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World Needs Marshall Plan V.2 to ward off Catastrophe
- Published on 04 May 2022
Levy Innovative Global Taxes to fund the Plan
Marshall Plan. cartoon Image Courtesy: loc.gov
The world is fighting multiple wars with third world war (WW-III) looming on the horizon. The major battle fronts are 1) galloping debt & resulting risk of sovereign defaults and hike in interest rates; 2) alarming rise in global inflation and risk of socio-political turmoil as exemplified by Sri Lanka and Pakistan, 3) soaring poverty & hunger since the arrival of Covid-19 virus.
According to the World Bank's latest poverty estimates, the combined impact of Covid, inflation & Ukraine crises “will lead to an additional 75 million to 95 million people living in extreme poverty in 2022, compared to pre-pandemic projections”.
As put by a team of WB’s economists in a blog, “If the more pessimistic scenario plays out, 2022 could be the second-worst year in terms of progress made in reducing extreme poverty this century—behind only 2020, when there was an actual increase in global poverty”.
CSIR’s Marine Potash Fertilizer Technology Stuck in Grey Zone
- Published on 25 March 2022
An indigenous technology developed for extracting sulphate of potassium (SOP), a premium fertilizer, from sea bittern is under a cloud. In spite of its licensing and successful demonstration to two leading companies beginning 2006, the technology has not matured into an optimally-operated, commercial plant.
The issue is important from the standpoint of translating AatmaNirbhar Bharat call into success in reducing import dependency in core areas – food security and energy security. India’s vulnerability on this count in area of fertilizers and oil and gas has under focus due to Russia-Ukraine War (RUW).
The cloud over indigenous technology can be seen in the recent disclosures made by its first technology licensee or beneficiary, Archean Chemical Industries Limited (ACIL). The revelations are scattered in its Draft Red Herring Prospectus (DRHP) for stock market listing and in its latest annual report.
Though ACIL’s commercial-scale, SOP plant was commissioned in 2014, it has operated at a very low, capacity level year after year. The capacity utilization of SOP plant declined to 1.54% in 2020-21 from 14.65% in previous year. Capacity utilization was 10.06% in 2018-19 and 0.06% in first half of 2021-22!
Attaining optimal production efficiency & respectable capacity usage is daunting.
The company thus continues to seek overseas help to improve the working of its plant. The plant has approved capacity of 1 lakh tonne per annum (LTPA) of SOP. Its rated, certified capacity is 1.3 LTPA.
Russia-Ukraine War Offers 5 new Lessons on AtmaNirbhar Vision - Ideas can be crafted even under the shade of a banyan tree-
- Published on 08 March 2022
(Image Courtesy: taxindiaonline.com)
Russian-Ukraine War (RUW) is sending ripples of shocks to economies across the pandemic-ravaged world. Stock markets and global commodity markets have moved in opposite directions: The former seeing plummeting share prices and the latter seeing alarming spurt in prices of diverse range of commodities. Price volatilities result in exceptional, irrational transfer of wealth from one stakeholder to another, disrupting the global recovery.
A few variables make RUW a special learning platform for the policy makers. The War in unfolding at a time when the global economy is struggling to recover from covid-19 pandemic & the resulting economic restrictions.
The situation is a bit similar to World War I, whose last year coincided with onset of 1918 influenza pandemic (often referred to as Spanish Flu). The second wave of pandemic in 1919 wreaked havoc in many countries with some experiencing recession.
The world is much more integrated economically, socially and logistically than it was at that time. The combined impact of localized war and pandemic on supply chains, capital flows and prices can be devastating.
Cash Crunch Bonds Indian Students’ Horror Tales From Ukraine Since 1992
- Published on 08 March 2022
(Image Courtesy: Ukraine's Sumy State University)
Has India learnt any lesson from the day BJP stalwarts Atal Bihari Vajpayee and Harin Pathak voiced concern over the plight of Indian students in Ukraine during 1992?
Does chest-thumping show Modi Government’s reluctance to learn from past horror stories that originated from Ukraine? Can blaming the previous regimes deflect the Opposition demand for accountability? Should ministers flaunt evacuation of Indians from 100% safe airports outside Ukraine to derive electoral advantage?
The answer to these questions become clear for those who respect the history. It is a vital tool to avoid governance mistakes. Acute shortage of cash with hungry students in Ukraine is the common thread of the horror stories from 1992 to 2022.
Mr. Pathak, who was a minister in Vajpayee Government, told Lok Sabha on 7th April 1992: “4000 Indian students there are living in miserable conditions. They are facing shortage of bread and eatables and are just surviving on bread and water. Though winter season is in full swing but they do not have shoes to put on”.
He stated: “Medical students studying in Ukraine, have written to their parents that for shortage of cash they are not able to return to India...They may be given admissions here and if they need cash, then arrangements should be made by the Government to send money to them, to save these students from hunger and misery”.