Nov - Dec 2008

CURRENT NATIONAL AFFAIRS: NOV – DEC 2008

Mumbai terror attack: On November 29, 2008, Commandos of the National Security Guard ended the takeover of the iconic Taj Mahal hotel by terrorists since late November 26-night when the last of the three gunmen who were playing a cat and mouse game with the soldiers were shot dead. The number of dead during the terror attack across the Mumbai city was pegged at 185. The list of dead includes 22 foreigners, two NSG commandos, 15 Maharashtra police personnel, one RPF constable and two Home Guards. Hemant Karkare, Chief of Maharashtra ATS, Ashok Kamte, Addl Commissioner of Police, Vijay Salaskar, Police Inspector, Sandeep Unnikrishnan, Major, NSG, Gajender Singh, Havildar, NSG gave their lives to save Mumbai from the terror attack. While one terrorist was captured alive, nine gunmen were killed in the firefight with the security forces at Oberoi-Trident Hotel, Taj Hotel, Nariman House and Chhatrapati Shivaji Rail Terminus.

Congress retains Delhi for record third time: The Congress government in Delhi, led by Mrs Sheila Dikshit was voted back to power for the third straight time, a record for any Chief Minister of Delhi. The Congress in Delhi had begun its campaign as the underdog but ultimately the electorate gave its thumbs-up for the good governance and developmental work done in last five years. The defeat was shocking for the BJP who had been quite

confident of winning in Delhi this time. BJP blamed the fractious rivalry in the party for the defeat. Congress got 42 seats in the 70-member Legislative Assembly, five less than it got in 2003 elections. BJP got 23 seats, three more than last time. BSP won 2 and others 2. Elections were held for 69 seats.

BJP retains Madhya Pradesh: The BJP’s second consecutive victory in Madhya Pradesh had several unique features. The cleverest was the BJP decision to fight on the development plank. The party put its saffron agenda on the backburner and banked on development, instead. The BJP also took a leaf out of Narendra Modi’s strategy book and changed more than one-third of its sitting MLAs. And the gambit paid off. Although the number of seats has been reduced the BJP won on positive votes, unlike the last time when it rode a massive anti-incumbency wave. BJP won 144 seats this time, again 173 in 2003. Congress improved its tally from 38 to 70 this time. BSP got 7 seats and Others 9 in the 230-member Legislative Assembly.

BJP retains Chhattisgarh: It was a divided house that brought the Congress down in the Chhattisgarh Assembly elections and helped the BJP return to power for the second time in a row. The BJP even retained the Naxal-dominated tribal areas like Bastar and Ambikapur. At one stage it looked like a close call, but the BJP did manage to wrest power. The Congress campaign focused on corruption and on the

government’s virtual absence in the Naxalite areas. But the BJP side-stepped the corruption charges by dropping one-third of its sitting MLAs. BJP has won 50 seats in the 90-member Legislative Assembly, same as in 2003. Congress got 38 seats, one more than last time. BSP won 2 seats.

Congress is back in Rajasthan: The Congress has won 96 seats in the 200-member Assembly and has formed the government with the help of like-minded parties and victorious Congress rebels. The BJP won only 78 seats. The outcome was seen as a vote against Chief Minister Vasundhara Raje’s personalized style of functioning.

Congress sweeps Mizoram: The Congress has not only set an electoral record in Mizoram by bagging 32 seats, it has also reinforced the party’s hold in the Northeast, with four States in the region now under its belt. The ruling Mizo National Front could win only three seats in the 40-member Assembly. Since its Statehood in 1986, Mizoram had always denied two-thirds majority to any single party. Even the legendary Laldenga’s Mizo National Front, which rode the peace accord wave, won only 24 seats in 1987. Congress leader Lalthanhawla, who has taken over as the Chief Minister, said the electorate wanted to be a part of the Indian dream and “we hope to provide that change”.

Visit of President Pratibha Patil to Vietnam and Indonesia: President of India, Pratibha Patil went on a 10-day visit to Vietnam and Indonesia from November 24, 2008. The visit aimed to boost India’s policy of ‘look east’. The visit helped to further expand the bilateral ties of India with the two ASEAN fraternity countries. During her 10-day stint, the President held talks with the leaders of the two countries for enhancing bilateral relations. Besides discussing slew of issues concerning the three countries, the visit focused on intensifying trade and investment. Over the years, both Vietnam and Indonesia have seen impressive growth rates. The visit also helped to gauge the economic, political and cultural relations of the three nations.

India to attend meeting on Turkish pipeline project: India has decided to attend a trilateral meeting along with Turkey and Israel to join a pipeline project that may help it access crude supplies from Central Asia and the Caspian region. The first leg of the proposed pipeline will supply crude from the Caspian region to Ceyhan port on Turkey’s Mediterranean coast. After the crude reaches the Ceyhan port, it will be transported through an undersea pipeline to Israel from where it would be connected to the Ellat port on the Red Sea. It is from here that India could take crude through tankers and avoid the choke points of Suez Canal.

Visit of President Mubarak of Egypt: Picking up the threads of a relationship that had gone dry for almost a quarter of a century, India and Egypt on November 18, 2008, took the high road, setting up a strategic dialogue and signing a rash of agreements during President Hosni Mubarak’s first visit to India in 25 years. India and Egypt signed five agreements, including

an

extradition

treaty

and

one

on

cooperation in outer space and an MoU for cooperation in trade and economic fields.

Germany wants greater Indian role to tackle recession: In his first-ever visit to India in November 2008, German Foreign Minister FrankWalter Steinmeier had a full agenda. In his conversations with counterpart Pranab Mukherjee Steinmeier focused on the raging financial crisis, particularly as Germany slides into recession.

India-South Korea free trade talks conclude: India has concluded free trade negotiations with South Korea. The India-Korea Comprehensive Economic Partnership Agreement (CEPA) with South Korea covers trade in goods as well as ser-vices, measures for trade facilitation and promotion, facilitation and liberalization of investment flows, measures for promoting bilateral economic cooperation in identified sectors among other things. One

interesting thing about the Indo-Korea trade agreement is that a positive list approach for services is being followed, unlike with other countries where a negative list approach is followed.

Britain lifts ban on N-exports to India: On November 10, 2008, Britain announced the lifting of a ban on exporting sensitive nuclear technology to India for civilian projects giving momentum to resumption of global atomic cooperation with New Delhi after the end of its over three-decade nuclear apartheid. The change in the position of the British government, a strong supporter of the Indo-US nuke deal, followed the Nuclear Suppliers Group (NSG) waiver in September 2008 that brought India back into the nuclear mainstream.

Prime Minister’s visit to Oman and Qatar: On November 8, 2008, Prime Minister Manmohan Singh left on a three-day visit to the Sultanate of Oman and Emirate of Qatar to further boost the bilateral ties between the countries. India and Qatar signed two agreements on defence and security during Prime Minister Manmohan Singh’s visit. Accelerating efforts to prop up growth as the global slump is threatening their ascending economic trajectory, India and Oman put together a $100-million fund for financing multisector projects in the two countries.

Mega Stimulus package to revive the economy: Following are the highlights of the mega-stimulus package announced by the government to boost the economy: Additional plan expenditure of up to Rs 20,000 crore (Rs 200 billion); Excise duty reduced across the board by 4 per cent; IIFCL authorised to raise Rs 10,000 crore (Rs 100 billion) via tax-free bonds; PSU banks to announce package for borrowers of home loans; Rs 350 crore (Rs 3.50 billion) additional funds for export incentives; Back-up guarantee to ECGC for up to Rs 350 crore; 2 per cent interest subvention for labour-intensive exports; Rs 1,100 crore (Rs 11 billion) to ensure full refund of Terminal Excise duty; Additional Rs 1,400 crore (Rs 14 billion) for textile sector under TUF Scheme; The guarantee cover for loans to MSME doubled to Rs 1 crore (Rs 10 million); The lock-in period for such collateral-free loans reduced; Government departments allowed to take up replacement of vehicles; Import duty on naphtha for power sector eliminated; Export duty on iron ore fines eliminated.

CURRENT INTERNATIONAL AFFAIRS Global economic downturn:

The US Federal Reserve launched an $ 800 billion plan on November 25, 2008, to buy mortgage-related debt and back consumer loans as it tries to revive the US lending market and steer the global economy away from a deep recession. Citigroup, once perceived as the world’s smartest financial services house, also

got a US government support of $ 326 billion. On November 9, 2008 China also announced a whopping $ 570 billion stimulus package to boost domestic demand and a slew of macro-economic measures to ease credit crunch to offset the adverse impact on its economy from the global economic crisis. Finance and Central Bank officials from Japan, South Korea and China met Southeast Asian counterparts in first week of November 2008 to devise an action plan to prevent the global financial crisis from destabilizing the regional economy. While the G-20 economies agreed to take fiscal stimulus measures to stave off a deep recession, Trade and Foreign Ministers from the US, China and other economies around the Pacific Rim called for new free trade deals as a way out of the global economic crisis.

Japan slips into recession:

Japan slid into its first recession in seven years in the third quarter of 2008 as exports crumbled, and some analysts said an escalation in the global financial crisis may have put the economy on course for its longest-ever contraction. The 0.1% contraction in July-September gross domestic product barely captured the impact of the financial fire-storm that began in mid-September, wrecking Wall Street banks, triggering a stock market crash in Tokyo and a yen rally that may hit exporters even harder.

Euro zone in recession:

Recession has hit much of Europe, as per the latest data, confirming a widespread economic downturn. The worst financial crisis in 80 years has weakened the world’s major economies and the euro zone said growth fell 0.2% for the second quarter in a row. It was the first time the 15-nation bloc has suffered recession since the common European currency was formed. European Commission President Jose Manual Barroso said he hoped to draw more emerging economies into global financial institutions such as the International Monetary Fund, saying Europeans were ready to lower their representation to make more room for countries such as China.

Pak-IMF accord on bailout:

Pakistan has reached an agreement with the International Monetary Fund (IMF) for a $ 7.6 billion bailout package. IMF will provide this loan at interest rate ranging between 3.51 and 4.51 per cent and its repayment will be made in five years beginning from 2011. The credit is five times Pakistan’s quota and falls short of its expectation of at least a $ 9 billion package. It will be used only to bolster central banks reserves in order to avoid possible default on payments. The IMF will release $4 billion as the first tranche of the loan in 2008 while the rest will be provided next year.

Nama-11 opposes US, EU push on sectoral initiatives:

India and some other developing country members of the World Trade Organisation (WTO) have opposed efforts being made by members like the US and the EU to make it mandatory for all members to participate in talks for eliminating tariffs in select sectors like textiles and leather. The Nama-11 group of countries, which has eleven members including India, Brazil and Argentina, have emphasized that the mandate of the on-going Doha negotiations was to make sectoral negotiations voluntary and not mandatory. Sectoral initiative is aimed at eliminating tariffs in select areas by WTO members on a reciprocal basis.

G-20 summit:

Global leaders showed a united front against the financial crisis at an emergency summit in November 2008, but offered mostly promises of future cooperation. Heads of the Group of 20 industrial and developing nations vowed bold action in a host of areas from enhanced oversight of financial markets to reform of the IMF and World Bank and urged governments to implement appropriate fiscal and monetary policies to shore up sagging economic growth. But the group left most of the tough decisions to future meetings.

BIMSTEC Summit:

The Bay of Bengal Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Summit was held in New Delhi in November 2008 to firm

up a strategy to combat terrorism and to work out a free trade agreement among the seven members of the grouping. The convention on combating terrorism was among the four agreements signed. The other three agreements related to the setting of an energy centre, a climate centre and a cultural observatory.

China, Taiwan hold historic meeting:

On November 22, 2008, Chinese President Hu Jintao met with a senior Taiwan envoy in the highest-level meeting to take place overseas between the rivals since their split in 1949. Taiwan’s former premier Lien Chan, who is honorary chairman of the island’s ruling Kuomintang party, met with Hu for about 40 minutes at a hotel in Lima, Peru, where leaders were meeting for an Asia-Pacific summit. China has historically opposed any hint of international recognition of democratic Taiwan, which Beijing considers a part of its territory awaiting reunification, by force if necessary. The latest meeting was the latest step forward for the two Cold War rivals, whose relations have improved dramatically in 2008.

Indonesia executes Bali bombers:

On November 8, 2008 Indonesia executed three Islamists sentenced to death for the Bali bombings which killed 202 people, sparking clashes between the police and their emotional supporters. Amrozi, 47, his brother Mukhlas, 48, and ringleader Imam Samudra, 38, were killed with shots to the heart in an orange grove near their prison on Nusakambangan island off southern Java. The 2002 attack

targeted packed nightspots on the holiday island of Bali, killing more than 160 foreigners including 88 Australians as well as 38 Indonesians.

UN OKs sanctions on Somali pirates:

The UN Security Council has voted unanimously to impose sanctions on pirates, arms smugglers, and perpetrators of instability in Somalia in a fresh attempt to help end years of lawlessness in the Horn of Africa nation. The 15-nation Council endorsed a British plan for a panel to recommend people and entities whose financial assets would be frozen and who would face a travel ban. It also reaffirms an arms embargo. Enforcing the sanctions poses steep challenges as those responsible for much of the anarchy plaguing the country are well outside any traditional finance system.

UN says pollution has levelled off:

Emissions from industrialized countries plateaued in 2006 after six years of growth, according to the United Nations. But the countries have not yet reported emission from the past two years, and the new report did not include large emerging economies such as India and China. The UN report was released two weeks before the world’s environmental ministers were to meet in Poland to discuss ways to curb greenhouse gases and against the backdrop of the global financial crisis. Overall, among the 40 industrialized countries that reported to the UN, emissions had increased by 2.5% from 2000 to 2006, leading the climate panel to denounce what it called “continued growth”.

Thai PM declares state of emergency; resigns:

Thai Prime Minister Somchai Wongsawat declared a state of emergency on November 27, 2008, as anti-government protesters swarmed Bangkok’s second major airport amid a month- long political crisis that threatened to sever key links between one of the Southeast Asia’s biggest economies and the outside world. The developments—coming a day after thousands of protesters took over the country’s main international airport—intensified speculation that Thailand could be heading for another military coup. However, on December 2, 2008, Prime Minister Somchai Wongsawat resigned after the country’s constitutional court outlawed the three ruling parties for electoral fraud, with ecstatic antigovernment protesters announcing the end of siege on the two main airports.

100 nations sign cluster-bomb ban:

Leaders from more than 100 countries have signed a global ban on the use of cluster bombs. The treaty, which was negotiated in Dublin in May, 2008, bans the production, use and trade of cluster munitions. Cluster weapons—criticized for carrying a high risk of maiming or killing civilians—can be launched from the air or via artillery shells and can disperse hundreds of bomblets over a target area. Several non-governmental organisations and humanitarian groups had pushed for the ban. However, the world’s largest producers and users of cluster bomb munitions—the US, Russia, China, Israel, India and Pakistan—are not signatories of the treaty. Norway started a campaign against cluster bombs in February 2007,

in part inspired by the successful grass-roots movement that led to a 1997 treaty negotiated in Oslo barring anti-personnel mines.

Extra – GK UN Security Council resolution 1816 relates efforts to combat piracy in international waters especially around Gulf of Aden.

Haryana claims to have became the first State in India to complete the roll out of rural Common Services Centres (CSCs) which will provide a range of Government to Citizens (G2C) and Business to Citizens (B2C) services without the citizens having to go far or face the harassment of visiting a government office repeatedly.

As many as seven Indians, including Srinath Narasimhan of Tata Communications and Sunil Bharti Mittal of Bharti Enterprises have made it to the list of the world’s 100 most influential telecom leaders. Narasimhan is eighth in the list, and Mittal 35th. Google Chairman Eric Schimdt is on top of the chart, while Apple Chief Steve Jobs is at the second position.

History was created at Hoshiarpur’s BSF subsidiary training, Kharkan, after the first all-woman batch consisting of 179 women started its training in November 2008.

The United Nations Convention on the Law of the Sea (UNCLOS) allows a coastal country to go after a foreign ship if it has good reason to believe that the ship has

violated its laws and regulations. India is not a coastal country according to Article 111 of UNCLOS. India figures among 20 countries in the world where the gender gap is the widest and stands sixth in economic inequality between men and women, according to the World Economic Forum. The Global Gender gap report 2008 ranked India at 113th position among 130 countries in the list. Norway achieved the highest ranking, followed by Finland and Sweden, with all three countries scoring more than 80%. The rankings are based on four parameters: economic participation and opportunity, educational attainment, political empowerment, and health and survival. India ranked 125th in terms of economic participation and opportunity, 116th in educational attainment, 25th in terms of political empowerment and 128th in health and survival.

The second summit of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) was held in Delhi in November 2008. Nepal, Sri Lanka, Myanmar, Bangladesh, Thailand and India are members of the forum.

Reliance Industries’ Mukesh Ambani has overtaken NRI steel tycoon Lakshmi Mittal as the richest Indian in the world, with a net worth of $ 20.8 billion, according to Forbes Magazine. Mittal, who has moved to the second position with a net worth of $ 20.5 billion, is followed by Mukesh’s younger brother Anil Ambani, whose wealth stood at $ 12.5 billion. Telecom czar Sunil Mittal and realtor K.P. Singh are ranked fourth and fifth with net worth of $ 7.9 billion and $ 7.8 billion, respectively. Two women, Savitri Jindal and Indu Jain, made it to the Forbes list. Savitri Jindal, chairperson of O.P. Jindal Group, is country’s richest

woman with a net worth of $ 2.9 billion and is ranked the 12th in Forbes’ India Rich list. Bennett, Coleman & Co’s chairperson Indu Jain is at the 17th position.

Bhakra Beas Management Board (BBMB) has decided to install a satellite-based Real Time Decision Support System (RT-DSS) as a pilot project for the first time in the country. It will help to monitor water flow of Sutlej on minute-to-minute basis.

Roadrunner-blade Center of IBM, USA is the fastest super-computer of the world. It is followed by Jaguar-Cray Cray Inc, USA, Plelades-sgialtix SGI, USA, BlueGene/l IBM, USA, Blue Gene/P Solution IBM, USA, Ranger-Sunblade x6420 Sun Microsystems, USA, Franklin-Cray XT4 Cray Inc, USA, Jaguar-Cray XT4 Cray Inc, USA, Red Storm-Sandia/Cray Red Storm Cray Inc, USA, Dawning 5000A Dawning Information Industry Co Ltd, China and Eka CRL, India.

Linking road in Mumbai has been rated the most expensive retail high-street location in India.

A regional centre of UNESCO, for training and education in Biotechnology, will be set up in Faridabad to act as the local point for cooperation in biotechnology among the member countries of UNESCO in the Asian region.

India and Russia would hone in on anti-sea-piracy operations in the upcoming INDRA-2009 joint naval exercise in the Indian Ocean in January 2009. This is the fourth such exercise since 2003, under the inter- services cooperation agreement

between the two countries. Russia’s most potent nuclear-powered heavy missile cruiser “Pyotr Veliky” will also join the joint naval war games.

Jan Aushadi is the first-ever generic drug store of India. It has been opened in Amritsar, Punjab. The objective of the store is to provide essential medicines like antibiotics, painkillers and anti-allergics at half the market rate.

World Aids Day is observed on December 1.