Sunday, 30 July 2017
reys
dickie bird ismail sheikh firozuddin
Dickie bird ismay and plan balkan
The Palestine Authority has welcomed the initiative as a “flicker of hope”. But the Israeli government has slammed it. Prime Minister Benjamin Netanyahu’s position is that Israel will hold direct talks with “a demilitarised Palestinian state that recognises Israel as a Jewish state and a national homeland for the Jewish people”. This appears more like a delaying tactic than a genuine demand for resuming talks for various reasons.
Why was the nation partitioned
last year shit 1
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After Second World War, most of these colonies attained independence. But they also had internal dispute regarding territories and borders.
One such dispute was Indonesia-Malaysia conflict over the Borneo islands.
This conflict + the then ongoing Vietnam War raised fears of increased external involvement in the newly independent states.
They feared that south east region would become a theatre of western vs. communist ideologies
Hence they decided to form a common platform:
To resolve bilateral issues among themselves
Present a collective front to the world.
1967, five countries signed “Bangkok declaration” to form the Association of Southeast Asian Nations (ASEAN), later another 5 joined. Thus today ASEAN has 10 members
List of 10 ASEAN nations
Indonesia (ASEAN HQ is here, in Jakarta)
Malaysia
Philippines
Singapore
Thailand
Brunei
Cambodia
Laos
Vietnam
Myanmar
Musyawarah & Mufakat
ASEAN follows the principle of “ASEAN way”. Meaning,
don’t use force/confrontation
don’t interfere in the internal matters of states
Informal discussion
minimal institutionalization
To achieve “the ASEAN way”, Treaty of Amity and Cooperation in Southeast Asia (TAC) was signed.
It provides the guiding principles of ASEAN
they’ll not use threat or use of force to settle differences / disputes
they’ll settle of differences or disputes by peaceful means,
They’ll effectively cooperate among themselves.
they’ll mutually respect each other’s’ independence, sovereignty, equality, territorial integrity and national identity
Every State has right lead its national existence free from external interference, subversion or coercion,
India had signed TAC treaty with ASEAN in 2003.
1994 ASEAN regional forum (ARF). already discussed in separate article click me
1997 ASEAN+3 is formed to increase regional integration. This includes
China
Japan
South Korea
2002 Treaty to control haze pollution in South East Asia
2006 ASEAN gets observer status in UNGA (General assembly)
2007 Cebu declaration for energy securities and renewable energy.
2010 Chiang Mai Initiative (CMI)
It is a currency swap agreement among ASEAN +3,
It provides emergency liquidity to those economies during crises.
2012
Asean Human Rights Declaration
21st ASEAN Summit in Phnom Penh Combodia with theme:“ASEAN: One Community, One Destiny”
20
forms like the Dhrupad, Khyal, Thumri, Dadra, Tarana and so on. Of these, the important ones are Dhrupad, Khyal and Thumri. While the Dhrupad is the most strict form in terms of grammar and presentation format, the Khyal permits more liberty. The Thumri is the most flexible compared to the other two. But what separates one form from the other? How can one identify and differentiate? Let's see in detail.
- Size of Council of Ministers - After the 1989 defeat of Congress, the first National Front government was formed by a coalition of Janata Dal and other local parties with outside support of Left and the BJP. This was a minority government under VP Singh. For the period from 1989 onwards the number of ministers were on the discretion of the Prime Minister and were done to placate the allies. Ministries were split into individual functions so that Ministers could be given their own fiefdoms to run. This also increased the power and stature of individual leaders and could lead to unstable governments and too many important people in the government to cater to. To resolve this, 91st Amendment introduced in 2003-04, capped the upper level of Ministers to 15% of the strength of the "popular house of the legislature" implying LS in case of Parliament and Vidhan Sabha in case of states. Exceptions were given for smaller legislature of Goa, Sikkim & Mizoram. This too was on a higher side compared to the recommendation of National Committee to Review the Working of the Constitution (NCRWC) of max 10%. I feel that even the 10% was higher but 15% is too much given that only 272 MPs are needed to form the government, which means that at the maximum possible there would be 1/3 of the government in the driving seat.
- Anti-Defection Law - The anti-defection law was enacted in 1985 by the Rajiv Gandhi government and the intention was to remove horse trading and poaching of legislators by the parties. The law basically states that if a legislator elected on one party's ticket, resigns and moves to another party, his election will be nullified and he has to seek fresh elections on another party's ticket. However, if 1/3 of the party members left the party it did not qualify as defection. For smaller parties in the parliament, this was still a problem because smaller numbers of party members could still be poached by other parties without invoking the Anti-Defection law. To strengthen the Anti-defection law, this limit was increased from 1/3 to 2/3 members of the party in the 91st Amendment, thus making it more difficult for individuals and factions within the party to defect.
Disempowering the legislature
Tuesday, 25 July 2017
Model BIT
To what extent, the new model BIT has removed the problems of old draft?
There were several problems of the earlier draft as discussed in salient features above. It had not much emphasis on protection; had vague definitions and posed problems for India. It was also considered a pro-State document, heavily favouring the host state. Due to this, it created a problem for India to renegotiate the existing BITs with 73 different countries. Further, the language of the earlier draft was that it inhibited India to negotiate BITs favourable to its own investors.
The recently released draft has made a balanced approach, is clear and tries to take care of not only foreign but also domestic investors. It also gives a fair amount of room to India to negotiate BITs with different countries on different terms. It has done away with the vague norms of ‘fair and equitable treatment’ and replaced the same with clear and transparent standards of treatment, leaving no room for arbitration in future. It also inserts new concepts, like requiring arbitrators to be impartial, independent, and free from conflict of interest; transparency in arbitral proceedings; and acknowledges the possibility of setting up an appeals mechanism to review tribunal awards.
Does the new model suffer with some drawbacks?
Despite having accommodated positive changes, it suffers from certain fundamental drawbacks, for instance:
It restores its unconditional support of the Indian judicial system. It repeatedly refers to the need for “exhaustion of local remedies.” It is prescribed in the Model that foreign investors can raise a treaty dispute with India and similarly, an Indian investor can claim against a foreign state only after approaching local courts and eliminating the possibility of domestic resolution. The model also recalibrates the limitation period for such disputes, requiring that cases be filed before local courts within one year of acquiring knowledge of the disputed claim. The investor must then wait five years for that process to play out before seeking an arbitrated solution. Restoration of such traditional faith of the Model in the India judicial system – characterised with inordinate delays and systemic problems of quality of adjudication – sounds a utopian blare defeating the purpose of unlocking BIT-related deadlocks.
The removal of ‘most favoured nation’ clause – a standard element of typical BIT basket and which is expected by the USA to be an integral feature of BITs in India looks a intransigent approach of the Model.
Exclusion of taxation from its purview is a clear indication of the Government’s reaction to various disputes with firms like Vodafone, Nokia,andCairn on tax-related matters. As a response to the multifarious disputes India faces under the prevalent BITs, the Model has put in place an unbending grievance redressal mechanism (local remedies, lesser limitation, mandatory waiting period, etc.).
What is Investor-state dispute settlement (ISDS)? What role does it play?
Investor-state dispute settlement (ISDS) or investment court system (ICS) is an instrument of public international law that grants an investor the right to use dispute settlement proceedings against a country’s government.
The ISDS’s focus on weak access to justice for the host state’s local investors and a viable one for the foreign investors has drawn flares of objection from all quarters. Its self-imposed faith in the competence of the host country’s judicial system without considering the fact that the delicate issues of bilateral trade and commerce. Like these the ISDS contains a substantially flexibility which affects justice delivery process in case of bilateral investment issues.
New BIT
In a surprising recent move, India has served notices to 57 countries including the UK, Germany, France and Sweden seeking termination of bilateral investment treaties (BITs) whose initial duration has either expired or will expire soon.
For the remaining 25 countries with similar treaties whose initial duration will expire from July 2017 onwards, such as China, Finland, Bangladesh and Mexico, India has asked for joint statements to clarify ambiguities in treaty texts, to avoid expansive interpretations by arbitration tribunals.
The Indian government intends to replace existing BITs with a new set of treaties designed to strike a balance between investor rights, regulatory space and investor responsibilities. This move is an outcome of India’s new Model BIT of 2015, which provides a more balanced and coherent policy framework, in tune with domestic investment policies as well as new realities of international investment. It comes as India faces a record number of claims from foreign investors seeking billions of dollars in compensation for the alleged violation of existing investment treaties.
Most foreign investors have adopted a wait-and-see approach as India embarks on this new path. Their existing investments in India will continue to enjoy treaty protection for the next 10 to 15 years, as most Indian BITs contain a so-called sunset clause. For instance, India’s BIT with the Netherlands extends protection to all qualifying investments (made before the date of termination) for an additional 15 years, so that investments made in India by Dutch companies before December 2016 will continue to benefit from the Treaty’s protections until December 2031.
India’s new Model BIT is a major departure from its earlier models (of 1993 and 2003) as it provides protection to foreign investors in more limited circumstances. Under the new Model, controversial elements such as Most Favoured Nation status have been completely dropped, while the scope of clauses on National Treatment and Fair and Equitable Treatment has been considerably narrowed down.
Investors may still initiate international arbitration proceedings under the Investor-State Dispute Settlement (ISDS) mechanism. However, whereas this has hitherto allowed them to bypass domestic courts entirely, access to the ISDS mechanism has henceforth been made conditional on the exhaustion of local remedies. Foreign investors will have to first approach the relevant domestic courts for the resolution of an investment dispute before turning to arbitration.
The new Model includes an exhaustive list of economic, environmental and social measures to be exempted under the new BITs. This includes matters such as taxation, intellectual property rights and measures to protect macroeconomic stability.
The next big task for India is to negotiate its future treaties as per the new Model text. India is currently negotiating standalone BITs with the US and Canada, and a proposed free trade agreement with the EU includes an investment chapter. Negotiations for the proposed India-EU FTA were launched way back in in 2007.
Since the entry into force of the EU’s Lisbon Treaty of 2009, the competence for international investment agreements has shifted from individual member states to the EU. So it is unlikely that India and the Netherlands will start negotiations for a new BIT without the European Commission in the picture. Perhaps both countries will watch and wait until negotiations on the proposed India-EU FTA are finished.
India is also a major player in the ongoing negotiations for the Asian Regional Comprehensive Economic Partnership – a mega regional FTA being negotiated between 16 countries – which will also cover investment protection issues.
Post-Brexit, there is a renewed push by the UK to forge closer bilateral trade and investment ties with India. On its part, India is also keen to explore a new BIT with the UK as the previous treaty of 1994 has turned out to be problematic.
Sajid Javid, the UK’s Business Secretary before the new government’s cabinet shuffle this week, visited India this month to explore the possibility of an FTA between the two nations in the near future. India was the first destination for such trade talks since the UK voted to leave the EU last month.
Rather than seeking a new standalone BIT, India and the UK may opt for an investment protection chapter under a comprehensive FTA. Given the current deadlock over the India-EU negotiations, India’s chances of entering into a FTA with the UK are far greater than its chances of doing so with the EU.
In the past decade, India’s investment landscape has changed considerably. India is no longer a purely capital-importing nation. Since 2005, Indian companies have increasingly looked to expand their global footprints by investing abroad. Indian investors are increasingly seeking investment protection tools in those jurisdictions that are generally perceived to have greater potential risks and uncertainties related to the regulatory framework and the political climate. So it remains to be seen how New Delhi will strike a balance between such competing claims.
Nor is it yet clear what would be the Indian government’s approach to investment chapters in FTAs. These are fraught with complexity and legal hurdles. As pointed out by Abdulkadir Jailani, an official from Indonesia’s foreign ministry, terminating an investment chapter of
Tuesday, 18 July 2017
Gst criticism
Narendra Modi stated that ushering in of the GST marked a milestone whereby the country was transitioning into “one nation, one market and one tax”. He further argued that GST was “good and simple”, and will help accelerate economic growth, incomes and employment.
While few would dispute about the GST being good, given that it has been implemented by over 140 countries around the world, there are serious doubts about it being simple as implemented in India, and its impact on economic growth, income and employment.
The present GST regime may even aggravate inflation to the detriment of the poor and vulnerable sections including the farming community.
The GST implemented in the country stipulates the levy of five GST rates namely at 0%, 5%, 12%, 18% and 28%.
However, effectively there are more than five GST rates for different commodities in the country. For instance, certain items, such as small, medium and luxury cars, which are in the highest GST tax bracket of 28% will also attract an additional cess ranging from 1 to 15%.
Added to that a window has also been left open for states to levy additional taxes, which was the reason why the film industry in Tamil Nadu went on an agitation to protest the proposal to levy local or entertainment taxes on films in the state.
Critics such as Bibrek Debroy, Member of the Niti Aayog have pointed out that the GST regime implemented in India is not the ideal regime recommended by the 13th Finance Commission based on the National Council of Applied Economic Research (NCAER) model. NCAER in 2009 estimated that moving to the GST can increase India’s growth by 0.9 percentage point to 1.7 percentage point. Professor M Govinda Rao, a leading public finance expert and former member of the 14th Finance Commission notes that multiple rates rob GST of lower administrative, compliance and distortion costs.
The public has always been told that multiple income tax rates encourage tax evasion and lead to higher administrative and compliance costs, which was the justification used to lower and reduce income tax rates and categories in successive budgets presented by our Finance Ministers.
This being so, one doesn’t understand the logic and justification for going in for a GST regime with multiple tax rates, which will also result in lobbying and rent seeking.
Further, the 28% GST rate implemented in the country is the highest among all countries in the world. In the UK, it is around 20%, Australia 10% and in Singapore about 7%. Whether a poorly designed GST regime is preferable to a no-GST regime is debatable.
The GST regime is not simple and quite confusing in many respects to businesses and the public.
Take the case of mobile phones, where the handset is taxed at 12%, earphones at 18% and the charger at 28% under the GST.
In the case of rolling shutters, where the handle will attract GST of 18% and the inbuilt lock at 12%.
Similarly, while personal computers and printers will be charged GST at 18%, monitors and projectors attract GST of 28%.
Ideally, the bills issued to purchasers should demarcate between these two sets of commodities and charge GST on the items which attract different slabs of GST. This gives ample scope for traders and hoteliers to cheat consumers.
Note: Rent seeking is the practice of manipulating public policy or economic conditions as a strategy for increasing profits.
Who are in demand since GST?
Business establishments in Punjab have started looking out for accountants to resolve the confusion prevailing in the markets. However, they are finding it hard to locate qualified persons as the demand has shot up manifold in the last few days.
With GST in place, the number of firms under the tax ambit has increased 9-10 times. Now, any business with Rs 20 lakh turnover will fall under tax regime.
“Earlier, business establishments up to Rs 1.50 crore were exempted from the tax ambit but now those up to Rs 20 lakh are under the tax ambit and those who were not familiar with the tax system are in urgent need of accountants to deal with the complicated tax system,” said a wholesale merchant in Mandi Fenton Ganj, which is one of the largest wholesale market of All Kirana and dry fruit items, adding that everyone cannot afford to hire chartered accountants (CAs).
“Though seminars are being conducted for wholesalers and retailers by various forums but still traders are not able to understand it completely,” said Raj Kumar, president of Kirana Merchant Association Mandi Fenton Ganj.
He added that several government officials have still not able to clear the the questions pertaining to GST. “No one knows how much time it will take to bring things to normal, but we need accountants urgently,” he added.
A senior official of Jalandhar Sports market association said that though workshops are being organised educate traders but still there is a need for accountants.
“We have been organising workshops to educate the traders but still there is a need for accountants to cope up with the initial pressure and confusion,” said Ravinder Dhir, a senior official of Jalandhar Sports market association.
Puneet Oberoi, a CA and who had delivered hundreds of lectures on GST across the state, said that not only there is confusion, but markets are also moving very slowly.
“There is 10-fold increase of traders and businesses under tax regime post GST in Jalandhar itself,” he said, adding, “In India there is no such institution that prepares qualified accountants.”
Thursday, 13 July 2017
Bankruptcy code next to gst only
Today is a historical day for economic reforms in India when the Rajya Sabha passed the major economic reform Bill moved by the Government i.e. ‘Insolvency and Bankruptcy Code, 2016’. This is considered as the biggest economic reform next only to GST...
Read more at: http://www.livelaw.in/parliament-passes-insolvency-bankruptcy-code/
Tuesday, 11 July 2017
Ethics and empathy
Ethics. . Evil as the lack of empathy.. the shared human values and the inability to connect to ones suffering
The british nolan committee said no to empathy and placed emphasis on objectivity.
However indian administration given the level of socio economic empowerment of citizen. An empathetic approach is best suited.
2nd arc has called for a code of ethics regulating bureaucrat behavior which has empathy as one of the important pillars.
Banality of evil. ..the defendants were nt gyilty alone it was sanctioned by the society which came to accept it
From the nuremberg trials
ordinance
Mandatory obligation
Monday, 10 July 2017
RTI
As of today, the Second Schedule will have the following organisations:1. Intelligence Bureau.
2. Research and Analysis Wing of the Cabinet Secretariat.
3. Directorate of Revenue Intelligence.
4. Central Economic Intelligence Bureau.
5. Directorate of Enforcement.
6. Narcotics Control Bureau.
7. Aviation Research Centre.
8. Special Frontier Force.
9. Border Security Force.
10. Central Reserve Police Force.
11. Indo-Tibetan Border Police.
12. Central Industrial Security Force.
13. National Security Guards.
14. Assam Rifles.
15. Sashastra Seema Bal.
16. Directorate General of Income-tax (Investigation) .
17. National Technical Research Organisation.
18. Financial Intelligence Unit, India.
19. Special Protection Group.
20. Defence Research and Development Organisation.
21. Border Road Development Board.
RTI draft amendments
1. Proof of service should be submitted by the appellant..
suggestion - Registery should provide the proof of service if appellant unable to
2. Proof of complaint to be served by the appellant made compulsory
3. Appeal closed in case of death of appellant
4. CIC can dismiss the appeal without a chance hearing to the appellant
suggesstion this is draconian measure and should be done away with
5. Different fromats for appeal and complaint.
commission becomes a constitutional body, it will continue to face the Sword of Damocles — that of the governor, who is the appointing authority for information commissioners on the recommendation of the CM, cabinet minister and leader of the Opposition. But for the removal of the information commissioner, as per Section 17 of the RTI Act, a Supreme Court inquiry is necessary on the governor’s referral. During the period of inquiry, the governor can
suspend or even prohibit the information commissioner from holding office.
non imposition of penalty on PIO
National Coordination Committee (NCC) may be set up under the chairpersonship of the Chief Information Commissioner with the nodal Union Ministry, the SICs and representatives of States as members. A provision to this effect may be made under Section 30 of the Act by way of removing difficulties. (para 5.6.4.d)
1 Section 30 of the Act stipulates as follows: “30 (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removal of the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date of the commencement of this Act” 8.1.2 The implementation of the Act is yet to stabilize and it is perhaps too early to identify difficulties that may be encountered. The Commission however has identified some initial difficulties which could impede smooth implementation of the Act. These have been highlighted in the preceding chapters of this Report. Some of these would require taking recourse to Section 30 of the Act. These are reproduced below for ready reference: