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Civil Services

Contents

CorruptionKill it or get killed

Enough is thought, spoken, written and devised on it butcorruption continues to grow at a cumulative rate.Everyone asks a question about this but nobody has theanswer, including the law, the law makers, the lawbreakers and the law seekers. It means the foundationand sources of survival of corruption lie deeper and aresimply beyond the pale of mere law making andimplementation process. Two hundred years of Britishrule in India could be regarded as the basis of the spreadand mass conversion of people's mentality into somethingdifferent which were never thought in terms of career and prospects. The British government engravedinto the minds of people that manipulation, divide and rule, and policy of suppression cum reconciliationcould even convert a powerful sovereign land into a classical colony. The British government communicateda message to the people that ....

Page 06

EDITORIAL / MY PAGE / COVER STORY

CURRENT NATIONAL

114 PRACTICE PAPER-1: CURRENT AFFAIRS

Latest census

shows India’s

tiger population

increasingIndia’s latest tigercensus shows anincrease in the numbersof the endangered big cat with around 300 moretigers than four years ago. This could finally be aglimmer in what has so far been a ratherdisheartening story of tiger conservation in India.The census puts the population of the big cat at1,706. There were 1,411 tigers at the last ...

Page 12

224 CSAT: PRACTICE PAPER 4

135 PRACTICE PAPER-2: CURRENT AFFAIRS





69 CURRENT SHORT NEWS

Global Information

Technology Report

2009-2010Sweden and Singapore continueto top the rankings of The GlobalInformation Technology Report2010-2011, Transformations 2.0,confirming the leadership of theNordic countries and the Asian Tiger economies inadopting and implementing ICT advances forincreased growth and development. Finland jumpsto third place, while Switzerland and the UnitedStates are steady in...

Page 14

Tobacco Status

ReportIndia has been accordeda low position in thisindex. India ranks 100among 175 countriessurveyed on warningsize and fulfillment of requirements for picture-based warnings on cigarette packets. One can notethat under the Framework Convention on TobaccoControl (FCTC), an international treaty signed andratified by India, the parties are required to carryhealth warnings on all ....

Page 15

World Investment Report

2010The Foreign Direct Investment(FDI) in Bangladesh has declinedby 36 per cent and stood at $700million last year compared to20.11 per cent decline in SouthAsian countries and 14 per cent interms of the least developed ones, according to theWorld Investment Report (WIR), 2010. Indiaclimbed four notches to be ranked the ninth mostattractive investment destination in 2009 with a totalforeign direct investment ...

Page 18NEXT ISSUE:NEXT ISSUE:NEXT ISSUE:NEXT ISSUE:NEXT ISSUE: JUL JUL JUL JUL JULY SPECIAL 2011Y SPECIAL 2011Y SPECIAL 2011Y SPECIAL 2011Y SPECIAL 2011

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parochial governance. With this tem-perament, we got freedom and Britishleft the country. But these two hun-dred years of alienrule completelytransmuted the char-acter of the Indians. Imust point out cer-tain link between theBritish rule and theexisting corruptpractices in India.Firstly, the British rule infused a senseof insecurity amongst most of thepeople about their future and career oftheir children. That sense of insecu-rity still occupies a space in the fearpsychology of most of the people andthis affects the overall approach to-wards accumulation and thereforeneeds are being transformed intogreed. Even today, most of the peoplefeel that nothing is enough for themand even it may be enough for him/her but never for his families. The per-son not only tries to earn for oneselfbut also for the entire generations tocome and this attitude towards workand life forms the genesis of allCronyism.Secondly, the British government con-sciously avoided to touch sensitive is-sues of administration and continuedtheir rule on the basis of ‘touch and go’and ad hocism. They never tried to findout any solution for long-term prob-lems and through the constitution ofvarious committees and commissions,they managed and delayed the issuestill it became redundant or non-sequi-tur. Even today, the government bur-ies important issues by constitutingcommissions and then a commissionon commission and in this process theproblems tend to be undermined byanother problem. This becomes an un-ending process and in this real prob-lems get neglected.Thirdly, the British government delib-erately created crisis and confusionamong the communities through thepolicy of 'divide and rule'. This createda sense of mutual suspicion towardseach other and laid the foundation ofsectarian politics in India. The govern-ment saw its role in creating a crisis andthen solving them. It never intendedto solve the root of the crisis. Even to-day, most of the organizations see theirrole by creating crisis and panic and

My PAGE

E nough is thought, spoken, written and devised on it but corruption continues to grow at a cumulative rate. Everyone asks a question about this but nobody has the answer, including the law, the law

makers, the law breakers and the law seekers. It means the foundation andsources of survival of corruption lie deeper and are simply beyond the pale ofmere law making and implementation process. Two hundred years of Britishrule in India could be regarded as the basis of the spread and mass conversionof people's mentality into something different which were never thought in termsof career and prospects. The British government engraved into the minds of peoplethat manipulation, divide and rule, and policy of suppression cum reconciliationcould even convert a powerful sovereign land into a classical colony. The Britishgovernment communicated a message to the people that ruthless approach alongwith irresponsible governance could be justified and legitimized by the doctrineof Pax Britannia. The out and out exploitative British economic regime and poli-

cies were justified by much condemned economic philosophy: the doctrine ofLaissez Faire. The whole regime passed amidst accusations and justifications andIndia experienced horrible governance during her colonial tenure.I must that corruption was not only made widespread both horizontally andvertically by the British but it was made a way of life. The whole British colonialapparatus was guided towards shielding wrong people, wrong work and wrongpolicies. It created an atmosphere where anti-nationalists, short-sighted, whim-sical people could get the benefits and honest and hard working people couldgo to backyard of the machinery. In fact, capriciousness was accepted as a tal-ent and straightforwardness and steadfast was forcefully and awfully discour-aged.Gradually, in course of time, corruption and corrupt practices assimilated intothe work culture and encroached the mental faculty of most of the people inIndia. The British clearly sent a message to most of the younger generation atthat time that if they wanted to excel in their lives, they had to compromise withcertain dignified proposition and then only they can survive the onslaughts of

CorruptionKill it or get killed

The British government engraved into the minds of people that manipulation, divideand rule, and policy of suppression cum reconciliation could even convert a powerful

sovereign land into a classical colony. The British government communicated amessage to the people that ruthless approach along with irresponsible governance

could be justified and legitimized by the doctrine of Pax Britannia.


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then takes full advantage of the situa-tion by playing with the emotions andfeelings of the concerned people. Inother words, havoc is created to legiti-mize their vested interest. This breedsand sustains corruption.Fourthly, the British government ush-ered all the developments and projectsto suit their interests which includedcommercialization of agriculture, pro-motion of irrigation, railways, tele-graphs, etc. irrespective of their re-quirements. In fact, these projects wereimposed on us for their own gain inthe form of finance capitalism, whichwas definitely the highest stage of im-perialism. The project suited the East

India Company and various businesshouses. Even today, investments aremade on same pattern. In independentIndia also most of the projects aredriven by the interests of a few groupsof persons and there are very lessprojects which serve larger interests.The neglect of investment in agricul-ture which has resulted in the food cri-sis is an eye opener in this regard. Therecent scams are a sheer manifestationof such designs and interests.Fifthly, the British government devisedcovenanted civil services to serve theBritish imperialist interests in India bycollecting revenues for them withoutensuring any accountability. Theywere called 'civil servants' but theywere basically representative of theirBritish masters. Therefore, they re-mained civil servants only at nomen-clatural level but their mindset wastotally governed by sense of domina-tion, superiority and cynic intelligence.In other words, their mindset was torule without responsibility and not to

serve. They were also guided by lim-ited interests of merely collecting taxand never thought about developmentand welfare of the people. This ap-proach created most exploitative re-gime in the name of ‘civilizing’ thepeople. Even today, the bureaucrats aretrained not very differently. The per-sonality test for civil services lacks alot of dimensions and even people withthe approach of hide and seek get intothe services, and the contradiction isfurther widened from the level of civilservant to master of civic life. Most ofthe civil servants do not apply multi-dimensional approach of serving thepeople from the platform of the gov-

ernment and pursue insensitive han-dling of the situations by only think-ing of themselves and their masters.The one time guaranteed success inexams makes a polite person compla-cent and a high-headededness into ar-rogance. The people do not get due jus-tice and service from the officers. Theadministration suffers and corruptionbreeds. To me, both non-performanceand ill-performance have the sameramifications for governance and hasthe same result - corruption.Sixthly, the British government did nottouch education, including primary,higher and technical beyond their util-ity level. This was manifested in the'downward infiltration' theory. In fact,in the name of modern western educa-tion, the British government confusedthe minds of the people. The Britishgovernment showed a very low respectabout our traditional system of educa-tion but never tried to replace it with amore rational and growth-oriented sys-tem of education. As a result of this, a

proper education system and languageof communication did not develop. Infact, the entire British regime survivedon the creation of 'communication gap'between different communities, castes,regions, organizations, history andeven amongst families and family-members. This gap still persists and tosome extent, it has been further wid-ened. We have failed to elect effectiverepresentatives who can break the bar-riers of the communication gap. Rather,like the British, most of the politicianhave thrived, sustained and survivedtheir leadership on the same policiesof communication gap. This commu-nication gap means a culmination of

the policy of divide and rule in whichnot only one group feels their mutualinterests are different but also diametri-cally opposed. This creates a differentsphere of interests within same soci-ety and the groups stop communica-tion with each other and insurmount-able distances are created. When dif-ferent groups and communities start tolook each other with utter dismay anddisrespect then there is emergence ofsectarian politics and sectarian politicsmainly deals with criminalization,casteization and communization of theinterests of people. This creates frag-mented and dilapidated mindset ofboth the leaders and voters and breedsuncontrollable spate of political cor-ruption.Seventhly, there has been a markedchange in how we have perceived our-selves as against others after the com-ing of the British. This character has afar greater implication in how we per-ceive life itself. Manipulating and be-ing manipulated has much acceptance


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now than it was earlier in our society.The British in a way rationalized andjustified it as a way of living. Theyprospered and those with them whodid the same lived well. This attitudeis a way of living, the way we do busi-ness, the way we progress and a childis taught from the start to becomesmart or, in other words, potentiallymanipulative. Manipulation is the ba-sis of Western or Euro-centric approachof development. It is falsely believedthat the development will trickle downto the bottom layer of our society.While we may theoretically reject thisapproach, this is what is happeningtoday. Technology has helped in thisas well. Since we have come far alongthis track, we cannot hope to bringdrastic alterations in our path. Let usbe realistic. But what can definitely bewished is that those who get manipu-lated be not protected from the wrathof those in power. Decision makingneeds to see a reversal in power. Fromcentralization to decentralization, frommacro to micro and from one to manyis all that can be hoped to bring aboutchange.

Finally, the British responded in afavourable manner to blandish-

ment and flattery. It was made to ap-pear as a survival strategy for the In-dians. From the opportunist Mahara-jas to the Zamindars to the business-men, all of them gave in to the Britishsuppression, both physically and psy-chologically. While the British main-tained their psychological dominationthrough this attitude, Indians wereplagued by this subjugation of mindand this mentality has remained soever since.This has deteriorated the strength of alloffices which suppress themselves in-tentionally to the superiors in order togain undeserved or easy benefits. It isnot uncommon to find even the reason-able and sincere to succumb to thepressure from the superiors in order toremain progressive in their service.Reward is not what one gets out ofhard work, rather what one gets in re-turn of the favoritism of the head. Thehumblest and determined either giveaway their work and the manipulativegive way to the powerful head. Whatis supposed to be selfless turns into selfcentred. It destroys the strength of ouradministration and breeds corruptionat all levels.It is also worth mentioning that thesociety which gave due respect andemphasis to the skilled craftsmen, cre-ative poets, genius architects, hardworking farmers etc., suddenly startedviewing the powerful and the rich onlyas the respected ones. Let us not forgetthat Akbar had the likes of Tansen inhis court. Art and culture thrived be-fore the British but very much stag-nated during their period. They usedit as a deliberate strategy so that theIndian masses lose confidence in them-selves and crumble before the virtualpower of their rulers. The freedomfighters knew of this mind game of theBritish but they could do little tochange. It is unfortunate since this hasbrought us to a level where we onlyfind ourselves in search of moremoney, more power and therebygreater respect and influence. Thus theBritish made a notable change in theoutlook of society. The race for moneyand power is now unprecedented andit has corrupted the minds of thepeople.Besides that, the foundation stone of

the civil services in British era wasenormous and unquestionable powerwith little accountability. This powerstructure is said to have run the admin-istration of the British for about hun-dred years and it would not be an over-estimation to say that it acted as ‘steelframe’ and sustained the British rule.Let us bring ourselves to the presentday where this mindset seems to havebeen institutionalized in Indian people.I find myself wondering, which seemsrelevant today as it was in the past.Whether it is correct to form an insti-tution which is very powerful even ifthat institution is supposed to act as awatchdog for the nation. What I amhinting at is the present debate over theconstitution of an all pervasive andpowerful Lokpal, as in the Jan-Lokpalbill, being considered by the civil soci-eties. It asks for such a Lokpal whichbrings within its purview the CVC andthe CBI.While the relevance of a Lokpal is notbeing disputed, it is definitely worththinking over the checks and balanceswhich need to be put in place. Sincemost of the checks and balances forvery high positions have hitherto notworked satisfactorily, bringing to forea powerhouse may lead to the unex-pected as well.I am happy that the whole debate isstill open and diversified and I hopethat this movement will definitely leadus to a new dawn. Some say that hopeleads to fantasy or sometimes for theimpractical, but I say hope is a goodthing and I hope for the good. Consid-ering the long history of colonial ruleand inability of the last 64-year-old ruleto break the jinx of corruption, the hugemagnitude and proportions of corrup-tion cannot be tackled by a mere indi-vidual or individuals or for that mat-ter any institution. In fact, we have torealize that the level acceptance of cor-ruption amongst has to be rejectedthoroughly and in this regard we haveto come out collectively by surmount-ing and obliterating our habits,mindset, temptations, myopic calcula-tions and behaviourial pattern. Andthis is not easy. Mind it. Accept it. Andwork it to get rid of it.

(Vivek S. Raj)

Why this hand grenade on cover?CST has printed on the cover be-cause the hand grenade symbolizesequality in the involvement ofpeople in the system and if the sys-tem is facing threat from corruptionthen everybody has the potential touse this weapon to dismantle themenace of corruption. In otherwords, without participation ofpeople such a war cannot be foughtwith mere formulation and enact-ment of laws.


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REPORTSLatest census shows India’s

tiger population increasing

India’s latest tiger census shows anincrease in the numbers of theendangered big cat with around 300more tigers than four years ago. Thiscould finally be a glimmer in what has

so far been a rather disheartening storyof tiger conservation in India. Thecensus puts the population of the bigcat at 1,706. There were 1,411 tigers atthe last count in 2007. The countincluded 70 tigers in the Sundarbanstiger reserve, which had not beencovered in the last census. India, withmore than 45,000 sq. km (27,961 miles)of forest area under 39 designated tigerreserves, had 100,000 tigers at the turnof the last century. Since then there hasbeen an alarming decline in numberswith 97 per cent of tigers lost topoaching and shrinking habitats.Today, fewer than 3,500 tigers remainin the wild around the globe with Indiaaccounting for more than half of them.Why should we save our Tigers?

1. The existing 39 tiger reservesrepresent around one-third of ourhigh density forest area.2. More than 350 rivers originatefrom tiger reserves. Tiger reservesalso sequester carbon, provideoxygen and slowly release groundwater to regulate floods.3. As top predators, tigers shapethe community structure ofecosystems.4. Tigers prevent over-grazing ofthe ecosystem by limitingherbivore numbers, and maintainecological integrity.5. Tigers are solitary and havelarge home ranges. By this virtuetigers are excellent umbrellaspecies as they provide space for avariety of other species to flourish.6. Tigers are the cultural mascot

of India, a symbol of myth,mystery and imagination. If welose the tiger, we will indeed losean integral part of our identity as anation.

Trade and Development

Report, 2010

Trade and Development Report waslaunched in the year 1981 by theUNCTAD. This is an annual policystatement which is issued at the annualsession of the Trade and DevelopmentBoard. The Report analyses currenteconomic trends and major policy is-sues of international concern, andmakes suggestions for addressingthese issues at various levels. Thetheme of this year’s report is “Employ-ment Globalization & Development”.The major focus of the Trade and De-velopment Report 2010 is on the needto make employment creation a prior-ity in economic policy. The Reportwarns that a premature withdrawal ofmacroeconomic stimulus measures toexpand demand in developed coun-tries may trigger a deflationary spiralin the global economy, with attendantslumps in growth and employment.UNCTAD draws attention to the im-portance of strengthening the macro-economic policy framework to pro-mote sustainable growth and employ-ment creation in both developed anddeveloping countries.National Security Index 2011

The National Security Index (NSI), con-structed by the staff of the NationalSecurity Council Secretariat (NSCS).As per report of NSI, India is the

fifth most powerful country in

the world. The NSI is based on anassessment of defence capability, eco-nomic strength, effective population,technological capability and energysecurity of the top 50 countries. The USis at the top of the list on the basis ofthese criteria followed by China, Japanand Russia. South Korea emerged asthe sixth most powerful nation fol-lowed by Norway, Germany, Franceand UK. While India ranked third inthe case of population and fourth interms of defence capabilities, it was atthe 34th position in technology and33rd in energy security. Only US,China and Russia are ranked higherthan India in defence capability. In eco-nomic strength, India ranked seventh.Out of the five criteria, maximum

weightage was given to defence capa-bilities at 30 per cent. Economicstrength, technology and effectivepopulation had weightage of 20 percent each. Energy security had the re-maining 10 per cent. The national se-curity annual review governing bodycomprising a host of experts is headedby former foreign secretary M KRasgotra. Out of the above five crite-ria, maximum weightage was given todefence capabilities at 30 per cent. Eco-nomic strength, technology and effec-tive population had weightage of 20per cent each. The remaining 10 percent weightage is for Energy security.Global Enabling

Trade Report 2010

Singapore and Hong Kong SAR con-tinue to occupy the top two positionsfollowed by Denmark, Sweden andSwitzerland in the The Global EnablingTrade Report 2010, released today bythe World Economic Forum. NewZealand, Norway, Canada, Luxem-bourg and the Netherlands completethe top-10 list. Among the large econo-mies, Germany is the best performerat 13th, ahead of the United States,which drops by three places to 19th.China (48th) and Brazil (87th) remainstable, while Turkey (62nd), and Rus-sia (114th) drop in the ranking. India

was ranked 84th in the index.The Report presents the rankings of theupdated Enabling Trade Index (ETI),developed by the World EconomicForum in collaboration with interna-tional trade experts and leaders fromthe logistics and transport industry.Global Competitiveness

Report 20010-2011

Switzerland occupies the top slot forits ability to provide the most competi-tive environment on several param-eters. Though Switzerland has “(state-supported) monopolies in key sectors,it maintains overall economic stabilityand largely open trade and investmentpolicies,” contended the Report.United States slipped to the fourthamongst the competitive nations fromthe top slot it occupied last year. Swe-den and Singapore ranked second andthird.India slipped by two places to

the 51st position from among

the 49th rank it occupied last

year. The report was prepared by theWorld Economic Forum. According to

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the Report, India performed well incomplex financial sector areas, stand-ing 17th in terms of its financial mar-kets, 44th in business sophisticationand 39th in innovation, but failed toimprove the basic drivers of competi-tiveness.Its performance was rated poor in arange of social sector areas such as edu-cation, health and infrastructure. Indiacontinued to be impacted by budgetdeficits (5.5 per cent in the current fis-cal accounting for high public debt (Rs5,50,000 crore) and high inflation.Though it had forex reserves worth$280 billion, this is nowhere nearChina's reserves, which were $2 tril-lion. India was also nowhere nearChina in respect of macro-economicdevelopment.The other areas where India isunderperforming, as per the forum in-dex, are penetration rates for mobile te-lephony, the internet and personalcomputers which remain among thelowest in the world. It also cites ineffi-ciencies in the labour market whichpreempt an optimal allocation of hu-man capital.One can recollect that the Global Com-petitiveness Report’s competitivenessranking is based on the Global Com-petitiveness Index (GCI), developed forthe World Economic Forum by Sala-i-Martin and introduced in 2004. TheGCI is based on 12 pillars of competi-tiveness. The pillars include Institu-tions, Infrastructure, MacroeconomicStability, Health and Primary Educa-tion, Higher Education and Training,Goods Market Efficiency, Labour Mar-ket Efficiency, Financial Market So-phistication, Technological Readiness,Market Size, Business Sophistication,and Innovation.The People’s Republic of China (27th)continues to lead the way among largedeveloping economies, improving bytwo more places this year, and solidi-fying its place among the top 30.Among the three other BRIC econo-mies, Brazil (58th), India (51st and lastyear India was 49th ranked) and Rus-sia (63rd) remain stable. Several Asianeconomies perform strongly, with Ja-pan (6th) and Hong Kong SAR (11th)also in the top 20. In Latin America,Chile (30th) is the highest ranked coun-try, followed by Panama (53rd) CostaRica (56th) and Brazil.

Global Information

Technology Report 2009-2010

Sweden and Singapore continue to topthe rankings of The Global InformationTechnology Report 2010-2011, Trans-formations 2.0, confirming the leader-ship of the Nordic countries and theAsian Tiger economies in adopting andimplementing ICT advances for in-creased growth and development. Fin-land jumps to third place, while Swit-zerland and the United States aresteady in fourth and fifth place respec-tively. The 10th anniversary edition ofthe report focuses on ICT’s power totransform society in the next decade

through modernization and innova-tion.The Nordic countries lead the way inleveraging ICT. With Denmark in 7thand Norway in 9th place, all are in thetop 10, except for Iceland, which isranked in 16th position. Led bySingapore in second place, the otherAsian Tiger economies continue tomake progress in the ranking, withboth Taiwan, China, and Korea im-proving five places to 6th and 10th re-spectively, and Hong Kong SAR fol-lowing closely at 12th.India slips by 5places to 48th rank in the NetworkReadiness Index of WEF's Global In-formation Technology Report 2010-2011. The country was ranked 43rd for2009-2010 for the same index. India

was ranked 43rd in the index in

2009-10 and now 48th in 2010-

11.

With an extensive coverage of 138economies worldwide, the report re-mains the world’s most comprehensiveand authoritative international assess-ment of the impact of ICT on the de-velopment process and the competi-tiveness of nations.The report is produced by the WorldEconomic Forum in cooperation withINSEAD, the leading internationalbusiness school, within the frameworkof the World Economic Forum’s Glo-bal Competitiveness Network and theIndustry Partnership Programme forInformation Technology and Telecom-munications Industries.The Networked Readiness Index

uses a combination of data from pub-licly available sources, as well as theresults of the Executive Opinion Sur-vey, a comprehensive annual surveyconducted by the World Economic Fo-rum with its network of partner insti-tutes (leading research institutes andbusiness organizations) in the coun-tries included in the report.Travel & Tourism

Competitiveness Report 2011

In this year's report findings, Switzer-land, Germany and France have themost attractive environments for de-veloping the travel and tourism indus-try, according to the fourth Travel &Tourism Competitiveness Report, re-leased by the World Economic Forumat the Global Tourism Forum 2011(GTF) held in Andorra. Austria, Swe-den, the United Kingdom, the UnitedStates, Canada, Spain and Singaporecomplete the top 10.In a recent report concerned with In-dian travel industry, it has been ob-served by the World Economic Forumthat India ranks at the 68th po-

sition in terms of Travel and TourismCompetitiveness Report 2011. How-ever, taking into consideration theAsia-Pacific region, India stands at the12th position. The growing concern interms of lesser number of hotel roomsand Automated Teller Machines(ATMs) can be ascertained with thereport that has come out from theWorld Economic Forum (WEF).Global Gender Gap Report 2010

Nordic countries Iceland, Norway, Fin-land and Sweden continue to demon-strate the greatest equality betweenmen and women, according to theWorld Economic Forum’s Global Gen-

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der Gap Report 2010. The report’s In-dex assesses countries on how wellthey are dividing their resources andopportunities among their male andfemale populations, regardless of theoverall levels of these resources andopportunities.Leading companies are failing to capi-talize on the talents of women in theworkforce, according to the World

Economic Forum’s Corporate

Gender Gap Report 2010. It is thefirst study to cover the world’s largestemployers in 20 countries and bench-mark them against the gender equal-ity policies that most companies shouldhave in place but are in fact widelymissing. Out of 134 countries surveyed,India is among the lowest ranked coun-tries at the 112th position, with a scoreof 0.6155. India was ranked 112th

in the index.The index ranks 134 economies accord-ing to the size of the gaps between menand women.Financial

Development Report 2010

The Financial Development Report2010 and the Financial DevelopmentIndex (FDI) on which it is based pro-vide a score and rank for 57 of theworld’s leading financial systems andcapital markets.They analyze the driv-ers of financial system developmentthat support economic growth in ad-vanced and emerging economies toserve as a tool for countries to bench-mark themselves and prioritize areasfor reform.The Report defines financial develop-ment as the factors, policies, and insti-tutions that lead to ef ective financialintermediation and markets, as well asdeep and broad access to capital andfinancial services. In accordance withthis definition, measures of financialdevelopment are captured acrossseven pillars:

1. Institutional environment2. Business environment3. Financial stability4. Banking financial services5. Non-banking financial services6. Financial markets7. Financial access

Top rankings: 1. United States; 2.United Kingdom; 3. Hong Kong; 4.Singapore; 5. Australia; 6. Canada; 7.Netherlands; 8. Switzerland; 9. Japan;and 10. Belgium.

The report ranks 55 of the world's lead-ing financial systems and capital mar-kets. It analyses the drivers of finan-cial system development and economicgrowth in developed and developingcountries to serve as a tool for coun-tries to benchmark themselves and es-tablish priorities for reform. As lastyear, emerging market economies per-formed well in the financial stabilityportion of the Index. Malaysia, Chile,Brazil, the Slovak Republic, Mexico,Morocco, China and Peru all scored inthe top 20 of the financial stability pil-lar. India was ranked 37th in theindex.Africa

Tobacco Status Report

India has been accorded a low positionin this index. India ranks 100 among175 countries surveyed on warning sizeand fulfillment of requirements for pic-ture-based warnings on cigarette pack-

ets. One can note that under the Frame-work Convention on Tobacco Control(FCTC), an international treaty signedand ratified by India, the parties are re-quired to carry health warnings on allpackages of tobacco products describ-ing the harmful effects of tobacco use.IMD Competitive Index 2009

Singapore, Hong Kong and the US topthe IMD’s World CompetitivenessYearbook rankings for 2010. Malaysiais in 10th place and Ireland slips tworanks to 21st.In the first 10 places: Australia (5), Tai-wan (8) and Malaysia (10) also benefitfrom strong demand in Asia. Switzer-land (4) maintains an excellent positioncharacterized by strong economic fun-damentals (very low deficit, debt, in-flation and unemployment) and a well-defended position on export markets.

Sweden (6) and Norway (9) shine forthe Nordic model, although Denmark(13) surprisingly loses ground, in par-ticular due to the pessimistic mood ex-pressed in the survey.IMD’s rankings are derived from 339competitiveness criteria revolvingaround four basic parameters of (1)economic performance, (2) govern-ment efficiency, (3) business efficiencyand (4) infrastructure. It was also to beexpected that China (18) would leadthe other BRIC (Brazil, Russia, India,China) nations, followed by India (31),Brazil (38) and Russia (51).India was ranked 31st in the in-dex slipped from 30th rank in 2009.Social Protection Index

The Social Protection Index (SPI) de-veloped by the Asian DevelopmentBank (ADB) calculated for 31 AsianCountries has placed India at the 10thplace, above fast growing countries likeChina (rank 11), Malaysia (14), Viet-nam (13). In fact, India’s SPI (0.46) iswell above the average SPI of all the31 Asian countries (0.36). However,India falls just below its neighbour SriLanka in the SPI, which is the onlyother country from South Asia that fig-ures in the top 10 Asian countries pro-viding social protection to their popu-lation. There are five main areas insocial protection:1. labour market policies and pro-grams designed to promote employ-ment, the efficient operation of labormarkets and the protection of workers;2. social insurance programs to cush-ion the risks associated with unem-ployment, ill health, disability, work-related injury and old age;3. social assistance and welfare serviceprograms for the most vulnerablegroups with no other means of ad-equate support, including single moth-ers, the homeless, or physically or men-tally challenged people;4. micro-and area-based schemes toaddress vulnerability at the commu-nity level, including microinsurance,agricultural insurance, social fundsand programs to manage natural disas-ters; and5. child protection to ensure thehealthy and productive developmentof children..UNIDO

Competitiveness Index 2009-10

Singapore led the world in industrial

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competitiveness while China rose fiveplaces up from the 31st in 2000 to the26th in 2005 in the rankings of the com-petitiveness industrial performance(CIP) index, according to the IndustrialDevelopment Report 2009 released bythe United Nations Industrial Devel-opment Organization (UNIDO).The CIP index combines four main di-mensions of industrial competitive-ness: industrial capacity, manufac-tured export capacity, industrializationintensity and export quality. Singaporeled the rankings, by scoring 0.887points of CIP index value in 2000 and0.890 points in 2005. Ireland and Japanfollowed, along with Switzerland,Sweden and Germany.The United States was the only matureindustrial power that has seen a dete-rioration in its relative position, downfrom the 9th place in 2000 to the 11thin the 2005 ranking. This was the re-sult of the improved performance ofthe Republic of Korea and China’s Tai-wan, which ranked the 9th and 10thposition in 2005, respectively.The UNIDO first introduced the CIPindex in the Industrial DevelopmentReport 2002-2003, which was releasedin late 2002. In that report, China'srankings jumped from the 61st positionin 1985 to the 37th in 1998. India’s po-sition slipped to 51 from 54 in terms ofCompetitive Industrial Performanceindex (CIP), as per the United NationsIndustrial DevelopmentOrganisation’s Industrial Develop-ment Report (IDR) 2009. The reportalso specifically mentions Chennai’sleather cluster as the top 10 dynamicindustrial locations in the world iden-tified by UNIDO.India has figured among the top

ten manufacturers of the world

in 2010 in the Interna-tional Yearbook of Indus-trial Statistics 2011, pub-lished by the United Na-tions Industrial Develop-ment Organisation(UNIDO).India, China and Brazilposted strong economicgrowth in 2010 and themanufacturing valueadded (MVA) of all threecountries grew by morethan 10 per cent during theyear. The share of develop-

ing countries in world manufacturingoutput has gone up to 32 per cent com-pared to 20 per cent. UNIDO said glo-bal manufacturing is showing signs ofrecovery.European

Attractiveness Survey 2010

In 2009, the global downturn com-pounded the financial crisis of 2008,provoking a worldwide decline in for-eign direct investment (FDI), which fellby 39 per cent. Despite the slump, Eu-rope remained the world’s top FDI des-tination, attracting 36 per cent of totalinflows.By 2008, investors began to rate rapid-growth markets, especially China, In-dia and Central and Eastern Europe onthe same level of attractiveness as es-tablished destinations. China overtakesWestern Europe to become the mostattractive region for FDI and reclaimsits 2008 title. These top two FDI mag-nets are followed by Central and East-ern Europe then India and NorthAmerica, level pegging.Western Europe’s appeal as the mostattractive destination for FDI hasslumped since 2006, while enthusiasmfor North America more than halved.China’s attractiveness ranking hoveredat 40 per cent and India’s has grown.Global

Peace Index Survey 2010

New Zealand tops the index as themost peaceful country and war-rav-aged Iraq — no surprises here — hasearned the distinction as the leastpeaceful nation and is kept companyat the bottom of the list by Somlia, Af-ghanistan, Sudan and Pakistan. Ethio-pia topped the list of "most improved"countries in 2010 while the world'sleast peaceful countries were listed asIraq, Somalia, Afghanistan and Sudan.

The worst performing region since2007 has been South Asia, with conflictin Sri Lanka, Pakistan and India hit-ting ratings.India has tumbled seven places in theGlobal Peace Index — a ranking of themost peaceful nations of the world —thanks largely to the increase in thenumber of deaths from organized con-flicts. The 2010 ranking of 149

nations places India at 128. Thefourth annual GPI has been compiledby Institute for Economics and Peace(IEP), a global thinktank that looks atthe the relationship between economicdevelopment, business and peace.UNFPA Report

By 2050, India would overtake Chinato become the most populous countrywith a projected population of 1.658billion people. According to the UnitedNation Population Fund (UNFPA)’sState of the World Population 2008 re-port, while India’s 1.5 per cent aver-age population growth rate, in com-parison to china’s 0.6 per cent for (2005-2010) will make it make it the popu-lous country by 2050.DELOITTE Survey

In a recent global survey by DeloitteTouche Tohmatsu (Deloitte) on Ven-ture reveals that 50 per cent of globaland non-India based Asian investorswho plan to increase their investmentsover the next three years look at Chinaas the favourite location. India followsits neighbour to get the second spotwith 43 per cent of VCs expressing in-terests to invest in the country this year.Consumer Index

According to Nielsen Consumer Con-fidence Index Indians have the secondmost optimistic attitude on the currentworld financial crisis after Norway.One in two Indians, 45 per cent of Viet-namese and around a third of Russiansand Chinese expect the global recessionto end within a year, according to sur-vey on global consumer confidenceconcerns, spending and attitudes torecession.India’s first sustainability index

According to a survey conducted theresearch company, GlobeScan and BTIndia, the Tata Group has emerged asthe top corporate leader in sustainabledevelopment in India. The Tatas arefollowed by Reliance and Infosys, ITC,Wipro, Suzlon, Airtel, Honda, ONGC,IL&FS and Satyam.

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Economic Outlook of IMFEconomic Outlook of IMFEconomic Outlook of IMFEconomic Outlook of IMFEconomic Outlook of IMF

The IMF has released its latest REO forAsia and the Pacific. With Asia set toremain an attractive destination forforeign investment given the sluggishrecovery in the US and Europe, capitalinflows could add further to domesticprice pressures in the period ahead.With India and the China leading theway with projected growth rates of 9.7per cent and 10.5 per cent respectively,Asia remains firmly in the lead of theglobal economic recovery. Indonesia isexpected to grow by 6 per cent and Ja-pan by 2.8 per cent.WWWWWorororororld economic outlook,ld economic outlook,ld economic outlook,ld economic outlook,ld economic outlook, 2010 2010 2010 2010 2010

& Global Financial& Global Financial& Global Financial& Global Financial& Global Financial

StaStaStaStaStability rbility rbility rbility rbility reeeeeporporporporport,t,t,t,t, 2010 2010 2010 2010 2010

According to the reports published bythe IMF the economic recovery underway has been proceeding broadly asexpected but downside risks remain el-evated and the global financial systemis the Achilles’ heels of this recovery.The IMF has also made a distinctionbetween the growth trajectories of de-veloped economies on the one handand emerging markets such as Indiaand China on the other. As per theWEO, most advanced economies stillfaced large adjustments and still highunemployment prevailed there. But incontrast, the WEO noted that manyemerging and developing economieswere witnessing strong growth. TheIMF has projected that Indian economywill grow by 9.7 per cent in the year2010 and 8.4 per cent in the year 2011driven by robust industrial productionand macro-economic performance.Internet

Governance Forum Report

The first Internet Governance Forumwas held in Athens in 2006, as a followon to the 2005 Tunis World Summit onthe Information Society, and to fulfilthe principles drawn up at there. Thesecond IGF was held at Rio in Brazil in2007. The fourth Internet GovernanceForum (IGF) was held at Sharm elSheik, and third IGF at Hyderabad. Thefifth Meeting of the IGF in Vilnius,Lithuania in September 2010. The SixthMeeting of the IGF is expected to beheld in September 2011 in Nairobi,Kenya, following the invitation by theGovernment of Kenya, conveyed byPhilip Okundi at the Closing Cer-emony of the 2010 IGF in Vilnius. TheSecretariat, based in the United Na-

tions Office in Geneva, assists and co-ordinates the work of theMultistakeholder Advisory Group

(MAG). The Secretariat has beenheaded until 31 Jan 2011 by MarkusKummer as Executive Coordinator.Global Hunger Index 2010

The UN Food and AgricultureOrganisation (FAO) defines hunger asthe consumption of fewer than 1,800kilocalories a day — the minimum re-quired to live a healthy and produc-tive life. According to the InternationalFood Policy Research Institute(IFPRI)’s “Global Hunger Index 2010”India is among 29 countries with thehighest levels of hunger, a stuntedchild and poorly fed women. India hasranked 67th among 85 countries interms of access to food and has morehungry people than even Sudan. TheIFPRI hunger index —complied inpartnership with German NGOWelthungerhilfe, and Concern World-wide —ranks countries on threeequally weighted indicators: the pro-portion of undernourished, the propor-tion of underweight children underfive, and the child mortality rate.China is rated much ahead of India atthe ninth place, while Pakistan is at the52nd place on the 2010 Global HungerIndex. Among other neighbouringcountries, Sri Lanka was at the 39thposition and Nepal ranked 56 by in-dex. Bangladesh listed at the 68th po-sition. The strife-torn Democratic Re-public of Congo ranks at the bottom ofthe list of 84 countries with significantlevels of hunger. The data has beencompiled for 122 countries in all; theremaining 38 countries have a GHI ofless than 5 and are not included in therankings. No data has been recordedfor highly developed countries.The index rated 84 countries on thebasis of three leading indicators --prevalence of child malnutrition, rateof child mortality, and the proportion

of people who are calorie deficient. In-dia is home to 42 per cent of the un-derweight children under the age offive in the world.Analysis: The GHI points to wide-spread hunger in a country that is theworld’s largest producer of milk andedible oils, and the second-largest pro-ducer of wheat and sugar. This signi-fies bad food management and distri-bution and also indicates growing roleof intermediaries in hoarding and blackmarketing.The country has a high “hunger score”of 24.1 and ranks behind all itsneighbours, barring Bangladesh. Val-ues between 20 and 29.9 on the indexdenote an “alarming” hunger situation.This means that if food security is notensured India may face huge problemsin terms of political instability in com-ing time.India also runs the world’s largest free-meal programme for school-going chil-dren. Yet, the 2010 hunger report re-veals that more than 90 per cent of theworld’s stunted children (whose heightis low for their age) live in Asian coun-tries, such as India and Bangladesh,apart from some Africa countries. Thisagain says that the ongoingprogrammes need complete overhaul-ing and reorientation.Overall scenario: Globally, the worldis nowhere near meeting the target ofthe UN’s goal of halving the propor-tion of hungry people. Twenty-ninecountries — mostly in sub-SaharanAfrica and South Asia — have levelsof hunger described as “extremelyalarming” or “alarming”. Eight of thenine countries in which the hunger in-dex went up between 1990 and 2010were in sub-Saharan Africa. The ninthwas North Korea. The Democratic Re-public of Congo saw the biggest in-crease; GHI rose by more than 65 percent.The 2010 Global Hunger Index, re-leased by the International Food PolicyResearch Institute in association witha German group Concern Worldwideand Welthungerhilfe, ranks countrieson a 100 point scale, with 0 being thebest score ('no hunger') and 100 beingthe worst, though neither of these ex-tremes is achieved in practice.The higher the score, the worse thefood situation of a country. Values lessthan 4.9 reflect 'low hunger', values

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between 5 and 9.9 reflect 'moderatehunger', values between 10 and 19.9indicate a 'serious', values between 20and 29.9 are 'alarming', and values ex-ceeding 30 are 'extremely alarming'hunger problem. According to the 2009Global Hunger Index, India ranked 65out of 88 countries.The GHI is a multidimensional ap-proach to measuring hunger. It com-bines three equally weighted indica-tors:

1. the proportion of undernour-ished as a percentage of the popu-lation (reflecting the share of thepopulation with insufficient di-etary energy intake);2. the prevalence of underweightin children under the age of five(indicating the proportion of chil-dren suffering from weight loss);and3. the mortality rate of childrenunder the age of five (partially re-flecting the fatal synergy betweeninadequate dietary intake and un-healthy environments).

This multidimensional approach tocalculating the GHI offers several ad-vantages. It captures various aspects ofhunger in one index number, therebypresenting a quick overview of a com-plex issue. It takes account of the nu-trition situation not only of the popu-lation as a whole, but also of a physi-ologically vulnerable group – children– for whom a lack of nutrients createsa high risk of illness, poor physical andcognitive growth, and death. In addi-tion, by combining independentlymeasured indicators, it reduces the ef-fects of random measurement errors.Banking Index

A survey of executives by the WorldEconomic Forum said that Canada hadthe soundest banking system in theworld. Australia ranked fourth, the U.S.ranked 40th, and the U.K. ranked 44th.World Investment Report 2010

The Foreign Direct Investment (FDI) inBangladesh has declined by 36 per centand stood at $700 million last year com-pared to 20.11 per cent decline in SouthAsian countries and 14 per cent interms of the least developed ones, ac-cording to the World Investment Re-port (WIR), 2010. India climbed fournotches to be ranked the ninth mostattractive investment destination in2009 with a total foreign direct invest-

ment inflow of $34.61 billion. Indiaattracted sizeable overseas investmentdespite the overall drop in such inflowsdue to the global financial crisis, saidthe World Investment Report-2010,prepared by the United Nations Con-ference on Trade and Development(UNCTAD).FDI inflows to developing and transi-tion economies declined by 27 per centto $548 billion in 2009 and FDI flowsto developed countries suffered theworst decline of all regions, contract-ing by 44 per cent to $566 billion in thesame year, the WIR added.In 2008, though India attracted higherforeign direct investment worth 40.42billion, its ranking was lower at 13th.China nudged further up to second at$95 billion from a third place last year.The US remained the top investmentdestination with inflows of $130 billionin 2009, followed by China, France,Hong Kong, Britain, Russia, Germany,Saudi Arabia, India (overall 9th

rank in the world) and B e l g i u m .Total inflowsamounted

to $1.11 trillion, against 1.77 trillion in2008.In 2009, Indian firms and funds alsoinvested a lower amount of $14.89 bil-lion overseas, compared to a $18.4 bil-lion in 2008.Among the institutions were Ameri-can International Group (UnitedStates), Fortis (Belgium), and Dexia(Belgium). Prominent Wall Streetbanks, such as Merrill Lynch (UnitedStates, which was sold to Bank ofAmerica), Goldman Sachs (UnitedStates) and Morgan Stanley (United

States) did not fail, but ceased to oper-ate as investment banks, opting insteadto convert to commercial banks.Acquisitions:1. Rio Tinto PLC of United Kingdomwas acquired by Gold ores Chinalco,China2. China Netcom Group Corp (HongKong) Ltd was acquired by China Ra-diotelephone communications ChinaUnicom Ltd.3. Standard Bank Group Ltd South Af-rica was acquired by Banks ICBC ofChina.4. Merrill Lynch & Co Inc of UnitedStates was acquired by Security bro-kers, dealers, and flotation companiesTemasek Holdings of Singapore.5. Tuas Power Ltd Singapore was ac-quired by Electricity services HuanengGroup of China.6. Sabiha Gokcen International Airportof Turkey was acquired by Airportsand airport terminal services InvestorGroup of India.7. Awilco Offshore ASA of Norwaywas acquired by Oil and gas field ex-ploration services of China.8. Santos Ltd of Australia was ac-quired by Crude petroleum and natu-ral gas of Malaysia.9.Wing Lung Bank Ltd of Hong Kong,was acquired by China MerchantsBank Co Ltd of China.10. Jaguar Cars Ltd of United King-dom Motor was acquired by Tata Mo-tors Ltd India.Medical brain drain: OECD

India has been regarded as the topcountry of origin of migrant doctors inOrganisation for Economic Co-opera-tion and Development (OECD) coun-tries with over 56,000 Indian doctorsin these countries, which include theUK, the US, Canada, and Australia. Interms of nurses, the Philippines is themain country of origin for nurses, withover 110,000 Filipino nurses workingin OECD countries, followed by theUnited Kingdom (just under 46,000),Germany (under 32,000). The problemof “medical brain drain” is highly facedby all the OECD countries, especiallyin African countries. As per the figuresquoted by the World HealthOrganisation (WHO), the number ofphysicians per 100,000 populations forIndia is 70, which stands at par withlow-income countries, and for the pub-lic sector, the figure is a miserable 20

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