Ramalingam posted:

OFFICE OF PROFIT

Recent Political Controversy In Indian Political System.

B.Ramalingam

Research scholar, Department of Public Administration,

Osmania University, Hyderabad, India-500007 .

Introduction:

A nation – wide debate is going on over the controversy of disqualification of MP’s and MLA’s on the Ground of holding offices of profit in Indian Political system. It began with the disqualification of “Samajwadi Party MP Jaya Bhachan from Rajya Sabha on March 17, 2006 with retrospective effect from July 14, 2004. After this event, leaders of different political parties performed much hue and cry. Finally Sonia Gandhi resigned from the Lok Sabha pretending the issue of morality. Very soon the controversy took a constitutional crisis and different state governments rushed to save their pillars of powers.

BACHCHAN ISSUE :

Jaya Bachchan was elected for the Rajya Sabha in June 2004. After one month she was appointed as the Chairperson of Utter Pradesh Film Development Corporation, which was an office of profit under the State government. She was given perks and other benefits as part of her job in U.P. In this way, she was holding an office of profit not withstanding her selection as the member of the Council of state very interestingly, a Congress worker from Utter Pradesh filed a complaint against Ms. Bachchan in the Election Commission. The Commission found her guilty of holding an office of profit. The President, after the Recommendation of the EC disqualified her under the Article 102 of the Constitution of India.

SONIA ISSUE :

Congress President Sonia Gandhi was a member of Lok Sabha. She was appointed as the Chairperson of National Advisory Council by the UPA government. She also held several posts under the government. Complaints were registered against her, and she chose the safe route of resignation. So that she could continue her impression of being the statue of sacrifice and morality.

The list of holders of office of profit is too long. Complaints against more than 40 MP’s are registered in the Election Commission. Lok Sabha Speaker Somnath Chatterjee himself comes within the purview of disqualification. Hundreds of member of different state legislature hold offices of profit, some how or the other.

What does it show ?

(a) Our policy – makers. Statesman, politicians, leaders and so-called stalwarts want to grab more and more power in one hand.

(b) The power loving people do not want to let the door open for others.

(c) They need money by any means, so that they could hide their black money.

(d) In an era of corporate culture of democracy, only money begets powers.

(e) In order to sustain in power, the thirst of greedy leaders can be satisfied only by giving them of faces of profit.

(f) Our political party’s, power-loving representatives and peoples leaders have lost morality, principle and dignity. They need power, they need money : but they do not need welfare of the people.

CONSTITUTIONAL ASPECTS :

Disqualification of MP’s : There are separate provisions of disqualification for the member of parliament and the member of state legislature. Article 84 prescribes qualifications of the members of parliament. It lays down that a person shall not be qualified to be chosen to fill a seat in parliament unless he

(a) is a Citizen of India and makes an subscribes before some persons authorized in that behalf by the Election Commission on oath of affirmation according to the form set out for the purpose in the third schedule.

(b) is of at least 30 years of age for the Rajya Sabha and of 25 years of age for the Lok Sabha (C) and possesses such other qualifications as may be prescribed in that behalf by any low made by the parliament.

Our Constitution clearly mentions that the parliament has the power to make a low in respect to the issue of qualification of the member. Article 102 lays down disqualification of membership in case.

(a) he holds any office of India or of any state, other than an office declared by a low of parliament not to disqualify its holders.

(b) he is an undischarged in solvent.

(c) he is of unsound mind and stands so declared by a competent court.

(d) he is not a citizen of India or has voluntarily acquired the citizenship of a foreign state or is under any acknowledgement or allegiance or adherence to a foreign state, and

(e) If is so disqualified by or under any law of parliament, it applies to the case of defection as prescribed in Tenth Schedule.

Article No.103 lays down that any dispute about the disqualification of member of parliament shall be referred to the President who will take a decision on the advice of the Election Commission and his decision shall be final. The Election Commission has a great role as the President decides the matter after obtaining its opinion and is accordance with that option and in case of disqualification on grounds of defection, the matter will decided by the Speaker or Chairman of Rajya Sabha as the case may be.

Disqualification of MLA’s and MLC’s : The disqualifications for membership in State Legislature are spelt in Article 191 which lays down.

1. A person shall be disqualified for being chosen as and for being a member of the Legislative Assembly or Legislative Council of a state –

(a) if he holds any office of profit under the government of India or the government of any state specified in first schedule, other than an office declared by the Legislature of the State by law not to disqualify sits holders.

(b) If he is of unsound mind and stands so declared by a competent court.

(c) If he is an undischarged in solvent.

(d) If he is not a citizen of India, or voluntarily has acquired the citizenship of a foreign state, or is under any acknowledgement of allegiance or adherence to a foreign state.

(e) If he is so disqualified by or under any low made by the parliament.

2. A person shall be disqualified for being a member of the Legislative Assembly or Legislative Assembly or Legislative Council of a state if he is so disqualified under the anti-defection law contained in Tenth scheduled.

Finally we may refer to Article 192 which says that if there is any dispute about the qualification of a member of the State Legislature, the matter shall be settled by the Governor whose decision shall be final and he shall do so after taking the opinion of the Election Commissioner.

LEGAL ISSUE AND OPTIONS :

To constitute an office of profit under Article 102 (1) (a) of the Constitution, Three conditions are to be satisfied.

Ø There should be an office to which an appointment is made.

Ø It should be an office of profit.

Ø The office should be one under the government.

However, the parliament (prevention of Disqualification) – act 1959 specifies certain offices, which will not come within the purview of the disqualification and several offices have been added after the enactment of the law. The office of the Minister is excluded from the office of profit. The law has been amended time and again for minor posts and for lesser mortals.

Ø In 1977, when a non-Congress party came to power for the leader of the opposition in each House was provided a Special Salary and allowances. Since that made it an office of profit. The Morarji Desai government simultaneously amended the 1959 Act to put the leader of the opposition in the exempted list.

Ø In 1992 the National Commission for Schedule Casts and Scheduled Tribes (as it was then called) and National Commission for women came into existence while the National Commission for Minorities was conferred statutory study. Within a year, the Narasimha Rao government amended the act to save heads of those three commissions from being affected by the office of profit rule.

Ø In 1999, leaders and chief whips of all recognized parties and groups in parliament were provided special facilities. The Vajpayee government simultaneously amended the 1959 act to protect them from disqualification. On September 30, 1982, the President disqualified a member of the Rajya Sabha – M.R. Mohan Rangam as he was holding the post of Special representatives of the government of Tamil Nadu in Delhi. It was taken as an office of profit.

The Supreme Court in the Shibu Soren case has made it clear that even if the holder of the office does not drawn salary, he or she will be deemed to hold an office of profit if the office carries same remuneration or pecuniary benefits.

And, now the cabinet committee on parliamentary affairs decided to convene a session of parliament from May 10 to 23 to discuss the office of profit for taking a final decision.

BIBLIOGRAPHY

1. “Prospects on Indian Government and Politics” by K.R. Acharya.

2. “Parliamentary Democracy and Legislators” by R.K. Bharadwaj.

3. “Constitutional System of the Indian Republic” by K.R. Bomswalla.

4. “Political in India” by Rajani Kothari.

5. Indian Todays

6. Hindu Editorials

7. “Indian Government and Politics” by A.S. Narang.

Websites :

www.parliamentofindia.nic.in

www.pmindia.nic.in

www.supremecourtofindia.nic.in

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D D AGARWAL posted:

Protocol In Political Matters

In general sense, protocol is a code of propriety, good manners and etiquettes secured by reciprocity and common understanding and approval of the community, which regulates behavior patterns at different levels. Protocol has in wider application influence on spiritual, social, political , legal, diplomatic etc. matters.

In its political application, protocol has national and inter-national spheres. In national sphere, it provides for ruler and the ruled relation, duties of the ruler and ruled and in international sphere, it emphasizes on international relations, laws of war and peace, international disputes, international agreements, diplomatic relations spy system etc. as discussed below:

Duties of the ruler (rajah): In national protocol, we have at first the duties of the ruler. The main jobs of the ruler are:

To see that all the people act as per varna and ashramas verdict.

To protect the ruled from external aggression.

To perform acts of welfare of the ruled, such opening of schools, hospital, construction of roads etc.

Perform yagyas to keep all gods in his favor so that there is rain in time and as required, production of sufficient food grains, no famine, no diseases etc.

Manage finances of the kingdom and control the central exchequer.

To punish the criminals

To impose penalties for wrongs done and arranging their accountal on receipt.

To receive the general tax – a part of the produce from the public.

Organization of Government: In the discharge of these multifarious duties, the ruler is assisted by ministers, advisors, secretaries, and subordinates. There were Finance, Internal Security, Foreign Affairs, Education, Transport, Health Defense , Vigilance etc departments

Spy System: To control any unlawful activities in the kingdom, the ruler has Police organization. The policemen used to go around in their areas to see that no unlawful activities were going on and if so, he could set those right or bring the same to the notice of the ruler. The ruler also had spy system working in the kingdom and in other countries, who would bring each and every activity in the kingdom and abroad to the notice of the ruler. Over all these, there was the Vigilance department, who oversaw the behavior of the public servants vis-a-vis the public and to see that there was no extraction by these public servants.

Finance: The ruler used to get a portion of products (generally one-sixth) from the producers to meet the expenditure of the Government. Such money was not spent by the ruler for his personal uses so much so this money could not be spent even on yasgyas conducted by the rajah. Such yagyas and personal expenditure were met from the amounts collected from the vassal states and out of other taxes levied by the rajah. Once Rajah Yudhisthara wanted to hold an Ashwamedh Yagya, but there was no money in the exchequer other than the 1/6th share obtained from the producers. The rajah then had to find the money from other resources. Proper accountal of all the money was maintained in the treasury under the over-all control of the rajah.

Defense : The rajah had to maintain an army for the protection of the kingdom from external aggression. The major part of the Rajah’ income was spent of army and arms. For internal security Police was kept.

External Affairs : The rajah had to deal with the rajahs of other countries. There was a system of vassal states under the Chakravarty rajah The vassal states were autonomous but had to send annual contribution to the central rajha as also give presents on yagyas etc. In return these vassal states were protected by the central rajah against foreign aggression..For knowing what is happening in other countries, the rajah had proper system of Rahdoots, who kept the rajah aware if anything against him was being hatched in that country. The rajahs also had persons posted in other countries. They had diplomatic immunity like the one granted these days and called Ambassadorial Immunities. These persons could not be prosecuted in those countries and were sent back to their respective countries for necessary action.

Welfare Jobs for the public : The rajah was responsible for the well-being of the public. For this Gurukuls were opened for education, where wards of all people irrespective of their varnas received education.. There were hospital for treatment of the patients. Roads were constructed for convenience of public. Rivers were tamed for providing water for drinking and irrigation The rajah through yagyas kept the rain god on his right hand so that rains were there on time and in adequate quantity. There were no famines as production was enough.

Democracy at Work : Although there was the rule of rajahs in ancient period, democracy was prevalent in a limited way. The rajah was selected by the outgoing rajah with the consent of the advisors or Sabha. When Rajah Dasratha wanted to make Rama as rajah, he consulted Guru Vashist, who advised him to obtain the approval of his ministers etc. Then these advisors or Sabha members were elected persons from different professions They used to advise the rajah on day to day conduct of duties. In case the rajah did not behave well, these advisors had the power to remove/kill him An instance of Rajah Bain is there. He had become cruel towards public and did not mend his ways despite warning. He, therefore had to be killed and another person, who was still a minor was made the rajah as the rajah had to be from the same dynasty. In this way the advisors had the power of eliminating the bad rajah and make another person as rajah

The rajah attacked the other kingdoms either to annexe the kingdom in his kingdom or to hand over the conquered kingdom to the defeated rajah after taking some presents from him or making him his vassal state. In case of death of the rajah in the battle, his son was made the rajah to rule as a vassal state. In case the kingdom was annexed in his kingdom on conquering another kingdom,, the people were not made slaves and were given the same rights to rule as the people of the original kingdom had, unlike the present system of colonialism.

Judiciary: there was a system of panchayats in the villages, who decided all matters. above the villages, there was a mukhia of ten villages, to which appeal could go in case the petitioner was not satisfies with the decision of the panchayat. Then there was Mukhia of hundred villages and the rajah was at the top of the judiciary. There were Samritis for the guidance of the Mukhias in the discharge of his duties. In a petition, there were four gradient to be disposed off. At first there was a petition. Then the defendant was asked to produce defense with in a fortnight and this could be extended by another fortnight if asked. After that there was no extension and the case was decided ex-parte. In case defense was produced , then the matter was argued in the court and a decision was given without any undue delay.

International Politics : The rajah had interaction with the rajahs of other countries in trade, assistance in battles, etc. For this agreements were entered into like the ones entered into by Rama with Sugriva on the death of Bali and Vibhisana on the death of Ravana. These agreements in the present period witnessed by other persons. In the agreements entered by Rama, these were entered into in the presence of water or agni. As already indicated there was a system of vassal states also. Foe the wars there were laws of war like one man to fight with one, one of horse to fight with another on horse; one with arrow to fight with another with arrow. Detailed rules were made at the time of the start of Mahabharta. Their breach as taken seriously and in case one caused any branch, the other was entitled to commit such breach too. Similarly there were rules to be observed in times of peace too.

Duties of Public : There were proper duties assigned to the public like all irrespective of Vara they belonged to, participated in battles against the enemy. In Mahabharta, all persons had joined the war. We were subjected to Muslim rule because at that time war, was to be fought by Kshatriyas only and as such three-fourth of the public were out of the battles. They infarct were not concerned as to who rules them because they were not made to fight. This led to the defeat of Rajput rajahs.

Groshan Fabiola asked:

Do politics and business ever meet? Of course they do, because there is a reciprocal need between the two in every democracy. Politics equals power, but it is nothing without the money it needs to realize it; any business is mainly about money, but it also demands a secure presence, which actually means consorting with power, and thus with politics. Another similarity between the two is that they both require the presence of the citizen, either as customer or as voter. Theoretically, the citizen’s freedom of choice is nearly perfect. But in practice, both business and politics resort to all sorts of techniques to draw their voters or customers, such as the media, celebrity endorsements, movie starts, appeals to passion, sentiment and psychology, and so on, and so forth.

Whether we are talking about marketing, or about electioneering, we can refer to both of them in terms of campaigns. In both business and politics, the battle exceeds any metaphorical level, and the amount of money spent in either of them is rising every year. And all that, just to convince us, voters and customers, that they are worth our attention.

When a business tries to promote a product or a model at a national level, it encounters the same problems and difficulties that a party comes against when attempting to capture several regions. Scale is extremely important, by definition, but that naturally comes with a demand for standardization.

A business that needs security cannot separate itself from politics, because that’s where the power is. Some businesses find it in their own interest to sustain rather close working relationships with politics, because separating the two is almost impossible when you are faced with a reactive situation. Many countries have both public and private traders, which means that keeping your business away from politics is virtually impossible if you want to keep doing business with that country. And the economical prospects and financial benefits are so appealing that the connection between politics and business just doesn’t seem to have any importance.

In the sensitive political regions, the marketplace is subjected to change daily. In fact, the entire international marketplace can change very quickly, from year to year, or even from week to week, which is why companies have to learn how to stay alert to change and have flexible attitudes and approaches. But above that, they have to ensure security for themselves, and what better way to that than to become involved with politics, which ultimately is about power?

On the international marketplace, relationship between politics and business is critically important, and its importance increases as time goes by. As much as any business would like to be poisoned away from politics, this is simply impossible, because behind each government there are political drivers, and the ‘mines’ that appear in front of a certain company or organization are far more numerous and powerful, should it try to detach itself completely from political affairs.

Business and politics interact, whether we like it or not, and they can influence each other in many ways, not all of them bad. For instance, a bad political climate can seriously influence economic growth, but fortunately the process can go the other way, too.

If you want to find more information on different business or politics subjects please visit http://www.articletimesonline.com

The Amsterdam Red-light District asked:

Many of the leaders in our society are guided by unhealthy intentions. Instead of seeking to serve the people and heal our nation’s ills, their actions and decisions are primarily motivated by their desire for power. Many of the people running our country are run by their addictions to approval, sex, power and control. Unfortunately, few truly healthy individuals want to submit themselves to the necessary abuses inherent to our political races – the verbal abuse both given and received, the huge amounts of money spent, the integrity sacrificed through the concessions, lies and manipulations offered in order to win. Our system of electing our officials is so corrupt that there is little possibility of attracting a person with a strong, personally responsible, loving inner adult self. This is not to say that none of our elected representatives are honest and caring. Some are certainly motivated by positive intentions but, unfortunately, they constitute a minority.

There is no training required in personal responsibility to run for office. Our leaders are not required to heal their dysfunctional aspects in order to become honest and trustworthy people. The prerequisites for political positions mostly include having enough money, enough powerful people behind the scenes, being male, and being white. Our political arena is designed to attract wounded people who need approval and power in order to feel worthy and validated. Obviously, such a person, with little or no internally derived sense of self-worth and integrity, is very susceptible to corruption. As the adage says: “Power corrupts and absolute power corrupts absolutely.” Power corrupts when a person is motivated by his or her desire for power over others, and few people have accomplished enough inner healing to transcend the desire for control over others. A healthy person in office who is more concerned with serving the people than with getting re-elected could accomplish a great deal. Such a person was depicted in the movie Dave.

In this film the actual president is in a coma and the White House officials, seeking to conceal the truth from the public so they can maintain control, put a look-alike into the president’s seat. Dave, however, is a man of heart, and rather than allowing himself to be controlled he sets about making necessary changes – cutting money where it is not needed and allocating it into more crucial avenues, like child care and the creation of jobs. He even takes responsibility for the corruption of the actual president and gracefully “dies” as the actual president is dying so the vice-president, a man of great integrity who was maligned by the power structure, could take over in his rightful place. The movie is, of course, a fantasy. Sadly, we would never elect a man of such integrity – a straightforward, honest, caring, and financially middle-class man like Dave. Our election process does not allow for this.

Revamping our election process would give people like Dave an opportunity to run for office. We desperately need people who are more for the common good than for their own popularity. We need brilliant, creative, honest and caring people to lead our country, but this will never happen with our present election system. We have incredible talent in this great country of ours, talent that could eliminate hunger and homelessness, and heal the internal wounds that create health problems, drug abuse, racism, violence and crime. But this talent is rarely tapped because running our country has been based on the earthly values of greed and power over others rather than the spiritual values of honesty, compassion and caring.

Unfortunately, neither our government nor most big businesses are based on the spiritual principles of compassion and caring about the common good. I have no doubt that if our government was based on spiritual principles we would not have the hunger, homelessness, crime, health problems, and drug abuse that are endemic to our modern society.

Article written by Margaret Paul, Ph.D.

Failed Experiment

Naveen Marasinghe asked:


Stretching from the Whitehall artery at Westminster in London is one of the most famous streets in the world, Downing Street of England. For more than two centuries this renowned street has nestled the official residences of the most senior British officials, the First Lord of Treasury and the Second Lord of Treasury. The First Lord of Treasury with time evolved as the Prime Minister of United Kingdom, while the Second Lord of Treasury evolved as the Chancellor of the Exchequer. Downing Street was built in 1680s by Sir George Downing, who served as a diplomat and a soldier during the times of Oliver Cromwell and King Charles II. He was granted with a plot of land next to the Sir James’ Park in return for his years of service. This was the site where he built Downing Street, flanked by a line of houses. Presently, the most famous residence of this street is Number 10 Downing Street, the official residence occupied by the British Premier. In 1732, George II bestowed this Number 10 residence as a gift to Sir Robert Walpole. However it was in 1735 that Sir Robert Walpole occupied the house, as the official residence of the First Lord of Treasury. Housed within a modest brick building, it features the iconic black door embedded with a white number 10. The brick walls were painted in yellow in the olden times but later were painted in black. In addition to housing the premier’s apartment, currently Number 10 building accommodates the State Dining Room to entertain official guests, and the Cabinet Room besides government offices. The tastefully designed Cabinet Room is where the premier holds Cabinet meetings. The other buildings in Downing Street are numbered from 9 to 20, where it contains the office and official residence of Chief Whip, official residence of Chancellor of the Exchequer while others were assigned as foreign offices. In the past Downing Street used to be open to public. However at present it has levelled up its security measures with armed police officers, barriers, checkpoints and a pair of imposing black gates. With its historical and political value, Downing Street is a must visit for any traveller to London. They can find convenient accommodation at one of the Langham Hotel London such as. These London hotels are sited within easy reach of London’s best attractions, entertainment and shopping zones as well as the most popular street of all, Downing Street.



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ANOOP KATHAIT asked:


The golden background of Indian society and geographical setup has been fascinating the people of universe for an idea of consociationalism.  The last six decades are witness of post-freedom consciousness of Indian civilization.  Man has transformed himself only for the sake of change; a change in moral values, relations, with different mores, morphing emotions, and a great control on social snags. 

 A greatest idea of international relations is like that hidden thread which is bringing the borders to congregate social values, traditions, famous culture, art, literature, and technological enhancement.  The social thinkers and our great political leaders have been conducting such summits, confidential meetings to generate the theme of international relations.  Indian psychology is always ahead amongst the nations to follow the canons of civilization.  We put the extensive steps in benevolence of mankind.  The countries like U.S.A., Russia, Japan, China, U.K., Australia, Switzerland, and Sri Lanka etc. have been appreciating the ultimate efforts of India- making relations to maintain the peace and numerous factors regarding development.  There is great enhancement in trade, commerce, technology, culture, and human behaviour. 

 A multi-ethnic milieu of Indian civilization is a finest example of cultural influence and diversity.  On the other hand, the people are moving towards India in search of peace and satisfaction.  The ultimate aim of international politics is to avow the immediate impression of emigrants. 

 A serious concern, i.e. terrorism over the world drills several wounds of nations.  India has been trying to bring exact solution for terrorism.  But it seems obscure to stop this annulment of homicide.  At present time, every nation has become the victim of terrorism.  With the zest of Indian dedication, world is coming to eradicate this fatal malady.  Whosoever, makes an effort of peace, it is must to reconcile the fragments of moments. 

 To maximize the importance of national trends and style, it is necessary to explore one’s idea of innovation.  The inception and ending of exhaustive steps are as consolidated resolutions for international perspective.  Every year the talks for international relations are as mandatory actions of Indian constituency.  India the great nation of democracy, constantly makes those mile stones of cultural influence to teach the world about peace and its importance.  India remains pitiful and benevolent for the humanity and innocent citizens of world state.  A concern of ethnic conflict remains bitter experience for migrated characters.  Here, the efforts of embassy try to rejuvenate the life style during immigration.  It becomes the symbol of understanding and an observation of international perspective.  The ministry of external affairs and migrated citizens draw an area of experiences and support from foreign land.

 The recent, 15th Parliamentary inning of India, contains more issues and resolutions regarding International Relations and development.  This concept of relation demands the shaking hands to bring nations together.  Where, a notion of world-state evokes previous resolutions to lead the world on a fecund-arena.  A web of immigrants over the world portrays the canvas of assimilated experiences.  And it creates a queue of exchanging behaviour, to understand the culture of nations.  Now, it is essential to come together and understand the foreign policy.  India, as a pioneer of peace recalls the nations to follow the canons of nature and civilization.

 



International politics

T J Madigan asked:


International business major is one of the fastest growing areas in the studies of business and administration. As the twenty first century business arena becomes more global, so does the business colleges graduates. The business ground for business professionals no longer stand on local, regional or national nature but is already of global nature and requires an understanding and sensitivity to the different cultures and business environments that these professionals will face.

An international business major allows students to develop a rather personalized course on the study of international business and the core basics that comes along with it. Students are also able to focus on a particular region of the world. Regions such as East Asia, Latin America, and Europe giving emphasis on the history, geography, political science that relate to these particular regions as well as the global community.

This major also requires a competency in foreign language spoken in the regions of emphasis. Some business major students may also have interesting study opportunities abroad for a summer, a semester or even a year. This major of study presents very challenging and exciting field offering students great career opportunities once out in the international business world.

Students will have the chance to take foundational courses in functional areas of business which includes marketing, economics, management, informational systems, finance, accounting, decision sciences, and operations. Also included in this major are specialized courses in international business such as international management, international trade, international finance, and international marketing.

Language training is also a part of this major, training the student in the language of their choice that pertains to the area of specialization they have chosen, courses from history, political science, and geography.

A lot of businesses do not have the knowledge of developing international contacts or even how to strategically approach the international market, therefore turning to professionals with these kinds of skills and training, to be able to increase their competitiveness in the global arena.

Prospect employers would include existing businesses doing business with international customers, businesses planning to engage in developing international customers and contacts, as well as different firms connected in servicing internationally-oriented businesses such as export management companies, port service firms, and shipping/maritime companies.

International Business major graduates are highly deemed generalists in international business. Skills acquired from their studies such as language training, focused studies on geographic, political, and historical issues in that area of the world, becomes an extremely important asset when developing international business operations and initiatives, thus making these professional graduates a very attractive package.

The international business world is a fast paced world full of challenges and any business professional should be ready to take on that challenge.



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loveleenchawla asked:


 

INTRODUCTION

The explosive growth of international financial transactions and capital flows is one of the most far-reaching economic developments of the late 20th century. Net private capital flows to developing countries tripled – to more than US$150 billion a year during 1995 to 1997 from roughly US$50 billion a year during 1987 to 1989. At the same time, the ratio of private capital flows to domestic investment in developing countries increased to 20% in 1996 from only 3% in 1990. Hence, this has effected a shift from the national economy to global economies in which production and consumption is internationalised and capital flow freely and instantly across borders.

Powerful forces have driven the rapid growth of international capital flows, including the trend in both industrial and developing countries towards economic liberalization and the globalisation of trade. Revolutionary changes in information and communications technologies have transformed the financial services industry worldwide. Computer links enable investors to access information on asset prices at minimal cost on a real time basis, while increased computing power enables them to rapidly circulate correlations among asset prices and between asset prices and other variables. At the same time, new technologies make it increasingly difficult for governments to control either inward or outward international capital flows when they wish to do so.

In this context, perhaps financial markets are best understood as networks and global markets as networks of different markets linked through hubs or financial centres.

All this means that the liberalisation of capital markets and with it, likely increases in the volume and volatility of international capital flows is an ongoing, and to some extent, irreversible process.

It has contributed to higher investment, faster growth and rising living standards. But this can also give rise to shocks and stresses resulting in financial crisis as we have all witnessed in 1997 and 1998.

Testimonies to the risks of open capital markets are the several waves of instability in the financial markets in early 1998 and again in the wake of the Russian crisis in August/September 1998. To illustrate, net private capital outflows from the five countries most affected by the crisis, namely, Indonesia, Korea, Malaysia, Thailand and the Philippines rose to US $28.3 billion in 1998, reflecting mainly the decline in net bank and non-bank lending. Meanwhile, foreign direct investment which had been one of the main sources of growth during the pre-crisis period in these countries remained sluggish in 1998, amounting to US$8.5 billion as compared to an average amount of US$17.8 billion during the period 1995 to 1995.

Global trade has experienced a slowdown over the past two years due to trade contraction of East Asian economies. Generally, world GDP and trade growth slowed in the past 1997/1998 as the East Asian crisis deepened and its repercussion were felt increasingly outside the region. Asia recorded the strongest import and export contraction in volume and value terms of all regions of the world. The dollar value of Asia’s imports registered an unprecedented decline of 17.5%. The five Asian countries most affected by the financial crisis that broke in mid-1997, that is, Malaysia, Indonesia, Philippines, the Republic of Korea and Thailand experienced import contraction by one-third.

In the context of these powerful trends, I like to discuss a few significant the issues relating to them, particularly from a capital market regulator’s perspective. Given the breadth of the topic at hand, and in the interest of keeping to time, please allow me to focus particularly on current trends and difficulties faced in the capital markets.

DEVELOPMENTS IN ELECTRONIC COMMERCE AND CAPITAL MARKET REGULATION

Developments in computer and information technology have made dramatic changes to the way the financial services industry operates. These changes are affecting and will affect every aspect of the financial services industry and offer the possibility of reduced costs in raising capital, greater efficiencies in the mobilisation of domestic and international savings and the provision of better, cheaper investment products more closely tailored to the needs of different investor segments. The convergence of computer and communications technology is promoting the development of computer mediated networks, allowing for users to communicate and transmit data and other information regardless of boundaries and distance. As communication costs continue to fall, the potential of outsourcing grows.

These changes will affect –



The way investment products are offered, distributed and marketed and the way in which investors access information about the products and entities involved;

The activities of financial services intermediaries, especially advisers, and the way they deal with investors;

The continued blurring of product and institutional boundaries, and even the scope of financial services sector itself as non-traditional entities take on some of the functions of financial intermediaries;

The methods of distribution and marketing of investment products which will increasingly draw upon the techniques of mass marketed consumer products; and

The way secondary trading in investment products takes place as greater scope for direct investor transactions and low cost competitors to established securities and futures markets becomes more of a reality.



Just as electronic commerce affects investors and providers of financial products and services, it will affect the role of corporations and capital market regulators. Just as electronic commerce facilitates activities across jurisdictional borders, it poses in clear terms questions about the practical enforceability of national laws. As well as practical enforcement questions, electronic commerce also raises issues about the role that capital market regulators should play and the effectiveness of many of the traditional regulatory approaches and mechanisms that have been employed by them. An example might be an offering of securities made without a prospectus or registration statement on the Internet by a person in a jurisdiction with which the capital market regulator has no regular contact or mutual enforcement arrangements. There are also concerns about illegal and fraudulent activity on the Internet.

In this regard, the Malaysian position is that it is committed towards a structured development of electronic commerce. Towards this end, Malaysia has proposed to introduce a National E-Commerce Masterplan. This Masterplan should focus on key initiatives which will create momentum in trading via e-commerce. Besides looking at developing the technological infrastructure such as telecommunications infrastructure and systems providing for electronic delivery of goods as well as payment, the Government is also aware that there are legal and regulatory issues which will arise with regard to e-commerce. Malaysia has introduced several sets of laws catered towards proper regulation of e-commerce known as ‘Cyberlaws’. The Cyberlaws which have been introduced include, among others :

(i) Computer Crimes Act 1997

This Act provides for a framework to counter computer offences such as unauthorised access to computer material, crimes of fraud and dishonesty through the computer, unauthorised modification of contents of a computer and so on. The Act is not limited by jurisdiction. It has effect outside as well as inside Malaysia. Where a computer crime is committed outside Malaysia in respect of computers or data in Malaysia or that which may be connected to or used in Malaysia, the crime may be treated as a crime within Malaysia and the perpetrator may be dealt with under the provisions of this Act; and

(ii) Digital Signatures Act 1997

This Act addresses issues of security and authenticity of electronic transactions and it allows for greater confidentiality and integrity of messages. It allows for businesses to use electronic signatures instead of hand-written counterparts in legal and business transactions. The Act provides for the treatment of document signed with a digital signature created in accordance with this Act to be treated as legally binding as if the document was signed with a handwritten signature.

The development of an effective regulatory framework is essential in attracting and maintaining confidence for the world in trading with Malaysian counterparts via electronic means. The regulatory framework as it stands is currently incomplete as many other areas such as electronic banking and broking are still in the process of development.

To instil confidence, Malaysia must be able to provide for regulatory certainty and coherence as well as prevent regulatory capriciousness. In relation to financial services, a major consideration is cross-border implications. The Securities Commission, as an example, is currently looking at issues relating to Internet offering of securities and fund management and broking services over the Internet. A re-examination of current laws would need to be conducted to ensure that they have not been overtaken by technology and to restructure the laws so that they are technology neutral.

As far as the capital market is concerned, the Securities Commission recognises that electronic commerce is an area where it is important that the regulatory infrastructure responds in a positive and timely way to facilitate market developments and not hinder innovation in market products and processes. We believe that there are important benefits to be gained through the Commission’s facilitation of market developments in this area for the competitiveness of the Malaysian capital market, efficiencies in the operation of our capital markets and the better making of investors at lower cost. At the same time, the Securities Commission considers that it is important for the successful implementation of electronic commerce that investors retain confidence in the integrity of the market for investment products.

LIBERALISATION VS. PROTECTIONISM

On the issue of liberalisation vis-à-vis protectionism, there has been a proliferation of multi-lateral trade agreements since the middle of the century. Such agreements provide for a framework of rules within which nations are ‘obligated’ to assure other nations signatory to the agreement of a sovereign’s approach towards international trade. For example, Malaysia is a member of, among others, the World Trade Organisation through which it is a signatory to the GATS (General Agreement on Trade in Services) and GATT (General Agreement on Tariffs in Trade), APEC as well as ASEAN, all of which have the objective of achieving liberalised trading of goods and services within specified, albeit not immediate, time frames. Through these trade blocs, Malaysia has committed itself to progressive liberalisation which essentially entails a gradual opening of the economy to foreign participants.

The globalisation of economies is intrinsically linked to the internationalisation of the services industry. It plays a fundamental role in the growing interdependence of markets and production across nations. Information technology has further expanded the scope of tradability of this industry. Access to efficient services matters not only because it creates new potential for export but also it will be an increasingly important determinant of economic productivity and competitiveness. The main thrusts of the ‘services revolution’ are the rapid expansion of the knowledge-based services such as professional and technical services, banking and insurance, healthcare and education. Responding to this phenomenon, regulatory barriers to entry in service industries are being reduced worldwide, either through unilateral reforms, reciprocal negotiation or multilateral agreements. Developing countries such as Malaysia are increasingly looking at foreign direct investment in services as an especially powerful means of transferring technical and managerial know-how, besides attracting foreign capital and investment to the country.

Malaysia has made a commitment under GATS under legal services covering advisory and consultancy services relating to home country laws, international law and offshore corporation laws of Malaysia. Under the GATS commitments, commercial presence of foreign legal firms is not available except in relation to the Federal Territory of Labuan and in such a case, their services are limited to legal services given to offshore corporations established in Labuan. However, there are no limitations placed on the provision of legal service cross-border, that is, provision of such service from a foreigner without having a legal presence in Malaysia. This may be done via fax, telephone or the Internet. As stated before, most aspects of legal services does not need the physical presence of the service provider except perhaps where a court appearance is necessary. Furthermore, a Malaysian may obtain legal services abroad without any limitation either.

Malaysia is also signatory to the ASEAN Framework Agreement on Trade in Services (AFAS). The AFAS is an agreement made within the auspices of the GATS. In very basic terms, commitments under AFAS are GATS-plus which means that liberalisation of trade is accelerated within the ASEAN region under the AFAS as compared to the world at large under GATS. Its ultimate aim is to achieve regional integration and free flow of services within the region. In achieving integration and free flow of services within the region, many issues would need to be ironed out. Issues such as harmonisation of professional standards, acceptable levels of accreditation between member countries, movement of labour in relation to provision of these services, licensing and certification of service suppliers are still under intense discussion within the Member Countries. Taking into account the different levels of economic and regulatory maturity of Member Countries within the ASEAN, it is understandable that it would be a long process of consultation before a consensus may be achieved.

LIBERALISATION OF CAPITAL ACCOUNT

A most obvious impact of globalisation of trade are pressures exerted on developing nations to liberalise their financial markets and capital accounts. However, it is important to recognise that domestic and international financial liberalisation heighten the risk of crises if not supported by prudential supervision and regulation and appropriate macroeconomic policies. Domestic liberalisation, by intensifying competition in the financial sector, removes a cushion protecting intermediaries from the consequences of bad loan and management practices. It can allow domestic financial institutions to expand risky activities at rates that far exceed their capacity to manage them. By allowing domestic financial institutions access to complex derivative instruments it can make evaluating bank balance sheets more difficult and stretch the capacity of regulators to monitor risks. External financial liberalisation in allowing foreign entry into the domestic financial markets may facilitate easy access to an abundant supply of offshore funding and risky foreign investments. A currency crisis or unexpected devaluation (such as in the Asian crisis) can undermine the solvency of banks and corporations which may have built up large liabilities denominated in foreign currency and are unprotected against foreign exchange rate changes.

The ideal free market is one that every one should be free to enter, to participate in and to leave. However, events in the recent financial crises have led many of us to believe that in the freest of markets, there is a need to ensure that free flow of capital does not destabilise the market itself.

Indeed, calls for reform have gained increasing support and credence within the international community with the unfolding of the devastating effects of the crisis beginning mid-1997. The SC’s work within IOSCO’s Emerging Markets Committee has drawn attention to fundamental weaknesses in the existing global financial infrastructure that have caused and exacerbated these effects. These weaknesses include the inordinate power of highly leveraged institutions to move markets, the destabilising force of volatile short-term capital flows and the failure of existing credit assessment systems to adequately inform market participants of increasing risk of default.

One example of this mounting consensus was the express recognition by G7 countries at their recent meeting in Cologne of the need to strengthen the international financial architecture.

There are now increasing calls for greater transparency and regulation of hedge funds and greater awareness of the dangers of volatile short-term capital flows. To rebuild East Asia and the global economy, we now urgently need to engage in a sincere discussion about what constitutes sound governance in the contemporary world.

On the domestic front, we would have to ask ourselves this question: has our financial markets kept pace with change? Whilst markets have become global, applicable rules and regulations remain predominantly parochial or local. From a regulator’s perspective, the challenge for us in a global market is to design the regulatory and structural framework which will allow the market to function efficiently, competitively in a fair and level playing field environment, ensuring at the same time that the market is not subject to highly concentrated or destabilising forces that would disrupt its functioning.

The recent crisis also shows up the need for a careful and sequenced approach towards liberalising a country’s capital account. The experiences of Thailand, Korea and Indonesia clearly tells us that there is no prescribed formula on sequencing. However, it is important to recognise that countries vary greatly in their levels of economic and financial development, in their institutional structures, in their legal systems and business practices, and their capacity to manage change in a host of areas relevant for financial liberalisation. It is in recognition of this that the IMF policy-setting committee and subsequently the Finance Ministers and central bank governors of the G7 industrial nations, in the fall of 1998, stressed that a country opening its capital account must do so in an orderly, gradual and well sequenced manner.

Issues of liberalisation versus protectionism would need to be considered at great length to ensure that a country is competitive in a global trading environment. In a developing nation such as Malaysia, a protectionist policy towards local financial services industry and industry participants have been adopted to assist the local industry to develop to international standards. In the area of financial services, for example, the Government’s stance has been that consolidation of local financial services providers is necessary to ensure the development of a core group of strong and stable financial institutions to be able to withstand international competition when the financial services markets are opened to international participants.

Indeed, the Malaysian experience clearly shows that a premature freeing up of the capital account, which was done in 1988, without the requisite reforms and institutional arrangements in order to withstand the shocks, can result in debilitating effects as was faced in the Malaysian financial services industry.

MALAYSIA’S EXPERIENCE

Perhaps the most important lesson learnt from the Asian financial crisis was the interdependence of financial markets. Even the most developed economies were not spared of the effects of the financial turmoil which began as a result of Thailand’s default on its eurobond issue in February 1997. By May, 1997, the Malaysian Ringgit was under severe pressure from currency speculators and interest rates had risen from between 7% to 9%. It was reported that Bank Negara Malaysia expended about RM1.2 billion of its foreign exchange reserves to try to stave off the attack of currency speculators. However, this was the first of many repeated attacks on the currency.

The effects of the currency crisis began to take its toll on the country in 1998. Interest rates were rising to above 11% and the Ringgit had dipped to an unprecedented low of RM4.71 in January, 1998. All sectors of the economy experienced severe contraction as access to liquidity and credit became more scarce. Bank Negara had made many attempts to quell the effects of the financial crisis through imposition of tight monetary policies and attempts to ease credit to certain sectors of the economy to no avail. But the avalanche would not stop.

Malaysia’s sovereign credit rating was downgraded by international rating agencies to just above so-called junk bond status. Malaysia was facing a serious credit squeeze. Raising international capital was prohibitively costly. Flight of capital from the country resulted in a sharp decline in the stock market which fell to levels of 250 before bottoming out in the second half of 1998.

As many of you are aware Malaysia’s response to the crisis was one that was totally unexpected by the global community. The Government decided that it needed to protect the economy from increasing global pressures on the Malaysian economy. On 1 September, 1998 the Government introduced selective exchange controls with the intention of curbing and preventing further manipulation and speculation on the Ringgit. The Ringgit was pegged at RM3.80. The Government took further measures to discourage short-term flows of money by requiring that inflow of funds should remain in the country for at least one year. On 15 February 1999, this was replaced with an exit levy for repatriation of capital. The selective exchange control measures imposed by the central bank on 1 September, 1998 were directed towards reducing the internationalisation of the Ringgit by eliminating access to Ringgit by speculators and reducing offshore trading of the Ringgit. This involved the introduction of rules relating to the external account transactions of non-residents and currency of settlement of trade transactions. However, general payments, including movement of funds relating to long-term investments and repatriation of profits, interest and dividends remain unaffected. Payment for the import of goods and services must be made in foreign currency. All export proceeds must be repatriated back to Malaysia within six months of the date of export and proceeds from exports must be received in foreign currency.

The selective exchange control regime is intended to provide the time and opportunity for the Government to institute the necessary financial reforms in the Malaysian financial markets. This is in fact in progress in the work of Danamodal (the equivalent of the Resolution Trust Corporation of the US) to alleviate non-performing loan from banks’ balance sheets and Danamodal which is to recapitalise the banks. The Government is also committed to consolidating the domestic financial services industry in having few but strong and viable financial services providers in order to be prepared for financial liberalisation.

GIVING CERTAINTY TO INTERNATIONAL FINANCIAL TRANSACTIONS AND PROTECTION TO FOREIGN INVESTMENTS

International trade and finance, because of its global nature, necessarily involves many areas which may give rise to uncertainty as to the applicability of the contract under which certain trade and financing arrangements are made. These areas range from political issues and political stability to sovereign intervention of the economy, certainty of applicable laws as well as independence of the judiciary.

The Asian lawyer will be fascinated by the rapid changes which are taking place in foreign investment law both within this region as well as in the rest of the world. In less than half a century, the states of Asia have moved through a whole range of stances which could be adopted towards foreign investment. The immediate post-colonial period was characterised by a period of hostility towards foreign investment, motivated by the belief that the ending of economic imperialism alone will bring about true independence. The ensuing period was dominated by a debate about the regulation of multinational corporations and the fear that they posed a threat to state sovereignty. In this period, laws were devised to control the entry of foreign investment and the manner in which such foreign investment operated in the host country after entry. The third and present period is a period of pragmatism where the dominant view is that foreign investment, if properly harnessed, can be an instrument which generates rapid economic development. Competition for the limited investment that is available means that each state country which is bent on a foreign investment led growth strategy must make its laws as hospitable to the foreign investor as the other state which is also bent on a similar strategy.

As much as there is competition among countries to attract foreign investment, there is competition among multinational corporations to enter host countries. Whereas previously the market was dominated by large multinationals, now, there are small and medium enterprises which can transfer more appropriate technology and bring sufficient assets for investment.

This “open door” policy towards foreign investment in developing countries is typically achieved through careful screening of entry by administrative agencies which have been established for the purpose and regulation of the process of foreign investment after entry has been made. After entry, there is continued surveillance of the foreign investment to ensure that the foreign investment keeps to the conditions upon which entry was permitted. In this regard, attitudes to foreign investment protection and dispute resolution will be affected by the new strategies adopted towards foreign investment.

In the context of the new strategies which have been developed by controlling entry and the later surveillance of operations of foreign investment, the foreign investment has ceased to be a contract based matter and had become a process initiated by a contract no doubt but controlled at every point through the public law machinery of the state. The old notions of foreign investment protection which concentrated on the making of the contract and the contract as the basis of all rights of the foreign investor would inevitably become obsolete. This transformation which has taken place is crucial to the devising of effective methods of foreign investment protection. The subject matter of the protection has also changed in that not only physical assets of the foreign investor but his intangible assets which includes intellectual property rights as well as public law rights to licences and privileges have become the subject of protection.

The proposition that contractual provisions in an agreement concluded with a host country offer little protection to foreign investment must be qualified in a situation when a bilateral investment treaty has been entered between the state of the foreign investor and the host country. The result will be different, for the contract becomes effectively internationalised as a result of the existence of such a treaty. It is a basic proposition of international law that any matter that is essentially within the domestic jurisdiction of any state could be internationalised if it is made the subject of an international treaty. The existence of a bilateral investment treaty which covers the foreign investment then internationalises the whole process of foreign investment which would otherwise have been a process that takes place entirely within the sovereign jurisdiction of the host state. But, whether this result will follow depends on the terms of the bilateral investment treaty.

As a matter of general international law, the position seem to be that a contract between a party and host country must always be subject to a national legal system. Those who seek to prove the contrary have an onerous task of showing that his accepted proposition has undergone a change. There are a few usually uncontested arbitral awards which support the view that a foreign investment contract is subject to international law or some other supranational system.

Bilateral investment treaties are obviously regarded as important by both capital exporting and capital importing states. But, these treaties are not uniform and they do not have the ability to create any uniform law on foreign investment protection. But their existence adds to investor confidence and creates an expectation of investor protection. The importance of these treaties lies in the several results they achieve. The first is a signaling function about the national policy towards foreign investment.

Another advantage is that the foreign investment contract in the context of a bilateral investment treaties could have the effect of forming assets protected by the bilateral investment treaties. This will also include licences and other advantages obtained from the government during the course of the foreign investment. Whereas without the bilateral investment treaty these licences and advantages may have been without protection under general international law, they new receive protection as a result of the wide definition of property in the bilateral investment treaty. Whether the host country did intend that its administrative decisions be subjected to international review as a result of the treaty, will remain a moot point. But, it remains a possible result if the treaty.

In Malaysia, efforts have been made by the Government to ensure a level of certainty between international trading partners trading with Malaysian counterparts. The Government has expressly guaranteed that foreign companies acquiring equity participation in local companies would not be required to restructure its equity at any time[1]. Further to this, the Government has taken many steps to increase confidence of foreign investors in Malaysia.

INVESTMENT GUARANTEE AGREEMENTS (IGA”)

The Investment Guarantee Agreement protects parties involved in an international transaction from non-commercial risks such as nationalisation and expropriation. The IGA will provide a foreign investor with the following :



protection against nationalisation and expropriation;

prompt and adequate compensation in the event of nationalisation or expropriation under a lawful or public purpose;

free remittance of currency, profits, capital or other fees on investment;

settlement of investment disputes either through a process of consultation through diplomatic channels or if such process fails, for referral to the International Court of Justice. Disputes in connection with investments, under IGAs should first be resolved through local judicial facilities. In the event of failure to settle, it would be referred to the Convention on the Settlement of Investment Disputes or the International Adhoc Arbitral Tribunal established under the Arbitration Rules of the United Nations Commission on International Trade Law.



Malaysia has concluded IGAs with about 64 trading nations including trading blocs such as ASEAN and major trading partners such as the United States of America, United Kingdom, Germany, Taiwan, etc.

TRADE DISPUTE SETTLEMENT

Another aspect of international trade is the availability of acceptable dispute resolution form. Globalisation of trade obviously involves greater potential for generating international trade disputes. The international business community looks for prompt, economical and fair conflict-resolution mechanisms. Negotiation, conciliation, litigation, and arbitration are well-known conflict-resolution devices. Direct negotiations and conciliation may resolve a conflict. However, when parties fail to solve the controversy through direct negotiations, they have two choices: litigation or arbitration.

Within the context of the GATS, there is an express provision for trade settlement dispute where countries have disputes in relation to commitments made under the agreement. The WTO have provided for procedures in relation to a dispute settlement process. The dispute settlement procedure is considered to be the WTO’s most individual contribution to the stability of the global economy. The WTO’s procedure underscores the rule of law, and it makes the trading system more secure and predictable. It is clearly structured, with flexible timetables set for completing a case. First rulings are made by a panel, appeals based on points of law are possible and all final rulings or decisions are made by the WTO’s full membership. No single country can block a decision.

Malaysia is also signatory to the Convention on the Settlement of Investment Disputes established under the auspices of the International Bank for Reconstruction and Development that establishes facilities for international conciliation or arbitration. Further to this, the Kuala Lumpur Regional Centre for Arbitration was established in 1978 with the objective of providing a system for the settlement of disputes for the benefit of parties engaged in trade, commerce and investments with and within the Asian and Pacific region.

In conclusion, as we draw close to the new millennium, it is indeed a challenge to us all to be able to grapple with some of the abovementioned issues and adopt appropriate responses.



Collecting Comix

Stig Kristoffersen asked:


 

There is a new party on the political arena of Ukraine.

The “Front of Changes” – FoC, will work in all Ukraine through cells which together will form all Ukrainian public organization for achievement of changes in the country. “Front of Changes” calls to take part in “To front of changes” all, who share FoC’s goals – and ready to help to incarnate them into life. This help can be varied, but the purpose for all is to make changes in the country.

 

As soon as these cells are formed and will gather active thinking people, they will be the foundation, which will bring to power a new generation of politicians in a new party. FoC calls before a country that must unite us and mobilize for creation of a party which is built from the ground and up.

 

Therefore there is a call for all the Ukrainians to join the «Front of changes».

 

The leader of the Front Zmin (Front for Change) public initiative, MP Arseniy Yatseniuk has made public this communiqué on their web site (http://frontzmin.org/).

«????? ????» ??????????? ? ???? ??????? ? ???? ???????? ????? ????????????? ????????????? ?????????? ??????????? ??? ?????????? ???? ? ??????. ?? ?????????? ??????????? ?? «?????? ????» ????, ??? ??????? ???? ???? – ? ??????? ?????????? ????????? ?? ? ?????. ?? ???????? ???? ???? ??????, ??? ???? ? ??? ???? – ????? ? ??????. ?? ?????? ?? ???????? ?????? ?????????? ? ????????? ??????? ???? ???????? ?????????? ?????, ???? ?????? ? ?????? ????? ??????, ??? ??????? ?? ????? ???? ????????? ?????????. ???????, ?? ?????? ????? ???????, ?????? ??? ??’?????? ?? ???????????? ??? ????????? ??????, ??? ????????? ?????. ??????, ???????????? ???? ?? ???????. ???? ?? ?????????? ??? ??????????? ?? «?????? ????».

In order for us to understand the political foundation of the FoC, below you will find their 17 points communiqué and I have tried to translate it to English after my best ability for my English reading readers.

??????? ??????: «? ????????? ????? ????»

???? ????? ?????????? – ??? ??? ????????, ????????? ??? ??????? ????, ?????, ?????????????? ? ?????????????? ???? ????????? ? ???????????. ?? ???????? ???????? ??? ??? ? ?????? ??????. ??? ????????? ???? ????????? ????????? ?? 17 ????????????? ????????.

Arseniy Yacenyuk: «I open the Front of Changes»

The purpose of our activity is to assemble all Ukrainians, regardless of their age, level, nationality and religion who are convinced of the future. The future depends on us and our choice. We must give adequate answers for 17 near-term calls.

1. ?????????? ??????????

???????? ?????????? ????????????????, ? ?? ?????? ???????? ??? ????, ??? ? ?? ? ???????????????? ????????? ?? ????????????? ????????.

- ??????? ??? ???? ?????????????-?????????????? ???????????. ???? ??????? ?? ???? ???? ?? ????, ?? ??????.

- ????????? ???????? «?????????? ????????» ??????? ????? ?? ??????????? ??? ???????? ? ???????????.

- ????? – ??, ?????????, ???????????????? ????????? ????? ??????. ??????? ?????? ?? ???????? – ?? ?????????? ??????.

1. Maintainance of the democracy

The level of personification of the Democracy today depends on whom and as from how high-level officials explains this fundamental value.

- Ukraine must be a parliament-presidential republic. Our state will have neither Tsar nor Tsarina.

- It is necessary to stop «Ukrainian tradition» to make alteration in Constitution under a situation and personality.

2. ????????? ??????????? ?????

?? ????? ???????????, ?? ????, ?? ???? ???????, ?, ?????????, ????????? ??????. ???? ???? ????????? ? ????? ?????????-?????????, ????????? ?? ???????.

???????????? ????? ? ????????? ?????:

- ???????? ?????????? ?????.

- ???????? ?????????? ??????? ??? ???????.

- ????????? ????????? ?? ????????? ????????? ?? ??????? ?????????? ??????? ?? ?????? ????????? ?? ???????? ?????????? ??????.

- ?? ????????? ?????? ???????????.

2. Overcoming the economic crisis

This crisis is measured, unfortunately, not only by numbers, and, foremost, by human stakes. It can outgrow in a social and political, cultural and spiritual crisis.

Near-term steps to overcome crises are:

- To create an internal market.

- To overcome import dependence of Ukraine.

- To halt political and social fireworks due to the state budget in order to please politicians and frank economic lie.

- Not to delay any more and begin to work.

 

3. ?????????? ???????????? ????

???????? ? ??????? «????????» ???????? ? ???? ????, ??? ??? ????????? ? ????????????.

????????? ??????????? ???? – ??:

- ?????? ??????? ? ???????? ??????????, ?????? ???, ?? ??? ??? ??????????? ???????.

- ??????, ??? ??? ?? ?? ????, ? ??????, ??? ??? ?? ?? ???????, ?? ????, ???? ???? ???? ?????????.

- ?????????? ???? ?? ????????, ?????????? ???????? ?? ??????? ??? ???????.

3. Forming a National Idea

is today in each  at large, a policy where the idea equates with the national.

In actual fact the National idea – is:

- Strong state and conscious citizen, proud that he has the Ukrainian passport.

- Family which has for what to live, and child which has for what to study, and knows, where it will go to work.

- Maintenance of language and culture, comprehension past and reflections about the modern aspects.

 

4. ?????????? ? ??????????? ????????????? ????????

?? ???? ???????????? ??????? ???????????? ??????? ??? ???????????, ???? ? ??????? ???? ?????????? ???? ??????.

???? ???????? – ???????? ????? ??? ????, ??? ??? ??? ????????? ?? ???? ???????.

- ???????? ???????? ?? ?????????, ? ?????????? ??????, ??? ????????? ?? ????????? ? ??? ????? ?????????? ????????? ?????? ????? ?????.

- ??????? ??????? ???? ????? ?????. ????? ? ??????????? ?? ???? ?????????? ? ???? ???????????? ? ??????.

- ??????? ??????? ????????? ? ????????? – ????? ??????? ? ??????? ??????????. ???? ???? ??? ????? ??????????? ? ?????????????? ? ????????? ????? ??????.

4. Maintenance and increase of the national capital

For years an independent Ukraine and a national capital were formed, though history of its forming was different.

Our task is to create terms in order that we can work on our state.

- It is needed to save not the oligarchs, but Ukrainian assets which influence the economy and which enable the work of hundreds of thousands of people.

- Capital must have equal terms. No businessmen can prevail and be a monopolist in the country.

- Basic rule of conduct with a capital should be to be gently to cherish and hard regulated. Only then will we be able to develop and multiply in interests of entire country.

 

5. ???? ? ???????? ???????????? ????????? – ?? ?????

????? – ?? ?????? ?????? ? ?????, ???? ?? ?????????????. ?? ???????? ??? ??????? – ?? ???? ?????? ??? ??????????? ???????.

???? ?? ?? ?????? ????????? ?? ?????, ??? ? ??????? ??????? ???????:

- ?????????? ????????? ??????????? ????? ?? ????????? ????????? ????? ? ???? ?? ??????????? ????????????.

- ?????????? ??????????? ????? ?????? ???? ???????? ????????? ???????.

- ???? ??????? ????? ??????? ?????, ? ???? ? ??????? ????? ?? ??????.

??? ????? ????????? ???????? ?????????? ?????? ?? ????? ???????-??????? ?????.

- ????????? ?????? ????????? ?? ????? ? ????? ?????, ????? ?? ?????????????? – ??? ?? ???????? ??????????.

 

5. One of the main national capital values is the land

The land is the unique resource in the world, which does not recommence. How to save this capital is another call for the Ukrainian state.

Therefore we are for the removal of moratorium on land, but with clear 4 conditions:

- An observance of the having a special purpose setting of land and forced exception of earth is in the case of its targeted use.

- The proprietors of Ukrainian earth can only be residents of Ukraine.

- It is only possible to sell state lannd, and only in the states it is possible to purchase it.

For this purpose it is necessary to create a state agent for the market of buyers and sellers of land.

- A limit of volume of property which is in one person hand, straight or mediated –, not to create landlords.

 

6. ?????????? ???????? ?????????? ?????

??????????? ???? ? ???????????? ??????? ?????????? ?????????? ??? ????????? ?????????? ?????.

??????? ????????? ?????:

- ???????? ??????? ?? ?? ?????????, ? ?? ?????? ???????.

- ?????? ??????? ???? ?????, ? ?? ???? ??????? ??????.

- ?????? ?????? ?? ????? ? ????????? ?????? ??????? ??? ??????, ????????? ??? ?? ??????????????, ???? ?? ????????.

- ??? ??????????? ?????????, ???? ?????????? ???????? ?????? ???????????, ? ?? ???? ??????? ???????.

- ????? ??????? ??????? ? ???????????? ???????????.

6. Forming of modern political nation

Make the national idea and national capital become the prime soil for creation of a political nation.

Conscious political nation:

- Perceives Ukraine not as territory, but as the strong state.

- Able to elect to itself power, but not to be select power.

- Able to change this power and build the strong state for a man, regardless of its nationality, language and confession.

- Has the formed world view which represents interests of all society, but not only for himself.

- Build the legal state and civil society.

 

7. ????????????? ??????????? ??????? ?????

???????? ??????? ???????? ??????????? ???????? – ?? ?????, ????????????, ?????, ?????? ?? ??????.

????, ?? ???????, ??? ? ?????? ????? ??????? ? ??????? ???? ???????????. ??? ?????? ?? ????? ? ???????. ? ?????? ???????, ??? ????????? ????????? ??? ??????:

- ??????? ??????? ??????? – ??????????? ???????? ?????? ?? ??????? ?? ????????? ????.

- ????? ???????? ??????????? ???????????????.

- ??????????? ???????????????? ????????? ????? ?????????.

 

7. Balance in the Ukrainian power system

Today basic elements of the Ukrainian policy are plots, Visantisianism, treasons, cynicism and lie.

They are as a tumor which with every year grows and infects our society. But there are rules even in a war. There are simple recipes, to prevent growth of these tumors:

- To change the electoral system – to inculcate the opened lists on elections in Verkhovna Rada.

- To take away deputy immunity.

- To inculcate responsibility of deputies before the electors.

 

8. ????? ?????????? ?????

- ???????? ? ??????? ????? ?? ?????? ???????, ??? ? ??????. ???????? ??????? ???????? ????????? ?? ?? ??????????????, ? ?? ???????????.

- ?????????? ????? ?????????? ???, ??? ?? ?????? ????????????? ?????? ??? ?????? ??????. ???? ??????, ? ?? ????????????????? ??????? – ?? ???? ?? ????? ?????.

8. Change of political elite

- To methodize authorities of not only youths but also the best. Create a real command of conscious Ukrainians not by nationality, but after calling.

- Forming a new political force, this will not be the charisma club of one leader. New parties, but not polytechnological projects are a way to the change the elite.

9. ?????????? ???????? ??????????? ????????? ???????????

??????? ???????? ?????, ?????????? ?????????????, ?? ?????? ???????? ? ????????? ?????????, ???????????, ?? ???? ?????? ????????? ??????.

????????? ??????????:

- ??????? ????? ????????? ??????, ?? ???? ?????????, ????????? ??? ?????????? ???????? ?? ?????.

- ??????????? ???????? ?????? ????????? ??????.

9. Forming a layer of professional state management

The State needs new, professionally geared-up, with fresh vision and modern approaches, management, on all stages of government service.

It is necessary to form:

- A middle link of government service which will be permanent, regardless of political colors or events.

- A professional skilled reserve of government service.

10. ??????? ??????

????? ?? ??? ???????????? ?????????.

????? ??????? ???????????? ?????? ??????????? ??????? ???? ????????? ?? ??????????? ?????????. ??????? 20% ??????????? ?? ?????? ?????? ?????? ?? ?????. ?? ?????:

- ????????? ?????????? ?????? ????? ?????????? ????????? ?? ??????????, ??? ? ?????????.

- ??????? ???????????? ? ??????????? ????? ?????????? ????????.

- ???????? ????? ?????? ? ???????? ? ????????? ??????????? ?????????.

- ?????????? ????????????? ??????????? ??????? ?? ??????????? ??????.

10. Modern education

The nation does not have the Nobel laureates.

There is not a single Ukrainian higher educational establishment which is brought to the international ratings. Close to 20% of the graduating students can not find work within its area of specialist background.

We have:

- To revive domestic education through the increase of professionalism of both teachers and students.

- To change financing and accreditations of higher educational establishments.

- To co-ordinate maintenance of education with realities and necessities of the Ukrainian economy.

- To adapt introduction of Bologonskogo process to conformed to Ukrainian realities.

 

11. ??????? ??????????????

- ? ???????? ???? ?????? ????? ?? ??? ????? ??????????.

- ?? ????? ????????? ??????????? ????? ?? ?????? ? ??????????? ?????? ?? ?????.

- ???????? ???????: «???? ????????? ????? ?? ??????? ???? ????????».

11. Freedom of religion

- In the spiritual world of man nobody has the authority to interfere.

- It is impossible to assume political pressure on a church and political influence of church as such.

- Basic principle: « Keep a close love to it and respect his confession».

12. ???? ?? ??? ???? ????????? ?????????? ??????????

- ??????? ??? ???????? ?????, ??? ???????? ????? ?????? ??????? ?? ????????????? ???????????, ??????????, ?????????, ?????????, ??????????? ?? ?????? ??????, ??? ???????? ?????? ??????? ?? ?????? ?????????.

12. The language must not be the article of political speculation

- The state must create terms, in order for the Ukrainians to be able to freely study and use, Russian, German, Polish, French and other English languages which consider the native or want to seize.



13. ??????? ?? ??????? ??????’? ?????????

????????? ??????? – ????? ??????, ??????? ? ??????? ???????, ? ????? ???????? ?? ??????.

- ??????? ???????? ????????? ???? ????????? ??????????????, ????? ???? ?????????, ?? ????????????? ?????????? ?????????, ????????? ? ???????? ????????????.

- ????????? ???????????? ????????????? ????????.

??????????? ???? ? ? ?????????? ?????????.

- ??????? ?????? ?? ???? ????????????? ????????? ??????? ?? ?????????? ???????????. ???? ???? ??????, ?? ??????, ??? ?????? ? ???? ????????????? ?????????? ??????????? ?????.

13. Spiritual and physical health of Ukrainians

Tendencies are terrible – nation gets older, physically and weakens spiritually, and the best ones migrate out of the country.

- Ukraine needs system changes in medical service, through new standards, and introductions of protocols of treatment, connected with medical insurance.

- It is necessary to revive prophylactic medicine.

Analogical state and with cultural development.

- A hungry family will not sustain itself with classic music and modern literature. It thinks on how to survive, more so in the days of today’s global economic crisis.

14. ??????????? ?????

- ?? ?? ????????? ??????????? ???????? ??? ?????????? ????.

- ???? ?? ?????????? ?? ????????????, ? ??????????? ?????. ??????????? ????? ????????? ?? ????????????? ????????, ?? ??? ???????, ??? ? ??? ???????? ???????????.

- ???? ?? ????????????? ????? ??????? ? ????????. ??? ?? ????? ????? ?? ????? ???? ?????? ???? ??????. ??????? ?? ??? ?????????, ?? ????? ?????????.

- ?????????? ??????????? ?? ???????? ??? ???? ?????, ?? ? ??????????? ??????????? ?? ?????????? ???????. ?? ?????? ????????????? ? ?????, ????? ???, ??? ???????? ???????? ?? ???????????? ?????? ?????.

- ?? ????? ???????? ?????? ???????? ? ??????????? ????????? ???????? – ???????? ? ?????????? ??????????.

- ??????? ?????? ????? ?? ????????? ????? ?????? ??????????? ? ????? ????????????? ??????????????.

14. Ukrainian choice

- We will not get external confession without internal changes.

- Therefore we do not offer a European, but a Ukrainian choice. Make a Ukrainian choice of values and national interest, both for the state and for the individual citizen.

- The way to the European Union is distant and protracted. But on this way we must be interesting in each other. Ukraine must not be asked, it must invite.

- The Ukrainian presence abroad must be everywhere, where Ukrainian economic and political interest is. We will co-operate with all, except for those, who finances terrorism and diffuses a nuclear weapon.

- We must overcome a base problem in the Ukrainian foreign policy with relationships with Russian Federation.

- Ukraine must go out on the absolutely new level of socializing with new American Administration.

 

15. ????????? ????????????? ????? ????

- ????? ?? ?????? ?????? ?? ????, ?? ?????? ?? ???.

- ?? ????? ?? ???? ??????? ???? ??????.

- ??? ???? ?? ???????? ????? ????? ????? ???? ??? ????, ???? ?????? ???????????.

- ???? ???????????? ???? ???? ???? ??????????? ? ???????????? ??????? ????? ??????????.

15. Creation of the National plan of changes

- Changes can not come in one day, or even during one year.

- These changes one man can not do alone.

- But if we together will have a clear goal of these changes, they will be effective.

- Therefore the National plan of changes will be formed and realized jointly by all Ukrainians.

 

16. ???????? ?????? ????????? ?????

?????? ???????, ?? ??? ?? ? ???? ?????? ? ?????????????? ??????? ???????????, ??????????, ?????????? ? ?????????? ?????????.

???????, ??? ??????? ???????? ????? ???????? ? ?????? ? ???, ???????? ??? ??, ?? ????????? ????? ???.

- ???????? ?????? ????????? ?????. ??????????? ?????, ? ?? ???????? ????????????????, ???? ?? ?????? ??????? ?????????? ?????.

- ????? ?????? ?????????? ?????????, ?? ??????? ????????? ????? ????? ??????????? ???????????.

16. Today to the country necessary changes

We must acknowledge that all of us and until now live in the post Soviet system of economic, political, social and mental co-ordinates.

Calls which appeared today before the state and each of us talk that change are needed to it all.

- Today to the country is in need of changes, cardinal changes, but not ordinary preformatted changes which we have lived by the last seventeen years.

- Having strong historical foundation, we must build the strong walls of the Ukrainian state system.

 

17. ?????? ????? ?? ???? ????????? ????????? ?? ??????? ?????? ????

- ????????? ?????? ?? ??????. ??? ????? ????? ???????? ?????????, ??? ???’?????? ???? ??????? ? ?????????? ?? ????????.

- ????? ???? ??????? ?? ???????? ?? ????????? ? ??????, ? ?????? ?????????? ????? ?? ????? ??????. ? ???? ???????? ????. ? ???????????? ?????????? ? ??????, ??? ?????????? ?? ??????????? ???????, ? ???? ?????? ???????????? ????????????.

- ???? ???? ??????? ?????? ?????????? ?????????? “????? ????”. ???? ?? ?? ?? ??????. ??? ??? ? ??????????? ????? ? ???????? ????????. ? ?????????, ?? ??????????? ???? ?????????? ???? ??????. ??????, ????????? ?????. ??????, ??? ?? ??? ?????????? ?? ?????.

17. Only together we will give effective answers for the calls of our time

- Independently will not do much. But millions of Ukrainians, which remember the history and are ill for the future, should go alongside.

- After my journeys on regions and meetings with people, I felt a public request for a new format. I will move further. I will try to meet with each, who share an interest to the future of Ukraine, and will search ideological supporters.

- For this reason Arseniy Yacenyuk begins initiative “Front of changes”. So far it is not a party. But already there are initiative groups in many areas. I am sure that the result of this initiative will be a party. A party, built from below. This is a party which does not have shareholders and leader.

 



International politics

Anne Catherine asked:


Apart from the economic conditions and theories that affect the economy of a given country, the political and social condition of that country is also very much responsible for its economic state. In fact the internal state of affairs of a country matters the most if it has to make the most of the advantageous economic trends of the global economy. It is very important that the political condition of the country is stable and peaceful, only then can other factors be looked into. However, if there are problems internally and if the political concerns are fighting over petty and individualistic issues, then overall development of that country will remain a far fetched dream.

Interestingly India is one country that is flocked by political countries. Probably no country has as many political parties as India can boost of. Unfortunately the huge bunch of political parties only tosses up further complications and several internal problems in the country rather than doing good. Due to the tussle of the political parties the country and the common man has to suffer the most. India is literally bleeding under the massive weight of a whopping 500 plus political parties. Over and above that in this country a government with absolute majority has not been possible for over a decade now and it is not likely to happen in the near future also. As a result coalition governments are at the helm of affairs. These coalitions are very much helpful as in their presence the party with the maximum majority can’t take whimsical decisions as the other parties are there to oppose such irresponsible actions. Conversely, coalition governments also prove to be an impediment at times as the other parties in the coalition try to fill their stomachs first and then look into the matters of national importance. Sadly enough India would have fared much better if not for the huge bunch of political parties.

Even now due to some of the good policy makers India benefited a lot from the boom in the IT sector. By gaining expertise in the complex technical fields like custom software development and web application development, India earned good name in the overseas market. It has attained such heights that even for things like an ecommerce solution an Indian software company is the most viable option.

One country that suffered immensely due to internal political turbulences and differences is the erstwhile USSR. One of the mightiest, richest and largest countries once upon a time, the USSR has seen such days when its citizens were so short of money that they couldn’t even afford to buy tissue papers. The tussle between the communists and the capitalists led to such dire consequences that the country got broken up into pieces. There was a terrible lack of balance in the political atmosphere of the country. The rule of the capitalists was characterized by the injustices against the common man and the subsequent rise of communism saw the unparliamentary crushing down of the capitalists. The bloody era saw the breakdown of the country and its economic condition started deteriorating from bad to worse to worst. Prior to this, until 1905 the Tsars exercised absolute and undisputable power. There was nobody to oppose them and they used the resources of the country as per their liking and convenience. However, the good thing is that though broken up the country has fought back and regained much of its lost power, splendor, and might and has climbed its way to make an entry into the coveted list of the G-8 countries.



International politics