Can BRICS bring back rhythm in its usual attack against West dominated world economic order, especially after considerable conflict at the political level between the two stake holders – India and China? This year’s theme may be the retreat of the West from globalization. BRICS intellectuals especially in Beijing believe that there is concerted effort from Western countries to exit from globalization as it considerably helped countries like China to emerge as powerful economies. So far, all the BRICS declarations were full of the demand for reconstructing the West dominated governance structure of IMF and World Bank. Demand for local currency trade settlements and str
BRICS’ s Goa edition is expected to reflect the drift between India and China on the latter’s selective protectionism to Pakistan’s sponsorship of terrorism. The group may feel severe pressure to restrict its usual engagement of fighting the West. Indications are that Chinese involvement in supporting Pakistan’s stand on Uri attack may reflect in the meeting as well. Already, indicating strong polarization in foreign policy, India invited the BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) countries to the meeting. Invitation to the Bimstec is quite symbolic. This means that India is ready to limit its cooperation w
World’s macroeconomic observer – the International Monetary Fund cautioned that international debt has scaled up to a historical high level. Debt of the global economy has reached $152 trillion which is nearly two times the GDP of the world economy. The debt report was published under the IMF’s October 2016 edition of the ‘Fiscal Monitor’ that evaluates government finances and expenditure. IMF has a strong research division that makes extensive study about individual economies and the world economy as a whole. The Fund’s surveillance function is one of the most sophisticated activity by the seventy-year-old entity. Nearly two third of the debt
Government has approved the duty structure for Asia Pacific Trade Agreement (APTA)- a preferential trade agreement between six developing countries of Asia including China and Korea. As a preferential trade arrangement, the APTA gives a low level of trade liberalization. Tariff concession will not be substantial as in the case of usual free trade arrangements. Similarly, the number of tradeable goods under the agreement will also be limited. The APTA has six members at present – India, China, Bangladesh, Lao PDR, South Korea and Sri Lanka. Mongolia is trying to join the trade bloc. APTA is an initiative by the UN Economic and Social Commission for Asia and the Pacific for
Chinese President XI Jinping urged the BRICS safeguard free trade from the emerging trend of protectionism. He also called the group to continue its effort reform the governance of major world institutions. Xi was speaking at the meeting of the BRICS heads of states meeting at Hangzhou where the G20 leaders makes their first meeting in China. The Chinese President has already emerged as the iconic leader among leaders from the largest economies of the world with China showing symptoms of firm voice in world political and economic arena in recent years. The BRICS leaders usually assembles before the G20 meeting. This time also, Xi has demanded the group to raise their voice for r
New comer in international institutional finance- the New Development Bank supported by BRICS bank targets to issue green bonds worth $3 bn to finance infrastructure projects. The bank is equally sponsored by five BRICS countries and is headquartered in Shanghai. Green bonds are issued to mobilize funds for financing environment friendly projects. The bonds will be issued from July and is for five years. projects including clean energy, and infrastructure are expected to be supported from funds mobilized through the bonds. Interestingly, the bonds will be yuan denominated which implies domestic fund raising or implicit internationalization of the Chinese currency. Large sized C
Saudi Arabia has unveiled a revolutionary plan to make the oil kingdom free from oil dependence in just four years. The most orthodox country in the Middle East has brought out the new plan called Saudi Vision 2030 which needs tremendous adjustment from the present pattern. The plan is the work of Mohammed bin Salman, 30-year-old son of King Salman. The deputy crown prince who has taken control of economic and oil strategy of the Kingdom. The crown prince has launched the plan for transition by accepting that Saudi Arabia is ‘addicted to oil.’ Revealing the urgency and perhaps making the targets unrealistic, he declared that the wish is to live without oil by 202
India has got substantial attention at the Davos World Economic Forum as the fastest growing large economy at a time most of the heavy weights are slowing fast. Fiancé Minister Arun Jaitely declared that India can grow at 9% provided the right conditions. "Fastest is still not good enough for India," said Arun Jaitley at the Summit that usually attended by leaders and businessmen. This year’s WEF was remarkable as it happened in the context of a quickly slowing global economy. The emerging markets that stood steady are showing signs of weakness with leader China recording slow growth and financial sector turmoil. If there is an economy that seems steady, that
Iran is reentering into the world market in full swing. After the West imposed sanctions are removed today, the OPEC member can engage the market with its traditional product-crude oil. The Persian Gulf country was the second largest producer of oil in the OPEC in 2011. Iran has made limited supplies during the sanction period; but was unable to make an impact as its production was quite low. Now, Tehran is expected to add around 2 million barrels of crude per day, and it will become the fourth largest producer after Russia, Saudi Arabia and the US. Production is expected to peak after six months from now and reports indicate that Iran is not wary of the present low price of crud
The IMF has cautioned that there is no escape for the emerging countries from the ongoing recession emitted by the advanced bloc. Trends show that in the immediate future, the growth trend of the developing and advanced countries will converge. IMF’s Director General Ms Chrsitine Legarde in a meeting of the monetary economists in Paris told that there is no escape for the vibrant EMEs, but to get into the recession trend in a year or two. Ms Legarde reminded that the slowdown of the emerging countries will further dip down growth in the advanced world. One percent decline of growth in the emerging world will reduce GDP of the advanced countries by 0.2%. Alread
Dictionary on Indian Economy
- Logic of withdrawing Rs 1000 and Rs 500 notes
- Why the GST reform is transformational?
- Raghuram Rajan: The Gladiator returns to Chicago
- Good intention but poor thinking - what troubles demonetization?
- India Black Money Report: CBI underestimates black money at Rs 25 lakh crore
- High interest rate rather than inflation is the macroeconomic problem for India right now
- Japan’s first trade deficit in 30 years is part of the Global Shift
- Arvind Subramanian rocks with 'Chakravyuha' in Economic Survey
- Why we need an emergency monetization plan as well?
- NREGS: give respect to the tax payer’s money