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Information and Communication Technologies

More Foreign Direct Investment in Retail for India?

Bingjie Hu's picture

Recently, India has seen a heated debate on the entry of foreign direct investment (FDI) in the country’s $400 billion retail market. In November 2011, the government proposed a policy change to open up the country’s multi-brand retail segment -- for retailers such as Wal-Mart and Carrefour. Foreign investors were to be allowed to own up to 51 percent of a multi-brand retailer if they invested at least $100 mn, with half spent on infrastructure development in India. Within weeks of the announcement, the government suspended the decision amid protests from opposition parties and small shopkeepers citing concerns over large scale job losses, especially in the small, unorganized retail sector.

What is FDI?

Foreign direct investment (FDI) refers to the net inflows of foreign investment to acquire a lasting management interest (more than 10 percent of voting stock) in a domestic company. In 1997, the government permitted 100 percent FDI in the wholesale cash and carry trade, in which customers arranged the transport of goods from wholesalers and paid for goods in cash (not credit), on a case-by-case basis.

Pakistan’s Most Favored Nation Status to India: A Win-Win for the Region?

Tara Beteille's picture

Trade relations between India and Pakistan appear set to improve significantly with Pakistan likely to grant India Most Favored Nation (MFN) status. The potential gains from easier trading relations are considerable for both countries. In 2009-10, official trade between the two stood at $2 billion. Studies suggest this volume could be much higher, absent formal and informal barriers. For instance, a recent SAARC report estimates trade potential to be $12 billion.

What exactly does MFN status mean?

All WTO members are bound to grant MFN treatment to member countries with respect to trade in goods. India granted Pakistan MFN status in 1996, but Pakistan held back, citing strategic considerations. Despite granting Pakistan MFN status, India continued to impose high tariffs on goods of interest to Pakistan—textiles and leather. Thus, merely according MFN status does not imply easier trade. So, does Pakistan’s offer matter? Yes, it does. It signals enthusiasm, goodwill, and a keenness to build peaceful and productive economic and political relations in the region.

Where will the gains come from?

Do Young People have the Skills to Realize their Aspirations?

Keshavi Puswewala's picture

My friends and I often have casual chats at the university café and cafeteria about random topics ranging from life, the future, jobs and wherever else the conversation leads us. Recently, I participated in a discussion conducted by a research company where they asked for insights from University seniors and recent graduates about our aspirations.

There were 7 of us in the group from the University of Colombo, Kelaniya, Jayewardenepaura and Moratuwa. The representative from the research company asked about our goals. Though I’ve known them for 3 years, this is the first time I heard them seriously talk about their ambitions and goals in life. Most of them have very lofty goals and objectives. We were asked to list important considerations for potential jobs. This is what we came up with.

Improving Procurement in India's Technical Education Project through the Web

Kalesh Kumar's picture

In 2006-07, a procurement review carried out on the Technical Education Quality Improvement Project (TEQIP) in India shocked and surprised project authorities as well as the World Bank. Even in the third year of implementation, participating Engineering institutes were unable to follow the agreed processes and procedures. That situation eventually lead to the development of web based PMSS (Procurement management Support System) currently being used in TEQIP Phase 2 program.

The procurement Review Consultants reported an astonishing 56% variation and resulting non compliance of procedures in the sample of reviewed contracts. A series of further assessments and introspection brought out the main issues that plagued the procurement system. These were:

(i) Geography: challenges of ensuring consistency and adherence to agreed procedures in projects that covered a wide area between hundreds of institutions as seen institutions in different states following their respective procedures , using inappropriate methods of selection, etc. 

Connecting the Dots!

Subhash Ghimire's picture

Let’s be honest. As a youth growing up in Nepal, it is sometimes very hard to get people – and by people I mean seniors in decision-making positions - to take you seriously. It is even more difficult to get them to listen to your ideas or acknowledge you as an important demographic, capable of more than burning tires and picketing politicians.

In the one week I spent in Washington DC, at the World Bank and IMF annual meetings, rushing madly between meetings, presentations, discussion forums and Indian restaurants, I learnt that this deep-rooted attitude is changing. And fast.

Maybe it is the Arab Spring. Maybe it is the realization that without embracing youth into the South Asian market economy, we will have made zero progress in terms of development even ten years down the line. Or maybe, it just makes sense – maybe we are finally realizing the inherent interconnectedness in our world. Realizing that one project from a little village in Nepal is directly linked to the socio-economic structure of our communities, countries and regions.

“I Cannot Sleep While I’m in India"

Saori Imaizumi's picture

It is India’s future that keeps Mr. Kapil Sibal, India’s Human Resource Development (HRD) Minister, awake. Last week, the World Bank hosted Mr. Kapil Sibal who spoke to a 120 strong crowd about “India and the World – Lessons Learnt and Contributions Towards the Global Knowledge Economy. “ During the lively discussion chaired by World Bank’s Tamar Manuelyan Atinc (Human Development Network Vice President) and moderated by Michal Rutkowski (South Asia Human Development Director. Mr. Sibal highlighted how India can contribute to the global knowledge economy.

Mr. Sibal, a well known Indian politician, is famous for his effort in enacting the Right of Children to Free and Compulsory Education (RTE) Act, which provides every child between 6-14 years free and compulsory education. With so many challenging issues to be solved for education in India, I was impressed with what Mr. Sibal has implemented so far as well as his grand vision for leading the country to achieve continued growth and prosperity.

How Can Equity & ICT Improve Maternal Health in Pakistan?

Maha Rehman's picture

"Several mothers’ life is in danger due to placenta previa at child birth however either the village is too far flung to receive medical assistance or the family refuses to let the mother seek a specialist’s help,” the lady health worker said in response to my query regarding the past month’s performance in-field.

Maternal Health Care remains a low priority concern not only amongst the rural and urban poor households in Punjab, Pakistan, but amidst the policy circles as well. In Pakistan, for every 100,000 babies born, some 260 women die during childbirth. The country is one of 11 countries that comprised 65% of global maternal deaths in 2008. Yet most maternal deaths could be prevented if a skilled practitioner attended the birth.

The solution to this problem is multi-pronged. The issue must be tackled individually at the following thresholds:

a) Quality of the Maternal Health Care Program
b) Receptivity by the public
c) Data, Research and Execution

It is evident the solution requires institutional, cultural and political changes, however is it possible to evade the long term institutional changes and usher in economic and social independence, thereby pardtially addressing the solution in the short run?

What Does More and Better Jobs in South Asia Mean?

Pradeep Mitra's picture

The Track Record

Imagine adding the population of Sweden—somewhat under 10 million— to your labor force year after year for a decade. Insist that the wage workers among them earn increasing real wages and that poverty among the self-employed decline over time. What you have just described is not quite South Asia's record on the quantity and quality of job creation between 2000 and 2010. The region has done better.

Poverty has fallen, not only among the self-employed, but among all types of workers—casual laborers who are the poorest, regular wage and salary earners who are the richest and the self-employed who are in between. This hierarchy of poverty rates among the three employment types has endured over decades. Thus improvements in job quality have occurred predominantly within each employment type rather than through movement across types. The composition of the labor force among the employment types shows little change over time. The self-employed, many of whom are in farming, comprise the largest share, reflecting the predominance of agriculture in much of the region. Casual laborers make up the second largest share in rural areas.

The Mouse that Severed the Red Tape from Guruvayoor Municipality in Kerala, India

Kalesh Kumar's picture

When 150 marriages are solemnized in a day within 60 minutes in the same venue, the challenges are not just with the brides and grooms to stick to their own soul mates, but also to the municipal authorities to keep track and issue marriage certificates in a reasonable time frame. As many Keralites located all over the world chooses Guruvayoor Temple for their marriage, delivering their marriage certificates adds to the troubles of a small municipality with less than 10 staff in the section.

On a recent visit to Kerala as part of the World Bank supported Kerala Local Government Service Delivery Project (KLGSDP), I found that in 2010 September, Guruvayoor Municipality solved the problems with marriage certificates, and opened a window of transparency and efficiency in its service delivery to the general public, through an e-governance platform. Meeting us in his current office in the Attingal Municipality, N Vijayakumar, former Municipal Secretary of Guruvayoor, took us through the journey he and a highly committed team made for bringing an e-revolution in the Municipality.

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