Author: unmeshdatar

On Iran President Rouhani’s re-election

Iranian president Rouhani retained the office after a resounding victory in the election securing 57% votes, highest in the history of Iran’s presidential elections. This result is envisaged to be in trend with French presidential election where reformist candidate won against radical and more inward political doctrine.

In his first term, Rouhani trod rather warily, avoiding upsetting the conservative entities. But moving forward, he needs to take audacious decisions pertaining civil liberties, supporting reformists, alleviating unemployment to deliver on his promise of a modern Iran which is connected to the whole world. Though it’s not possible to make sudden radical changes in the current establishment, a more gradual but resolute approach can better serve the purpose given the popular support.

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Tackling Unemployment :Not just through Economic Growth

There have been some alarming signs of increasing unemployment in India from past few  years with jobs created in labor intensive sectors going down to 1.35 lac in 2015 from 9.5 lac in 2011 and unemployment rate going up to whopping 5% in 2015 from 3.5% in 2011. These signs have certainly caught an eye of policy makers who are planning to address the issue through increased economic growth.

But sheer economic growth can’t be envisaged as the panacea for unemployment. Economic growth can be achieved by either creating more industries which will create new jobs or improving the productivity of the existing industry, which won’t necessarily create new jobs.

What policy makers need to focus on is to shift labor from informal sectors such as agriculture to more formal sectors like manufacturing. Though this solution is not without it’s reservations, countermeasures like labor reforms can aid to accomplish this goal.

Fiscal deficit: States need to run a tight shift

For the first time in over a decade, the combined fiscal deficit of 29 states has breached the threshold of 3% recommended by successive finance commissions. The reserve bank of India has admonished the states to revert to 3% limit in 2016-17 fiscal year.

The main reason for this debt is the loss incurred by the Power distribution companies struggling under UDAY restructuring policy. With elusive private investments and tepid economic growth, the task only became harder.

Though 3% is not a magic number, as asserted by experts, yet it is an anchor that abstains fiscal irresponsibility which has been the root cause of the recent financial predicaments. So, states need to restrain from exorbitant spending in order to comply to this limit.

How should parties deal with leaders who threaten to change sides

Many recent examples have shown that political leaders are no longer hesitant to threaten their party for their personal desires and parties have treated this issue with various ways ranging from catering to their desires to ousting them from the party. This situation is aghast especially in world’s largest democracy.

Most of the these defectors are turning out to be from Congress and in most of the cases, they are going to the BJP camp. This is not a good indication for Congress as it suggests that it has become rudderless and lacks convincing strategy to move forward.

But the matter of the fact here is, if changing parties has become as easy as changing shoes; and it has, from the recent happenings, then both the parties do not stand for their doctrine that they claim to have as values are those which are not promulgated, but followed.

The Hindu: Gold shines- on reducing India’s demand for Gold

17th May, 2017, The Hindu

The article tries to find a pragmatic solution for reducing India’s tremendous demand for Gold. In India, investment in Gold is looked at as a safe option which safeguards against inflation as well. This idiosyncrasy of Indians is the reason for the spur in Gold demand; Demonetization hasn’t deterred this belief either, reducing the confidence in rupee.

The author points out the downside of this demand- trade deficit which has reached a whopping 13.2 billions in April. On top of that, Indian investors are wasting their money in buying a piece of metal when it could have been invested in income generating financial assets which could have in turn, braced the economy. Government has to make structural reforms in the financial sector to stimulate innovations pertaining to easy access to financial markets for the common man. Until then, Gold is likely to remain the favorite asset for Indian investors.

ET: Wannacry can actually be a boon rather than a curse for India’s Cybersecurity

17th May, 2017, Economic Times

The article gives a new and positive way to look at the whole wannacry issue. The author says if Indian government can learn from this attack to reinforce it’s cyber security, it will turn out to be a curse that is actually a boon.

The author suggest various ways in which the government can bolster it’s cyber security. Indian government should coordinate with other governments to share any cyber vulnerabilities that they come across.

A legal framework needs to be established to mandate companies to report any cyber attacks that they face so that preventive action can be taken; ethical hacking should also be encouraged.

One step forward: On Colombia’s new challenges

15th May, 2017

The article talks about the recent peace accord ratification between Colombia government and FARC rebels. But this end to the five decades old civil war has left Colombia with festering wounds.

Last year, President Juan Santos was awarded with Noble Peace Price for his inimitable contribution in realizing this accord. Government had promised to provide amnesty to the rebels, which got a tremendous response.

But disarming of FARC has left a political vacuum in some regions where paramilitary groups have taken law in their hands and are targeting civil activists.

So, Juan Santos must come up with a strategy to mitigate this violence to provide stability to the nation.