71 years of the UNO

UN at 71- 17 Goals.

Humanity has entered the era of sustainability – with a global commitment to fulfill the great promise of the 2030 Agenda for Sustainable Development.

On its 71st Anniversary, the UN identifies 17 simple steps to a better life on a healthier planet. These include donating, preserving, conserving and sharing of resources.

In its seven decades of existence, has the UNO really served its purpose?

Its various agencies can boast of having eradicated smallpox, getting more than 50% of the children in the world vaccinated, protecting human rights, preserving world heritage sites, having countries comply with several treaties and regulations to control climate change, prosecuting dictators like Charles Taylor and Milosevic for war crimes, etc.

However, the greater evils disrupting world peace are yet to be dealt with. The UNO, as of now, has failed to control the tumorous spread of the ISIS and other terrorist outfits. The very infamous genocide of Rwanda and the massacres in Serbrenica and Bosnia are examples of its failure to act as an organisation for maintaining international peace. 
The stagnant structure of most UN bodies, especially the Security council needs democratization. The P-5 have been permanent for way too much time now and it's time Africa, South America and Asia have their fair share of representation in the SC. Also, the use of veto needs to be regulated to prevent misuse as witnessed at the hands of China a few days back.

At least all the developing countries, if not all, should in effect press for reforms in the UN in order to ensure it exists as a relevant organisation in the coming years.

Garibi Hatao, Garib Nahi

In 1993, the UNO declared October 17 as the International Day for Eradication of Poverty. The theme for this year is 'Moving from humiliation and exclusion to participation:ending poverty in all its forms'. (hence the title xD)

For decades now, poverty has been a vicious complex web owing to economic as well as socio-cultural shortcomings. One-tenth of the world's population is below the International Poverty Line. In India, poverty is one of the major three challenges to economic development, the other two being illiteracy and excess population.  A staggering 21.9 %, that is. more than one-fifth of the population (approx. 340 million) comes under the BPL (Below Poverty Line) category. This also implies that the current number of poor people in our country exceeds the total population in 1947!

Poverty is a result of various factors like illiteracy, unemployment, economic crises and excess population. Hence, it can be dealt with only at a macro level. Though all the poverty alleviation programmes and public welfare schemes are quite helpful in overcoming the challenge, some crucial changes in monetary and financial policies are also required. A very essential goal being just distribution of income and wealth. Here, governments around the world face a dilemma- how to reduce debts and deficits and support development, growth and employment as anxious financial markets rattle the global economy. A similar challenge is ensuring fiscal sustainability while reducing inequality.

To ensure an equitable distribution of income and wealth, progressive taxation is one of the most emphasized solution. Tax and spending side of the equation should be viewed as a whole. Like,Value Added Taxes. These are not necessarily re-distributive in themselves but can be used effectively and efficiently to pay for spending to benefit the poor.

Income inequality is also exacerbated by tax evasion at the hands of the wealthy, who have greater opportunities for and benefits from tax evasion. Stringent laws against tax evasion are an equally important measure.

Also, there are a number of potential revenue sources that can contribute to both financial sustainability and improved equality:

1. Tax on Personal Income: Owing to weak administration in low-income countries, advanced economies are better able to use this tax in general, and rely on it for re-distributive effects through progressive rates. As supported by empirical evidence, fears that progressive rates will lead to labor migration are generally overstated.

2. Taxation of natural resources: They are sources of location specific rent. Taxing such rent is efficient and avoids the economic distortions arising from other factors of production.

3. Property Taxes: These are under-utilized in most of the countries. Low income economies specially have room to increase revenue from this source as incomes rise.

Poverty is not merely an economic problem, it is also a social stigma. Class differences lead to dissatisfaction and disharmony. Poverty also compels many to resort to theft and robbery to sustain for necessities.It is the poor who are easily brainwashed by anti-national groups and engage in terrorist activities. Also, to ensure increased levels of awareness and political equality, it is first necessary to achieve economic equatibility because, of what use are rights to an empty stomach?

The Man with Wings of Fire

A humble glint,
through winds of time and toil,
from The Luminous Sparks,
flared to form an inferno.
Rising with an Indomitable Spirit,
through troubled Turning Points,
a spark that Ignited Minds,
brought a Transcendence of Inspiring Thoughts.
Alas, all that now remains is but a vestige
of its romanticist rage for the high skies.
In spite of the cold and dampness
that now surrounds,
it will be reignited.
For O spark, You are Born To Blossom,
born to bring a Manifesto For Change,
born to scintillate Thoughts of Change,
with your blazing Wings of Fire.

Remembering our beloved late Dr. A.P.J Abdul Kalam
(15.10.2016) 

ELECTIONS IN DELHI UNIVERSITY

The Delhi University Student Union (DUSU) elections are due on Friday, September 9, 2016.
Many people are of the opinion, that student elections are a waste of time, energy and money and that they do not guarantee a stable political career most of the times. However, as of late, the nature of these elections has changed for good and is improving every year. As far as DU is concerned, we have some very dedicated intellectual candidates who work for the betterment of students in the University. And being a student, if you want to  see change or even righteously criticize the inefficacy of existing system, you have to be a part of it to bring the change you want to witness.

All the prospective candidates and organisations are campaigning voraciously. For the past one week, members of these organisations come to various colleges, declare their manifestos and previous achievements, distribute fliers and persuade people to vote in their favour. Some even try to maneuver public support in their favour by offering free movie tickets, discount vouchers, etc. Some heavily funded ones like the NSUI even offered to take students to so called 'fun n food villages'! If that is not a desperate attempt to practically bribe people, what is? Isn't it so similar to the tactics adopted by parties in 'larger-scale' elections?

At every corner in the campus, there is buzz regarding the elections. With NSUI almost out of the picture and SFI's ( Student Federation of India) perennial lack of adequate popular support, the prime competitors this time seem to be the AISA ( All India Students Union) and the ABVP ( Akhil Bhartiya Vidhyarthi Parishad).

AISA made an impressive move by having three women candidates in the panel of four. They also have been active in the protest against FYUP ( Four Year Undergraduate Programme) and  the recent CBCS (Choice Based Credit System) among other things, which very well is in their advantage.However, the recent infamous event involving accusation of rape against Anmol Ratan, a member of JNU AISA triggered mass fury. Given that AISA doesn't already have that strong a base in DU, this incident might have a negative impact on the faction of supporters it has.

ABVP, which forms the incumbent panel, is a strong contender. Apparently, it has a reputation of nurturing vandalism and hooliganism, but there must be much better reasons because of which it is the largest student organisation in the country and in the world, with roughly 3.2 million members!

Contrary to popular perception, ABVP is a highly self-funded organisation. It has sporadic nominal financial aide from the political organisations it is affiliated to. And as far as Delhi University is considered, ABVP has genuinely worked hard.
In almost 5-6 colleges, construction of new hostels have been commissioned; it was ABVP that 'cajoled' the protesting teachers of DUTA ( Delhi University Teachers Association) to start the long-delayed evaluation; it consistently persists the authorities for increasing the number of seats in colleges and hostels, etc.
The ABVP also encourages students to come forth with their grievances and quite surely, does look into the matters sincerely.

An innovative move during the elections this time, by some like-minded students of Miranda House, is the 'No Poster Party'. It seeks to protest against the littering of streets and the criminal wastage of paper, in the form of fliers and posters, during campaigning and wishes to promote paper-less campaigning.

The competition is in the air with all candidates giving invigorating speeches, groups shouting slogans, massive online campaigning, et al. Whose efforts bear fruit, we'll come to know after 48 hours.

Ind AS: Future of Financial Reporting

On 31 August 2016, the BRICS Chamber of Commerce and Industry (BRICS-CCI) organised a conference on Ind As: Future of Financial Reporting in the Indian Habitat Centre, New Delhi. The aim was to provide a platform for various Financial officers, Chartered accountants and other auditing professionals for a comprehensive deliberation on the introduction of a new accounting standard, the IFRS (International Financial Reporting Standards) or Ind AS (Indian Accounting Standards). The conference commenced with a brief welcome note by Mr. B.B.L. Madhukar, Secretary General of BRICS-CCI after which the Special Guest, Mr. Nilesh S. Vikamsey, Vice-Chairman of the Institute of Chartered Accountants of India (ICAI) addressed the gathering. Very eloquently, he expressed his views on the need, advantages, disadvantages, processes involved and probable challenges in the implementation of Ind AS. He talked about the systematic phase-wise execution of the new standard, the role of ICAI in this transition from the existing accounting standard Ind GAAP ( India-Generally Accepted Accounting Principles) to IFRS and called upon the industries to respond positively to the new standards.

Subsequently, an elaborate interactive session with the guests on the complex procedure of transition from the Ind GAAP to IFRS was conducted by Mr. Siddharth Talwar, Partner, Grand Thornton LLP, Mr. Amarjit Chopra, Senior partner, GSA & Associates and Mr. Keyur Dave, Director, GTI LLP, wherein all the major provisions in the new standards were extensively discussed. Comparison between current Ind GAAP and Ind AS, role of ICDS, carve outs in Ind AS, need for co-ordination between ICAI, NACAS and Industries were some points of discussion. The major topics under the IFRS that were talked on were:

1. Ind AS implementation roadmap and conversion process
2. Ind AS 1: Presentation of Financial Statements
3. Ind AS 16: Property, plant and equipment
4. Ind AS 17: Leases
5. Ind AS 109 and 32: Financial Instruments
6. Ind AS 18: Revenue
7. Ind AS 103: Business Combinations
8. Ind AS 101: First time adoption of Ind AS

Further, Professor Ambrish Gupta, FORE School of Mangement, talked about the Ind AS along with ICDS (Income Computation and Disclosure Standard) Tax, apprehensions of investors, concerns regarding effective execution on Ind AS and stressed on the need for “harmonization of all rules, regulations and standards for desired results”.
This was followed by a panel discussion on Ind AS, the panelists being Mr. Siddharth Talwar, Mr. Vijay Pal and Mr. Sumant Chadha, President, The Institute of Internal Auditors India. The enriching discusion covered issues like Fair Valuation, 'componentization' , Hedge accounting, possible changes in role of internal auditors in times to come, etc. Lastly, Chartered Accountant Gaurav Mittal shared his views on Taxation under the Ind AS regime.

Like the GST is to tax, IFRS is to accountancy. It will make book keeping more transparent and enhance the credibility of Indian Chartered Accountants abroad.(140 countries adhere to the IFRS including our neighbour Pakistan)

The IFRS was first introduced back in 2011 but due to stiff competition from industries and lack of adequate backing by the concerned ministries of the government, it could not be implemented. Hopes are, that it will finally receive a positive response in the coming financial year.

CHAGRIN

It is the impuissance;
and not the wounds that pain,
in going back in time,

to set things right again.

Mistaken were the assumptions
and things were not to hide.
An attitude that got contorted,
and drifted towards the wrong side.

Swept by extreme callousness,
Inadvertent that it was.
Love was desecrated,
And hurt it did cause.

Surreptitious deeds,
cost the diaphanous trust.
For wants, not needs,
and succumbing to sinful lust.

And when you rue,
sincerely you do remorse.
Ghosts of past shall haunt you,
making your plight worse.

Ah, the cries of broken hearts
and this vicissitude.
Long it will take to join again these broken parts
and sins to be completely spewed.

Ignoring the M in 'X-M'

Global trade is at an all time low and there are predictions of further dips. Despite so many nations increasingly liberalizing their economies since the past few decades, it is surprising why we are witnessing a very low increase in global trade. Some probable reasons could be:

1. Impact of global financial crisis and Great Recession
    The Great Recession hit global demand thus grievously   hurting exporting economies, especially the Euro Zone           which is facing high unemployment. 

2. The slowdown in China, can be said to be the primary reason for the slowdown. Due to this slowdown, there has     been a drastic fall in demand for iron, oil, etc. 

3. Hike in interest rates in the US and predictions of even higher ones have caused investment to flow out of   developing markets to 'dollar-based' assets.

4. Political turmoil in Brazil and Middle East, migrant crisis in   Europe, Brexit, etc is leading to uncertainty and                       apprehensions hence low investments.

Global trade has recently become less responsive to changes in global income because of slow expansions of global supply chains, reluctance of firms to work in complex global chains ( where raw material goes to one country, manufacturing takes place in another, assembling in another, marketing in another, and so on) and a shift in demand from trade-intensive investment to less trade intensive public and private investment. This has further led to a weak import demand, which has led to almost one percentage point reduction in growth of global trade.

Emerging economies,especially during a financial crisis or when under heavy debt, tend to focus only on exports and avoid taking imports. Imports often have negative connotations in public mind and trade barriers are often justified as a means of reducing import competition and protecting domestic markets. 

But imports can in fact, improve productivity and competitiveness and policies that restrict access to foreign sources of goods, especially intermediate goods and services, are more likely to produce firm closures and job losses- the very outcomes they were structured to prevent.

So the key to how imports actually improve trade productivity is trade in intermediate goods and services. Offshoring of parts of production can take place through either Foreign Direct Investment (FDI) or offshore-outsourcing (where intermediate material is produced by an independent foreign supplier). A firm can source an input from a foreign supplier where it seeks to lower costs and improve its competitiveness. Trade in these intermediates is hence not a loss of production to foreign players but is an explicit decision by domestic firms to maintain or improve its productivity. Failure to do so would result in job losses-not job savings.

More open markets therefore offer widespread benefits while protectionist trade policies impose high costs. Import barriers deny access to goods and services we need to compete internationally. Rather than protecting domestic jobs, these policies can produce plant closures and job losses.

Trade comprises both imports and exports; both are equally important for global economic performance.