Swiss Bank Accounts and India

Today when i was browsing some newspaper websites i got some interesting information, followed that i have done some finidings too. But here is the News Headlines along with the link where you can access full news on which this post is about.

Headline: Swiss banks' love for Indian clients no secret, woo back depositors who withdrew funds on fear of action: http://economictimes.indiatimes.com/articleshow/5983262.cms

The intersting fact is that despite of saying India is a Developing Country (some westerners still feel its poor country), Indians have more accounts in Swiss Bank than any other nations. Recently, i have gone through few articles in one of which they have provided the TOP Five Countries which have Swiss Bank Accounts. According to the Swiss Banking Association report of 2006-- India topped the world, the Top Five are as Follows (source: ET, 10 october 2008, article titled Money lying in Swiss banks may hit markets via P-notes
by Mandar Nimkar),

The Top five
India—- $1,456 billion
Russia —$ 470 billion
UK ——-$390 billion
Ukraine - $100 billion
China —–$ 96 billion

(Note: SWISS Bank have more than 55% of Foreign Clients rather than Domestic Clients.)

INDIA should think seriously and take some neccessary action. It is believed that this amount is 13 times larger than our countries Foreign Debt. Despite of just saying that we are one of the fastest developing nations and aiming at 9% growth rate, we should also seriously think about tax evaders and tax cheaters. If we can do something on this (even atleast say 50%) then we can achieve more faster growth rate and can have better development in INDIA.

Sugarcane Production - Bihar

Recently, i have talked to one of my friend and colleague who is from Bihar. I enquired her about why the sugarcane production became less in Bihar? Then i got some interesting facts, she said that "In bihar, from 1980's when the adverse law and order situation started, from that time onwards, many sugarcane mills have started closing down. Most of sugarcane mills have shut down due losses. Due to shut down of many mills except few Government mills many people stopped the sugarcane production because the demand for sugarcane have been drastically reduced. This was the major reason why sugarcane production in bihar have been reduced." So, now we have got some idea why total production of sugarcane was 20 percent before independence and have now drastically fallen to only mere 3 percent in Bihar.

New Vaccine for Swine Flu

Finally India have produced its own and New Vaccine for Swine Flu. Pune-based Serum Institute of India (SII) has developed a H1N1 vaccine which can be used by anybody above the age of three except pregnant women. It is expected to cost around Rs 150. Another interesting thing about this breakthrough is, it came exactly 1 year after India reported it First case of Swine flu.

This is one of the positive development in INDIA in the field of Vaccine production. We may hope to have more Production of vaccine which INDIA need to have its own.

Bihar - Fastest developing state???

Many People would have read in Newspapers, websites or may be heared in TV news recently that (it came as a Surprise for almost everbody) "Bihar is the Second Fastest Growing State". In 2008-09 it had a growth rate of 11.44%. Seeing the growth rate of Bihar even the CSO remarked that "Bihar is the new miracle economy of the country". Some Economist doubt the Data / Stats of this growth rate.

Recently i had a conversation with some of my friends and some third persons who are from Bihar. They said that no doubt Bihar is developing well. One of them said "In Bihar, the education system is also improving now. Especially, Girl students get some monetary benefits also for once in a 3 months time."

Today when i browsed the news there found an interesting headline "Lessons to be learnt from Bihar, says Bill Gates" when this came to my view i haven't surprised because before this i had already heard more positive things about bihar. I like to quote few things which Bill Gates said to some newspapers as follows:

"It's amazing how the state's immunisation rates have suddenly shot up from 11% to 60%. I never expected it. There is definitely some lessons of best practices to be learnt from here," he said.

"In 1960, 20 million children used to die. Last year, 9 million died. What do you think caused the dip even though 40% more children are born now every day? Vaccination. Better nutrition is the second factor but vaccination against new diseases is by far the most effective intervention," Gates said. "India hasn't introduced a single new vaccine since 1985. India should seriously consider using the pentavelent vaccine in its immunisation programmes

Narrating a personal story, Gates, whose foundation has given $1 billion to India alone for health projects, said, "Once, I showed my daughter a video about polio and what we do. Watching, she asked me what happened to the crippled girl in the film and how did we help her? I didn't know. I realised we talk about numbers and maps and eradication targets. But what about the real people? It is interesting to see the world through the eyes of children"

I felt initially since its about bihar, why should i put the second 2 quotes? but, later felt that this may be useful for someone (Dont have any idea to whom - :) ). Two interesting thing, which i would like to point out from Mr. Gates saying is that :

1 . "India hasn't introduced a single new vaccine since 1985. This is not only the surprising one, the other thing is still INDIA haven't produced any medicine for FLU (for any FLU).

2. I realised we talk about numbers and maps and eradication targets. But what about the real people? It is interesting to see the world through the eyes of children" This is one of the most important point, what about the Real People? and the Most beautiful Point in this is "It is interesting to see the world through the eyes of children"

This is one of the reason why i have put the last 2 quotes eventhough it doesn't matters with Bihar. This may make us to think and do things little differently.

I think atleast now few people who don't believe the CSO's data and Media report will believe Mr. Bill Gates words (will not be surprised even if they say that he is lying to make money for his foundations). I always have a strong belief that if INDIA has to Grow faster and become well Developed nation then it can happen only when States like Bihar, Arunchal Pradesh Prosper. I have strong belief that Bihar is a vital force and may become a driving force too for INDIA's Growth in future (Many of them may be surprised or even think this is ridiculous, but that rarely matters).

One Interesting think to point, not positive this time, about bihar is that their total production of sugarcane was 20 percent before independence which have now drastically fallen to only mere 3 percent. I would definetely like to know the reason for this, if anyone knows the infomation about this then kindly let me know (will also try to find out about it).

"Greece Crisis - Bailout - Is it worth?" - Greece May Survive, But the Bailout Won’t Help It Heal

This is in continuation of the Posting "Greece Crisis - Bailout - Is it worth?". In this posting there arised few questions whether this bailout will helpful? Whether Greece will survive? Interestingly, today i have read an article on Newsweek, which was publised on 10th May 2010 by Stefan Theil.

The last para of article is as follows: "Not talked about much, but at the heart of all this is the festering problem of Europe's banks. Unlike the U.S. and U.K., major Eurozone countries like France and Germany have to this day refused to subject their banks to stress tests, or provide for any kind of transparency about the true health of their financial sectors. According to the IMF, a larger share of bad assets is still hidden on the books of European banks than American or British ones. (Those bad debts are a source of embarassment to Europe's politicians, as they are likely concentrated in state-owned banks.) If France and Germany were more transparent about who owns which shaky government bonds, it would be far easier to calculate and prepare for the effects of, say, a Greek government bankruptcy, which unlike a banking crisis is a fairly straightforward problem for a financial system to resolve. Instead, because Europe still refuses to go public with the lingering problems of its banks, each impending crisis brings more uncertainty and the threat of systemic failure. Because politicians and regulators refuse to shed light on their banks, this crisis will likely linger"

You can read this full article here -
http://blog.newsweek.com/blogs/wealthofnations/archive/2010/05/10/greece-may-survive-but-the-bailout-won-t-help-it-heal.aspx

Austerity Measures - everywhere around Europe!!!!!!!!

If you see any newspapers today on world economy, then you can notice one important thing, that is, Austerity Measures - everywhere around Europe. After the Greece Crisis, all other european nations (including England) are very much alerted on the Fiscal Debt of their Nation.

Spain unveils billions in deficit cuts to halt eurozone crisis fears. Spain will slash public spending by €6bn and cut civil servants' by 5pc salaries this year as part of a plan to ease fears the country could slide into a debt crisis like that of Greece.Spain's Prime Minister Jose Luis Rodriguez Zapatero ordered a five percent pay cut for public workers as it ordered tough austerity measures in a bid to slash the national debt. Premier Jose Luis Zapatero told a stunned nation that public sector pay will be reduced by 5pc this year and frozen in 2011. "We must make an extraordinary effort," he said. Pension rises will be shelved. The country’s €2,500 baby bonus will be cancelled. Aid to the regions will be slashed and infrastructure projects will be put on ice. Mr Zapatero’s own monthly pay will fall 15pc to €6,515.
(Source: http://www.telegraph.co.uk/. )

While Spain is on Five Percent pay cut for public workers, Speaking at one of the four press conferences he gives a year, Mr King said that cutting the deficit is the 'No. 1' issue and that he had advised the George Osborne, the new Chancellor, this morning that the cuts should start this year. Some excerpt from telegraph - Bank of England (BOE) Governor said that "The lesson from Greece is that the deficit is the 'No. 1' issue" The Governor of the Bank of England warned that the next few years are going to be 'painful', as he welcomed the new government's plan to tackle the deficit this year. "The lesson from Greece is that the problem had been dealt with three months ago it would not have become as serious as it subsequently became," Mr King said. "The crucial thing is to prevent contagion from Greece to other euro-area countries. But those measures only provide a window of opportunity."

Now, despite of so much alert over the Debt crisis and Austerity measures will Europe survive from the crisis? Another big question is how long the EURO can survive? It’s really a big testing time for European Union to maintain it’s stability within their Union Economies. It will not be surprising for me at all when i hear the news that "EURO fails or Dissolved". Ofcourse, it still very early to say anything like that, only time can provide answer for all these questions.

Greece Crisis - Bailout - Is it worth?

The GREECE Crisis is becoming much more worse day by day. Recently, many economist started comparing this crisis with Argenitina's Default Crisis (1999-2002).

Recently IMF and European Finance Ministers Agreed to bail out Greece. Many countries were Unhappy with the Decision of IMF, since, Greece is not facing the Balance of Payment problem, rather, It faces huge Fiscal Debt. Many Economist feel that whether this bail out package is really worth? Whether this will stop the Greece from becoming Default? Now, Greece have also started adopting austerity measures, but, whether it will work? and more importantly whether Greek will walk out of EURO?

Well recently, Paul Krugmen in his article in NY Times (dated 6th May 2010, said that " The bad news is that Greece’s problems are deeper than Europe’s leaders are willing to acknowledge, even now — and they’re shared, to a lesser degree, by other European countries. Many observers now expect the Greek tragedy to end in default; I’m increasingly convinced that they’re too optimistic, that default will be accompanied or followed by departure from the euro".(For Full Article you can read - http://www.nytimes.com/2010/05/07/opinion/07krugman.html)

We need to wait and see whether the Greece bailout package is worth or it will default!!