Two-thirds of elderly financially dependent on others, says study

According to a survey, 65 per cent of the elderly in India are dependent on others for their financial requirements and undergo financial crisis.

The nation-wide survey conducted by Agewell Foundation involved a random sample of 15,000 people across India aged 60 or above.

The study found that pension was the main source of income for 38 per cent of the respondents.

Further, 46.4 per cent of the elderly claimed that their net-worth value had increased remarkably in their old age, primarily due to a sharp increase in real estate prices over the last two decades.

Healthcare

More than four-fifths of the respondents said that their major problems were related to healthcare issues, where financial status plays a key role.

The report finds that senior citizens aged over 70 are marginalised and isolated to a large extent.

According to the report, the financially well-off older people do not wish to be dependent on government facilities for healthcare needs, as they prefer private institutions for better services.

Financially insecure old people expect social security, free health care and subsidies so that they can lead a comfortable and respectable life in old age. At the same time, older people with sound financial health look forward to risk-free investment schemes, so that they can earn good returns to meet financial needs in old age.


 Finally, the Adivasis of Telangana get a sweet deal

It is a sweet deal for Telangana’s hard-working Adivasis, the Kolams of Adilabad, the Chenchus of Mahabubnagar and the tribals of Eturnagaram in Warangal.

They can now overcome the setback suffered after the bifurcation of Andhra Pradesh, and get access to the State’s first honey processing and packaging plant at Nirmal, raising their income prospects.

Honey, that these tribals gather from the forests will be packaged for sale under the brand name of Girijan Cooperative Corporation (GCC Honey). The initiative is to be inaugurated on Gandhi Jayanthi.

After Andhra Pradesh was bifurcated, Telangana’s honey gatherers fell on hard times. Honey, which is classified as minor forest produce, was no longer sent to Chittoor or Rajamahendravaram for processing. That left the GCC in Telangana with a large volume, and about 400 quintals were stored in its godowns in Adilabad division.

Encouraging tribals

The main aim is to encourage the Particularly Vulnerable Tribal Groups of Kolams and Chenchus to continue to collect honey. The activity will provide them good income.


Commodities trading may open to foreigners

The Securities and Exchange Board of India (SEBI) has initiated talks with the Reserve Bank of India (RBI) to allow foreign portfolio investors into the commodity derivatives market.

SEBI Chairman U.K. Sinha said on the sidelines of an event on the completion of one year of merger of Forward Markets Commission (FMC) with SEBI. The FPI regulations emanated from FEMA (Foreign Exchange Management Act) and any kind of foreign money coming into the country has to have RBI approval.”

The regulator is also keen to allow other participants such as banks, mutual funds and insurance companies in the commodities market but will do so in a phased manner after talking to other regulatory bodies.

SEBI took over as the regulator of commodity derivatives market on 28th September 2015 and since then has initiated various measures like allowing option contracts, new commodities apart from releasing guidelines for warehouse service providers and online registration of brokers, among others.

‘Cautious manner’

The regulator plans to further develop the market but would do so in a “cautious manner.”

Spot polling

SEBI has already set up an advisory committee for commodity derivatives and the committee has further set up separate sub-groups to look into issues of spot polling of prices and how exchanges can rope in more hedgers.

The commodity derivatives market is dominated by two exchanges – Multi Commodity Exchange of India (MCX) and the National Commodity and Derivatives Exchange (NCDEX).

Metals and energy contracts dominate the trading at MCX, which has more than 90 per cent of market share in the commodity derivatives space.

The SEBI chairman said that the regulator is also looking at the “unduly balanced” ratio of business between the existing commodity exchanges.

New commodities

The regulator will soon give the go-ahead for options trading in one commodity each from the agri and non-agri segment.

On the recommendation of SEBI, the government has also allowed futures trading in new commodities like diamond, brass, pig iron, eggs, cocoa and tea.

Further, the advisory committee is also deliberating on issues such as improving the liquidity of the contracts.

About Commodity Derivatives:-

Commodity derivatives are investment tools that allow investors to profit from certain items without possessing them. This type of investing dates back to 1848 when the Chicago Board of Trade was established. Initially, the idea behind commodity derivatives was to provide a means of risk protection for farmers.

Modern commodity derivatives trading is most popular with people outside of the commodities industry. The majority of people who use this investment tool tend to be price speculators. These people usually focus on supply and demand and try to predict whether prices will go up or down. When the prices of a certain commodity move in their favor, they make money. If price moves in the opposite direction, then they lose money.

The buyer of a derivative contract buys the right to exchange a commodity for a certain price at a future date. Although this person is a contract buyer, he may be buying or selling the commodity. He does not have to pay the full value of amount of the commodity that he is investing in. He only needs to pay a small percentage, known as the margin price.

The contract seller is the person who accepts a margin. He agrees that on a certain date he will buy or sell the commodity stated in the contract at a certain price. Both parties are generally required to honor the agreement despite losses.

For example, an investor may buy a contract from the seller that gives him rights to one ton of coffee beans for $1000 US Dollars (USD) on July 1st. Although the value of the contract is $1000 USD, the buyer may only be required to pay $100 USD. On July 1st, the seller will transfer the rights of one ton of coffee beans to the buyer.If the current value of a ton of coffee beans on July 1st is $1,500 USD, the buyer can sell to the market and make a $500 USD profit. If the value of coffee beans on that day is only $800 USD, this person will have purchased at a loss. He can choose to take possession of the coffee beans, which is rare. He can sell to the market at a loss. In most cases, he will become the seller and attempt to find a buyer.

Commodity derivatives trading allows a person to use a small sum of money for the potential to earn substantial profits. This sort of investment, however, is considered high risk. When prices are not in an investor’s favor, he can suffer substantial losses. Commodities that are open to this type of investing include cotton, soybean, and rice. In some countries, although these commodities are available, this type of trading is illegal.

Merger of Sebi and FMC:-

What does the merger mean?

The Forward Contracts Regulation Act (FCRA) stands repealed, and the regulation of the commodity derivatives market shifts to Sebi under the Securities Contracts Regulation Act (SCRA), 1956. SCRA is a stronger law, and gives more powers to Sebi than FCRA offered to FMC. Market players feel that commodity markets will now be better regulated, with more stringent processes — and will thus evoke greater confidence.

Why is Sebi seen to be better equipped to monitor commodities trading?

The FMC only regulated the exchanges, and had no direct control over brokers. Also, Sebi has a far superior surveillance, risk-monitoring and enforcement mechanism that market participants say will give more confidence to investors, and may help businesses grow. Among other powers, Sebi now also has the power to access call data records.

How can Sebi expand the scope of commodity trading?

While foreign institutional investors are allowed to invest in Indian equities and debt markets, they are currently restricted from participating in commodities trading at exchanges. According to sources, Sebi may allow FII participation in commodities trading going forward, which would provide more depth to the markets, and increase liquidity, investor participation and better price discovery.

Brokers also feel Sebi may introduce option contracts (call and put options) in commodities trading, thereby providing better hedging tools to investors. Sebi has said that it will oversee price determination of commodities. Price discovery has been a major issue in commodities trading, and if the regulator addresses that concern, it will be a big confidence-booster for participants.

Who proposed the merger?

The NSEL( National Spot Exchange Ltd) episode underlined the need for a better and stronger regulator to safeguard investor interest and restore confidence. The Financial Sector Legislative Reforms Commission (FSLRC) had earlier stressed on the need to move away from sector-wise regulation. It proposed a system in which RBI would regulate the banking and payments system, and a Unified Financial Agency (UFA) would subsume all other financial sector regulators such as SEBI, IRDA, PFRDA and FMC, to regulate the rest of the financial markets.


Swachhagraha

‘Swachhagraha’ – an Adani Act initiative towards ‘Creating a Culture of Cleanliness’ has been launched at Ahmedabad recently. The initiative has been launched in association with the Centre for Environment Education (CEE) as its Knowledge and Implementation partner.

The programme plans to be rolled out in 250 schools across 6 cities in Gujarat, namely Ahmedabad, Surat, Vadodara, Anand, Rajkot and Bhuj-Mundra. It is envisioned that Swachhagraha will eventually be scaled up to covering more than 12 states across the country in the times to come.

‘Swachhagraha’ draws inspiration from the ‘Satyagraha’ movement, which catalyzed action through tremendous patience & perseverance, and united the entire nation to fight against a common enemy.

‘Swachhagraha’, similar to ‘Satyagraha’ aims at engaging people and bringing about a change, similar in scale to India’s freedom movement, where people get involved to take action for ‘Creating a culture of Cleanliness’.

Aligning with the Swachh Bharat Mission (SBM) announced by our Hon’ble Prime Minister, Shri Narendra Modi, Swachhagraha’s mission is to kill the litterbug amongst all of us and transform the face of the nation beyond 2019 and forever.


Google to set up ‘Cloud Region’ in Mumbai, to go live in 2017

Google will open a new Google Cloud Region in Mumbai, that is expected to be live in 2017.
The India cloud region is aimed at offering Google Cloud Platform services to Indian developers and enterprise customers.


 

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  • The United Nations has shaped so much of global co-operation and regulation that we wouldn’t recognise our world today without the UN’s pervasive role in it. So many small details of our lives – such as postage and copyright laws – are subject to international co-operation nurtured by the UN.

    In its 75th year, however, the UN is in a difficult moment as the world faces climate crisis, a global pandemic, great power competition, trade wars, economic depression and a wider breakdown in international co-operation.

    Flags outside the UN building in Manhattan, New York.

    Still, the UN has faced tough times before – over many decades during the Cold War, the Security Council was crippled by deep tensions between the US and the Soviet Union. The UN is not as sidelined or divided today as it was then. However, as the relationship between China and the US sours, the achievements of global co-operation are being eroded.

    The way in which people speak about the UN often implies a level of coherence and bureaucratic independence that the UN rarely possesses. A failure of the UN is normally better understood as a failure of international co-operation.

    We see this recently in the UN’s inability to deal with crises from the ethnic cleansing of the Rohingya Muslims in Myanmar, to civil conflict in Syria, and the failure of the Security Council to adopt a COVID-19 resolution calling for ceasefires in conflict zones and a co-operative international response to the pandemic.

    The UN administration is not primarily to blame for these failures; rather, the problem is the great powers – in the case of COVID-19, China and the US – refusing to co-operate.

    Where states fail to agree, the UN is powerless to act.

    Marking the 75th anniversary of the official formation of the UN, when 50 founding nations signed the UN Charter on June 26, 1945, we look at some of its key triumphs and resounding failures.


    Five successes

    1. Peacekeeping

    The United Nations was created with the goal of being a collective security organisation. The UN Charter establishes that the use of force is only lawful either in self-defence or if authorised by the UN Security Council. The Security Council’s five permanent members, being China, US, UK, Russia and France, can veto any such resolution.

    The UN’s consistent role in seeking to manage conflict is one of its greatest successes.

    A key component of this role is peacekeeping. The UN under its second secretary-general, the Swedish statesman Dag Hammarskjöld – who was posthumously awarded the Nobel Peace prize after he died in a suspicious plane crash – created the concept of peacekeeping. Hammarskjöld was responding to the 1956 Suez Crisis, in which the US opposed the invasion of Egypt by its allies Israel, France and the UK.

    UN peacekeeping missions involve the use of impartial and armed UN forces, drawn from member states, to stabilise fragile situations. “The essence of peacekeeping is the use of soldiers as a catalyst for peace rather than as the instruments of war,” said then UN Secretary-General Javier Pérez de Cuéllar, when the forces won the 1988 Nobel Peace Prize following missions in conflict zones in the Middle East, Africa, Asia, Central America and Europe.

    However, peacekeeping also counts among the UN’s major failures.

    2. Law of the Sea

    Negotiated between 1973 and 1982, the UN Convention on the Law of the Sea (UNCLOS) set up the current international law of the seas. It defines states’ rights and creates concepts such as exclusive economic zones, as well as procedures for the settling of disputes, new arrangements for governing deep sea bed mining, and importantly, new provisions for the protection of marine resources and ocean conservation.

    Mostly, countries have abided by the convention. There are various disputes that China has over the East and South China Seas which present a conflict between power and law, in that although UNCLOS creates mechanisms for resolving disputes, a powerful state isn’t necessarily going to submit to those mechanisms.

    Secondly, on the conservation front, although UNCLOS is a huge step forward, it has failed to adequately protect oceans that are outside any state’s control. Ocean ecosystems have been dramatically transformed through overfishing. This is an ecological catastrophe that UNCLOS has slowed, but failed to address comprehensively.

    3. Decolonisation

    The idea of racial equality and of a people’s right to self-determination was discussed in the wake of World War I and rejected. After World War II, however, those principles were endorsed within the UN system, and the Trusteeship Council, which monitored the process of decolonisation, was one of the initial bodies of the UN.

    Although many national independence movements only won liberation through bloody conflicts, the UN has overseen a process of decolonisation that has transformed international politics. In 1945, around one third of the world’s population lived under colonial rule. Today, there are less than 2 million people living in colonies.

    When it comes to the world’s First Nations, however, the UN generally has done little to address their concerns, aside from the non-binding UN Declaration on the Rights of Indigenous Peoples of 2007.

    4. Human rights

    The Human Rights Declaration of 1948 for the first time set out fundamental human rights to be universally protected, recognising that the “inherent dignity and of the equal and inalienable rights of all members of the human family is the foundation of freedom, justice and peace in the world”.

    Since 1948, 10 human rights treaties have been adopted – including conventions on the rights of children and migrant workers, and against torture and discrimination based on gender and race – each monitored by its own committee of independent experts.

    The language of human rights has created a new framework for thinking about the relationship between the individual, the state and the international system. Although some people would prefer that political movements focus on ‘liberation’ rather than ‘rights’, the idea of human rights has made the individual person a focus of national and international attention.

    5. Free trade

    Depending on your politics, you might view the World Trade Organisation as a huge success, or a huge failure.

    The WTO creates a near-binding system of international trade law with a clear and efficient dispute resolution process.

    The majority Australian consensus is that the WTO is a success because it has been good for Australian famers especially, through its winding back of subsidies and tariffs.

    However, the WTO enabled an era of globalisation which is now politically controversial.

    Recently, the US has sought to disrupt the system. In addition to the trade war with China, the Trump Administration has also refused to appoint tribunal members to the WTO’s Appellate Body, so it has crippled the dispute resolution process. Of course, the Trump Administration is not the first to take issue with China’s trade strategies, which include subsidises for ‘State Owned Enterprises’ and demands that foreign firms transfer intellectual property in exchange for market access.

    The existence of the UN has created a forum where nations can discuss new problems, and climate change is one of them. The Intergovernmental Panel on Climate Change (IPCC) was set up in 1988 to assess climate science and provide policymakers with assessments and options. In 1992, the UN Framework Convention on Climate Change created a permanent forum for negotiations.

    However, despite an international scientific body in the IPCC, and 165 signatory nations to the climate treaty, global greenhouse gas emissions have continued to increase.

    Under the Paris Agreement, even if every country meets its greenhouse gas emission targets we are still on track for ‘dangerous warming’. Yet, no major country is even on track to meet its targets; while emissions will probably decline this year as a result of COVID-19, atmospheric concentrations of greenhouse gases will still increase.

    This illustrates a core conundrum of the UN in that it opens the possibility of global cooperation, but is unable to constrain states from pursuing their narrowly conceived self-interests. Deep co-operation remains challenging.

    Five failures of the UN

    1. Peacekeeping

    During the Bosnian War, Dutch peacekeeping forces stationed in the town of Srebrenica, declared a ‘safe area’ by the UN in 1993, failed in 1995 to stop the massacre of more than 8000 Muslim men and boys by Bosnian Serb forces. This is one of the most widely discussed examples of the failures of international peacekeeping operations.

    On the massacre’s 10th anniversary, then UN Secretary General Kofi Annan wrote that the UN had “made serious errors of judgement, rooted in a philosophy of impartiality”, contributing to a mass murder that would “haunt our history forever”.

    If you look at some of the other infamous failures of peacekeeping missions – in places such as Rwanda, Somalia and Angola – ­it is the limited powers given to peacekeeping operations that have resulted in those failures.

    2. The invasion of Iraq

    The invasion of Iraq by the US in 2003, which was unlawful and without Security Council authorisation, reflects the fact that the UN is has very limited capacity to constrain the actions of great powers.

    The Security Council designers created the veto power so that any of the five permanent members could reject a Council resolution, so in that way it is programmed to fail when a great power really wants to do something that the international community generally condemns.

    In the case of the Iraq invasion, the US didn’t veto a resolution, but rather sought authorisation that it did not get. The UN, if you go by the idea of collective security, should have responded by defending Iraq against this unlawful use of force.

    The invasion proved a humanitarian disaster with the loss of more than 400,000 lives, and many believe that it led to the emergence of the terrorist Islamic State.

    3. Refugee crises

    The UN brokered the 1951 Refugee Convention to address the plight of people displaced in Europe due to World War II; years later, the 1967 Protocol removed time and geographical restrictions so that the Convention can now apply universally (although many countries in Asia have refused to sign it, owing in part to its Eurocentric origins).

    Despite these treaties, and the work of the UN High Commission for Refugees, there is somewhere between 30 and 40 million refugees, many of them, such as many Palestinians, living for decades outside their homelands. This is in addition to more than 40 million people displaced within their own countries.

    While for a long time refugee numbers were reducing, in recent years, particularly driven by the Syrian conflict, there have been increases in the number of people being displaced.

    During the COVID-19 crisis, boatloads of Rohingya refugees were turned away by port after port.  This tragedy has echoes of pre-World War II when ships of Jewish refugees fleeing Nazi Germany were refused entry by multiple countries.

    And as a catastrophe of a different kind looms, there is no international framework in place for responding to people who will be displaced by rising seas and other effects of climate change.

    4. Conflicts without end

    Across the world, there is a shopping list of unresolved civil conflicts and disputed territories.

    Palestine and Kashmir are two of the longest-running failures of the UN to resolve disputed lands. More recent, ongoing conflicts include the civil wars in Syria and Yemen.

    The common denominator of unresolved conflicts is either division among the great powers, or a lack of international interest due to the geopolitical stakes not being sufficiently high.  For instance, the inaction during the Rwandan civil war in the 1990s was not due to a division among great powers, but rather a lack of political will to engage.

    In Syria, by contrast, Russia and the US have opposing interests and back opposing sides: Russia backs the government of the Syrian dictator Bashar al-Assad, whereas the US does not.

    5. Acting like it’s 1945

    The UN is increasingly out of step with the reality of geopolitics today.

    The permanent members of the Security Council reflect the division of power internationally at the end of World War II. The continuing exclusion of Germany, Japan, and rising powers such as India and Indonesia, reflects the failure to reflect the changing balance of power.

    Also, bodies such as the IMF and the World Bank, which are part of the UN system, continue to be dominated by the West. In response, China has created potential rival institutions such as the Asian Infrastructure Investment Bank.

    Western domination of UN institutions undermines their credibility. However, a more fundamental problem is that institutions designed in 1945 are a poor fit with the systemic global challenges – of which climate change is foremost –  that we face today.