Diplomatist September 2011 Contents

 

 

 

 

 
 
 

 

PUBLISHER’S NOTE/EDITORIAL

Welcome to the September edition of Diplomatist. Our previous issue came out during a tumultuous time, when the world stood on the verge of another financial meltdown, after the unprecedented downgrading of US credit ratings by Standard Poor’s. The global markets witnessed financial convulsions as a repercussion of the event; people across the world are apprehensive about the future, but still in our September edition we dare to aspire for hope and prosperity.

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News

> International Notes

> Corporate Notes

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Focus

Two Decades of Independent Russia

When Russia celebrates 20 years of dramatic military coup against the pro-reforms Communist Party President Mikhail Gorbachev, which has precipitated the disintegration of the USSR Empire, this article examines the journey of the post Soviet Russian nation.

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Spotlight

Hina Rabbani Khar Visits India: India-Pakistan Ministerial Level Talks Revived

Pakistan’s new foreign minister, 34-year-old Hina Rabbani Khar’s visit to India for talks recently, had the media going overboard on her fashion statements – the elegant ensembles, pearl necklaces, Cavalli sunglasses and a stylish Hermes-made Birkin bag worth at least $9,000/£5,500.

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Cover Story

PIGIS: The Backlash of Euros’ Ecstasy

The rampant social crisis in Europe has little to do with the political turmoil that destabilized the Maghreb countries recently. In the latter, one finds a young population without jobs or any socio-political rights, and having been pushed to wall, they are subjected to fight repressive and corrupt regimes.

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Economy

Overhauling the Global Economy

Angel Gurrķa, Secretary-General of the Organisation for Economic Co-operation and Development (OECD) remarks that although when compared to advanced economies, emerging markets are doing better, emerging markets also have policy challenges of their own.

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Perspective

Indian Democracy at Cross-Roads

The Lokpal is only an external system for regulating against corruption; and one legitimate critique is that creating a huge new bureaucracy runs the risk of possibly becoming corrupt itself or ineffective in policing of others

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Global Center Stage

Latin America: A Region of New Hope for India

International Trade: The Indo-LA trade relationship has expanded considerably in the last decade (Diagrams 1 and 2). In 2009-10, Department of Commerce data indicate that Indian exports of goods to LA crossed US$6 billion but India’s goods imports crossed $10 billion, implying a considerable trade deficit in goods for India and, therefore, a possibility and need to export more. Also, reflecting that LA imported US$700 billion in 2010, India’s share is miniscule. Economists measure bilateral export potential by using the Revealed Comparative Advantage (RCA) index and adding some assumptions.

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Resurgent Latin America Swims against the Current of Recurring Global Crisis

Crisis, Debt, Default, Deficit – the bad news from US and Europe since September 2008 does not seem to stop …. The prospects for them in the near future are not bright either. Contrast this with the Latin American bullishness.

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India-Brazil Trade and Economic Relations: The Beginning of a New Strategic Partnership

India’s keenness to seek and strengthen its relations with Brazil – the largest country in the region – was the product of another development, the entry of China with its $100 billion investment in the region. India realised that if China could overcome the traditional barrier of distances to enter the Latin American market in full force it would be detrimental for India to stay behind.

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Prospects for the Expansion of the Partial Trade Agreement Chile-India

The Indo-Chilean friendship has a long history. According to historical sources, Chile proudly counts itself amongst those present at the ceremony of proclamation of Indian Independence. It is also important to highlight that Chile was the only Latin American country, which took part in that significant event. Two years later, in April 1949, Chile opened its first Diplomatic representation in New Delhi.

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Costa Rica: ‘A Green and Smart Investment’

In 1987, then President Oscar Arias was awarded the Nobel Peace Prize. More recently, the World Bank ranked Costa Rica the most stable, violence-free society in Latin America. The country’s highly functional political and legal systems continue to preserve an equitable society, and provide a safe business environment.

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EL SALVADOR: A Country of Opportunities

El Salvador is considered as one of the freest economies in the world. According to the Wall Street Journal, El Salvador is ranked 2nd in the index of economic freedom, and 33rd freest among 179 economies. The country has provided itself with the institutional framework to attains this goal: a set of modern legislation like the investment law that ensures equal treatment to foreign and local investors, The Free Zone law, The International Service law and the Tourism law that encourages foreign investments, and the fact that the US dollar is recognized as the local currency for transactions, creates an environment that is friendly for importers and investors.

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Peru: Land of Opportunities for India

Peru’s territory is the third largest in South America. It is divided into three great natural regions, from 3,000 km of coastline facing the Pacific Ocean, the Andes Mountain range that contain most of its mining wealth and the rainforest, and a vast region that includes the Amazon River basin, where oil and natural gas reserves have been found.

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Uruguay, the Logistic Hub for Mercosur

Indian engineering products are technologically superior and offered at competitive prices in Uruguay. We welcome Indian engineering companies to invest and establish their bases in Uruguay, which will not only give them access to the MERCOSUR market, but will also enhance our production capabilities and provide more employment.

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Interview of H.E. Ms. Irina Orolbaeva, Ambassador Extraordinary and Plenipotentiary of the Kyrgyz Republic to the Republic of India

In the political and economic spheres we are trying to maintain exchange of visits at different levels. During 2010-2011 the 5th session of the Kyrgyz-Indian Intergovernmental Joint Commission on Trade, Economic, Scientific and Technological Cooperation was held in New Delhi on 04 March 2010. In the beginning of July, H.E. Mr. A.K. Antony, Minister of Defense of the Republic of India, visited Kyrgyzstan. The 6th round of the Foreign Office Consultations between India and the Kyrgyz Republic was held on 4-5 August 2011, which has provided a useful forum for exchange of views on bilateral and international issues.

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Indian States On a Platter

Tamil Nadu - An Economic Profile

Tamil Nadu is one of the most industrialized States of the country owing to its geographical position and resources. The State boasts many heavy engineering and vehicle manufacturing companies like Ford, Caterpillar, Hyundai, BMW and Mitsubishi, MRF, TI cycles of India, Ashok Leyland, Royal Enfield, Mahindra & Mahindra, TAFE, TVS, etc. These heavy vehicle and engineering industries are located in and around Chennai city.

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The Madras Chamber of Commerce and Industry (MCCI) Catalyst for Economic Development of South India

The Chamber’s greatest success was its role in ensuring that Madras got a port of international standards. This may not sound so great today, but for over 200 years, from 1639 onwards, it was the considered opinion of those familiar with the sea that Madras was not a place that could ever have a good port. The sea was very rough close to the coast and there were cyclones at all times of the year, causing untold damage to the ships that berthed off the city.

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Exclusive Interview with Mr T.T. Srinivasaraghavan, President, The Madras Chamber of Commerce and Industry (MCCI)
175 years is definitely a milestone and a great achievement for any organisation; more so for a Chamber which represents the collective interests of the business community. I am fortunate to head this Chamber at this momentous period. I am definitely proud that the Chamber, which was started in 1836 has played an active role throughout this long journey, while remaining true to its fundamental values and beliefs.

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Gujarat: Emerging Hub of the Automobile Industry

Going by the success story of Tata Motors when Tata Nano was forced to leave West Bengal because of its political situation and they were welcomed by Gujarat to set up base and launch the Nano, Gujarat is attracting a lot of attention and investments from both national and international car manufactures.

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 Cultural Diplomacy

Analysing and Envisioning India” - India, the unfinished revolution.

Let us start with Political Revolution. Delhi is the epicentre of politics. Delhi is nothing without politics. The fact is, despite our democracy; our parliamentary functioning has not been up to the mark. It has sometimes, in fact, become dysfunctional. I have been a parliamentarian for the last 44 years; I have seen many parliamentarians; I have seen a lot of parliamentary debates and discussions, and I have found out, to my dismay, that the structure of Parliament, which is based upon certain codes of conduct, which is based upon certain principles of behaviour, are beginning to break down. And I think that is going to be very dangerous.

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Special Feature

Indonesia

India-Indonesia Bilateral Relations
Indonesia’s Business, Investment and Trade Expansion in India
Tourism in Indonesia

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