth in services but not enough in manufacturing to create jobs, a growing black economy, and a general acceptance of illegal behaviour that has increased with the increase in opportunities for corruption and bribes in a growing economy. The political governance is weak. The dependence on smaller regional parties in ruling coalition governments weakens initiative at the federal government level. The general lack of new political leadership, and the failure to develop new leaders in the Congress party because of the six decades long presence of the Nehru family. Some striking facts- the role of the black or underground economy has actually increased over the years. Arun Kumar, chairman of the Center for Economc Studies and Planning at Jawaharlal Nehru University in New Delhi, says his estimates show it was 40% of GDP by 1996, and 50% by 2006. This means more business activity evades direct taxes, and less money is available for investments in education, infrastructure and healthcare. It also indicates a widespread tolerance of illegal activity and corruption. The other striking facts are that the calorie consumption by the bottom of the 50% of the population has been declining since 1987, according to a 2009-10 economic survey by India's Ministry of Finance. The modernization of the country appears not to be following the path taken in East Asia- by Japan, S. Korea and now China- where people moved in large migrations from farms and rural areas to cities and manufacturing jobs, resulting in gradual urbanization. Manufacturing in India is only 16% of GDP in 2009, the same as in 1991, according to the World Bank. Certain regions are doing better than others- Gujarat and the Punjab in the north, Tamilnadu, Karnataka in the south- with large population areas in Uttar Pradesh and Bihar lagging behind badly. ...
New York Times Original article ›
Wall Street Journal Original article ›
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India has 2.3 million of the 9 million tuberculosis (TB) cases reported annually. About 100,000 of these are drug resistant strains. Existing treatment methods do not work for drug resistant cases, actually exacerbating the conditions as the strains thrive if the antibiotics fail. Cases of drug resistant TB are reported in Mumbai, Bangalore and New Delhi. Experts say the $236 million India spends on TB treatment and control is not enough to deal with the problem. India lacks the machines that can detect drug resistant TB in 2 hours and patients with drug resistant TB wait for months taking treatments that fail before it is detected. The WHO provides these machines at a cost of $70,000 per machine and each patient test is $16. The first cases were detected in 2006, and India began building labs for this strain in 2008. So far 37 labs have been built treating 5000 patients. The WHO has tried to persuade India to get the diagnostic machines since 2010, which can do the work of detection for drug resistant strains much faster. These machines are in pilot programs and India will buy more if they work says Dr Kumar, head of India's TB program. Doctors at Hinduja Hospital in Bombay, including Dr. Udwadia, are not convinced and see the efforts as slow and bureaucratic. Dr Kumar says the government has focussed on regular TB which only costs $9 or 500 rupees to treat and cure compared to the $1800 or 100,000 rupees it takes to treat drug resistant TB....
Wall Street Journal Original article ›
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New rules for foreign direct investment in India will allow foreign multibrand retailers to own upto 51% of joint ventures in India. Rules set earlier allowed foreign retailers like Wal-Mart to only setup wholesale joint ventures. The move by the Indian government lets Wal-Mart, Carrefour, Metro Group and other retailers open supermarkets. The rules were also changed to allow 100% ownership for single brand retailers such as Nike stores. Prior rules limited single brand retailers to 51% ownership. This is a major step because of the growth in the Indian retail market, and the small portion of the overall market that is occupied by large retail chains with well developed supply chain management. Technopak Advisors Pvt. Ltd, a consulting firm in New Delhi, estimates that the Indian retail market has sales of about $470 billion a year, with only about 5% of this or $27 billion in modern organized retail operations. In the five year period 2012-2016 sales are expected to grow to $675 billion, with $85 billion coming from organized retail. Companies with operations in India that are expected to expand operations include Bharti Wal-Mart, Tesco which has a agreement with Tata Group's Star Bazaar stores, Germany's Metro Group AG. according to these numbers, even with competition from the organized large stores, smaller stores will still occupy 88% compared to 95% of the retail space in 2016. And the growth in the overall market means that the smaller mom and pop type stores will still have growth from $443 billion today to $590 billion in 2016. A government backed study by ICRIER shows that smaller stores lose about 23% of sales in the first year, but recover quickly in following years because of growth in the overall market. The introduction of modern supply chain management, modern refrigeration methods, and large investments by leading global retailers is likely to change the way food and other products are stored and marketed, a revolutionary change for India where these methods and investments lag far behind the developed world. For this reason this may give major impetus to modernizing the Indian economy....
WSJ Original article ›
Wall Street Journal Original article ›
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The Journal's Jeff Bennett talks with Rodney O'Neal, the CEO of Delphi Automotive. O'Neal says Delphi's success depends on focussing on advanced technologies where emerging market producers are less able to compete. He has focussed on 33 product lines which are 'green,' safe' and connected.' If it doen't create value then revenue and cost numbers are wrong, is O'Neal's lesson from the bankruptcy filing. He likes the chaotic discussion coming form strong debate, where views are expressed with passion and counterpoints made, and he takes this debate seriously, because as he sees it choosing the right course is a significant task in itself, which takes much time to correct if wrong. There are major improvements in emission and fuel economy ahead and a high tech future for the automobile industry. He see America's future in high-tech where America can do better than emerging market producers, and ensuring that the steady flow of exceptional American talent continues to be channelled properly....
BBC News Original article ›
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India agrees to an immediate ceasefire after a call from Pakistan's head of military operations for a ceasefire. The conflict started with attack on tourism that was reviving the Kashmir economy after three decades through a terrorist attack killing 26 tourists in Phalgam, Kashmir on  April 22, 2025 in the mountains near the Pir Panjal range. 24 million tourists visited Kashmir in 2024. Indian response was swift on May 7 early morning hours attacking 18 terrorist camps inside Pakistan occupied Kashmir and inside Pakistan. India called it a act of self-defense to Pakistan sponsored state terrorism going back to 1947. What is different in this brief 4 day war is that India made it economic with efforts at IMF to make terrorism an issue for loans to Pakistan, and ending the Indus Waters Treaty on water sharing. Pakistan economy is struggling with no debt relief from China, making it turn to the IMF, a politically split population with Opposition leader Imran Khan in jail, and continued domination by the military over civilian govenrment. On May 9 drone attacks were launched from Pakistan using Turkish made drones in large numbers on cities and towns in Gujarat, Rajasthan, Punjab. Blackouts were placed in India by May 8 in all cities in the north and in Pakistan. India responded with its own drones and missile attacks on three military airbases as the war broadened to military targets on May 10. US mediated a ceasefire through Saudis and Turkey. Earlier Saudis and Iran were in New Delhi with whom India has good relations to get a ceasefire. Mr. Trump's efforts behind the scenes secured an agreement. VP Vance had cut short an Indian trip in Jaipur on April 22. India and the US are allies in the Indo-Pacific, and India and Russia have decades of friendly relations. China now uses Pakistan as a proxy state, but does not provide the economic aid it needs, for which it has turned to the IMF.    ...
WSJ Original article ›
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Former prime minister Nawaz Sharif faces a trial on corruption charges in Pakistan in 2018, just prior to new elections. The military and the judiciary both support the trial which involves payments for 4 upscale neighborhood London apartments owned by Sharif. 

Mr. Sharif's party leads in polls with about 36% support, higher than the next leading party Tehreek which has 24% support and is led by Imran Khan a former cricketer. The Pakistan People's Party of the Bhutto family comes in third. The result of this could be a weaker coalition government. The Supreme Court has banned Sharif for life from holding political office. Pakistan has seen governments toppled and military rule for half of its 70 years since independence. The rivalry with India and the role of the military has affected political institutions and democracy in Pakistan making peace with India difficult to achieve for any elected government.

New York Times Original article ›
DW.COM Original article ›
New York Times Original article ›
LyrArc Article Gist
What are the systemic effects of one of the automakers going out of business? It affects the whole supplier base. This is the case in the event of a liquidation of assets, closing Delphi and so on. This was mentioned by Wagoner as the alternative and not prepackaged bankruptcy with DIP set aside loan for warranty financing which some experts are advocating in combination with a government loan with strings attached including a change in management. Some of the strings are covered in a New York Times editorial reflecting public opinion on the democratic side on this issue, and that includes removal of current management of Detroit auto companies, and fuel efficiency targets raised higher than legislation passed recently under heavy lobbying pressure from these automakers. Contraction of automakers and job contraction should be differentiated from liquidation of assets. The contraction of automaker jobs not just at the Detroit companies but also at Japanese plants in the US is going to happen even with a government loan to Detroit as Honda is also reducing its workforce and this will happen at Toyota also. The carefully planned bankruptcy with carefully and fully addressed warranty and other issues could be made to work along with sufficient government loan money in the $50-$70 billion range in return for equity and other conditions, and its not clear why the management of the Detroit auto companies see it as impossible and not just difficult, when they are already facing considerable difficulties in this market and with public opinion. Rampell talks about how jobs lost are not recoverable, and this is fairly obvious considering that the Japanese and the Germans are unlikely to relocate in the same areas that Detroit has located its plants , and prefer to go and build green plants to specification, and hire very carefully so that workers with the Toyota or Honda frame of mind are hired to work there. This can change depending on individual circumstances but is what they generally prefer to do. Also its important to bear in mind that forecasts that are being used of 13-14 million vehicle market in 2009 are just guesses, it could turn out that the sales drop to something like 10 -12 million vehicles, in which case there will be contraction of jobs on a large scale even at the Japanese and Korean and German plants which there is even now but on a smaller scale. ...

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