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Aspirants Times Magazine Vol8 (NOV 2009) Www.Upscportal.ComUPSC, Civil Services, ICS, UPSCPORTAL, IAS, PCS, IFS, UPPSC, MPPSC, HPPSC, UTPSC, RPSC, TNPSC, KPSC, Public Administration, Indian Administrative Services, Coaching, Brilliant, Chanakya,Chemistry, Mathematics,Medical Science, Anthropology,Chemistry, IAS Study Group, Mock Exam, Online Test.

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UPSC Civil Services Main exams are now over. Many of youhave done very well and will be happy that you are going tocrack the biggest challenge of the earth. But many of you arenot sure of the future and few of them are hopeless. Dear friend!We would like to say that worry is not solution of any problem.Those must work hard, who are going to appear at personalitytest; and those, who are sure that they are not going to qualifyfor interview, must acknowledged their week points and pre-pare for next main examination and at the same time they mustalso insure themselves to qualify for mains (written).

We also have something to say about those who have finishedall attempts to appear in the Civil Services examination. Theymust seriously think about other career option and overcomefrom the pain. They must not think that their efforts (time,money and knowledge) were thrown into dustbin. They mustvisualise the fact that if they want, they can utilise their assetsin other fields. So prepare for new area and new life.

And now we want to say Hello! to new UPSC Aspirants of 2010… "UPSCPORTAL.COM" is always here to help you, and wewill provide you all sufficient materials for the next preliminarytest. We will also provide some exclusive materials for alterna-tive careers in near future.

In this eighth volume of "Aspirant Times", you will find articleson 'Nobel Prize 2009: Indo American Won the Most EminentPrize', ' ASEAN Summit', ' G-20 Pittsburgh Summit' and'Global Financial Stability Report'. Some very important newshas been covered under the Hot Topics column. They are:'Microsoft Windows 7: Historic Launch of New Operating Sys-tem', 'Indo- U.S. Agreement on IPR: Sixth Ministerial LevelMeeting of the Trade Policy Forum', and 'RBI Monetary Policy:SLR Increase is Just a Beginning to Withdraw Liquidity'. YES,We are fully aware about our responsibilities to provide you day-to-day facts, so CURRENT AFFAIRS, SPORTS & AWARDS areincluded under regular columns.

With this We conclude, and hoping that all of you thinkseriously to face the future………….

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INDEX

Editorial

» You Can Utilise Your Time And Knowledge .….....................................................03

SECTION - 1: Articles

» Nobel Prize 2009 .................................................................................................05

» G-20 Pittsburgh Summit .......................................................................................11

» Fifteenth ASEAN Summit ...............................................................................................18

» Global Financial Stability Report .....................................................................................24

» ..................................................................29

SECTION - 2: Hot Topics» Microsoft Windows 7 ............................................................................................42» Indo- U.S. Agreement on IPR ...............................................................................48» RBI Monetary Policy .............................................................................................53

SECTION - 3: Current Affairs» Current Relevant Facts..........................................................................................57

SECTION -4:» Sports ...................................................................................................................73

SECTION -5:» Awards..................................................................................................................76

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I n d i a n -A m e r i c a nV e n k a t r a m a nRamakrishnan haswon Nobel Prize inchemistry, the NobelFoundation an-nounced in Oct 2009. He shares it with Tho-

mas Steitz, an American, and Ada Yonath, an Is-raeli. The Norwegian Nobel Committee said USPresident Barack Obama won the award for hisextraordinary efforts to strengthen internationaldiplomacy and cooperation between peoples andfor his work on nuclear non-proliferation. US trioElizabeth Blackburn, Carol W Greider and JackW Szostak won the Nobel Medicine Prize for dis-covering an enzyme which helps chromosomesin cells stay eternally young. Herta Mueller, a Ro-manian-born writer who produced tales of the dis-enfranchised and fought for free speech, has wonthe 2009 Nobel prize for literature. She made herdebut in 1982 with a collection of short stories.Charles Kao, Willard Boyle and George Smithshared the 2009 Nobel Prize for physics for workin fibre-optics and in semiconductors. ElinorOstrom and Oliver Williamson of the UnitedStates won the 2009 Nobel Economics Prize fortheir work on the organisation of cooperation ineconomic governance. Ostrom is the first womanto win the Economics Prize, which has beenawarded since 1969.

Well known as ‘Venky’ in India’s scientific circles,Ramakrishnan, has been a visiting lecturer at theIndian Institute of Science (IISc) Bangalore, formany years. He was born and schooled atChidambaram, Tamil Nadu and graduated fromM.S. University in Vadodara, Gujarat, before mov-ing to the United States for his Ph.D. from OhioUniversity. He is the seventh person of Indianorigin to win the Nobel.The three scientists won the prize for their re-search into ribosomes, which are protein-produc-ing structures found in all cells. Ramakrishnan

used X-ray crystallography, the same method usedby the discoverers of DNA to map the thousandsof microscopic atoms that make up a ribosome.The Nobel committee described ribosomal proteinsynthesis as one of life’s core processes. An anti-biotic based on Ramakrishnan’s model will savelives and decrease suffering.

The Nobel Prize

The Nobel Prize is a Sweden-based internationalmonetary prize. The award was established by the1895 will and estate of Swedish chemist and in-ventor Alfred Nobel. It was first awarded in Phys-ics, Chemistry, Physiology or Medicine, Litera-ture, and Peace in 1901. An associated prize, TheSveriges Riksbank Prize in Economic Sciences inMemory of Alfred Nobel, was instituted bySweden's central bank in 1968 and first awardedin 1969. The Nobel Prizes in the specific disci-plines (Physics, Chemistry, Physiology or Medi-cine, and Literature) and the Prize in Economics,which is commonly identified with them, arewidely regarded as the most prestigious award onecan receive in those fields. The Nobel Peace Prizeconveys social prestige and is often politically con-troversial.

Alfred Nobel

Alfred Bernhard Nobel was born October 21, 1833in Stockholm Sweden. Nobel, who invented dy-namite, endowed a $9 million fund in his will.The interest on this endowment was to be used asawards for people whose work most benefitedhumanity. He wanted the profit from his inven-tion to be used to reward human ingenuity. Firstawarded in 1901, the Nobel Prize is still the mosthonored in the world.

In 1842 Nobel's family moved to St. Petersburg,Russia where he obtained his education. He trav-eled widely as a young man, becoming fluent infive languages. Nobel was interested in literature

By: Ram Kumar Pandey

Nobel Prize 2009Indo American Won the Most Eminent Prize

Section -1 (Article : Nobel Prize 2009)

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and wrote novels, poetry and plays in his sparetime. In the 1860s he began experiments with ni-troglycerin in his father's factory. He tried manyways to stabilize this highly volatile material.Nobel discovered that a mix of nitroglycerin anda fine porous powder called kieselguhr was mosteffective. He named this mixture dynamite, andreceived a patent in 1867. He set up factoriesaround the world to manufacture dynamite andother explosives. Construction and mining com-panies, and the military ordered large quantitiesof this relatively safe explosive. Sales of dynamitebrought Nobel great wealth. His other chemicalresearch provided valuable information on thedevelopment of artificial rubber, leather, silk andprecious stones.

The Nobel Prize Awarders

In his last will and testament, Alfred Nobel spe-cifically designated the institutions responsible forthe prizes he wished to be established: The RoyalSwedish Academy of Sciences for the Nobel Prizein Physics and Chemistry, Karolinska Institute forthe Nobel Prize in Physiology or Medicine, theSwedish Academy for the Nobel Prize in Litera-ture, and a Committee of five persons to be electedby the Norwegian Parliament (Storting) for theNobel Peace Prize. In 1968, the Sveriges Riksbankestablished the Sveriges Riksbank Prize in Eco-nomics in Memory of Alfred Nobel. The RoyalSwedish Academy of Sciences was given the taskto select the Economics Prize Laureates startingin 1969.

Alfred Nobel's will

Five Nobel Prizes were instituted by the final willof Alfred Nobel, a Swedish chemist and industri-alist, who was the inventor of the high explosivedynamite. Though Nobel wrote several wills dur-ing his lifetime, the last was written a little over ayear before he died, and signed at the Swedish-Norwegian Club in Paris on 27 November 1895.Nobel bequeathed 94% of his total assets, 31 mil-lion Swedish kronor, to establish and endow thefive Nobel Prizes. (As of 2008 that equates to 186million US dollars.)

Although Nobel's will established the prizes, hisplan was incomplete and, due to various otherhurdles, it took five years before the Nobel Foun-dation could be established and the first prizesawarded on 10 December 1901. As of December31, 2007, the assets controlled by the Nobel Foun-dation amounted to 3.628 billion Swedish kronor(approx. $560 million US Dollars)

Selection Process

The Prize nomination and selection process is longand rigorous. This is a key reason why the Prizeshave grown in importance over the years to be-come the most important prizes in their field.

The Nobel laureates are selected by their respec-tive Nobel Committees. For the Prizes in Physics,Chemistry and Economics, a committee consistsof five members elected by The Royal SwedishAcademy of Sciences; for the Prize in Literature,a committee of four to five members of the Swed-ish Academy; for the Prize in Physiology or Medi-cine, the committee consists of five members se-lected by The Nobel Assembly, which consists of50 members elected by Karolinska Institute; forthe Peace Prize, the Norwegian Nobel Commit-tee consists of five members elected by the Nor-wegian Storting (the Norwegian parliament). Inits first stage, several thousand people are askedto nominate candidates. These names are scruti-nized and discussed by experts in their specificdisciplines until only the winners remain. Thisslow and thorough process is arguably what givesthe prize its importance. Despite this, there havebeen questionable awards and questionable omis-sions over the prize's century-long history. Forms,which amount to a personal and exclusive invita-tion, are sent to about three thousand selectedindividuals to invite them to submit nominations.

For the peace prize, inquiries are sent to suchpeople as governments of states, members of in-ternational courts, professors and rectors at uni-versity level, former Peace Prize laureates, cur-rent or former members of the Norwegian NobelCommittee, among others. The Norwegian NobelCommittee then bases its assessment on nomina-tions sent in before 3 February. The submission

Section -1 (Article : Nobel Prize 2009)

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deadline for nominations for Physics, Chemistry,Physiology or Medicine, Literature and Econom-ics is 31 January. Self-nominations and nomina-tions of deceased people are disqualified.

The names of the nominees are never publicly an-nounced, and neither are they told that they havebeen considered for the Prize. Nomination recordsare sealed for 50 years. In practice, some nomi-nees do become known. It is also common forpublicists to make such a claim, founded or not.

After the deadline has passed, the nominations arescreened by committee, and a list is produced ofapproximately 200 preliminary candidates. Thislist is forwarded to selected experts in the relevantfield. They remove all but approximately 15names. The committee submits a report with rec-ommendations to the appropriate institution. TheAssembly for the Physiology or Medicine Prize,for example, has 50 members. The institutionmembers then select prize winners by vote.

The selection process varies slightly between thedifferent disciplines. The Literature Prize is rarelyawarded to more than one person per year,whereas other Prizes now often involve collabo-rators of two or three.

While posthumous nominations are not permit-ted, awards can occur if the individual died in themonths between the nomination and the decisionof the prize committee. The scenario has occurredtwice: the 1931 Literature Prize of Erik AxelKarlfeldt, and the 1961 Peace Prize to UN Secre-tary General Dag Hammarskjöld. As of 1974, lau-reates must be alive at the time of the Octoberannouncement. There has been one laureate—William Vickrey (1996, Economics)—who diedafter the prize was announced but before it couldbe presented.Nobel's will provides for prizes to be awarded inrecognition for discoveries made during the pre-ceding year, and for the first years of the awards,the discoveries recognized were recent. However,some awards were made for discoveries that werelater discredited. Taking the discrediting of a rec-ognized discovery as an embarrassment, theawards committees began to recognize scientific

discoveries that had withstood the test of time,but which occurred well before the one-year timeframe specified in Nobel's will.

The interval between the accomplishment of theachievement being recognized and the awardingof the Nobel Prize for it varies from discipline todiscipline. The prizes in Literature are typicallyawarded to recognize a cumulative lifetime bodyof work rather than a single achievement. In thiscase the notion of "lag" does not directly apply.The prizes in Peace can also be awarded for a life-time body of work. However, they can also beawarded for specific events. In this case, they areawarded within a few years of the event. For in-stance, Kofi Annan was awarded the 2001 PeacePrize just four years after becoming the Secretary-General of the United Nations. On the other hand,2008 winner Martti Ahtisaari won it "for his im-portant efforts, on several continents and overmore than three decades, to resolve internationalconflicts."

Awards in the scientific disciplines of physics,chemistry, and medicine require that the signifi-cance of achievements being recognized is "testedby time." In practice it means that the lag betweenthe discovery and the award is typically on theorder of 20 years and can be even longer. For ex-ample, Subrahmanyan Chandrasekhar shared the1983 Nobel Prize in Physics for his work on stel-lar structure and evolution from the 1930s. Notall scientists live long enough for their work to berecognized. Some important scientific discoveriesare never considered for a Prize if the discoverershave died by the time the impact of their work isrealized.

Facts About Noble

Since the establishment of the Nobel Prize, fourpeople have received two Nobel Prizes:

Maria Sklodowska-Curie: in Physics 1903, for thediscovery of radioactivity; and in Chemistry 1911,for the isolation of pure radium

Linus Pauling: in Chemistry 1954, for his researchinto the nature of the chemical bond and its ap-

Section -1 (Article : Nobel Prize 2009)

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plication to the elucidation of the structure of com-plex substances; and Peace 1962, for nuclear test-ban treaty activism; he is the only person to havewon two unshared Nobel Prizes.

John Bardeen: in Physics 1956, for the inventionof the transistor; and Physics 1972, for the theoryof superconductivity.

Frederick Sanger: in Chemistry 1958, for struc-ture of the insulin molecule; and in Chemistry1980, for virus nucleotide sequencing.

As a group, the International Committee of theRed Cross (ICRC) has received the Nobel PeacePrize three times: in 1917, 1944, and 1963. Thefirst two prizes were specifically in recognition ofthe group's work during the world wars, and thethird was awarded at the year of its 100-YearAnniversary.

The United Nations High Commissioner for Refu-gees (UNHCR) has won the Peace Prize twice: in1954 and 1981.

A number of families have included multiplelaureates.

» The Curie family claim the most NobelPrizes, with five: » Maria Sklodowska-Curie, Physics 1903 andChemistry 1911 » Her husband Pierre Curie, Physics 1903 » Their daughter Irène Joliot-Curie, Chemistry1935 » Their son-in-law Frederic Joliot-Curie, Chem-istry 1935 » In addition, Henry Labouisse, the husband ofthe Curies' second daughter Ève, was the directorof UNICEF when it won the Nobel Peace Prize in1965.

» Gunnar Myrdal (Economics, 1974) and wifeAlva Myrdal (Peace, 1982)

» J. J. Thomson, awarded the Nobel prize forPhysics in 1906, was the father of George PagetThomson who was awarded the Nobel prize forPhysics in 1937.

» William Henry Bragg shared the Nobel prizein Physics in 1915 with his son, William LawrenceBragg.

» Niels Bohr won the Nobel prize in Physics in1922, and his son Aage Bohr won the Nobel prizein Physics in 1975.

» Manne Siegbahn, who won the Nobel prize inPhysics in 1924, was the father of Kai Siegbahnwho shared the Nobel prize in Physics in 1981.

» Hans von Euler-Chelpin shared the Nobel prizein Chemistry in 1929 with Arthur Harden. Hisson, Ulf von Euler, was awarded the Nobel prizein Physiology or Medicine in 1970.

» C.V. Raman who won the Nobel prize in Phys-ics in 1930, was the uncle of SubrahmanyanChandrasekhar who won the Nobel prize in Phys-ics in 1983.

» Arthur Kornberg shared with Severo Ochoathe 1959 Nobel prize in Physiology or Medicinefor their discovery of the mechanisms in the bio-logical synthesis of ribonucleic acid and deoxyri-bonucleic acid. Kornberg's son Roger won the 2006Nobel prize in Chemistry for his studies of themolecular basis of eukaryotic transcription.

» Jan Tinbergen, who won the Nobel Prize forEconomics in 1969, was the brother of NikolaasTinbergen who shared the 1973 Nobel Prize inPhysiology or Medicine with Konrad Lorenz andKarl von Frisch.

Section -1 (Article : Nobel Prize 2009)

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Noble 2009 Winners

Nobel Peace Prize: US President Barack Obama for extraordinary efforts to strengthen interna-tional diplomacy and cooperation between peoples and for his work on nuclear non-proliferation.

Physiology or Medicine: US trio Elizabeth Blackburn, Carol W Greider and Jack W Szostak wonthe Nobel Medicine Prize for discovering an enzyme which helps chromosomes in cells stayeternally young.

Literature: Herta Mueller, a Romanian-born writer who produced tales of the disenfranchisedand fought for free speech, has won the 2009 Nobel prize for literature. She made her debut in1982 with a collection of short stories.

Physics: Charles Kao, Willard Boyle and George Smith shared the 2009 Nobel Prize for physicsfor work in fibre-optics and in semiconductors.

Chemistry: Indian-American Venkatraman Ramakrishnan has won Nobel Prize in chemistry. Heshares it with Thomas Steitz, an American, and Ada Yonath, an Israeli.

Economic Sciences: Elinor Ostrom and Oliver Williamson of the United States won the 2009Nobel Economics Prize for their work on the organisation of cooperation in economic gover-nance.

Section -1 (Article : Nobel Prize 2009)

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The G-20 Summit was held at Pittsburgh, USAon September 24-25, 2009. The G-20 leaders’ state-ment from Pittsburgh has a tough message for thefinance community.They have to raise farmore capital, say bye-bye to bonuses that soareven if medium termprofits of the institu-tions they worked fordo not, and face toughregulation, startingwith full compliancewith the enhancedBasel II Capital Frame-work by 2011, includ-ing a limit on borrow-ing.

The G-20 has large ambitions on energy securityand climate change and its Pittsburghcommuniqué binds members to phase out subsi-dies on fossil fuels over the medium term. It alsorecognises that the poor might need subsidies toconsume at least a minimal amount of energy andcalls for cash transfers to target beneficiaries, whileabandoning the policy of subsidising fuels in gen-eral. This would bring pressure on India to aban-don its present policy of subsidising kerosene andcooking gas and even diesel and petrol when theirprices rise above what the government thinks isabove the level of political tolerance.

Studies have shown that 40% of subsidised kero-sene gets diverted for adulteration of diesel. Thisnot only foils the goal of offering subsidy on thefuel but also reduces engine life across our trans-port fleets and adds to pollution and diesel con-sumption through reduced fuel efficiency. The Group of 20 (G-20), which includes develop-ing nations like India, Brazil, and South Africa,will replace the Group of 7 (G-7), the mostly-west-ern club of rich industrial nations, as a global fo-

By: Sant Prasad Gupta

G-20 Pittsburgh SummitConcluded with Tough Message for the Finance Community

rum for economic policy, it was announced dur-ing the Summit. “Dramatic changes in the worldeconomy have not always been reflected in the

global architecture foreconomic cooperation.This all started tochange today,” theWhite House said of themakeover, “The G-20leaders reached a his-toric agreement to putthe G-20 at the centreof their efforts to worktogether to build a du-rable recovery whileavoiding the financialfragilities that led to thecrisis.”

For India, this means a regular, perhaps annual ortwice-yearly pow-wows beyond the bi-lateralsand clubby tri-laterals (IBSA—India, Brazil, SouthAfrica) and quadri-laterals (BRIC—Brazil, Russia,India, China) that it was fostering.

Collectively, the G-20 economies account for 85%of global gross national product, 80% of worldtrade, and two-thirds of world population.

The new G20 will not have a permanent secre-tariat, and its chairmanship will be rotated annu-ally, with South Korea running the body next yearand France in 2011 A final agreement on a re-vamped representation structure will be com-pleted in negotiations at the International Mon-etary Fund (IMF), set to conclude by January 2011.Under the proposal, the G-20 leaders will annu-ally outline objectives for growth and then askthe IMF to carry out a form of assessment or peerreview to ensure member states are following theplan’s objectives Prime Minister Manmohan Singh returned fromthe G-20 Summit at Pittsburgh with some major

Section -1 (Article : G-20 Pittsburgh Summit)

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gains at hand that are making the rich nations nowlook at the developing world in a new light. Itwas evident from the final communiqué issued bythe G-20 leaders at the end of the summit that itreflected a lot of what Manmohan Singh had beenpointing out prior to the summit.

In some of the other aspects of global financialstructure, too, India’s stand was reflected in equalmeasure notably greater voting rights for devel-oping countries in the International MonetaryFund (IMF). In fact, the developing countries,mainly India, China and Brazil, also managed tosecure what was rather unthinkable even a de-cade ago a peer review of the economic policyframework of rich countries.

G-20 Leaders Statement

To launch a framework that lays out the poli-cies and the way we act together to generatestrong, sustainable and balanced global growth.G 20 need a durable recovery that creates thegood jobs their people need.

G 20 need to shift from public to private sourcesof demand, establish a pattern of growth acrosscountries that is more sustainable and balanced,and reduce development imbalances. G 20 pledgeto avoid destabilizing booms and busts in asset andcredit prices and adopt macroeconomic policies,consistent with price stability, that promote ad-equate and balanced global demand. G 20 will alsomake decisive progress on structural reforms thatfoster private demand and strengthen long-rungrowth potential.

G 20 Framework for Strong, Sustainable and Bal-anced Growth is a compact that commits us towork together to assess how our policies fit to-gether, to evaluate whether they are collectivelyconsistent with more sustainable and balancedgrowth, and to act as necessary to meet their com-mon objectives.

To make sure regulatory system for banks andother financial firms reins in the excesses thatled to the crisis. Where reckless behavior and alack of responsibility led to crisis, G 20 will notallow a return to banking as usual.

G 20 committed to act together to raise capitalstandards, to implement strong international com-pensation standards aimed at ending practices thatlead to excessive risk-taking, to improve the over-the-counter derivatives market and to create morepowerful tools to hold large global firms to ac-count for the risks they take. Standards for largeglobal financial firms should be commensuratewith the cost of their failure. For all these reforms,G 20 have set for ourselves strict and precise time-tables.

To reform the global architecture to meet theneeds of the 21st century. After this crisis, criti-cal players need to be at the table and fullyvested in institutions to allow to cooperate tolay the foundation for strong, sustainable andbalanced growth.

G 20 established the Financial Stability Board(FSB) to include major emerging economies andwelcome its efforts to coordinate and monitorprogress in strengthening financial regulation.

G 20 are committed to a shift in InternationalMonetary Fund (IMF) quota share to dynamicemerging markets and developing countries of atleast 5% from over-represented countries to un-der-represented countries using the current quotaformula as the basis to work from. Today G 20have delivered on their promise to contribute over$500 billion to a renewed and expanded IMF NewArrangements to Borrow (NAB).

G 20 stressed the importance of adopting a dy-namic formula at the World Bank which prima-rily reflects countries’ evolving economic weightand the World Bank’s development mission, andthat generates an increase of at least 3% of votingpower for developing and transition countries, tothe benefit of under-represented countries.

While recognizing that over-represented countrieswill make a contribution, it will be important toprotect the voting power of the smallest poorcountries. G 20 called on the World Bank to playa leading role in responding to problems whosenature requires globally coordinated action, suchas climate change and food security, and agreed

Section -1 (Article : G-20 Pittsburgh Summit)

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that the World Bank and the regional develop-ment banks should have sufficient resources toaddress these challenges and fulfill their mandates.

To take new steps to increase access to food,fuel and finance among the world’s poorestwhile clamping down on illicit outflows. Stepsto reduce the development gap can be a potentdriver of global growth.

Over four billion people remain undereducated,ill-equipped with capital and technology, and in-sufficiently integrated into the global economy.G 20 need to work together to make the policyand institutional changes needed to accelerate theconvergence of living standards and productivityin developing and emerging economies to the lev-els of the advanced economies. To start, G 20 callon the World Bank to develop a new trust fund tosupport the new Food Security Initiative for low-income countries announced last summer. G 20will increase, on a voluntary basis, funding forprograms to bring clean affordable energy to thepoorest, such as the Scaling Up Renewable En-ergy Program.

To phase out and rationalize over the medium terminefficient fossil fuel subsidies while providing tar-geted support for the poorest. Inefficient fossil fuelsubsidies encourage wasteful consumption, reduceour energy security, impede investment in cleanenergy sources and undermine efforts to deal withthe threat of climate change.

To maintain our openness and move towardgreener, more sustainable growth.

G 20 will fight protectionism. G 20 are commit-ted to bringing the Doha Round to a successfulconclusion in 2010.

G 20 will spare no effort to reach agreement inCopenhagen through the United Nations Frame-work Convention on Climate Change (UNFCCC)negotiations.

Finally, G 20 agreed to meet in Canada in June2010 and in Korea in November 2010. G 20 ex-pect to meet annually thereafter and will meet inFrance in 2011.

A Framework for Strong, Sustainable, and Bal-anced Growth

G 20 has launched a Framework for Strong, Sus-tainable, and Balanced Growth. To put in placethis framework, G 20 committed to develop a pro-cess whereby they set out their objectives, putforward policies to achieve these objectives, andtogether assess their progress. G 20 will ask theIMF to help them with its analysis of how theirrespective national or regional policy frameworksfit together.

G 20 called on their Finance Ministers and Cen-tral Bank Governors to launch the new Frame-work by November by initiating a cooperativeprocess of mutual assessment of their policy frame-works and the implications of those frameworksfor the pattern and sustainability of global growth.G 20 believe that regular consultations, strength-ened cooperation on macroeconomic policies, theexchange of experiences on structural policies, andongoing assessment will promote the adoption ofsound policies and secure a healthy globaleconomy.

G 20 compact is that: » G-20 members will agree on shared policy ob-jectives. These objectives should be updated asconditions evolve.

» G-20 members will set out their medium-termpolicy frameworks and will work together to as-sess the collective implications of their nationalpolicy frameworks for the level and pattern of glo-bal growth and to identify potential risks to fi-nancial stability.

» G-20 Leaders will consider, based on the re-sults of the mutual assessment, and agree any ac-tions to meet their common objectives.

Section -1 (Article : G-20 Pittsburgh Summit)

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What is the G-20

The Group of Twenty (G-20) Finance Ministersand Central Bank Governors was established in1999 to bring together systemically important in-dustrialized and developing economies to discusskey issues in the global economy. The inauguralmeeting of the G-20 took place in Berlin, on De-cember 1516, 1999, hosted by German and Cana-dian finance ministers.

Mandate

The G-20 is an informal forum that promotes openand constructive discussion between industrial andemerging-market countries on key issues relatedto global economic stability. By contributing tothe strengthening of the international financialarchitecture and providing opportunities for dia-logue on national policies, international co-opera-tion, and international financial institutions, theG-20 helps to support growth and developmentacross the globe.

Origins

The G-20 was created as a response both to thefinancial crises of the late 1990s and to a growingrecognition that key emerging-market countrieswere not adequately included in the core of glo-bal economic discussion and governance. Prior tothe G-20 creation, similar groupings to promotedialogue and analysis had been established at theinitiative of the G-7. The G-22 met at Washing-ton D.C. in April and October 1998. Its aim wasto involve non-G-7 countries in the resolution ofglobal aspects of the financial crisis then affectingemerging-market countries. Two subsequentmeetings comprising a larger group of participants(G-33) held in March and April 1999 discussedreforms of the global economy and the interna-tional financial system. The proposals made by theG-22 and the G-33 to reduce the world economy'ssusceptibility to crises showed the potential ben-efits of a regular international consultative forumembracing the emerging-market countries. Sucha regular dialogue with a constant set of partners

was institutionalized by the creation of the G-20in 1999.

Membership

The G-20 is made up of the finance ministers andcentral bank governors of 19 countries:Argentina, Australia, Brazil, Canada, China,France, Germany, India, Indonesia, Italy, Japan,Mexico, Russia, Saudi Arabia, South Africa, SouthKorea, Turkey, United Kingdom, United States ofAmerica

The European Union, who is represented by therotating Council presidency and the EuropeanCentral Bank, is the 20th member of the G-20. Toensure global economic fora and institutions worktogether, the Managing Director of the Interna-tional Monetary Fund (IMF) and the President ofthe World Bank, plus the chairs of the Interna-tional Monetary and Financial Committee and De-velopment Committee of the IMF and WorldBank, also participate in G-20 meetings on an ex-officio basis. The G-20 thus brings together im-portant industrial and emerging-market countriesfrom all regions of the world. Together, membercountries represent around 90 per cent of globalgross national product, 80 per cent of world trade(including EU intra-trade) as well as two-thirdsof the world's population. The G-20's economicweight and broad membership gives it a high de-gree of legitimacy and influence over the man-agement of the global economy and financial sys-tem.

Achievements

The G-20 has progressed a range of issues since1999, including agreement about policies forgrowth, reducing abuse of the financial system,dealing with financial crises and combating ter-rorist financing. The G-20 also aims to foster theadoption of internationally recognized standardsthrough the example set by its members in areassuch as the transparency of fiscal policy and com-bating money laundering and the financing of ter-rorism. In 2004, G-20 countries committed to newhigher standards of transparency and exchange of

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information on tax matters. This aims to combatabuses of the financial system and illicit activitiesincluding tax evasion. The G-20 also plays asignificant role in matters concerned with the re-form of the international financial architecture. The G-20 has also aimed to develop a commonview among members on issues related to furtherdevelopment of the global economic and finan-cial system and held an extraordinary meeting inthe margins of the 2008 IMF and World Bankannual meetings in recognition of the current eco-nomic situation. At this meeting, in accordancewith the G-20s core mission to promote open andconstructive exchanges between advanced andemerging-market countries on key issues relatedto global economic stability and growth, the Min-isters and Governors discussed the present finan-cial market crisis and its implications for the worldeconomy. They stressed their resolve to work to-gether to overcome the financial turmoil and todeepen cooperation to improve the regulation, su-pervision and the overall functioning of the worldsfinancial markets.

Chair

Unlike international institutions such as the Or-ganization for Economic Co-operation and Devel-opment (OECD), IMF or World Bank, the G-20(like the G-7) has no permanent staff of its own.The G-20 chair rotates between members, and isselected from a different regional grouping ofcountries each year. In 2009 the G-20 chair isthe United Kingdom, and in 2010 it will be SouthKorea. The chair is part of a revolving three-mem-ber management Troika of past, present and fu-ture chairs. The incumbent chair establishes a tem-porary secretariat for the duration of its term,which coordinates the group's work and organizesits meetings. The role of the Troika is to ensurecontinuity in the G-20's work and managementacross host years.

Former G-20 Chairs: n 1999-2001 Canada n 2002 India n 2003 Mexico

n 2004 Germany n 2005 China n 2006 Australia n 2007 South Africa n 2007 Brazil

Meetings and activities

It is normal practice for the G-20 finance minis-ters and central bank governors to meet once ayear. The last meeting of ministers and governorswas held in São Paulo, Brazil on 8-9 November2008. The ministers' and governors' meeting isusually preceded by two deputies' meetings andextensive technical work. This technical worktakes the form of workshops, reports and case stud-ies on specific subjects, that aim to provide minis-ters and governors with contemporary analysis andinsights, to better inform their consideration ofpolicy challenges and options.

Towards the end of 2008 Leaders of the G-20Countries meet in Washington. This meeting re-mitted follow up work to Finance Ministers. Inaddition to their November meeting in order totake forward this work in advance of the Leaderssummit in London on 2nd April Finance Minis-ters and Central Bank Governors will also meet inMarch 2009. A deputies meeting will be held inFebruary 2009 to prepare for the Ministers meet-ing.

Interaction with Other InternationalOrganizations

The G-20 cooperates closely with various othermajor international organizations and fora, as thepotential to develop common positions on com-plex issues among G-20 members can add politi-cal momentum to decision-making in other bod-ies. The participation of the President of the WorldBank, the Managing Director of the IMF and thechairs of the International Monetary and Finan-cial Committee and the Development Committeein the G-20 meetings ensures that the G-20 pro-cess is well integrated with the activities of theBretton Woods Institutions. The G-20 also works

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with, and encourages, other international groups and organizations, such as the Financial Stability Forum,in progressing international and domestic economic policy reforms. In addition, experts from private-sector institutions and non-government organisations are invited to G-20 meetings on an ad hoc basis inorder to exploit synergies in analyzing selected topics and avoid overlap.

External Communication

The country currently chairing the G-20 posts details of the group's meetings and work program on adedicated website. Although participation in the meetings is reserved for members, the public is informedabout what was discussed and agreed immediately after the meeting of ministers and governors has ended.After each meeting of ministers and governors, the G-20 publishes a communiqué which records theagreements reached and measures outlined. Material on the forward work program is also made public.

G-20 Working Groups

The November 15th Washington Summit, on the international response to the global financial andeconomic crisis, tasked G-20 Finance Ministers to take forward work in the following five areas: n Strengthening transparency and accountability n Enhancing sound regulation n Promoting integrity in financial markets n Reinforcing international cooperation n Reforming the International Financial Institutions

As Chair of the G-20 in 2009 the UK, working closely with Brazil and Korea 2008 and 2010 Chairs respec-tively, has established four working groups to advance this work for the next Leaders Summit on 2 April inLondon. Each working group is co-chaired by two senior officials from the G-20, one from a developed andone from an emerging market economy. Each G-20 country is represented on each working group. Expertsfrom relevant international financial institutions, standard setting bodies, non G-20 countries, businessand academia have also been invited by co-chairs to input into the work of the groups.

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Fifteenth ASEAN Summit has held in Cha-AmHua Hin, Thailand on 23-25 October 2009. Aftera year of uncertain economic prospects, a sense ofcautious optimism appeared to have returned toAsia’s leaders as they returned to the business ofincreasing trade within the region, lowering tar-iffs and discussingplans for a widerAsian free trade zone.

The Thai prime min-ister, AbhisitVejjajiva, said a majorconcern raised byleaders was findingnew avenues for eco-nomic growth that arenot dependent on themarkets of the UnitedStates and Europe. He said that the old growthmodel where, simply put, we have still to rely onconsumption in the West for goods and servicesproduced here, we feel will no longer serve us.

A statement issued after the final meetings saidthe leaders were encouraged that the globaleconomy had shown signs of recovery but urgedgovernments to remain vigilant.

Leaders discussed many other issues, ranging fromclimate change and the formation of a humanrights commission in Southeast Asia. But therewere also reminders of the tensions accompany-ing Asia’s economic rise, especially jockeying byJapan and China for the top leadership role in theregion.

The Japanese and Chinese governments have com-peting proposals to finance infrastructure projectsin Southeast Asia, and the two nations appearedto disagree at the meeting about the future of anEast Asian free trade zone. The Japanese delega-tion stressed the importance of the involvementof the United States, perhaps in part to appeaseconcerns in Washington over possible shifts in

By: Dr. Sachchidanand

Fifteenth ASEAN SummitNew Vision for a Wider Asian Free Trade Zone

Tokyo toward a more Asia-centered Japanese for-eign policy.

Japan places the U.S.-Japan alliance at the foun-dation of its diplomacy,” Yukio Hatoyama, theJapanese prime minister, told the leaders at the

summit meeting.There are severalproposals for a fu-ture East Asian freetrade zone the Japa-nese version iscalled the EastAsian Communitybut all remain vagueand nascent con-cepts that leaderssay are a long wayfrom reality. The

proposals are often compared to a European Union-style single market, but analysts say a pan-Asianeconomic bloc would be unlikely to have E.U.-style open borders, free movement of labor andcommon security policies.

China did not publicly offer its vision of an EastAsian community, but a communiqué issued aftera meeting of what is known as Asean plus threethe leaders of Asean, China, Japan and South Ko-rea said those 13 countries would form the mainvehicle towards the long-term goal of building anEast Asian Community. That would seem to ex-clude a role for the United States.

Asean leaders signed an agreement for China toset up an Asean-China center in Beijing, financedby China. Asean leaders said they “commended”and supported China’s efforts to expand the use ofits currency, the yuan, instead of the dollar in someregional trade transactions. And the leaders saidthey “welcomed” China’s initiatives to build roadsin south-central Myanmar and western Cambo-dia and its financing of a bridge over the MekongRiver between Laos and the Thai town of Chiang

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Khong, a project delayed in part by the economiccrisis. China told Asean leaders that they wereeligible for a $15 billion Southeast Asian infra-structure loan program sponsored by the Chinesegovernment.

The leaders said they were well on track for theAsean free-trade area by January, 2010. The agree-ment, long in the making, eliminates tariffs for 87percent of imports within Asean countries. Asean’s10 member countries are Brunei, Cambodia, Laos,Indonesia, Malaysia, Myanmar, the Philippines,Singapore, Thailand and Vietnam.

Summits closed with a resoundingchorus

The 15th ASEAN Summit and Re-lated Summits closed with a re-sounding chorus that the region waswell on course towards its commu-nity-building efforts. In a well-re-ceived move, ASEAN's Dialogue

Partners extended further support for regional in-tegration and its aim of establishing an ASEANCommunity by 2015.

The Secretary-General of ASEAN Dr SurinPitsuwan said that the ASEAN Community is wellon course and our Dialogue Partners are fully com-mitted to help us in our drive towards its comple-tion. The Dialogue Partners had pledged their sup-port and are convinced of the centrality and thecontinued viability of ASEAN.

Much of the discussions had focused on the ben-efits of enhancing intra-regional connectivity asit would contribute towards promoting ASEANcentrality and help build the ASEAN Community.This is in line with the theme of the Summits:'Enhancing Connectivity, Empowering Peoples'.

The Leaders underscored the need for closer co-operation both within ASEAN and also with itsDialogue Partners to address critical issues suchas the impact and recovery from the global finan-cial crisis, climate change and food and energysecurity. They also urged for greater coordinationin meeting challenges related to disaster manage-

ment and response and pandemic diseases.

The region's increasing clout in global affairs isincreasingly recognised. In this regard, the con-tinued participation of the ASEAN Chair and theSecretary-General of ASEAN in future G-20 Sum-mits in order to ensure close coordination betweenits regional approaches and the global approachwas strongly supported by ASEAN Dialogue Part-ners. The ASEAN Chair and the Secretary-Gen-eral of ASEAN had attended the previous two G-20 Summits in London and Pittsburgh.

Thailand will end its Chairmanship at the end ofthe year, with Viet Nam as the incoming Chairfor 2010.

ASEAN Plus Three Summit

Apart from reviewing the progress of cooperationto date, the 12th ASEAN Plus Three Summitlargely focused on deepening regional cooperationand on reviving growth.

On the financial sector, the Summit discussed theimplementation of the Chiang Mai InitiativeMultilateralisation (CMIM) and reiterated theircall for the CMIM, with a total fund value of USD120 billion, to be operational by the end of theyear.

The Asian Bond Markets Initiative, a mechanismfor the financing of development projects, and theproposal for an East Asian Free Trade Area (FTA),were also on the table.

The 12th ASEAN Plus Three Summit issued theCha-am Hua Hin Statement on ASEAN Plus ThreeCooperation on Food Security and Bio-Energy De-velopment. The statement aims to enhance foodproduction capabilities and promote theharmonisation of safety and bio-energy produc-tion standards. The statement also encompassesthe establishment of the ASEAN Plus Three Emer-gency Rice Reserve mechanism.

The 12th ASEAN Plus Three Summit further dis-cussed youth exchange, especially in terms of

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cross-cultural education, climate change andhealth-related issues.

Promotion and Protection of the Rightsof Women and Children

Just shortly after the establishment of the ASEANIntergovernmental Commission on Human Rights(AICHR), another mechanism on the rights ofwomen and children, the ASEAN Commission onthe Rights of Women and Children, will be set upin 2010.This and other regional mechanisms shall be partand parcel of the ASEAN human rights regimeunder the single umbrella of the AICHR," H.E.Abhisit Vejjajiva, Prime Minister of Thailand, saidin his remarks.

The terms of reference of the ASEAN Commis-sion on the Rights of Women and Children hasrecently been approved by the ASEAN Ministe-rial Meeting on Social Welfare and Development.Each Member State is to appoint one representa-tive on women's rights and one on children's rightsby next year.

ASEAN-India business council

The Association of Southeast Asian Nations(ASEAN) said an ASEAN-India business councilwould be set up to strengthen business networksand opportunities. It also said it would step up ef-forts for concluding Free Trade Agreement nego-tiations in services and investment sectors withIndia. This comes following the signing of theIndia-ASEAN Free Trade Agreement in August2009.

The ASEAN said that FTA agreement is expectedto create a free trade area comprising about 1.7billion people with a combined GDP of approxi-mately 2.75 trillion dollar as of 2008.

The ASEAN said it had instructed its officials toexert maximum effort towards concluding nego-tiations in services and investment to completethe mandate in the Framework Agreement onComprehensive Economic Cooperation between

Asean and India (signed in 2003).

India signs Free Trade Agreement withASEAN members

India signed a Freed Trade Agreement (FTA) withthe ASEAN members. It could be possible afterthe final obstacle on the Free Trade Agreementbetween India and ASEAN members was re-moved, as the last country; Vietnam also signedon the agreement.

This agreement is aimed to help fighting the situ-ation like global crunch, as there will be mini-mum duties on goods amongst their trading inASEAN countries. The trade size between Indiaand ASEAN countries is huge and its size is around48 billion dollars. This Free Trade will come intoforce from July 2010.

India-ASEAN round table

Prime Minister Manmohan Singh suggested theestablishment of an India-ASEAN round table toprovide policy inputs to the governments on fu-ture areas of cooperation. Addressing the seventhIndia-ASEAN Summit he said the round tableshould comprise think tanks, policy makers, schol-ars, journalists and business representatives tobridge the knowledge gap.

He also sought intensified negotiations on an openskies policy and further simplification of the visaregime to encourage business and tourist travelbetween India and ASEAN countries. He also pro-posed greater exchanges of youths and MPs.

Manmohan Singh said India was ready to shareSatellite data with the 10-member Association ofSoutheast Asian Nations (ASEAN) to manage natu-ral disasters and to launch small satellites, scien-tific instruments and payloads for experiments inremote sensing.

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Five key initiatives for boosting India-ASEAN ties

Emphasizing India’s engagement with the ASEANcountries as a key element of his country’s visionof an Asian economic community that is based onan open and inclusive architecture, visiting IndianPrime Minister, Dr. Manmohan Singh said NewDelhi wishes to partner ASEAN in realizing thisvision for mutual benefit, mutual prosperity andmutual respect. Addressing the Seventh India-ASEAN Summit Dr. Singh described the ASEANregion as being synonymous with dynamic eco-nomic growth.

Lauding the conclusion of the India-ASEANTrade-in-Goods Agreement in August 2009 as amajor first step 'in our objective of creating anIndia-ASEAN Regional Trade and InvestmentArea,” Singh said the journey towards it was noteasy, and having succeeded in overcoming sev-eral difficulties, it gave hope for the future. Healso welcomed the healthy growth of India-ASEAN trade despite the recent global economicdownturn. He said that the volume of trade stoodat 48 billion US dollars in 2008.

He also said that India attached high importanceto the early conclusion of negotiations on theTrade-in-Services and Investment Agreement.

China- India resolve differences onborder issues

Chinese Prime Minister Wen Jiabao and his In-dian counterpart Manmohan Singh agreed togradually narrow differences on border issues be-tween the two countries. The leaders who met onthe sidelines of the ongoing ASEAN-related sum-mits also resolved to try to ensure peace and sta-bility in the border area, as it would be conduciveto resolving the border issues and furthering bi-lateral cooperation.

The two leaders discussed issues of common con-cern during their meeting on the sidelines of theASEAN Summit. The two sides also agreed to take

measures to encourage bilateral trade and invest-ment, with the hope that bilateral annual tradewould reach 60 billion dollars by 2010.

All About ASEAN

The Association of Southeast Asian Nations, orASEAN, was established on 8 August 1967 inBangkok with the signing of the ASEAN declara-tion (Bangkok Declaration) by the Founding Fa-thers of ASEAN, namely, Indonesia, Malaysia, thePhilippines, Singapore, and Thailand.

Brunei Darussalam then joined on 8 January 1984,Vietnam on 28 July 1995, Lao PDR and Myanmaron 23 July 1997, and Cambodia on 30 April 1999,making up what is today the ten Member Statesof ASEAN.The ASEAN declaration states that the aims andpurposes of the Association are: (1) to accelerateeconomic growth, social progress and cultural de-velopment in the region and (2) to promote re-gional peace and stability through abiding respectfor justice and the rule of law in the relationshipamong countries in the region and adherence tothe principles of the United Nations Charter.

ASEAN Community

In 2003, at the 9th ASEAN Summit, the ASEANLeaders resolved that an ASEAN Community beestablished by 2020. However, in 2007, during the12th ASEAN Summit, they decided to acceleratethe establishment by 2015.

The ASEAN Community is comprised of three pil-lars, namely the ASEAN Political-Security Com-munity, ASEAN Economic Community andASEAN Socio-Cultural Community. Each pillarhas its own Blueprint, and, together with the Ini-tiative for ASEAN Integration (IAI) StrategicFramework and IAI Work Plan Phase II (2009-2015), they form the Roadmap for an ASEANCommunity 2009-2015.

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ASEAN Political Security Community (APSC)

Aims to ensure that the peoples and Member States of ASEAN live in peace with one another and with theworld at large in a just, democratic and harmonious environment.

ASEAN Economic Community (AEC)

Aims to transform ASEAN into a stable, prosperous, and highly competitive region with equitable eco-nomic development, and reduced poverty and socio-economic disparities.

ASEAN Socio-Cultural Community (ASCC)

Aims to contribute to realising an ASEAN Community that is people-oriented and socially responsiblewith a view to achieving enduring solidarity and unity among the peoples and Member States of ASEAN.It seeks to forge a common identity and build a caring and sharing society which is inclusive and wherethe well-being, livelihood, and welfare of the peoples are enhanced.

ASEAN Charter

The ASEAN Charter serves as a firm foundation in achieving the ASEAN Community by providing legalstatus and institutional framework for ASEAN. It also codifies ASEAN norms, rules and values; sets cleartargets for ASEAN; and presents accountability and compliance.

The ASEAN Charter entered into force on 15 December 2008. A gathering of the ASEAN Foreign Minis-ters was held at the ASEAN Secretariat in Jakarta to mark this very historic occasion for ASEAN.

Fundamental principles

The Treaty of Amity and Cooperation in Southeast Asia (TAC) of 1976 also contains the followingfundamental principles which ASEAN Member States abide by in their relations with one another:

n Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity

of all nations;

n The right of every State to lead its national existence free from external interference, subversion or

coercion;

n Non-interference in the internal affairs of one another;

n Settlement of differences or disputes by peaceful manner;

n Renunciation of the threat or use of force; and

n Effective cooperation among themselves.

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By: Avadhesh Kumar Pandey

Global Financial Stability ReportFinancial Stability has Improved, but Risks

Remain ElevatedInternational Monetary Fund (IMF) has intro-duced it’s new report on Global financial stabilityin Oct 2009.According to report, Global financialstability has improved following unprecedentedpolicy actions and signs of economic recovery. Still,overall risks remain elevated and the risk of re-versal remains significant. IMF estimate of globallosses arising from the crisis for 2007-10 nowstands at roughly $3.4 trillion (around $600 bil-lion lower than the last GFSR), largely due to ris-ing securities values.

Securities writedowns by financials have begunto taper, but credit deterioration will continue tolead to higher loan losses over the next few years.Bank writedowns on holdings of loans and secu-rities realized between mid-2007 and mid-2009have amounted to $1.3 trillion. We estimate that$1.5 trillion of actual and potential writedownsthrough end-2010 has yet to be recognized. Whilethe capital positions and outlook for banks haveimproved significantly since the last GFSR, earn-ings are not expected to fully offset forthcomingwritedowns. Banks have enough capital to sur-vive, but they remain under deleveraging pres-sure. With steady-state earnings likely to be lowerin the post-crisis environment, stronger action isneeded to bolster bank capital and earnings ca-pacity to support lending.

Private Sector Credit Growth

Private sector credit growth has continued to con-tract across the major economies as weak activityand household deleveraging restrain private sec-tor credit demand and the financing capacity ofboth the bank and nonbank sectors remains lim-ited (Figure 3). However, total borrowing needsare not decelerating as rapidly, due to burgeoningpublic sector deficits. The likely result is con-strained credit availability. Continued support bycentral banks may be required to help alleviatethis constraint.

Tail Risks in Emerging Markets haveDeclined

Asia and Latin America have benefited most fromthe stabilization of core markets and a recovery inportfolio inflows. However, refinancing and de-fault risks in the corporate sector remain relativelyhigh, with corporates facing a foreign-currencydebt refinancing burden of $400 billion in the nexttwo years. The situation is most acute in emerg-ingEurope, where corporate revenues are decliningsharply as a result of the recession and several largedefaults have already occurred, but is also a con-cern for smaller, leveraged corporations in Asiaand Latin America. Countries heavily dependenton external financing and cross-border funding aremost vulnerable.

Transfer of Risk from the Private Sectorto Public Balance Sheets

The transfer of risk from the private sector to pub-lic balance sheets raises concerns that longer-terminterest rates may face upward pressure unless gov-ernments credibly commit to medium-term fiscalsustainability and anchor expectations. While netsovereign issuance is expected to decline in 2010–12 relative to the projections for 2009, it is likelyto remain well above the 2002–07 average, as fis-cal deficits remain high (Figure 4). Historical paneldata analysis indicates that a persistent 1 percent-agepoint increase in the fiscal deficit relative to GDPleads to a 10 to 60 basis point increase in longterminterest rates.

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While Systemic Risks have Declined,the Policy Challenges are Significant

Policymakers need to (i) ensure sufficient creditgrowth to support the nascent economic recov-ery; (ii) devise appropriate exit strategies; (iii)manage risks associated with sovereign balancesheet pressures; and (iv) maintain a balance be-tween regulation and market forces in reducingfuture systemic risks. Moving toward the medium-term, policymakers should seek to restore marketdiscipline, address risks posed by systemic insti-tutions, institute a macroprudential policy ap-proach, and strengthen the oversight of cross-bor-der financial institutions.

The International Monetary Fund

The International Monetary Fund (IMF) is an in-ternational organization that oversees the globalfinancial system by following the macroeconomicpolicies of its member countries, in particular thosewith an impact on exchange rates and the balanceof payments. It is an organization formed with astated objective of stabilizing international ex-change rates and facilitating development. It alsooffers highly leveraged loans mainly to poorercountries. Its headquarters are located in Wash-ington, D.C., United States. The current chiefeconomist is Olivier Blanchard.

The International Monetary Fund was created inJuly 1944, originally with 45 members, with a goalto stabilize exchange rates and assist the recon-struction of the world's international paymentsystem. Countries contributed to a pool whichcould be borrowed from, on a temporary basis, bycountries with payment imbalances.

The IMF describes itself as "an organization of 186countries (Kosovo being the 186th, as of June 29,2009), working to foster global monetary coop-eration, secure financial stability, facilitate inter-national trade, promote high employment andsustainable economic growth, and reduce pov-erty". With the exception of Taiwan (expelled in1980), North Korea, Cuba (left in 1964), Andorra,Monaco, Liechtenstein, Tuvalu and Nauru, all UNmember states participate directly in the IMF.

Most are represented by other member states ona 24-member Executive Board but all membercountries belong to the IMF's Board of Governors.

Current Scenario

The IMF's influence in the global economy steadilyincreased as it accumulated more members. Thenumber of IMF member countries has more thanquadrupled from the 44 states involved in its es-tablishment, reflecting in particular the attain-ment of political independence by many develop-ing countries and more recently the collapse ofthe Soviet bloc. The expansion of the IMF's mem-bership, together with the changes in the worldeconomy, have required the IMF to adapt in avariety of ways to continue serving its purposeseffectively.

In 2008, faced with a shortfall in revenue, the In-ternational Monetary Fund's executive boardagreed to sell part of the IMF's gold reserves. OnApril 27, 2008, IMF Managing Director Domin-ique Strauss-Kahn welcomed the board's decisionApril 7, 2008 to propose a new framework for thefund, designed to close a projected $400 millionbudget deficit over the next few years. The bud-get proposal includes sharp spending cuts of $100million until 2011 that will include up to 380 staffdismissals.

At the 2009 G-20 London summit, it was decidedthat the IMF would require additional financialresources to meet prospective needs of its mem-ber countries during the ongoing global crisis. Aspart of that decision, the G-20 leaders pledged toincrease the IMF's supplemental cash tenfold to$500 billion, and to allocate to member countriesanother $250 billion via Special Drawing Rights.

Data Dissemination Systems

In 1995, the International Monetary Fund beganwork on data dissemination standards with theview of guiding IMF member countries to dissemi-nate their economic and financial data to the pub-lic. The International Monetary and FinancialCommittee (IMFC) endorsed the guidelines for thedissemination standards and they were split into

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two tiers: The General Data Dissemination Sys-tem (GDDS) and the Special Data DisseminationStandard (SDDS).

The International Monetary Fund executive boardapproved the SDDS and GDDS in 1996 and 1997respectively and subsequent amendments werepublished in a revised “Guide to the General DataDissemination System”. The system is aimed pri-marily at statisticians and aims to improve manyaspects of statistical systems in a country. It is alsopart of the World Bank Millennium DevelopmentGoals and Poverty Reduction Strategic Papers.

The IMF established a system and standard toguide members in the dissemination to the publicof their economic and financial data. Currentlythere are two such systems: General Data Dissemi-nation System (GDDS) and its superset SpecialData Dissemination System (SDDS), for thosemember countries having or seeking access to in-ternational capital markets. The primary objec-tive of the GDDS is to encourage IMF membercountries to build a framework to improve dataquality and increase statistical capacity building.This will involve the preparation of metadata de-scribing current statistical collection practices andsetting improvement plans. Upon building aframework, a country can evaluate statisticalneeds, set priorities in improving the timeliness,transparency, reliability and accessibility of finan-cial and economic data. Some countries initiallyused the GDDS, but lately upgraded to SDDS.

Membership Qualifications

Any country may apply for membership to theIMF. The application will be considered first bythe IMF's Executive Board. After its consideration,the Executive Board will submit a report to theBoard of Governors of the IMF with recommen-dations in the form of a "Membership Resolution."These recommendations cover the amount ofquota in the IMF, the form of payment of the sub-scription, and other customary terms and condi-tions of membership. After the Board of Gover-nors has adopted the "Membership Resolution,"the applicant state needs to take the legal stepsrequired under its own law to enable it to sign the

IMF's Articles of Agreement and to fulfil the ob-ligations of IMF membership. Similarly, any mem-ber country can withdraw from the Fund, al-though that is rare. For example, in April 2007,the president of Ecuador, Rafael Correa announcedthe expulsion of the World Bank representativein the country. A few days later, at the end ofApril, Venezuelan president Hugo Chavez an-nounced that the country would withdraw fromthe IMF and the World Bank. Chavez dubbed bothorganisations as “the tools of the empire” that“serve the interests of the North”. As of June 2009,both countries remain as members of bothorganisations. Venezuela was forced to back downbecause a withdrawal would have triggered de-fault clauses in the country's sovereign bonds.

A member's quota in the IMF determines theamount of its subscription, its voting weight, itsaccess to IMF financing, and its allocation of Spe-cial Drawing Rights (SDRs). The United States hasexclusive veto power. A member state cannotunilaterally increase its quota—increases must beapproved by the Executive Board and are linkedto formulas that include many variables such asthe size of a country in the world economy. Forexample, in 2001, China was prevented from in-creasing its quota as high as it wished, ensuring itremained at the level of the smallest G7 economy(Canada). In September 2005, the IMF's membercountries agreed to the first round of ad hoc quotaincreases for four countries, including China. OnMarch 28, 2008, the IMF's Executive Board endeda period of extensive discussion and negotiationover a major package of reforms to enhance theinstitution's governance that would shift quota andvoting shares from advanced to emerging marketsand developing countries. The Fund's Board ofGovernors must vote on these reforms by April28, 2008.

IMF About India

The International Monetary Fund said on Oct 29,2009 that pick up in inflationary expectations sug-gest that demand pressures are already pushingup inflation in India. "A pick up in core inflationand inflation expectations suggests that demandpressures are already playing a role in pushing up

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inflation in India," IMF's Regional Outlook for Asiaand Pacific released today said. IMF said in somesectors recovery is advancing so rapidly that out-put gaps are reducing and pressures are emerging."In India, for example industrial production is re-covering rapidly, and core inflation and inflationexpectations are rising," it said. India's industrialgrowth has recovered to a 22-month high of 10.4%in August compared with 1.7% a year ago. Themultilateral funding agency also said it saw up-side to its forecasts on India's growth in 2009 and2010 as signs of recovery are broadening. In In-dia, there are upside risks to growth projectionsfor both this year and the next as signs of recov-ery are broadening and adverse impact of themonsoon is likely to be smaller than anticipated.

IMF had earlier this month projected the Indianeconomy to grow 5.4% in 2009 and 6.4% in 2010.The southwest monsoon, the lifeline of India's ag-riculture, was 23% below normal this year, theworst in 37 years. The poor rains are likely to bringdown rice output, India's main summer crop, by10-15 million tonne. The normalisation of finan-cial market conditions is expected to support re-bound of private investment in India and sustaindemand even as fiscal stimulus wanes.

Asian Outlook

IMF projected the Asian economy to grow 2.8%and 5.8% in 2009 and 2010, respectively, mainlydriven by China and India. Emerging Asia is ex-pected to grow 5.1% and 7.0% in 2009 and 2010.However, if China and India are excluded, thegrowth in emerging Asia will come down to (-)0.8% in 2009 and 3.8% in 2010. The report saidAsia has rebounded from the depth of the globalfinancial crisis. "The 'green shoots' recovery ap-pears more firmly rooted in Asia than in otherregions. Not only are they more prevalent, butthey have also appeared earlier, and have pro-gressed further," the report said. The global con-ditions are expected to continue to improve in2010 with western economies progressing fromstabilisation to recovery. But the recovery is ex-pected to be sluggish one. The report said the mainconcern for Asian policy makers is to find the bal-ance between supporting growth until the recov-

ery is robust and self-sustaining and ensuring thatthe accommodative policies do not ignite infla-tion pressures.

India and the IMF

India and the IMF have had a friendly relation-ship, which has been beneficial for both. The IMFhas provided India with loans over the years andthis has helped the country to grow. The IMF hasalso praised India for it has been able to maintainaverage growth rate of its economy. India and theIMF has a positive relationship. The IMF has pro-vided financial assistance to India, which hashelped in boosting the country's economy. TheIMF praised the country for it was able to avoidthe Asian Financial Crisis in 1999 and was alsoable to maintain the average rate of growth of itseconomy.

International Monetary Fund said that the rea-sons behind the economy growth of India are thatthe RBI has been able to control inflation and hasalso handled its monetary policies very skillfully.The IMF has suggested that India can become afinancial super power by bringing in more reformsin its economic policies that will increase itsgrowth rate to 8%. The relationship between theIMF and India has grown strong over the years.In fact, the country has turned into a creditor tothe IMF and has stopped taking loans from it. In-dia and IMF must continue to boost their rela-tionship this way, as it will prove to be advanta-geous for both.

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Aspirants Times Previous Issues

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By: Dr. Divya

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+ÆOÉäVÉÉå E É ¦ÉÉ® iÉ ¨Éå =q ä„ªÉ „ÉÉä¹ÉhÉ E ® xÉÉ lÉÉ * +iÉ:{ÉÆSÉɪÉiÉÉå E Ò ´ªÉ´ÉºlÉÉ ¨Éå <ºÉ =q ä„ªÉ E Éä |ÉÉ{iÉ E ® xÉäE ® xÉä Eä ‡±ÉB {ɇ® ÉiÉÇxÉ ‡E ªÉÉ MɪÉÉ * „ÉɺÉxÉ ºÉÆSÉɱÉxÉEä ‡±ÉB +‡vÉE iÉ® E ÉÇSÉɇ® ªÉÉå E Ò ‡xɪÉÖ‡H E Ò MÉ<Ç *{ÉÆSÉɪÉiÉÉå {É® |ÉlÉ¨É +ÉG ÉhÉ ´É¹ÉÇ 1773 ¨Éå |ÉÉ® Ʀɽ Ö+É, VÉ¤É ÉÉ® äxÉ ½ ä˺] MºÉ Eä „ÉɺÉxÉ E É±É Éå ® äMªÉÖ±Éä„ÉxÉBC] u É® É {ÉÆSÉɪÉiÉÉå Eä +‡vÉE É® BE Eä ¤ÉÉn BE U ÒxÉä VÉÉxÉä ±ÉMÉä* MÉÉÆ É ºÉä ¨ÉɱÉMÉÖVÉÉ® Ò BE jÉ E ® xÉä Eä ‡±ÉB VɨÉÓn É® ‡xɪÉÖH ½ ÖB, VÉÉä ªÉ‡H MÉiÉ ° {É ºÉä ±ÉMÉÉxɴɺÉÚ±É E ® xÉä ±ÉMÉä * ‡¥É‡] „É „ÉɺÉxÉE É±É ¨Éå ´ªÉÉ{ÉE {Éè ÉÉxÉä {É® n Ò´ÉÉxÉÒ B´ÉÆ n hb xªÉɪÉɱɪÉÉå E Ò ºlÉÉ{ÉxÉɽ Ö<Ç, ‡VÉxÉE É IÉäjÉɇvÉE É® MÉÉÆ ÉÉå iÉE ¦ÉÒ |ɄɺiÉ lÉÉ *<Ç ½ ÉäxÉä Eä {ɇ® hÉɨɺ´É° {É OÉÉ¨É {ÉÆSÉɪÉiÉå vÉÒ® ä-vÉÒ® ä+{ÉxÉä |ÉɇvÉE É® ºÉä „ÉÚxªÉ ½ ÉäiÉÒ MÉ<È *

´É¹ÉÇ 1821 ¨Éå B‡±¡ xÉ º] ÉäxÉ xÉä OÉÉ¨É {ÉÆSÉɪÉiÉÉå Eä ¨É½ i´É E Éä º´ÉÒE É® E ® iÉä ½ ÖB =xÉE Ò „ɇH ªÉÉå E ÉäºÉÒ‡¨ÉiÉ E ® xÉä E Éä +xÉÖ‡SÉiÉ ` ½ ® ɪÉÉ * ´É¹ÉÇ 1857 ¨ÉåOÉɨÉÒhÉ º´ÉɪÉkÉ„ÉɺÉÒ ‡xÉE ɪÉÉå E Éä EÖ U ¨É½ i´É |Én ÉxÉE ® iÉä ½ ÖB EÖ U ® ÉVªÉÉå Éå ‡VɱÉÉ E Éä¹ÉÉå E Ò ºlÉÉ{ÉxÉÉ E ÒMÉ<Ç iÉlÉÉ OÉɨÉÒhÉ |É„ÉɺÉxÉ E Éä ¦ÉÚ-® ÉVɺ´É, ‡„ÉIÉÉ B´ÉÆ{ÉlÉ E ® ±ÉMÉÉxÉä Eä +‡vÉE É® |Én ÉxÉ ‡E B MÉB * ´É¹ÉÇ1882 ¨Éå ±ÉÉìb Ç ‡® {ÉxÉ xÉä OÉɨÉÒhÉ IÉäjÉÉå ¨Éå ¤ÉÉäb Ç +lÉ´ÉɨÉhb ±ÉÉå E Ò ºlÉÉ{ÉxÉÉ E É ºÉÖZÉÉ´É ‡n ªÉÉ * ɹÉÇ 1884 ÉåSÉäzÉ<Ç B´ÉÆ ¤ÉÆMÉÉ±É ¨Éå ªÉÚ‡xɪÉxÉ {ÉÆSÉɪÉiÉÉå Eä MÉ` xÉ Eä ºÉ¨¤ÉÆvÉ ¨Éå E É® Ç ÉÉ<Ç BE =±±ÉäJÉxÉÒªÉ |ɪÉÉºÉ lÉÉ *19´ÉÓ ºÉn Ò Eä =kÉ® Ér Ç Éå n Én É ¦ÉÉ<Ç xÉÉè® ÉäVÉÒ, ºÉÖ® äxp xÉÉlɤÉxÉVÉÔ, ¤ÉÉ±É MÉÆMÉÉvÉ® ‡iɱÉE , ±ÉɱÉÉ ±ÉÉVÉ{ÉiÉ ® ɪÉ,‡´É‡{ÉxÉ SÉxp {ÉɱÉ,® ÉÒxp xÉÉlÉ ` ÉEÖ ® +ɇn xÉäiÉÉ+ÉäÆ xÉäOÉɨÉÒhÉ VÉxÉiÉÉ E Éä =ºÉE Ò |ÉÉSÉÒxÉ OÉÉ¨É {ÉÆSÉɪÉiÉÉå iÉlÉÉ+Éi¨É‡xɦÉÇ® OÉɨÉÒhÉ ºÉ¨ÉÉVÉ ªÉ´ÉºlÉÉ E Ò ªÉÉn ‡n ±ÉÉ<Ç *´É¹ÉÇ 1907 ¨Éå +ÆOÉäVÉÉå xÉä ‡´ÉGä xp ÒE ® hÉ Eä ‡±ÉB „Éɽ Ò+ɪÉÉäMÉ Mɇ` iÉ ‡E ªÉÉ * ɽ n ä„ɦɮ Éå PÉÚ ÉÉ +Éè® =ºÉxÉä{ÉÆSÉɪÉiÉÉå E Ò ºlÉÉ{ÉxÉÉ E É ºÉÖZÉÉ´É ‡n ªÉÉ * 1910 ¨Éå<±Éɽ ɤÉÉn Éå +ɪÉÉä‡VÉiÉ +‡JÉ±É ¦ÉÉ® iÉÒªÉ ® ɹ] ÅÒªÉ E ÉÆOÉäºÉEä +‡vÉ´Éä„ÉxÉ Eä n Éè® ÉxÉ ‡¥É‡] „É ºÉ® E É® Eä ºÉ¨ÉIÉOÉÉ¨É {ÉÆSÉɪÉiÉÉå E Ò ºlÉÉ{ÉxÉÉ E Ò ¨ÉÉÆMÉ ® JÉÒ MÉ<Ç *

´É¹ÉÇ 1915 E Ò „ÉɺÉE ÒªÉ ‡® {ÉÉä] Ç Éå {ÉÆSÉɪÉiÉÉå Eä ‡´É¹ÉªÉ¨Éå E ½ É MɪÉÉ ‡E {ÉÆSÉɪÉiÉÉå E Éä ‡xɇ„SÉiÉ E ® ±ÉMÉÉxÉä E Ò+xÉÖ É‡iÉ n Ò VÉÉxÉÒ SÉɇ½ B * ±Éä‡E xÉ <ºÉ {É® |ÉÉÆiÉҪɺɮ E É® E É ‡xɪÉÆjÉhÉ ® JÉxÉÉ SÉɇ½ B* <ºÉ ¤ÉÉiÉ E É ¦ÉÒvªÉÉxÉ ® JÉxÉÉ SÉɇ½ B ‡E E ® ɺÉÚ±ÉÒ Éå {ÉÆSÉɪÉiÉå <Ƈb ªÉÉBC] Eä {ÉÉºÉ ½ ÉäxÉä Eä ¤ÉÉn {ÉÆSÉɪÉiÉÉå E Ò +Éä® EÖ U +Éè® vªÉÉxÉ ‡n ªÉÉ MɪÉÉ * <ºÉEä ±ÉÉMÉÚ ½ ÉäxÉä E É BE ¨É½ i´ÉÚ{ÉhÉÇ {ɇ® hÉÉ¨É ªÉ½ ½ Ö+É ‡E {ÉÆSÉɪÉiÉÉå E É ‡´É¹ÉªÉEä xp ÒªÉ ºÉ® E É® E É xÉ ½ ÉäE ® |ÉÉÆiÉÒªÉ ºÉ® E É® Éå E ɇ´É¹ÉªÉ ¤ÉxÉ MɪÉÉ *

´É¹ÉÇ 1920 ¨Éå ¨Ép ÉºÉ |ÉÉÆiÉ ¨Éå {ÉÆSÉɪÉiÉ E ÉxÉÚxÉ ¤ÉxÉÉ *<ºÉ¨Éå ºlÉÉxÉÒªÉ ºÉƺlÉÉ+ÉäÆ +Éè® {ÉÆSÉɪÉiÉÉå E Éä +‡vÉE É® ‡n B MÉB * 1922 Éå MɪÉÉ ¨Éå ½ ÖB E ÉÆOÉäºÉ Eä ºÉ¨¨Éä±ÉxɨÉå n ä„ɤÉÆvÉÖ ‡SÉiÉ® ÆVÉxÉ n ÉºÉ xÉä +{ÉxÉÒ {ÉÉÆSÉ ºÉÚjÉÒªÉ ªÉÉäVÉxÉÉ|ɺiÉÖiÉ E Ò lÉÒ * <ºÉ¨Éå {ÉÆSÉɪÉiÉÉå E Éä ¦ÉÉ® iÉÒªÉ „ÉɺÉxÉEä {ÉÖxɇxÉÇ ÉÉÇhÉ E É +ÉvÉÉ® ¤ÉxÉɪÉÉ MɪÉÉ * <Ç lÉÒ *1930 ºÉä {ÉÆSÉɪÉiÉÉå Eä +‡vÉE É® Éå ¨Éå ‡¡ ® E ] ÉèiÉÒE Ò VÉÉxÉä ±ÉMÉÒ *

´É¹ÉÇ 1935 ¨Éå |ÉÉxiÉÉå E Éä º´ÉɪÉkÉiÉÉ ‡¨É±ÉÒ * OÉɨÉÒhÉIÉäjÉÉå ¨Éå {ÉÆSÉɪÉiÉÉå E É ‡xɨÉÉÇhÉ ½ ÉäxÉä ±ÉMÉÉ * ´É¹ÉÇ 1935Eä MÉ´ÉxÉÇ Éå] +Éì¡ <Ƈb ªÉÉ BC] ¨Éå VÉxÉiÉÉ Eä „ÉɺÉxÉE Ò E <Ç ¨ÉÉÆMÉå ¨ÉÉxÉ ±ÉÒ MÉ<È lÉÒ* {É® xiÉÖ {ÉÆSÉɪÉiÉÉå E Òn „ÉÉ ¨Éå E Éä<Ç JÉÉºÉ ºÉÖvÉÉ® xɽ Ó ½ Ö+É * 1942 Eä ‡´Ép Éä½ Ò n Éè® ¨Éå ºÉÉ® ä +‡vÉE É® ´ªÉ´É½ ɪÉÇiÉ: „ÉɺÉE Ҫɇ´É¦ÉÉMÉÒªÉ +‡vÉE ɇ® ªÉÉå E Éä ºÉÉé{É ‡n ªÉä MÉB * ªÉt‡{É1941 Éå ½ Ò {ÉÆSÉɪÉiÉÉå Eä ‡±ÉB +±ÉMÉ ºÉä ‡´ÉvÉÉxÉ ¤ÉxÉÉxÉäE É BE n ºiÉÉ´ÉäVÉ iÉèªÉÉ® ½ Ö+É lÉÉ * 1946 Éå VÉÉE ® OÉÉ¨É {ÉÆSÉɪÉiÉ +‡vɇxÉªÉ¨É ¤ÉxÉÉ *

ºÉ¨ÉªÉ-ºÉ¨ÉªÉ {É® ‡´É‡¦ÉzÉ |ÉÉxiÉÉå Eä ‡±ÉB OÉÉ¨É {ÉÆSÉɪÉiɺÉƤÉÆvÉÒ VÉÉä +‡vɇxÉªÉ¨É {Éɇ® iÉ ‡E ªÉä MÉB ´Éä <ºÉ |ÉE É® ½ é -- ¤ÉÆMÉÉ±É ¨Éå ºlÉÉxÉÒªÉ +‡vɇxɪɨÉ, 1919, ¨Ép ÉºÉ ¨ÉåºlÉÉxÉÒªÉ ºÉ® E É® +‡vɇxÉªÉ¨É 1920, ¤É¨¤É<Ç OÉÉ¨É {ÉÆSÉɪÉiÉ+‡vɇxɪɨÉ, 1920, =kÉ® |Én ä„É {ÉÆSÉɪÉiÉ BC] , 1920,

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´É¹ÉÇ 1957 Éå ºÉɨÉÖn ɇªÉE ‡´ÉE ÉºÉ E ɪÉÇG ÉÉå E Éä ºÉ¡ ±É¤ÉxÉÉxÉä Eä ‡±ÉB VÉxɺɽ ¦ÉɇMÉiÉÉ E Ò ºÉ¨ÉºªÉÉ Eä ºÉ¨ÉÉvÉÉxÉEä ºÉƤÉÆvÉ ¨Éå +vªÉªÉxÉ E ® Eä ºÉÖZÉÉ´É n äxÉä Eä ‡±ÉB

¤É±É´ÉxiÉ ® ÉªÉ ¨Éä½ iÉÉ E Ò +vªÉIÉiÉÉ ¨Éå BE ºÉ‡¨É‡iÉ E ÉMÉ` xÉ ‡E ªÉÉ MɪÉÉ * 2 +HÚ ¤É® , 1959 E Éä ¤É±É´ÉxiÉ® ÉªÉ ¨Éä½ iÉÉ ºÉ‡¨É‡iÉ E Ò ‡ºÉ¡ ɇ® „ÉÉå E Ò ‡G ªÉɇx´É‡iÉ ¨ÉåiÉiE ɱÉÒxÉ |ÉvÉÉxɨÉÆjÉÒ {ÉÆ. VÉ´Éɽ ® ±ÉÉ±É xÉä½ ° xÉä® ÉVɺlÉÉxÉ Eä xÉÉMÉÉè® ‡VɱÉä Éå {ÉÆSÉɪÉiÉÒ ® ÉVÉ E É =n PÉÉ] xÉE ® iÉä ½ ÖB <ºÉä xÉB ¦ÉÉ® iÉ E É ºÉ´ÉÉLJvÉE ¨É½ i´É{ÉÚhÉÇ B´ÉÆBä‡iɽ ɇºÉE E n É ¤ÉiÉɪÉÉ *

<ºÉEä ¤ÉÉn +ÉÆwÉ |Én ä„É ¨Éå {ɽ ±ÉÒ xɴɨ¤É® , 1959 E Éä<ºÉ ´ªÉ´ÉºlÉÉ E Éä ±ÉÉMÉÚ ‡E ªÉÉ MɪÉÉ iÉlÉÉ +MɱÉä 3-4´É¹ÉÉç ¨Éå ºÉÆ{ÉÚhÉÇ n ä„É ¨Éå OÉÉ¨É {ÉÆSÉɪÉiÉÉå E Ò ºlÉÉ{ÉxÉÉ ½ ÉäMÉ<Ç * +‡vÉE ÉÆ„É ® ÉVªÉÉå xÉä ¤É±É´ÉxiÉ ® ÉªÉ Éä½ iÉÉ ºÉ‡¨É‡iÉE Ò ‡ºÉ¡ ɇ® „ÉÉå Eä +xÉÖºÉÉ® {ÉÆSÉɪÉiÉÒ ® ÉVÉ ªÉ´ÉºlÉÉ E Éä‡jɺiÉ® ÒªÉ ® JÉÉ- 1. OÉÉ¨É ºiÉ® {É® OÉÉ¨É {ÉÆSÉɪÉiÉ, 2.JÉhb ºiÉ® {É® {ÉÆSÉɪÉiÉ ºÉ‡¨É‡iÉ, iÉlÉÉ 3. ‡VɱÉÉ ºiÉ® {É® ‡VɱÉÉ {ɇ® ¹Én *

15 ¨É<Ç, 1989 ¨Éå ºÉƺÉn ¨Éå ºÉƇ´ÉvÉÉxÉ ºÉÆ„ÉÉävÉxÉ(SÉÉéºÉ` ÉÉÆ) ±ÉɪÉÉ MɪÉÉ * <ºÉ ‡´ÉvÉäªÉE Eä |ɨÉÖJÉ|ÉÉ´ÉvÉÉxÉ ‡xɨxÉ lÉä-- {ÉÆSÉɪÉiÉÒ ® ÉVÉ ºÉƺlÉÉ+ÉäÆ E É f ÉÆSÉɇjɺiÉ® ÒªÉ ½ ÉäMÉÉ * OÉÉ¨É ºiÉ® , ¤±ÉÉìE ºiÉ® iÉlÉÉ ‡VɱÉɺiÉ® ; U Éä] ä ® ÉVªÉ, ‡VÉxÉE Ò VÉxɺÉÆJªÉÉ 20 ±ÉÉJÉ ºÉäE É ½ é, ´Éä ‡u -ºiÉ® ÒªÉ f ÉÆSÉÉ ¦ÉÒ +{ÉxÉÉ ºÉE iÉä ½ é ;{ÉÆSÉɪÉiÉÉå Éå ¨É‡½ ±ÉÉ+ÉäÆ E Éä 30 |ɇiÉ„ÉiÉ +É® IÉhÉ |ÉÉ{iɽ ÉäMÉÉ* ªÉ½ +É® IÉhÉ +xÉÖºÉÚ‡SÉiÉ VÉɇiÉ B´ÉÆ VÉxÉVÉɇiÉE Éä |ÉÉ{iÉ +É® IÉhÉ Eä +‡iɇ® H ½ ÉäMÉÉ; {ÉÆSÉɪÉiÉÉå E ÉE ɪÉÇE É±É {ÉÉÆSÉ ´É¹ÉÇ ½ ÉäMÉÉ, ªÉ‡n ‡E ºÉÒ {ÉÆSÉɪÉiÉ E ɇxÉvÉÉLJ® iÉ +´É‡vÉ ºÉä {ÉÚ ÉÇ ‡´ÉPÉ] xÉ ½ Éä VÉÉiÉÉ ½ è iÉÉä +‡vÉE iɨÉ6 ¨Éɽ Eä ¦ÉÒiÉ® <ºÉ ‡´ÉvÉäªÉE xÉä BE ¨É½ i´É{ÉÚhÉÇ+ÉvÉÉ® E É E É¨É ‡E ªÉÉ*

ºÉƪÉÖCiÉ |ÉMɇiÉ„ÉÒ±É MÉ`¤ÉÆvÉxÉ E Ò ºÉ®E É® {ÉÆSÉɪÉiÉÒ ®ÉVɺɇ¨É‡iɪÉÉå E Ò ºÉ½ÉªÉiÉÉ ºÉä MÉÉÆ ÉÉå Éå ‡´ÉE ÉºÉ +Éè® º´É„ÉɺÉxÉE ä ‡±ÉB ´ÉSÉxɤÉr ½è * xÉ<Ç ºÉ®E É® E ä xªÉÚxÉiÉ¨É ºÉÉZÉÉE ɪÉÇG É ¨Éå ¦ÉÒ OÉɨÉÒhÉ ‡´ÉE ÉºÉ E Éä BE ¨É½i´É{ÉÚhÉǨÉÖqÉ ¤ÉxÉɪÉÉ MɪÉÉ ½è, ‡VɺɺÉä <ºÉ ¤ÉSÉxɤÉriÉÉ E É É½i´É+Éè® ¤Éfà VÉÉiÉÉ ½è * ºÉ®E É® uÉ®É {ÉÆSÉɪÉiÉÒ ®ÉVÉ

Section -1 (Article : Hindi Article)

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¨ÉÆjÉÉ±ÉªÉ E ä xÉÉ¨É ºÉä BE +±ÉMÉ ¨ÉÆjÉÉ±ÉªÉ E É ¤ÉxÉÉxÉɦÉÒ +{ÉxÉä <ºÉ BVÉåbä E Éä ±ÉÉMÉÚ E ®xÉä E Ò ‡n„ÉÉ ¨Éå BE ¤ÉcÒ {ɽ±É ½è * ±Éä‡E xÉ <ºÉºÉä {ɽ±Éä ‡E nä„É ªÉ½ nÉ´ÉÉE ® ºÉE ä ‡E SÉÖxÉä ½ÖB ‡xÉE ɪÉÉå E Éä ºlÉÉxÉÒªÉ º´É-„ÉɺÉxɺÉƺlÉÉxÉ E ä ° {É Éå E ɪÉÇ E ®xÉä E ä ‡±ÉB {ɪÉÉÇ{iÉ +‡vÉE É®ºÉÉé{É ‡nB MÉB ½é, +¦ÉÒ ¤É½ÖiÉ EÖ U E ®xÉÉ ¤ÉÉE Ò ½è *‡nºÉ¨¤É®, 2002 ¨Éå ºÉƺÉn ¨Éå {Éä„É E Ò MÉ<Ç „ɽ®Ò iÉlÉÉOÉɨÉÒhÉ ‡´ÉE ÉºÉ E Ò ºlÉɪÉÒ ºÉ‡¨É‡iÉ E Ò 37´ÉÓ ‡®{ÉÉä]Ç Éå¦ÉÒ <ºÉ IÉäjÉ Éå ºÉƦÉÉ´ÉxÉÉ+ÉäÆ E Ò +Éä® ºÉÆE äiÉ ‡E ªÉÉ MɪÉɽè * <ºÉ ‡®{ÉÉä]Ç E ä |ɨÉÖJÉ ¨ÉÖqÉå E ä ° {É ¨Éå E ɪÉÉç,{ÉnɇvÉE ɇ®ªÉÉå +Éè® E Éä¹É E Ò SÉSÉÉÇ E Ò MÉ<Ç lÉÒ * ªÉ½ÉÆE ɪÉÉç E ä ½ºiÉÉÆiÉ®hÉ E É +ÉvÉÉ® ºÉΤºÉbÒ E É ‡ºÉrÉÆiÉ®JÉÉ MɪÉÉ lÉÉ, +Éè® VÉÉä E ɪÉÇ ‡xÉSɱÉä ºiÉ® {É® ‡E ªÉÉVÉÉ ºÉE iÉÉ ½è, =ºÉä =SSÉ ºiÉ® E Éä xÉ½Ó ºÉÉé{ÉÉ VÉÉxÉÉSÉɇ½B *

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E äxp +Éè® ®ÉVªÉ ºÉ®E É®Éå E Éä OÉɨÉÒhÉ IÉäjÉÉå ¨Éå +ɪÉE Ò ´ÉÞ‡r, MɮҤÉÒ ½]ÉxÉä, {ÉÆSÉɪÉiÉÉå E Éä +{ÉxÉä ‡±ÉBªÉÉäVÉxÉÉ ¤ÉxÉÉxÉä E Ò oι] ºÉä ºÉ„ÉCiÉ E ®xÉä +Éè® EÞ ‡¹ÉE Éä OÉɨÉÒhÉ ‡´ÉE ÉºÉ E É +ÉvÉÉ® ¤ÉxÉÉxÉä VÉèºÉä E ɪÉÉç {É®‡¨É±ÉE ® E É¨É E ®xÉÉ SÉɇ½B * ½É±É ½Ò ¨Éå +ɪÉÉä‡VÉiÉ{ÉÆSÉɪÉiÉÒ ®ÉVÉ ºÉ¨¨Éä±ÉxÉ ¨Éå |ÉvÉÉxɨÉÆjÉÒ bÉ. ¨ÉxɨÉÉä½xÉ˺ɽ xÉä {ÉÆSÉɪÉiÉÒ ®ÉVÉ ´ªÉ´ÉºlÉÉ E Éä {ÉÚhÉÇ ° {É ºÉä ±ÉÉMÉÚE ®xÉä E Ò ‡ºÉ¡ ɇ®„É E Ò iÉɇE OÉɨÉÒhÉ ¦ÉÉ®iÉ E Ò 70E ®Éäc VÉxɺÉÆJªÉÉ E Éä 70 E ®Éäc +´ÉºÉ®Éå ¨Éå iɤnұɇE ªÉÉ VÉÉ ºÉE å *

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Section -1 (Article : Hindi Article)

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Software giant Microsoft has formally launchedits much touted operating system (OS) Windows7 in India on october 22, 2009. The company is ona good wicket in the country with a nearly 90 percent market share comprisingXP (primarily) and Vista users.This leaves only a small win-dow for other OSes likeApple’s Snow Leopard or opensource Linux OS variants.

Comparisons are odious sincecompeting OSes, like SnowLeopard from Apple are meantfor separate sets of users.Apple’s OS is better defined asa performance update withsome feature tweaks, whileWin 7 is a new operating sys-tem from Microsoft.

Windows 7 will work on your existing PC hard-ware if you are using an at least 1 GHz CPU (pro-cessor) and 1 GB of RAM (memory), but a fasterprocessor and more RAM will definitely improvethe performance. By contrast, Snow Leopard willonly work on Intel-based Mac systems. Thatmeans that not only will Snow Leopard not workon the hardware vastly used, but it won’t evenwork on much of the hardware used by currentMac OS X users.

The most noticeable feature of Snow Leopard thatenterprise users can look out for is that Apple hasbuilt a native support for Microsoft’s ExchangeServer into its OS, a feat that no version of Win-dows has accomplished. This will enable Macs towork seamlessly in businesses run on Windowswithout requiring additional third party softwarelicensing or relying on Microsoft’s Mac clients.Apple also has no intention to change the OS tosomething new in the future, so Mac users canbreathe easy on their financial investments.

Microsoft Windows 7Historic Launch of New Operating System

The Snow Leopard single user license will be avail-able for a maximum retail price of Rs 1,800 andthe Snow Leopard Family Pack, a single house-hold, five-user license, will be available for a maxi-

mum retail price of Rs 2,900.Win 7 (single user license) isexpected to start at little overRs 5,000.

For all those who are notWindows enthusiasts, there’sanother choice of OS that willcost half of your PC. SinceUbuntu 9.10 is still in theearly stages of developmentand is an open source prod-uct, a lot of changes can hap-pen as features may still beadded or removed by devel-opers.

On the ease of use, we would say that Ubuntuand Win 7 came neck and neck. Ubuntu is moreconfigurable, but an average user won’t requirethis level of flexibility. On the other hand, Win 7comes with all the familiar looking tools. If youare a person to stay with the default configura-tions, then Win 7 is better suited than Ubuntu,but if you’re ready to do some tweaking thenUbuntu is great.

Remember, Win 7 is an OS that has a few end-user applications like Notepad and Paint but it stillcannot be fully functional after installation — youneed to install your productivity tools yourself likemail, word processor, spreadsheets, etc. WhileUbuntu installs a lot more than just end-user ap-plications.

Open source players are pushing hard tostrengthen Ubuntu on mobile Internet devices(MIDs), netbooks, notebooks, servers and cloudsystems, and with no software costs involved inUbuntu’s purchase expect a fee that users pay for

Section -2 (Hot Topics: Microsoft Windows 7)

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services like technical support, the hardware be-comes more cost efficient.

While it is easy to get infatuated with a new de-sign and swanky features, the viability of an OS isonly determined when you begin using it eighthours a day. We used a preview copy of Win 7 forover 12 hours and we have to admit that we doprefer it over Vista because it’s more stable anddid not crash out even once.

We installed Win 7 on a desktop with 1 GHz pro-cessor and 4GB of RAM. The OS took a little over30 minutes to install on the PC that had VistaHome Basic edition (time to install could varydepending on hardware profile and existing OSon your PC). Decisively, Win 7 loads faster thanVista, which takes hours to install.

Win 7’s minimum hardware requirements areroughly similar to those of Vista Home Basics —both require a 1 GHz processor and 15-16GB ofhard-drive space, although Win 7 demands a mini-mum of 1GB memory, while Vista Home Basicsneeds 512MB memory.

Let’s be honest here. Win 7 is both a sigh of reliefand breath of fresh air, after Vista. Built with arenewed focus on performance and ease-of-use,Win 7 is poised to succeed where Vista couldn’t.

Win 7 is better than Windows Vista

Haunted by sluggish performance issues, fromplaying games to complicated disk accessprogrammes to poor networking features, Vistawas undoubtedly Microsoft’s biggest failure. Win7, by contrast, will run fine on most of the exist-ing netbooks as well as older PCs.

Win 7 delivers a completely revamped user inter-face and some brand-new features designed tomake organising and sharing your files easier. Sim-ply put, the user gets much more than new wall-paper and a different colour taskbar.

The taskbar, in addition to showing the applica-tions being used by the user, also hosts shortcutsto the most commonly used applications (say Word

or Media Player). When the mouse pointer ismoved over the taskbar shortcuts, the user canpreview the application.

Unlike Vista, the re-designed user interface of Win7 gives the user intuitive shortcuts like ability tomaximise a window by dragging it to the top ofthe screen, minimise it by dragging it to the bot-tom, maximise to half the screen by dragging it toeither edge, or (our favorite) minimising all openedwindows by shaking the one you want to focuson.

More Secure and Easier thanWindows XP

In one word — yes, Win 7 is way more securethan Windows XP and a step ahead of Vista too.Even though it is eight years old, Windows XPstill remains the world’s most widely used oper-ating system and almost completely dominates thenetbook market.

But Windows XP users have a lot more to gain bygoing to Win 7. Vista had introduced some greatfeatures, such as fast searches of the entire harddrive, which, of course, are present in Win 7 too.Such features will be quite an attraction for userswho haven’t yet used them on their Windows XPmachines.

All technical tirades aside, Win 7 is the back-to-basics operating system. Moving beyond the eye-candy features, Windows XP users can customisehow the user account control functions, or howtray icons work to suit their needs. This was neverthere in Windows XP.

Basic Requirements of a PCto Run Win 7

The basic requirements of a PC to run Win 7 are a1 GHz processor, minimum 1GB of RAM and16GB hard drive space. In simple words, any hard-ware that worked with Vista will work for Win 7too.

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n Since Microsoft is targeting future generation of casual users who use computers for mainly emails, officedocuments, Internet and video among other things, Win 7 could be an ideal choice for future PCs. HPIndia has started retailing Win 7-preloaded PCs at between Rs 27,990 and Rs 90,000, while Acer PCs withWin 7 OS will be priced at between Rs 15,000 and Rs 35,000. Acer notebooks with the new OS will bepriced at Rs 21,000-70,000.

New Features in Windows 7

n In Win 7, when you hover over a taskbar icon, you get actual previews that are placed side byside. In simple words, it offers the ability to snap a window to half your screen size simply bydragging it to the left or right of the screen.

n Has a cool new feature with which users can drag windows to each side of the screen and theyautomatically size themselves so that each takes up half the screen.

n User Account Control in Win 7 gives users easy control options without complicating theprocess like Windows Vista.

n Win 7 replaces the taskbar context menu with a useful list of frequently used documents andtasks, and even allows you to pin documents or shortcuts to the menu.

n Windows Explorer gets a facelift in Win 7. Some minor changes like while browsing betweenvarious tabs, you will now see a sliding windows effect, a nice visual effect.

n Once you have installed the OS, the first thing you will notice is the faster shutdown and boot.Even the time taken by the machine to enter and come out of the sleep mode is less than Vista andXP.

n For those who love to open an array of windows while working, the new Aero Peek feature inWin 7 lets you preview individual windows from the grouped taskbar applications, and even closedocuments from the thumbnails themselves. Aero Peek becomes a handy tool for users who liketo multi-task

What you pay and what you get

» Windows 7 Starter (via OEM only): Up to three concurrent applications, ability to join a Home Group,improved taskbar and JumpLists.

» Windows 7 Home Basic: For Rs 5,899, users get unlimited applications, live thumbnail previews thatenhance visual experience and advanced networking support.

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» Windows 7 Home Premium: For Rs 6,799, youget Aero Glass and advanced windows navigation,improved media format support, enhanced Win-dows Media Centre and media streaming, and alsomulti-touch and improved handwriting recogni-tion.

» Windows 7 Professional: For Rs 11,199, userscan join a managed network with the Domain Joinfeature, protect data with advanced networkbackup and encrypting file system and print tothe right printer at home or facilitate intuitiveprinting with Location Aware Printing option.

» Windows 7 Ultimate (worldwide): For Rs11,799, it is meant for advanced users who wantto protect data using the BitLocker feature on in-ternal and external drives, deploy DirectAccess forseamless connectivity over corporate networksbased on Windows Server 2008 R2.

Operating System

An operating system (OS) is an interface betweenhardware and user, which is responsible for themanagement, and coordination of activities andthe sharing of the resources of the computer thatacts as a host for computing applications run onthe machine. As a host, one of the purposes of anoperating system is to handle the details of theoperation of the hardware. This relieves applica-tion programs from having to manage these de-tails and makes it easier to write applications. Al-most all computers (including handheld comput-ers, desktop computers, supercomputers, videogame consoles) as well as some robots, domesticappliances (dishwashers, washing machines), andportable media players use an operating systemof some type. Some of the oldest models may,however, use an embedded operating system thatmay be contained on a data storage device.

Operating systems offer a number of services toapplication programs and users. Applications ac-cess these services through application program-ming interfaces (APIs) or system calls. By invok-

ing these interfaces, the application can request aservice from the operating system, pass param-eters, and receive the results of the operation.Users may also interact with the operating sys-tem with some kind of software user interface(SUI) like typing commands by using commandline interface (CLI) or using a graphical user in-terface (GUI, commonly pronounced “gooey”). Forhand-held and desktop computers, the user in-terface is generally considered part of the operat-ing system. On large multi-user systems like Unixand Unix-like systems, the user interface is gen-erally implemented as an application program thatruns outside the operating system. (Whether theuser interface should be included as part of theoperating system is a point of contention.)

Common contemporary operating systems includeBSD, Darwin (Mac OS X), Linux, SunOS (Solaris/OpenSolaris), and Windows NT (XP/Vista/7).While servers generally run Unix or some Unix-like operating system, embedded system marketsare split amongst several operating systems, al-though the Microsoft Windows line of operatingsystems has almost 90% of the client PC market.

Examples of Operating Systems

Microsoft Windows: Microsoft Windows is afamily of proprietary operating systems that origi-nated as an add-on to the older MS-DOS operat-ing system for the IBM PC. Modern versions arebased on the newer Windows NT kernel that wasoriginally intended for OS/2. Windows runs onx86, x86-64 and Itanium processors. Earlier ver-sions also ran on the Alpha, MIPS, Fairchild (laterIntergraph) Clipper and PowerPC architectures(some work was done to port it to the SPARC ar-chitecture).

As of June 2008, Microsoft Windows holds a largeamount of the worldwide desktop market share.Windows is also used on servers, supporting ap-plications such as web servers and database serv-ers. In recent years, Microsoft has spent signifi-cant marketing and research & developmentmoney to demonstrate that Windows is capableof running any enterprise application, which has

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resulted in consistent price/performance records(see the TPC) and significant acceptance in theenterprise market.

The most widely used version of the MicrosoftWindows family is Windows XP, released on Oc-tober 25, 2001.

In November 2006, after more than five years ofdevelopment work, Microsoft released WindowsVista, a major new operating system version ofMicrosoft Windows family which contains a largenumber of new features and architectural changes.Chief amongst these are a new user interface andvisual style called Windows Aero, a number ofnew security features such as User Account Con-trol, and a few new multimedia applications suchas Windows DVD Maker. A server variant basedon the same kernel, Windows Server 2008, wasreleased in early 2008.

On October 22, 2009, Microsoft released Windows7, the successor to Windows Vista, coming threeyears after its release. While Vista was aboutintroducing new features, Windows 7 aims tostreamline these and provide for a faster overallworking environment. Windows Server 2008 R2,the server variant, was released at the same time.

Unix and Unix-like operating systems: Ken Th-ompson wrote B, mainly based on BCPL, whichhe used to write Unix, based on his experience inthe MULTICS project. B was replaced by C, andUnix developed into a large, complex family ofinter-related operating systems which have beeninfluential in every modern operating system (seeHistory). The Unix-like family is a diverse groupof operating systems, with several major sub-cat-egories including System V, BSD, and Linux. Thename "UNIX" is a trademark of The Open Groupwhich licenses it for use with any operating sys-tem that has been shown to conform to their defi-nitions. "Unix-like" is commonly used to refer tothe large set of operating systems which resemblethe original Unix.

Unix-like systems run on a wide variety of ma-chine architectures. They are used heavily for serv-ers in business, as well as workstations in academicand engineering environments. Free Unix variants,

such as GNU, Linux and BSD, are popular in theseareas.

Some Unix variants like HP's HP-UX and IBM'sAIX are designed to run only on that vendor'shardware. Others, such as Solaris, can run onmultiple types of hardware, including x86 serversand PCs. Apple's Mac OS X, a hybrid kernel-basedBSD variant derived from NeXTSTEP, Mach, andFreeBSD, has replaced Apple's earlier (non-Unix)Mac OS.

Unix interoperability was sought by establishingthe POSIX standard. The POSIX standard can beapplied to any operating system, although it wasoriginally created for various Unix variants.

Mac OS X: Mac OS X is a line of partially propri-etary, graphical operating systems developed,marketed, and sold by Apple Inc., the latest ofwhich is pre-loaded on all currently shippingMacintosh computers. Mac OS X is the successorto the original Mac OS, which had been Apple'sprimary operating system since 1984. Unlike itspredecessor, Mac OS X is a UNIX operating sys-tem built on technology that had been developedat NeXT through the second half of the 1980s andup until Apple purchased the company in early1997.

The operating system was first released in 1999 asMac OS X Server 1.0, with a desktop-orientedversion (Mac OS X v10.0) following in March2001. Since then, six more distinct "client" and"server" editions of Mac OS X have been released,the most recent being Mac OS X v10.6, which wasfirst made available on August 28, 2009. Releasesof Mac OS X are named after big cats; the currentversion of Mac OS X is nicknamed "Snow Leop-ard".

The server edition, Mac OS X Server, is architec-turally identical to its desktop counterpart butusually runs on Apple's line of Macintosh serverhardware. Mac OS X Server includes work groupmanagement and administration software toolsthat provide simplified access to key network ser-vices, including a mail transfer agent, a Sambaserver, an LDAP server, a domain name server,and others.

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India and the U.S. onOct 26, 2009 agreedto fast-track and con-clude within a giventimeframe agree-ments on enhancingand deepening tradeand investment en-

gagement, and Intellectual Property Rights (IPR)cooperation agreement and an agreement for put-ting in place traditional knowledge digital library.

The two countries also issued a joint statement atthe end of the Sixth Ministerial Level meeting ofthe India-U.S. Trade Policy Forum (TPF) withreadiness to continue focus on agriculture, inno-vation and creativity, investment, services andtariff and non-tariff barriers. The Indian team washeaded by the Commerce and Industry Minister,Anand Sharma, and the U.S. delegation washeaded by the U.S. Trade Representative, RonKirk.

Agreement on IPR

The cooperation agreement on IPR was being putin place to reassure and comfort investors fromboth the countries. The Indo-U.S. TPF would actas a catalyst for enhancing trade and investmentand promoting economic engagement.

The joint statement said the two countries agreedto work together on a framework for promotingreal and meaningful cooperation in trade and in-vestment.They also agreed to work together to supportgreater involvement of small and medium enter-prises in each others’ markets and to pursue ini-tiatives in the further development of India’s in-frastructure, collaboration on clean energy andenvironmental services, information and commu-nications technologies and other key sectors.

Indo- U.S. Agreement on IPRSixth Ministerial Level Meeting of the

Trade Policy Forum

H1-B visas

On the issue of H1-B visas for Indian profession-als, Mr. Sharma said he had taken up the matterwith Mr. Kirk stating that the Indian IT sectorand industry in the U.S. had not only made hugeinvestments but also generated thousands of jobs.

They are only one per cent of the total IT profes-sionals working in the U.S. They have made a hugecontribution to the U.S. economy and U.S. shouldtake steps to sort out all issues faced by them inthis area.

Improvement in Trade

Stating that the U.S. was excited and committedto improve economic relationship with India, U.S.Trade Representative (USTR) Ron Kirk urged theIndian Government to improve climate for luringliberal investments into India, including the IPRregime.

There is concern over the present IntellectualProperty Right (IPR) regime and how it works.Present trade between the two countries is thetip of the iceberg.

Talking about the IPR regime, Mr. Kirk said itwas saddening that India had been on the U.S.watch-list for the last 14 years. Business partnersshould play but the rules. India needs to work onthe IPR issues and its administration in order togenerate confidence among investors from the U.S.

Intellectual Property

Intellectual property (IP) is a number of distincttypes of legal monopolies over creations of themind, both artistic and commercial, and the cor-responding fields of law. Under intellectual prop-

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erty law, owners are granted certain exclusiverights to a variety of intangible assets, such asmusical, literary, and artistic works; discoveriesand inventions; and words, phrases, symbols, anddesigns. Common types of intellectual propertyinclude copyrights, trademarks, patents, industrialdesign rights and trade secrets in some jurisdic-tions.

Although many of the legal principles governingintellectual property have evolved over centuries,it was not until the 19th century that the termintellectual property began to be used, and notuntil the late 20th century that it became com-monplace in the United States.

Intellectual property rights are a bundle of exclu-sive rights over creations of the mind, both artis-tic and commercial. The former is covered bycopyright laws, which protect creative works, suchas books, movies, music, paintings, photographs,and software, and give the copyright holder ex-clusive right to control reproduction or adapta-tion of such works for a certain period of time.

The second category is collectively known as "in-dustrial properties", as they are typically createdand used for industrial or commercial purposes. Apatent may be granted for a new, useful, and non-obvious invention and gives the patent holder aright to prevent others from practicing the inven-tion without a license from the inventor for a cer-tain period of time. A trademark is a distinctivesign which is used to prevent confusion amongproducts in the marketplace.

An industrial design right protects the form of ap-pearance, style or design of an industrial objectfrom infringement. A trade secret is an item ofnon-public information concerning the commer-cial practices or proprietary knowledge of a busi-ness. Public disclosure of trade secrets may some-times be illegal.

The term intellectual property denotes the spe-cific legal rights described above, and not the in-tellectual work itself.

Objectives

Financial incentive: These exclusive rights allowowners of intellectual property to reap monopolyprofits. These monopoly profits provide a finan-cial incentive for the creation of intellectual prop-erty, and pay associated research and developmentcosts. Some commentators, such as David Levineand Michele Boldrin, dispute this justification.

Economic growth: The legal monopoly grantedby IP laws is credited with significant contribu-tions toward economic growth. Economists esti-mate that two-thirds of the value of large busi-nesses in the U.S. can be traced to intangible as-sets. Industries which rely on IP protections areestimated to produce 72 percent more value addedper employee than non-IP industries. A joint re-search project of the WIPO and the United Na-tions University measuring the impact of IP sys-tems on six Asian countries found "a positive cor-relation between the strengthening of the IP sys-tem and subsequent economic growth."

However, correlation does not necessarily meancausation: given that the patent holders can freelyrelocate, the Nash equilibrium predicts they willobviously prefer operating in countries with strongIP laws. In some of the cases, the economic growththat comes with a stronger IP system is due toincrease in stock capital from direct foreign in-vestment.

Economics

Intellectual property rights are temporary mo-nopolies enforced by the state regarding use ofexpressions and ideas. Intellectual property rightsare usually limited to non-rival goods, that is,goods which can be used or enjoyed by manypeople simultaneously—the use by one persondoes not exclude use by another. This is comparedto rival goods, such as clothing, which may onlybe used by one person at a time. For example, anynumber of people may make use of a mathemati-cal formula simultaneously. Some objections to theterm intellectual property are based on the argu-ment that property can only properly be applied

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to rival goods (or that one cannot "own" propertyof this sort).

Since a non-rival good may be used by many si-multaneously (produced with minimal marginalcost), producers would need incentives other thanmoney to create such works. Monopolies, by con-trast, also have inefficiencies (producers willcharge more and produce less than would be so-cially desirable).

The establishment of intellectual property rights,therefore, represents a trade-off, to balance theinterest of society in the creation of non-rivalgoods (by encouraging their production) with theproblems of monopoly power. Since the trade-offand the relevant benefits and costs to society willdepend on many factors that may be specific toeach product and society, the optimum period oftime during which the temporary monopoly rightsshould exist is unclear.

Copyright

Copyright is a form of intellectual property thatgives the author of an original work exclusive rightfor a certain time period in relation to that work,including its publication, distribution and adapta-tion, after which time the work is said to enterthe public domain. Copyright applies to any ex-pressible form of an idea or information that issubstantive and discrete and fixed in a medium.Some jurisdictions also recognize moral rights ofthe creator of a work, such as the right to be cred-ited for the work. Copyright is described underthe umbrella term intellectual property along withpatents and trademarks.

An example of the intent of copyright, as expressedin the United States Constitution, is "To promotethe Progress of Science and useful Arts, by secur-ing for limited Times to Authors and Inventorsthe exclusive Right to their respective Writingsand Discoveries."

Copyright has been internationally standardized,lasting between fifty to a hundred years from theauthor's death, or a shorter period for anonymous

or corporate authorship. Some jurisdictions haverequired formalities to establish copyright, butmost recognize copyright in any completed work,without formal registration. Generally, copyrightis enforced as a civil matter, though some juris-dictions do apply criminal sanctions.

Patent

A patent is a set of exclusive rights granted by astate (national government) to an inventor or theirassignee for a limited period of time in exchangefor a public disclosure of an invention.

The procedure for granting patents, the require-ments placed on the patentee, and the extent ofthe exclusive rights vary widely between coun-tries according to national laws and internationalagreements. Typically, however, a patent appli-cation must include one or more claims definingthe invention, which must be new, inventive, anduseful or industrially applicable. In many coun-tries, certain subject areas are excluded from pat-ents, such as business methods and mental acts.The exclusive right granted to a patentee in mostcountries is the right to prevent others from mak-ing, using, selling, or distributing the patentedinvention without permission.

Under the World Trade Organization's (WTO)Agreement on Trade-Related Aspects of Intellec-tual Property Rights, patents should be availablein WTO member states for any inventions, in allfields of technology, and the term of protectionavailable should be the minimum twenty years.Different types of patents may have varying patentterms.

Trademark

A trademark or trade mark is a distinctive sign orindicator used by an individual, business organi-zation, or other legal entity to identify that theproducts or services to consumers with which thetrademark appears originate from a unique source,and to distinguish its products or services fromthose of other entities.

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A trademark is a type of intellectual property, andtypically a name, word, phrase, logo, symbol, de-sign, image, or a combination of these elements.There is also a range of non-conventional trade-marks comprising marks which do not fall intothese standard categories.

The owner of a registered trademark may com-mence legal proceedings for trademark infringe-ment to prevent unauthorized use of that trade-mark. However, registration is not required. Theowner of a common law trademark may also filesuit, but an unregistered mark may be protectableonly within the geographical area within whichit has been used or in geographical areas into whichit may be reasonably expected to expand.

The term trademark is also used informally to re-fer to any distinguishing attribute by which anindividual is readily identified, such as the well-known characteristics of celebrities. When a trade-mark is used in relation to services rather thanproducts, it may sometimes be called a servicemark, particularly in the United States.

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The Reserve Bank on October 28, 2009 signalledthe withdrawal of the easy monetary policy stanceby raising the Statutory Liquidity Ratio (SLR), theportion of funds that banks are required to parkin government securities, by 100 basis points.

The RBI, which had been fol-lowing soft monetary policysince September last year toinject liquidity into the sys-tem to help industry combatthe impact of the global melt-down, today reversed itsstance by increasing the SLRby one per cent to 25 per cent,though it kept other rates un-changed.

According to Moody'seconomy.com, "The RBI hasadopted a tightening bias, but highlighted thatwith stable inflation expectations and weak pri-vate sector lending, it was not prepared to beginreversing monetary easing at this juncture."

The RBI has also retained economic growth pro-jection to six per cent during 2009-10, while peg-ging inflation at much higher rate of 6.5 per centby this fiscal end from earlier five per cent.

Impact of RBI Policy Steps

The Reserve Bank of India said it was starting tounwind some of the extraordinary policy easingand liquidity support measures taken to shore theeconomy up against the global credit crisis andeconomic slump.

Some of the measures announced in policy reviewwill tighten credit, while others are reversals ofsteps no longer being used and so will have littledirect impact apart from signalling that policy nowhas a tighter bias.

RBI Monetary PolicySLR Increase is Just a Beginning to Withdraw Liquidity

Key steps announced and their impact on creditand liquidity

» Provisioning requirement for commercial realestate loans raised to 1 percent from 0.4 percent.

Citing a large increase in creditto the sector over the past yearand the extent of restructured ad-vances, the RBI said it would beprudent to build a cushion againstlikely non-performing assets.This will likely tighten credit tothe sector as banks will have toincrease risk provisions.

» Collateralised borrowing andlending (CBLO) obligations willbe included in calculating banks'CRR requirements from Nov. 7.

The RBI said they had been exempted to developCBLO as a money market instrument, an objec-tive that had been achieved given daily averagevolume of 600 billion rupees ($12.8 billion). Thiswill reduce liquidity for banks as they will haveto set aside funds to meet the broader scope of theCRR. The CRR, the proportion of deposits bankshave to keep with the central bank, was held at 5percent in the policy review.

» The SLR, the amount of deposits banks musthold in government securities, was raised to 25percent from 24 percent, reversing a cut made lastNovember. The central bank noted that bankscurrently had 27.6 percent of deposits in SLR se-curities, and as such "the increase in the SLR willnot impact the liquidity position of the bankingsystem and credit to the private sector."

» Two repo facilities, one for banks and one forthe funding needs of mutual funds, non-bank fi-nance companies and housing finance companies,are discontinued. Both these facilities had not been

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used for more than 2-½ months so are unlikely toaffect liquidity levels.

» Limit of export credit refinance facility cut to15 percent from 50 percent, and a forex swap fa-cility for banks was discontinued. As with therepos, the RBI said a review had found use of thefacilities was low, so there is unlikely to be muchimpact on market conditions.

Reserve Bank of India

The Reserve Bank of India (RBI)is the central bankof India, was established on April 1, 1935 in ac-cordance with the provisions of the Reserve Bankof India Act, 1934. The Central Office of the Re-serve Bank was initially established in Kolkata butwas permanently moved to Mumbai in 1937.Though originally privately owned, the RBI hasbeen fully owned by the Government of Indiasince nationalization in 1949.

Dr. Duvuri Subbarao who succeeded YagaVenugopal Reddy on September 2, 2008 is thecurrent Governor of RBI. The Reserve Bank ofIndia was set up on the recommendations of theHilton Young Commission. The commission sub-mitted its report in the year 1926, though the bankwas not set up for nine years.

The Preamble of the Reserve Bank of India de-scribes the basic functions of the Reserve Bank asto regulate the issue of Bank Notes and keeping ofreserves with a view to securing monetary stabil-ity in India and generally to operate the currencyand credit system of the country to its advantage.It has 22 regional offices, most of them in statecapitals.

Objectives

Regulator and supervisor of the financialsystem.» Prescribes broad parameters of banking opera-tions within which the country's banking and fi-nancial system functions.

» Objective: maintain public confidence in the

system, protect depositors' interest and providecost-effective banking services to the public. TheBanking Ombudsman Scheme has been formu-lated by the Reserve Bank of India (RBI) for ef-fective redressal of complaints by bank custom-ers.

Manager of exchange control» Manages the Foreign Exchange ManagementAct, 1999.

» Objective: to facilitate external trade and pay-ment and promote orderly development and main-tenance of foreign exchange market in India.

Issuer of currency

» Issues and exchanges or destroys currency andcoins not fit for circulation.

» Objective: the main objective is to give the pub-lic adequate supply of currency of good qualityand to provide loans to commercial banks to main-tain or improve the GDP(Gross Domestic Prod-uct).

The basic objectives of RBI are to issue bank notes,to maintain the currency and credit system of thecountry to utilize it in its best advantage, and tomaintain the reserves. RBI maintains the economicstructure of the country so that it can achieve theobjective of price stability as well as economicdevelopment, because both objectives are diversein themselves.

Related functions

» Banker to the Government: performs merchantbanking function for the central and the state gov-ernments; also acts as their banker.

» Bank to banks: maintains banking accounts ofall scheduled banks

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Statutory Liquidity Ratio

Statutory Liquidity Ratio or SLR refers to theamount that all banks require to maintain in cashor in the form of Gold or approved securities. Hereby approved securities we mean, bond and sharesof different companies. This Statutory LiquidityRatio is determined as percentage of total demandand percentage of time liabilities. Time Liabilitiesrefer to the liabilities, which the commercial banksare liable to pay to the customers on there any-time demand. The liabilities that the banks areliable to pay within one month's time, due tocompletion of maturity period, are also consideredas time liabilities. Statutory Liquidity Ratio (SLR)is a term used in the regulation of banking in In-dia.It is the amount which a bank has to maintainin the form:» Cash

» Gold valued at a price not exceeding the cur-rent market price,» Unencumbered approved securities (Govern-ment securities or Gilts come under this) valuedat a price as specified by the RBI from time totime.

The quantum is specified as some percentage ofthe total demand and time liabilities ( i.e. the li-abilities of the bank which are payable on demandanytime, and those liabilities which are accruingin one months time due to maturity) of a bank.This percentage is fixed by the Reserve Bank ofIndia. The maximum and minimum limits for theSLR are 40% and 25% respectively. Following theamendment of the Banking regulation Act(1949)in January 2007, the floor rate of 25% for SLRwas removed. Presently, the SLR is 25% with ef-fect from 7 November, 2009. It was raised from24% in the RBI policy review on 27 October, 2009.

The objectives of SLR are:» To restrict the expansion of bank credit.

» To augment the investment of the banks in Gov-ernment securities.

» To ensure solvency of banks. A reduction ofSLR rates looks eminent to support the creditgrowth in India.

The SLR is commonly used to contain inflationand fuel growth, by increasing or decreasing itrespectively. This counter acts by decreasing orincreasing the money supply in the system respec-tively. Indian banks’ holdings of government se-curities (Government securities) are now close tothe statutory minimum that banks are requiredto hold to comply with existing regulation. Whenmeasured in rupees, such holdings decreased forthe first time in a little less than 40 years (sincethe nationalisation of banks in 1969) in 2005-06.While the recent credit boom is a key driver ofthe decline in banks’ portfolios of G-Sec, otherfactors have played an important role recently.

These include:» Interest rate increases.

» Changes in the prudential regulation of banks’investments in G-Sec.

Most G-Sec held by banks are long-term fixed-rate bonds, which are sensitive to changes in in-terest rates. Increasing interest rates have erodedbanks’ income from trading in G-Sec.

Recently a huge demand in G-Sec was seen byalmost all the banks when RBI released around108000 crore rupees in the financial system. Thiswas by reducing CRR, SLR & Repo rates. This wasto increase lending by the banks to the corporatesand resolve liquidity crisis. Providing economywith the much needed fuel of liquidity to main-tain the pace of growth rate. However the exer-cise became futile with banks being over cautiousof lending in highly shaky market conditions.Banks invested almost 70% of this money to rathersafe Govt securities than lending it to corporates.

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» No new prepaid mobile connec-tions would be issued nor would ex-isting ones be renewed from Nov 1in Jammu and

Kashmir following reportsthat militant groups weregetting SIM cards on fakeidentities, the union homeministry said on Oct 30,2009. The ministry of homeaffairs has decided that noprepaid mobile connectionswould be issued and exist-ing prepaid SIM cards wouldnot be renewed in Jammuand Kashmir after Nov 1, 2009,' an official said.

The move comes after reports that militants weregetting mobile SIM cards on fake documents, set-ting off alarm bells in the security and intelligenceestablishments of the insurgency-hit state.

» Tunisia’s President Zine ElAbidine Ben Ali was re-electedfor a fifth term with an over-whelming 89 per cent of the vote.It was his weakest performanceyet but more than enough toshow his solid grip on the nation.

The results announced by the Interior Ministryon Oct 26, 2009 reflect timid gestures toward Mr.Ben Ali’s rivals in this year’s race to lead this Medi-terranean vacation haven. Mr. Ben Ali was lastre-elected in 2004 with more than 94 per cent ofvotes. He took power in a bloodless coup in 1987.

Runner-up Mohamed Bouchiha won 5.01 per centand Ahmed Inoubli 3.8 per cent, but both wereviewed as largely cosmetic opposition. Hard-lineopposition groups and Islamists are outlawed.Many voters see continuity as a good thing inTunisia, a strong U.S. and European ally and a rela-tively secular, moderate and stable outpost in the

Current AffairsCurrent Relevant Facts

Arab world.

» India has declared itself free from the notifi-able Avian Influenza (H5N1). The notification was

issued to the OIE (WorldOrganisation for AnimalHealth) on October 22. Acountry can declare itself freefrom birdflu, if there is no out-break for three months. Withthe declaration, the countrycan hope to revive its poultrytrade.India notified the outbreak ofAvian Influenza (H5N1) inAssam (18 epicentres), West

Bengal (11) and Sikkim (1) between November2008 and May 2009.

» The control measures adopted included stamp-ing out the entire poultry population, includingdestruction of eggs, feed, litters and other infectedmaterials, in a radius of 3-5 km around each loca-tion, restrictions on the movement of poultry andpoultry products to and from the area of outbreak,disinfection and cleaning up of infected premises.The final disinfection process was completed onJune 8, 2009.

Surveillance was carried out throughout the coun-try as per Article 2.7.12.4 of the OIE TerrestrialAnimal Health Code (2008). Surveillance aroundthe area of outbreak since the completion of theoperation (including culling, disinfection and cleanup) and surveillance in the rest of the country hasshown no evidence of the presence of the highlypathogenic Avian Influenza (H5N1).

The Association of Southeast Asian Nations(ASEAN) on Oct 24 in Hua Hin (Thailand) saidthat an ASEAN-India business council would beset up to strengthen business networks and op-portunities. It also said it would step up efforts for

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concluding Free Trade Agreement negotiations inservices and investment sectors with India. Thiscomes following the signing of the India-ASEANFree Trade Agreement in August this year.

FTA agreement is expected to create a free tradearea comprising about 1.7 billion people with acombined GDP of approximately 2.75 trillion dol-lar as of 2008. The ASEAN had instructed its offi-cials ''to exert maximum effort towards conclud-ing negotiations in services and investment tocomplete the mandate in the Framework Agree-ment on Comprehensive Economic Cooperationbetween ASEAN and India (signed in 2003)''.India also signed a Freed Trade Agreement (FTA)with the ASEAN members . It could be possibleafter the final obstacle on the Free Trade Agree-ment between India and ASEAN members wasremoved, as the last country; Vietnam also signedon the agreement.

This agreement is aimed to help fighting the situ-ation like global crunch, as there will be mini-mum duties on goods amongst their trading inASEAN countries. The trade size between Indiaand ASEAN countries is huge and its size is around48 billion dollars. This Free Trade will come intoforce from July 2010.

» Chinese Prime Minister WenJiabao and his Indian counterpartManmohan Singh Oct 24 in HuaHin, Thailand agreed to graduallynarrow differences on border issuesbetween the two countries. Theleaders who met on the sidelines of

the ongoing ASEAN-related summits also resolvedto try to ensure peace and stability in the borderarea, as it would be conducive to resolving theborder issues and furthering bilateral cooperation.

The two leaders discussed issues of common con-cern during their meeting on the sidelines of theASEAN Summit. The two sides also agreed to takemeasures to encourage bilateral trade and invest-ment, with the hope that bilateral annual tradewould reach 60 billion dollars by 2010, it said.

» Indo-US air force bilateral exercise, Cope India2009 on Oct 23 in Agra came to a successfulcompletion, with both the air forces working to-gether, enhancing and understanding the employ-ment philosophies of each other in joint ventureoperations. The five-day joint exercise (from Oc-tober 19 to 23) being held at Agra, which is one ofthe largest air base in Southeast Asia, was aimedat training personnel for joint planning and ex-ecution of missions in simulated hostile scenarios.The exercise ended with both the exercisedirectors Group Captain Mathew Mammen of theIndian Air Force and Colonel Raymond Le Marcheof the USAF expressing satisfaction in the waythe exercises was conducted.

To amplify the importance of the exercise Air ViceMarshal M Bahadur, Assistant Chief of Air StaffOperations (Transport & Helicopter) of the IAFand Major General Darryll Wong of the USAFexchanged mementos to commemorate the suc-cessful completion of EX Cope India 2009. TheIAF and the USAF learnt about each other's jointplanning and execution of missions.

The Indian contingent was represented by fiveAN-32s, one IL-76 and one Chetak helicopter inthe exercise, while the US Air Force (USAF) uti-lized personnel from Pacific Air Force and theSpecial Operation Command.

The Pacific Air Force comprises of three XC-130Hfrom the 374th Airlift Wing, one XC-17 from the15th Airlift Wing and one XC- 130 J from the146th Airlift Wing. In addition to that the IAFalso fielded its Rapid Action Medical Team andthe Special Forces Garuds in the joint exercise.

» Jhajjar’s (Haryana) 49-year-old neo-literateRoshni Devi emerged as the most powerful sym-bol of female literacy on September 8, 2009—agoal to which India re-dedicated itself under thebrand new Sakshar Bharat Mission, which waslaunched by Prime Minister Manmohan Singh onthe occasion of International Literacy Day.

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The mission sets itself the goal of educating 70million learners, 60 million of them women, by2012 through an investment of $1billion; it re-places the old adult literacy mission that began in1988. The final goal is to take national literacylevels from 64 per cent currently to 80 per centby 2017, and reduce the gender gap from 21 percent at present to 10 per cent, eventually.

» The World Alzheimer’s Re-port 2009, prepared by King’sCollege, London says that therewould be 35 million people

worldwide with dementia by 2010. That numberis set to almost double every 20 years to 65.7 mil-lion in 2030 and 115.4 million in 2050.

What’s worse, almost 60% of people with demen-tia in 2010 will be from low and middle incomecountries like India, rising to 70.5% by 2050. Thisis a 10% increase over the earlier estimate madein 2005—meaning that the estimates made ear-lier for India will also increase. Worldwide, the economic cost of dementia hasbeen estimated at $315 billion annually. The totalannual costs per person with dementia have beenestimated as $1,521 in a low income country, ris-ing to $4,588 in middle income countries and$17,964 in high income countries. The report recommended that the WHO declaredementia a health priority, and that countries,including India, develop a plan for dealing withthe greater numbers of dementia patients.

» The Central government has decided that theprovisions of the Gram Nyayalayas Act shall comeinto force in the areas to which this Act extendson October 2. The Gram Nyayalayas Act, 2008has been enacted to provide for the establishmentof the Gram Nyayalayas at the grass roots levelfor the purpose of providing access to justice tothe citizens at their door steps.

Salient Features

The Gram Nyayalaya shall be court of JudicialMagistrate of the first class and its presiding of-ficer (Nyayadhikari) shall be appointed by theState Government in consultation with the HighCourtGram Nyayalayas are aimed at providing inexpen-sive justice to people in rural areas at their door-steps

The Gram Nyayalaya shall be established for ev-ery Panchayat at intermediate level or a group ofcontiguous Panchayats at intermediate level in adistrict or where there is no Panchayat at inter-mediate level in any State, for a group of contigu-ous Panchayats. The Gram Nyayalaya shall be amobile court and shall exercise the powers of bothCriminal and Civil Courts. The seat of the GramNyayalaya will be located at the headquarters ofthe intermediate Panchayat, they will go to vil-lages, work there and dispose of the cases

The Nyayadhikaris who will preside over theseGram Nyayalayas are strictly judicial officers andwill be drawing the same salary, deriving the samepowers as First Class Magistrates working underHigh Courts

» The Supreme Court has di-rected all the States and theUnion Territories not to allowconstruction of places of wor-ship, be it gurdwaras, temples,

churches or mosques, on government land, par-ticularly roads.

A Bench, comprising Justices Dalveer Bhandariand M.K. Sharma, passed the order, also asking allthe State and UT governments to review case-by-case such structures that had already come up,encroaching upon public land.

Directing the registry to serve notices on all theStates and UTs within three days of passing of thejudgement, in view of the gravity of the situationwhich had "far-reaching consequences," the Bench

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said the heads of each district (collectors, magis-trates or deputy commissioners) to file status re-ports to their respective Chief Secretaries. TheChief Secretaries, in turn, would directly appraisethe apex court of the steps taken for keeping gov-ernment land free from such encroachments, theBench said.

» Following the Presidential assent (granted onAugust 26, 2009), the government has issued agazette notification of the law, which seeks toprovide free and compulsory education to all chil-dren aged from 6 to 14 years. The State govern-ments will have three years from the date of noti-fication of the law to implement it. During thisperiod, they will have to put in placeneighbourhood schools, minimum education in-frastructure with notified pupil-teacher ratio andschool management societies to ensure properimplementation of the law.

Cost, by far, remains the gravest challenge in theimplementation of the law, which would requireRs 2 lakh crore over the next five years for itsenforcement. The HRD Ministry has already ad-mitted to an estimated shortfall of Rs 60,000 croreover the period, with minister Kapil Sibal sayingadditional allocations would have to be made.

All States, meanwhile, have put their foot downon the issue of finances, saying they will requiremaximum possible funding from the Centre toimplement the law. At a meeting of the CentralAdvisory Board of Education, all State educationministers drove home this point, with hill Stateslike Himachal seeking 90 per cent central sharein the funding.

There are also some apprehensions over the defi-nition of the term “free education”. The matterwas raised vociferously by Archana Chitnis, Edu-cation Minister of Madhya Pradesh, who wantedthe HRD Minister to clarify the meaning of term“free”. “Free education would have to be definedby States,” Sibal said, adding that it could meanfree books, uniform, school bus travel or anything.

» Keeping up with anotherpromise made by Finance Min-ister Pranab Mukherjee in hisBudget speech of 2009, the gov-ernment has approved one percent interest rate subvention forhousing loans up to Rs.10 lakh.

The Union Cabinet has also given an approval forallocation of Rs.1,000 crore for the scheme. It willcome as a major boost to the housing sector andfuel greater development. The interest subsidywould be provided through the commercial banksand housing finance companies registered with theNational Housing Bank.

In another major decision the government alsoapproved a “Rehabilitation Package” to provideadditional relief to the victims of 1984 riots witha financial outlay of Rs.714.76 crore. The packagewas issued earlier by Ministry of Home Affairs onJanuary 16, 2008 and was for States of UttarPradesh, Madhya Pradesh, Chhatisgarh, Haryana,Bihar, Jharkhand, Jammu & Kashmir, HimachalPradesh, Orissa, Maharashtra, Uttarakhand,Punjab and the NCT of Delhi. The main aim ofthe proposal is fulfil the assurances given by thegovernment in both the Houses of Parliament onthe Report of Justice Nanavati Commission of In-quiry into 1984 riots.

» A unique software solutionadopted by Andhra Pradesh hasbrought transparency and ac-countability in implementationof National Rural EmploymentGuarantee Scheme (NREGS),the flagship programme of the

UPA government. Developed by Tata ConsultancyServices (TCS), the web-based software packagehas helped check corruption, fix loopholes in iden-tification of beneficiaries and the works and re-sulted in effective implementation of the scheme,covering nearly 11 million people in the State.

Andhra Pradesh has been the first State to intro-duce social audit system to effectively monitorimplementation of the scheme. Social auditing

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involves a process where teams visit the NREGSwork sites in every gram panchayat and physi-cally crosscheck the work done with the records.Each team has been led by district resource per-son and consists of four to five persons drawn fromcivil society organisations.

» The Income Tax Act has been amended witheffect from October 1, 2009, to provide that anygift-in-kind—being an immovable property or anyother property—the value of which exceeds Rs50,000, will become taxable in the hands of thedonee. The tax would have to paid by the recipi-ent by including the amount in his taxable income.

Gifts received from local authorities, trusts or en-tities registered as charitable institutions wouldnot attract the provisions of the new tax norms.

But, the good news is that if the immovable prop-erty or property is received from a relative or re-ceived under a will as inheritance it will not betaxed. Such a gift received on the occasion of mar-riage of the individual is also exempt from tax.Prior to this change in the Income Tax Act, cashgifts exceeding Rs 25,000 were subject to tax. Thenthe Act was amended with effect from April 1,2006, to tax all cash gifts having aggregate valueexceeding Rs 50,000. However, cash gifts continueto enjoy exemptions as is available for gifts-in-kind.

» The entire gamut of bilateral issues, includingthe Tipaimukh dam issue, sharing of river waters,trade, border management and combating terror-ism, were discussed in a “congenial ambience”during Bangladesh Foreign Minister Dipu Moni'sfour-day visit to India in September 2009. Thiswas his first official trip to India since the instal-lation of Prime Minister Sheikh Hasina's AwamiLeague to power following the December 29, 2008general elections in Bangladesh.

The installation of the Awami League and theCongress party to power in the two countries cre-ated a congenial ambience to settle the long-stand-ing issues through constructive negotiations be-cause of the historic links between the two par-

ties since the 1971 Bangladesh war.

Trade deficit is one such major issue. Businessanalysts said Bangladesh looked for stepping upits exports to the landlocked seven north-easternStates and close the trade imbalance if the barri-ers were removed.

The two countries also share over 50 common riv-ers and there had not been any progress in distri-bution of waters of the seven other rivers, includ-ing the Teesta.

The proposed Tipaimukh dam on the Barak riverin Manipur dominated the centre-stage ofBangladesh-India-relations during the past severalmonths, though New Delhi assured Dhaka noth-ing would be done under the project that couldaffect Bangladesh.

» On September 14, 2009,Mongolia became the fifthnation to sign a civil nuclearpact with India as New Delhi

extended a 25 million US dollar soft loan to theCentral Asian nation to help it mitigate the ef-fects of the global financial meltdown. The twocountries also inked agreements for cooperationin the fields of health, cultural exchanges and sta-tistical affairs. The accords were signed after wide-ranging talks between Prime Minister ManmohanSingh and visiting Mongolian PresidentTsakhiagiin Elbegdorj.

In a joint press interaction after the talks,Manmohan Singh said the two countries had re-viewed the entire gamut of bilateral relations anddiscussed issues of mutual concern. He said thetwo countries had agreed on deeper cooperationin the field of mining and agriculture. The twoleaders also stressed on bilateral investment pro-tection and considering ways to avoid double taxa-tion.

Great significance is being attached to the MoUbetween the two countries on ‘development ofcooperation in the field of peaceful use of radio-active minerals and nuclear energy’. Mongolia’s

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huge uranium reserves are expected to boost andenergise India’s starving civil nuclear fuel cycle.

India has already signed nuclear deals with France,Russia, the US and Kazakhstan after it got an ex-emption from the nuclear suppliers’ group (NSG)in September 2008 to undertake nuclear com-merce.

Mongolia, which claims to have 6 per cent of theworld’s uranium reserves, is not a member of theNSG. However, it had supported India’s case for aclean waiver at the International Atomic EnergyAgency (IAEA) meeting prior to the NSG meet.Nuclear experts believe that the supply of uraniumis more crucial for India than access to enrich-ment and reprocessing (ENR) technology.

» The Bofors case that led toCongress’s defeat in the 1989Lok Sabha polls has been givenan official burial. With thegovernment declaring its in-tention to drop proceedingsagainst the key accused,

Ottavio Quattrocchi, and all other accused eitherdead or acquitted, the case has reached a dead end.The decision not to pursue Quattrocchi, an Ital-ian businessman accused of taking bribes to facili-tate the sale of Bofors howitzers to India in 1986,was announced in the Supreme Court. The decision to give a burial to the Bofors case, inwhich the FIR was filed during the V.P. Singhregime in 1990 and the charge-sheet during NDAgovernment’s reign in 1999, was taken by the UPAgovernment on the basis of a fresh opinion givenby attorney-general G.E. Vahanvati. A closure of the case had looked imminent sinceUPA-I allowed Quattrocchi to take out hismoney—allegedly his share of the Bofors kick-backs—from accounts with a bank in London. Itfollowed that up by not pressing hard for his ex-tradition from Argentina and by, subsequently,telling Interpol that he was no longer wanted inIndia.

» The Centre, which usually remains tight-lippedabout the kind of weapons the Maoists have, hasin its new guidelines for surrender-cum-rehabili-tation of Naxalites indicated that the Red ultras’arsenal no longer consists of only looted policeweapons. They could, in fact, also have deadlierones—sniper rifles and surface-to-air missiles—which the ultras might have procured from out-side. The Union government, through the newguidelines for the Naxal-affected States, has of-fered different amounts as “additional” incentivesto those ultras who may surrender with suchweapons. Sniper rifles, rockets, missiles and lightmachine guns which can even target low-flyingchoppers and other long-distance targets attracthigher incentives to Naxalites if they surrenderwith such weapons.The incentive given for surrender of the arms willbe deposited in the form of a fixed deposit in thejoint names of the surrenderee and a State gov-ernment nominee and may be given to the sur-renderee at the time of completion of three yearsafter surrender, “subject to good behaviour by thesurrenderee”.

» Responding to September 15, 2009 deadline setby the Union Home Ministry, cadres of proscribedtribal militant outfit, Dima Halam Daogah (J) orBlack Widow have surrendered their weapons toset the stage for a peace process with the govern-ment of India. Total 374 cadres of Black Widowgroup have surrendered their weapons includingsome sophisticated weapons to set the stage forpeace negotiation. They have deposited weaponsat the headquarter of Fifth Assam Police battal-ion at Sontila in the hill district.

The cadres are coming over ground under the lead-ership of a deputy commander in chief seniorleader of the outfit Daniel Dimasa, while com-mander in chief Niranjan Hojai, who was believedto be in foreign soil, is still being expected to jointhe peace process. Those who have handed overtheir weapons are now being kept under heavysecurity at a Red Cross hospital at Jatinga in thehill district. They will be shifted to designatedcamps once the government gives its nod for the

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peace process after verifying the weapons surren-dered by the outfit.

» The chairman of the outfit Jewel Garlosa andanother senior leader Partha Warisa had been ar-rested by Assam Police from a Bangalore hideouton June 3, 2008, serving a severe blow to the out-fit which has been running amuck in North CacharHill district and adjoining areas in Assam since2004, perpetrating rampant killings and extortions.

Rampaging Black Widow militants jeopardisedworks on East West Corridor project of NationalHighway Authority of India (NHAI), as well as agauge conversion project of Indian Railways, caus-ing irreversible delay in implementation of theseprojects besides causing huge cost escalation.

The Autonomous State Demand Committee(ASDC), the main tribal regional party in hill ar-eas has hailed the process of surrender of weap-ons by Black Widow cadres.

Ten months after the attacks on Mumbai, Lashkar-e-Taiba remains largely intact, may have 1.5 lakhmembers and is determined to strike India again,according to current and former members of thegroup, and intelligence officials. Despite pledgesfrom Pakistan to dismantle militant groups oper-ating on its soil, and the arrest of a handful of op-eratives, Lashkar has persisted, even flourished,since the Mumbai carnage in November 2008.

Indian and Pakistani dossiers on theMumbai investigations offer a de-tailed picture of the operations of aLashkar network that spans Paki-stan. It includes four houses andtwo training camps here inKarachi. Among the organizers,

the Pakistani document says, was Hammad AminSadiq, a homeopathic pharmacist, who arrangedbank accounts and secured supplies.

Indeed, Lashkar’s broader network endures, andcan be mobilized quickly for elaborate attacks withrelatively few resources, according to a dozen cur-rent and former Lashkar militants and intelligence

officials from the US, Europe, India andPakistan. In interviews with New York Times,they presented a troubling portrait of Lashkar’scapabilities, its popularity in Pakistan and the sup-port it received from former officials of Pakistan’smilitary and intelligence establishment. One highly placed Lashkar militant said theMumbai attackers were part of groups trained byformer Pakistani military and intelligence officials.Others had direct knowledge that retired armyand ISI officials trained LeT recruits as late as 2008.

» The government’s efforts for formation of aNaga Common Platform, to find a political solu-tion to the vexed insurgency problem, have runinto trouble with all the three rebel groups—NSCN-IM, NSCN-K(GPRN) and NNC(FGN)—voicing their strong opposition to it. In a jointstatement issued to the local media, the groupshave declared that they were strongly opposed toany form of conditional package offered to theNagas by the Centre. The Naga Common Platformwas not warranted at this juncture, they added.

Conveners of the joint working group for Nagareconciliation, V.S. Atem of the NSCN (I-M),Zhopra Vero of the NNC (FGN) and Wangtin Nagaof NSCN-K (GPRN), in a joint declaration, statedtheir opposition to the issues was in line with the“Declaration of Commitment” signed by themduring the recent reconciliation meet held atChiangmai in Thailand. The three leaders duringthe meet affirmed to “work together in the spiritof love, non-violence, peace and respect to resolveoutstanding issues.”

The Central government was contemplating tooffer a conditional peace package to the State ifthe Naga rebels factions gave up their struggle.The package, which was still being worked, wasto include financial largesse and greater devolu-tion of powers to the State. However, the Centrehad made it clear that any solution to the pro-tracted Naga political issue would be within theConstitution of India. The NSCN (I-M) had ear-lier said such packages were “unacceptable” to it.

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The reconciliation process is currently being takencare of by the Forum for Naga Reconciliation(FNR). The FNR has been holding meetings bothwithin and outside the State with the differentNaga political groups and NGOs. However, theFNR has limited its role only to the reconciliationprocess and has shown no apparent interest in for-mation of a common platform to facilitate politi-cal dialogue with all the rebel groups.

» President Barack Obama, in amajor policy shift, has scrapped acontroversial missile-defenceshield favoured by his predecessor,removing a thorn in U.S.-Russiarelations but earning criticism

from some who accuse him of abandoning US al-lies in Europe. Obama announced that he wouldbe abandoning plans to base US interceptor mis-siles in Poland and radar in the Czech Republic toprotect Europe from Iranian missiles. Instead,Obama has proposed deploying a system aimed atintercepting short- and medium-range missiles.The President justified his decision by citing newintelligence that shows Iran's long-range missileprogramme to be far less developedthan previously thought. Russia, which had ve-hemently opposed former President George W.Bush's plan to place US military hardware on itsborder, said Obama's decision would go a long wayin resetting the relationship between the twocountries.

» Angela Merkel set to work on September 28,2009 on a new centre-right coalition after clinch-ing a second term, but warned Germans of a hardroad ahead to revive the sickly economy and res-cue vanishing jobs. The conservative Chancellorsecured another four-year mandate with enoughvotes to dump an awkward “grand coalition” withthe Social Democrats (SPD) for an alliance withthe pro-business Free Democrats (FDP). Votersrewarded the 55-year-old leader, dubbed mostpowerful woman on Earth by Forbes magazine forfour years running, for shepherding Europe’s big-gest economy through its worst post-war down-turn. Merkel’s bloc and the FDP have a comfort-

able 332 seats in the 622-member Parliament.

» The global recession is coming to an end fasterthan thought just a few months ago and may al-ready be over, according to forecasts published bythe Organisation for Economic Co-operation andDevelopment. The recovery may even prove alittle stronger than previously predicted, OECDchief economist Jorgen Elmeskov said.

The OECD forecasts show a third-quarter returnto expansion of economic output, as measured bygross domestic product, in the United States andthe 16-country Euro zone, led by its two largesteconomies, Germany and France. The forecastsshowed an annualised expansion of 1.6% in theUnited States in the third quarter, 0.3% in theEuro zone and 1.1% in Japan. The pickup that started with a “quite dramaticturnaround” in China and other Asian emergingmarket economies in the second quarter remainedheavily dependent on government stimulus andultra-low interest rates across the world, Elmeskovsaid.

The OECD’s 30-member countries do not includerising powers such as China, but do include thelong-industrialised ones where the trouble beganin 2007 as the credit and housing boom in theUnited States turned to bust, triggering a crisis inbanking and financial markets that infected thereal economy.

The OECD is still predicting GDP contractions for2009 as a whole across the G-7 group, primarilybecause of a particularly bad first half, despite theimprovement now in the pipeline. But it seesannualised GDP rises of 1.2 and 1.4% in the thirdand fourth quarters for the G-7 as a whole, alsosignalling an exit from recession at that level.

» The Organisation for Economic Cooperationand Development (OECD) has taken Switzerlandoff from the list of non-cooperative tax havens,following the country signing 12 taxation agree-ments with different nations, and most of them

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are significant economic partners like the US andthe UK. In April 2009, OECD, a grouping of richnations, had named many countries, includingSwitzerland, in a grey list of those which are notfully-compliant with global tax standards. As perOECD norms, a country would be removed fromthe grey list after it has signed at least a dozendouble taxation agreements.

Known for its banking secrecy practices, Switzer-land has come under international pressure in thewake of the global crackdown on tax havens. Swit-zerland has signed treaties with Qatar, Denmark,Luxembourg, France, Norway, Austria, the UK,Mexico, Finland, the Faroe Islands, USA and Spain.

» The European Union (EU)has challenged rising powersIndia and China to braketheir soaring greenhouse gasemissions in return for West-

ern financial support. “We need to make a cred-ible financial commitment to the developingworld. The equation is straightforward: no money,no deal, but if there are no actions, no money,”European Commission President Jose ManuelBarroso said. According to estimates from the Commission, theEU’s executive, it will cost around 100 billion eu-ros ($147 billion) per year by 2020 to fight cli-mate change in developing countries. But in a clearchallenge to rising powers such as Brazil, China,India, Mexico and South Africa, EU leaders statedthat “this estimate pre-supposes appropriate miti-gating actions by developing countries, especiallythose that are economically more advanced”.

» For the first time, a UN agency has endorsedIndia and developing countries on the climatechange front. In its World Economic and SocialSurvey Report 2009, the UN said rich countrieshad consumed more than fair share of their car-bon space and needed to take deep emission cutsif the new climate agreement was to be equitable.The survey said investments in energy infrastruc-ture would have to be doubled from the existing$500 billion per year to $1 trillion and there was a

need to spend approximately $20 trillion by 2030to move the world to a low carbon growth path. The report has warned that industrialized coun-tries had already emitted 209 giga-tonnes of car-bon. If the rise in global temperatures was to bekept below 2 degree centigrade, industrialisedcountries would have to reduce their emissionsby more than 100% below 1990 levels by 2050.At present, industrialized countries have notagreed to reduce their emissions by even 40% be-low 1990 levels by 2030 and 80% by 2050. The UN survey pointed out that in a fair deal, in-dustrialized countries should only occupy 21% ofthe global carbon budget. But it recorded that evenunder the most ambitious proposal from the richnations, they would end up consuming 48% ofthe budget, at the cost of the poorer nations.

From the present emission stock of 209 giga-tonnes of carbon from the rich nations, they wouldneed to alter the lifestyles of their citizens to comedown to 137 giga-tonnes by 2050 and leave therest of the space for poorer nations to develop eco-nomically.

The authors of the report have recommended aglobal clean energy fund and a global feed in tar-iff regime, besides a better carbon trading mecha-nism and forest-related financing mechanism toensure that needed funds are transferred from therich to the developing countries as part of the newdeal.

» An angry, humiliated, and wounded A.Q. Khanhas finally made public what has long been sus-pected: his nuclear proliferation activities, thatincluded exchanging and passing blueprints andequipment to China, Iran, North Korea, and Libya,were done at the behest of the Pakistani govern-ment and military, and he was forced to take therap for it. “The bastards first used us and are nowplaying dirty games with us,” Khan writes aboutthe Pakistani leadership in a December 2003 let-ter to his wife Henny that has been made publicby an interlocutor. “Darling, if the governmentplays any mischief with me, take a tough stand...

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They might try to get rid of me to cover up all thethings they got done by me.” Khan had also sentcopies of the letter to his daughter Dina in Lon-don, and to his niece Kausar Khan in Amsterdamthrough his brother, a Pakistan Airlines execu-tive. Pakistani intelligence agencies got wind of itand threatened his family’s well-being, forcinghim to recant and publicly take the blame for theproliferation activities.

» Pakistan’s rapidly ramped upnuclear arsenal is now 70-90strong with increasingly sophis-ticated bomb designs and smart

delivery systems aimed primarily at India, two USresearchers have said, even as Islamabad is run-ning from pillar to post seeking international aid. In a paper written for the Bulletin for Atomic Sci-entists, Robert Norris of the Natural ResourcesDefence Council and Hans Kristensen of the Fed-eration of American Scientists say Pakistan is‘‘busily enhancing its capabilities across the board,’’with new nuclear-capable ballistic missiles beingreadied for deployment, and two nuclear capablecruise missiles under development. Two new plu-tonium production reactors and a second chemi-cal separation facility are also under construction,they said.

» A new US Legislation triples US aid to Pakistanauthorises military assistance to help the countryin its fight against Al-Qaida and other terrorists,but it also includes new and painstakingly negoti-ated accountability measures to ensure that thisaid is not misused. India had expressed concernthat Pakistan would divert US military aid towardbolstering its defences against a perceived threatfrom India.

The so-called Friends of Democratic Pakistan gotsomething to applaud when the US Senate passedthe compromise legislation in a voice vote. A state-ment from the sponsor of an identical Bill in theHouse of Representatives said the legislation re-quired that military assistance be focused “princi-pally on helping Pakistan with its critical counter-

insurgency and counter-terrorism efforts”. The billaddresses India's concerns, which Congressionalsources and South Asia analysts in Washingtonsay are valid.

» Oscar-winningmusician A.R. Rahman has wonthe ‘Grassroot Grammy’ for the soundtrack in theTamil film “Godfather” in the Best Indian Albumcategory at the ‘Just Plain Folks 2009 MusicAwards’. Bangla band ‘Krosswindz’ and Ilayarajawere among others nominated in the category.With over 50,000 members worldwide, the JustPlain Folks 2009 Music Awards is aimed at sup-porting grass-root songwriters and musiciansthrough networking, education and promotionalsupport. The awards received responses from over163 countries.

Vibrant financial markets and a sound bankingsector has helped Indian economy move up a notchto 49th place on the global competitive scale, whileSwitzerland has toppled the US as the top-rankednation, as per the Global Competitiveness Index2009-2010. The US has slipped to the second placeand is followed by Singapore, Sweden and Den-mark in the top five of the world's most competi-tive economies. Among the 133 countries featur-ing in the list, three nations in the BRIC group-ing—India, China and Brazil—have moved up thecompetitiveness ladder while Russia has witnesseda sharp drop.

» Trident InternationalHoldings has awarded a$400 million contract to

Arabian Construction Company (ACC) to buildthe world's tallest residential tower the'Pentominium' in Dubai Marina. The 124-floorPentominium, whose name is derived from twowords: penthouse and condominium, will be oneof the world’s tallest man-made structures and isprojected to be the second-tallest building in theworld after Burj Dubai. Each apartment in the 618metres tower will consist of either half a floor, oran entire floor. The total built-up area will be170,000 square metres and the construction dura-tion is expected to take 48 months. The

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Pentominium will be the tallest all-residentialbuilding in the world upon completion and it cur-rently has the highest projected height of any resi-dential building under construction.

» The World Bank will pro-vide $4.3 billion loan to Indiafor four projects in order to aidthe country’s finance infra-structure building and for

recapitalisation of state-owned banks. The fourloans include $2 billion loan to enhance banks’capital, $1.2 billion loan to infrastructure financ-ing company IIFCL, $1 billion to help addresspower deficiency, and $150 million to improvewater supply in Andhra Pradesh. The loans arepart of the World Bank’s $14 billion crisis-relatedlending to India for a period of three years till 2012.

» On September 18, 2009, INS Kochi, the Project15-A Kolkata Class stealth destroyer built by theMazgaon Docks Ltd was formally inducted intothe Indian Navy at Mumbai, by Admiral NirmalKumar Verma’s wife Madulika Verma. It will for-mally join the naval fleet in 2011.

INS Kolkata, the first vessel, will be inducted in2010. The third vessel of its class is likely to belaunched in 2012. All three vessels will have landattack capabilities as well. Each of the Project 15-A Kolkata Class destroyer is expected to cost aboutRs 3,800 crore. These ships will be fitted with thestate-of-the-art weapon systems, including theBrahmos missile and the Barak-2 surface-to-airmissiles with a range of 70 km.Made-in-India ‘stealth’ frigate to add fire-powerVery soon India will add another lethal punch toits growing ‘‘blue-water’’ warfare capabilities byinducting an indigenously-designed and manufac-tured ‘‘stealth’’ frigate, INS Shivalik, which isarmed with a deadly mix of foreign and indigenousweapon and sensor systems and is currently un-dergoing ‘‘advanced’’ pre-commissioning sea tri-als. Apart from Russian Shtil surface-to-air missilesystems, Klub anti-ship cruise missiles and other

weapons, the multi-role frigate will also be armedwith the Israeli ‘Barak-I’ anti-missile defence sys-tem. INS Shivalik is the first stealth frigate to be de-signed and built in India. It is part of Project-17,to construct three stealth frigates, the other twobeing INS Satpura and INS Sahyadri, at a cost ofRs 8,101 crore, at Mazagon. The defence ministryhas now approved Project-17A to construct sevenmore frigates, with even more stealth features, foraround Rs 45,000 crore.

» Geologists in Tamil Nadu have stumbled upona Jurassic treasure trove buried in the sands of ariver bed. Sheer luck led them to hundreds of fos-silized dinosaur eggs, perhaps 65 million years old,underneath a stream in a tiny village in Ariyalurdistrict. That dinosaurs once roamed the area was knownfrom the fossils found there on earlier expeditions.But this is the first time that hundreds of nestsembedded with hundreds of clusters of dinosaureggs have been unearthed in the district. Locatedon the highway between Chennai and Tiruchi,the Ariyalur and neighbouring Perambalur geo-logical sites nestle in the northern plains of theCauvery river.

The Ariyalur-Perambalur region is a veritablemuseum of ancient organisms, dating back to 140million years. Ever since a British couple—theWines—collected 32 boxes of ‘‘strange stone ob-jects’’ in 1843, the Ariyalur region has drawn ge-ologists from across the world for its rich fossilpresence and diversity. Scientists have found thetiniest marine algae or the nano fossils besides therare shell-like bivalve, gastropoda, telecypoda andbrachiopoda in the geological sites spread across950 sq km in Ariyalur and Perambalur districts.

» In a landmark discovery, an archaeological sitebelieved to be over 3,330-years-old, has beenfound in southern Sri Lanka's Embilipitiya regionby a group of local archaeologists. The discovery,perhaps the first of over three century old site ever

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found in Sri Lanka, has been uncovered by Pro-fessor Raj Somadeva and his team while excavat-ing an area belonging to the Sri Jayabodharamatemple in Udaranchamadama. Grinding stones,painted pots, granite tools and other items wereamong the findings of the excavations.

» There will be no Class X boardexamination in CBSE schools in2011. While there will be a boardexam for Class X in 2010, gradingsystem, based on continuous and

comprehensive evaluation by schools, will kick-in in 2009-10 itself. Students in schools with classes only till X willhave to take an “online/offline/on demand” assess-ment test for seeking admission in Class XI in an-other school. Students of schools with classes tillXII need not take such an assessment test. It willbe optional for students of these schools to takethe on-demand test.

According to new CBSE guidelines, on-demandassessment tests will be held more than once ayear and students can repeat it to improve theirgrades. Also, for students interested in being evalu-ated on marks, schools will provide for these sepa-rately but not on the certificate.

There will be nine grades. The highest will be A1(exceptional) with a grade point of 10 and a marksrange of 91-100%. Second grade will be A2 (ex-cellent) with a grade point of 9 and marks in therange of 81-90%. Third grade will be B1 (verygood) with grade point of 8 and a marks range of71-80%.

The fourth grade will be B2 (good) with a gradepoint of 7 and marks range of 61-70%. Fifth gradewill be C1 (fair) with grade point of 6 and marksrange of 51-60%. C2 (average) will be the sixthgrade with grade point of 5 and marks range of41-50%. D (below average) will be the seventhgrade with 4 grade points and marks range of 33-40%. E1 (needs improvement) and E2 (unsatisfac-tory) are the last two grades.

Grading system based on continuous and compre-hensive evaluation (CCE) will be done in twoterms (April-September, October-March). In ayear, the school will conduct four formative andtwo summative assessments. In the first term,there will be two formative assessments of 10%each and single summative assessment of 20%. Inthe second term also a similar format will beadopted. Formative assessment will carry 40%marks and summative assessment 60% marks. CBSE also plans to offer an aptitude test that willbe available by February 2010. By the time a stu-dent reaches Class XI, he/she would have under-taken the aptitude test twice, once at the end ofClass IX and then at the end of Class X.

» El Nino disrupts weather patterns around theworld, causing drought in Indonesia, Australia,India and eastern Brazil, and unusually heavy rain-fall in the US Gulf Coast and parts of SouthAmerica. It also lowers sea surface temperaturesin the Caribbean and Atlantic, which helps pre-vent the formation and intensity of hurricanes inthat region. But climate change has apparently given rise toan alternate form of El Nino that is likely to be-come more frequent over the coming decades,according to the new research, published in Na-ture. “There are two El Ninos,” said Ben Kirtman,a professor at the University of Miami and a co-author of the study. “In addition to the easternPacific El Nino, a second El Nino in the centralPacific is on the increase,” he said.

The two do not occur at the same time, he added.This could be bad news on at least two fronts. InAsia, it could intensify droughts that have alreadywreaked havoc in recent decades. And in the At-lantic, it could weaken the positive effect it hashad up to now in mitigating the intensity of hur-ricanes that strike the Caribbean and the US eastcoast.

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» Noted singer, he has been honoured with theDada Saheb Phalke award, 2008. Born PrabodhChandra Dey on May 1, 1919, Manna Dey, as hecame to be known, began taking music lessonsduring college days. In 1942, he accompanied hisuncle Krishna Chandra Dey, a musician, toMumbai and began to work as his assistant. Fol-lowed by a stint with S.D. Burman, Dey’s play-back career began in 1943 with a duet with Suraiyain ‘Tamanna’. The song became an instant hit,opening avenues in Hindi and language films.

He turned music director but kept his music les-sons going, including Hindustani classical. Fromclassical to pop to Rabindra Sangeet, Dey recordedover 3,500 songs in his career, including a rareduet with Bhimsen Joshi, “Ketki Gulab Juhi”(Basant Bahar, 1956).

Manna Dey’s top five songs have been: “Ae merepyare watan” (Kabuliwala, 1961) “Ae meri zohrajabeen” (Waqt, 1965) “Ek chatur naar” (Padosan,1968) “Zindagi kaisi yeh paheli hai” (Anand, 1971)“Yeh dosti hum nahin todenge” (Sholay, 1975).

In 1969 he won the National award for best maleplayback for “Mere Huzur”. Again in 1971, he wonthe National award for best male playback forBengali film “Nishi Padma”.

» Nyoma is the third such airstrip that has beenactivated along the LAC in Ladakh. On Septem-ber 18, 2009, an AN-32 aircraft landed at Nyoma,where an advanced landing ground (ALG) hasbeen readied for faster deployment of troops andmoving supplies to troops based at forward posts.The landing strip is 23-km inside Indian Terri-tory and is at an altitude of 13,300 feet.An ALG means: where the landing strip com-prises hard compacted earth but is not paved withconcrete. Earlier, in May 2008, the IAF had acti-vated Daulat-Beg-Oldie (DBO), the highest air-field in the world situated at an altitude of 16,200feet.

» The modern-day Indians area genetic mixture of two distinctancient populations, a new re-search has revealed. All diversegroups seen in the present day

India came from two major ancient populationsthat are genetically divergent—Ancestral NorthIndians (ANI) and the Ancestral South Indians(ASI). While the ANI group is genetically close to MiddleEasterners, Central Asians, and Europeans, the ASIare not related to any group outside India, thestudy has said.

Claimed to be the largest-ever genome-scale analy-sis of diverse Indian groups, the research wasjointly conducted by scientists from Hyderabad-based Centre for Cellular and Molecular Biology(CCMB), Harvard Medical School, Harvard Schoolof Public Health and the Broad Institute ofHarvard and MIT, USA.

“The implication of this study is that India is notone population and we are a nation of multiplepopulations,” Lalji Singh, a research team mem-ber and former CCMB Director, said. The studypaper was published online in the journal Nature.

The study also looked for genetic variations basedon caste—upper and lower caste—from two thestates of Uttar Pradesh and Andhra Pradesh. Con-trary to popular perception by historians that thecaste system seen today is an invention of colo-nialism, the study found scientific evidence toshow that “many current distinctions amonggroups are ancient.”

There were 4,635 well-defined populations in In-dia, including 532 tribes and 72 primitive tribes.Researchers studied the genomes of 132 Indiansfrom 25 population groups that represented all six-language families across 15 States and includedtraditionally “upper” and “lower” castes and tribalgroups.

Analysis of 500,000 genetic markers, randommutations that serve as milestones-using exten-sive statistical tools, shows that diversity within

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India is three-four times higher than that seenwithin Europe. The research result indicates thatmany modern Indian groups have descended froma small number of “founding individuals”, whosedescendants interbred among themselves to cre-ate genetically isolated populations.

This insight has important medical implicationsfor people of Indian origin, because groups thatare descended from small founding populationsoften have a high incidence of inherited diseases.

» India has for the first time ever managed to foila bio-piracy bid in a record three weekstime. Thanks to the Traditional Knowledge Digi-tal Library (TKDL), which has till now completeddocumenting over two lakh medical formulationsof Ayurveda, Siddha and Unani to save them frompiracy, European Patent Office (EPO) has can-celled its earlier “intent to grant patent” order toa Spanish company on use of melon extract to curevitiligo (leucoderma)—a disease that causes skinde-pigmentation to almost 65 million people glo-bally. Under India’s ancient Unani system of medicine,hakeems have for hundreds of years been usingmelon extract to cure this disease. Michael Jack-son was world’s most famous vitiligo patient.

Earlier patent related challenges made by Indialasted years. Among the famous were: patent ap-plication over neem’s anti-fungal properties whichtook India 10 years to revoke; the patent applica-tion on the wound healing properties of turmericwhich took three years; and that of Basmati riceagainst an US-based company which took wellover a year.

Vitiligo is a pigmentation disorder in which mel-anocytes in the skin are destroyed. As a result,white patches appear on the skin. There is evi-dence that people with vitiligo inherit a group ofthree genes that make them susceptible to de-pig-mentation. Some say vitiligo is a disease in whicha person’s immune system reacts against the body’sown organs or tissues. So proteins called cytokines,which are produced within the body, alter their

pigment producing cells and cause these cells todie.

» With crimes and terror attacks having inter-state ramifications, the government is putting inplace a hi-tech system to establish a countrywidenetwork covering almost all the 14,000 police sta-tions.

The Crime and Criminal Tracking Network andSystems (CCTNS) aims at providing the Investi-gating Officers with technology, tools, and infor-mation to facilitate investigation of crime and de-tection of criminals. The Planning Commission hasgiven in-principle approval for the HomeMinistry's major e-governance initiative duringthe XIth Five Year Plan at an outlay of Rs 2,000crores. The allocation for the current year is Rs210 crores. Besides, covering all the police stationsin the country, it is proposed to establish contactwith 6,000 higher police offices.

The system is intended to improve the function-ing of police force in various activities like lawand order, traffic management and prevention ofcrime, besides keeping track of the progress ofcases, including the ones in courts. It also aims atmaking the functioning of police more transpar-ent and citizen friendly.

Assisting senior officers in better management ofpolice force, facilitating interaction and sharingof information among police stations have alsobeen envisaged. Another salient feature of thesystem is reduction in manual and redundantrecords keeping.

Crime and Criminal TrackingNetwork & Systems

The Cabinet Committee on Economic Affairs onJun 20th, 2009 approved the Crime and CriminalTracking Network & Systems (CCTNS) Projectwithin the outlay of Rs.2000 crore in the 11th FiveYear Plan.

This project would be initiated by the Ministry ofHome Affairs and implemented by the National

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Crime Records Bureau. The CCTNS project is tobe implemented in a manner where the major rolewould lie with the State Governments in order tobring in the requisite stakes, ownership and com-mitment, and only certain core components wouldbe in the hands of the central Government, apartfrom the required review and monitoring ofproject implementation on a continuing basis.

The CCTNS project aims at creating a comprehen-sive and integrated system for enhancing the effi-ciency and effectiveness of policing at the PoliceStation level through adoption of principles of e-Governance, and creation of a nationwide net-worked infrastructure for evolution of IT-enabledstate-of-the-art tracking system around “investi-gation of crime and detection of criminals” in thereal time. This is a critical requirement in the con-text of the present day internal security scenario.

On 24 October, K. Radhakrishnan has appointedas the new Chairman of Indian Space ResearchOrganisation (ISRO). He succeeds G. MadhavanNair who retired at the end of October 2009. K.Radhakrishnan (born 29 August 1949) is an In-dian scientist). Formerly he was the director ofVikram Sarabhai Space Centre (VSSC),Thiruvananthapuram. He was born in Kerala, In-dia. A very versatile personality having interestin different fields of science and arts. He is a LifeFellow of the Indian Geophysical Union and alsoan accomplished vocalist (Carnatic music) andKathakali artist..

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» Italy's Francesca Schiavone won just the sec-ond title of her career in Moscow on oct 25 bydefeating Olga Govortsova of Belarus by 6-3, 6-0in the Kremlin Cup women’ssingle’s final while MikhailYouzhny (Russia) beat JankoTipsarevic (Serbia) by 6-7(5) 6-0 6-4 Kremlin Cup men's singles final.The 29-year-old veteran, ranked24th in the world and seededeighth in Moscow, won in onehour 17 minutes to record her sec-ond win in three head-to-headmeetings with Govortsova.Schiavone received a silver trophyand a prize purse of 157,427 dol-lars, while runner-up Govortsova,who lost her second career final,pocketed 83,908 of prize dollars.

» No. 3 seeds Pablo Cuevas fromUruguay and Marcel Granollers from Spain wonmen’s doubles title at the Kremlin Cup in Mos-cow. They defeated top seeds Frantisek Cermak(Czech Republic) and Michal Martinak (SlovakRepublic) 4/6, 7/5, 1/0.

Adding to his already overflowing list of firsts inIndian boxing, Haryana lad Vijender Singh hasagain created history by attaining the numero unoposition in the world in the 75 kg category. Now,he has become the first Indian boxer to win amedal at the Olympics, the first to win a medal atthe World Championships and also the first to takethe top spot.

» India became world number one in ODIs onSeptember 11, 2009 after a six-wicket win overNew Zealand. However, they could not hold onto the number one spot for long as they lost thenext match against Sri Lanka. M.S. Dhoni’s men

Sportsare only the third team to hold the top slot afterAustralia and South Africa since the ranking sys-tem began. Indian team needed to win the twomatches against Sri Lanka in the tri-series to stay

on top. But they could only win thefinal of the series and lost the leaguematch.

» A devastating spell of fast bowl-ing from Brett Lee at Lord’s helpedAustralia to a seven wicket win andan unassailable 4-0 lead in the seven-match One-day series against En-gland. It was the ninth time Lee hadtaken five wickets in a One-dayer.Australia captain Ricky Ponting’s su-perb century paved the way for theworld champions to beat England byfour wickets in the fifth one-day in-ternational (ODI).

» Tim Paine scored his maiden international cen-tury as Australia inflicted fresh one-day miseryupon England with a crushing 111-run win atTrent Bridge. Victory in this fixture left worldchampions Australia 6-0 up in the 7-match series.

» India defeated Sri Lanka by 46 runs to win thetri-series. India’s win was backed by a century bySachin Tendulkar who scored 138 runs off 133balls. This was Sachin’s 44th century. The win wasIndia’s first in a tournament final against Sri Lankain eight attempts. The win was also India’s firstsince January 2008 in a series involving more thantwo teams.

» Indian opener Gautam Gambhir pippedVirender Sehwag to become the Cricketer of theyear 2008 in Castrol Cricket Awards, 2008.Gambhir, who scored over 1000 runs in Tests and

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ODI's in 2008, also won the best batsman of theyear award while off-spinner Harbhajan Singhclaimed the best bowler of the year honours,worth a trophy and Rs two lakh each.

» Dashing opener Sehwag and Indian skipperMahendra Singh Dhoni were declared the Testand One-Day cricketers.

» All rounder Ravindra Jadeja was named the bestyoung cricketer of the year.

» Master blaster Sachin Tendulkar and anotherstalwart Rahul Dravid were given special perfor-mance awards for becoming the first batsman tocross 12,000 runs in Tests and becoming the lead-ing catcher in the traditional format of the game,respectively.

» Gundappa Rangnath Viswanath, former Indiancaptain and the first Indian to score a Test hun-dred against all Test-playing nations of his timewas conferred the Castrol Lifetime AchievementAward. Vishwanath joins the legendary Capt.Vijay Hazare, Polly Umrigar, B.S. Chandrasekhar,Gavaskar, Kapil Dev and Prasanna who were theearlier recipients of the award. G.R. Viswanathrepresented India in 91 Tests from 1969 to 1983,and scored 6,080 runs, inclusive of fourteen cen-turies.

» Tiger Woods cruised to victory in the BMWChampionship, his sixth triumph of 2009, puttinghim back atop the US PGA Tour’s FedEx Cuprankings.

India No. 1 Somdev Devvarman came back fromtwo sets down to beat South Africa’s Rik De Voestin a match that lasted nearly 5 hours. The thrill-ing win gave India an unbeatable 3-1 lead overSouth Africa and ensured a return to the elite DavisCup World Group for the first time in 11 years.

» Kim Clisjsters of Belgium wonthe women’s singles title in USOpen, 2009 for the second time,defeating Caroline Wozniacki ofDenmark, to complete one of themost stunning comeback in mod-ern sports history. In doing so, she

became the first mother to win a Grand Slam titlesince Australian Evonne Goolagong in 1980 andthe Dlouhy won the men’s doubles title when theybeat the third seeds Mahesh Bhupathi and hispartner from first wildcard, man or woman, to wina US Open title in the history of the tournament.

» Juan Martin del Porto ended Roger Federer’srun of dominance at the US Open to win the men’ssingles title. This was his first Grand Slam title.

» Leander Paes and his Czech partner Lukas theBahamas Mark Knowles 3-6, 6-3, 6-2.

» Serena Williams and Venus Williams beat CaraBlack and Liezel Huber to win the women doublestitle.

» Carly Gullickson and Travis Parrott defeatedLeander Paes and Cara Black to win the mixed-doubles title.

Section -4 (SPORTS)

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» Mr Sunil Bharti Mittal, Chairman and GroupCEO of Bharti Enterprises, has been chosen onOct 23 for the prestigious 'Lal Bahadur Shastri Na-tional Award for Excellence in Public Adminis-tration, Academics and Management.' PresidentPratibha Devisingh Patil willpresent the award to Mr Mittal ata function in Rashtrapathi Bhavanon December 15. Mr Mittal hascontributed significantly forupliftment of rural poor as also forbringing academic excellence withIndian ethos.

Earlier recipients of the award in-cluded Dr E Sreedharan, Dr M SSwaminathan, Dr Naresh Trehan,Dr R A Mashelkar, Dr C PSrivastava, Ms Ela R Hatt, Mr N RNarayana Murthy, Mr Sam Pitroda and Prof C KPrahlad.

» Eleven scientist were selected for 2009 ShantiSwarup Bhatnagar Prize for science and tech-nology on the occasion of CSIR Foundation Daycelebration at Vigyan Bhawan. Their names dis-cipline-wise are as under:

Biological Sciences: 1. Dr Amitabh Joshi, Jawaharlal Nehru Centrefor Advanced Scientific Research, Banglore. 2. Dr Bhaskar Saha, National Centre for CellScience, Pune.

Chemical Sciences: 1. Dr Charusita chakravarty, Indian Instituteof Technology Delhi, New Delhi. 2. Dr Narayanaswamy Jayaraman, Indian In-stitute of Science, Bangalore.

Earth, Atmosphere, Ocean & Planetary Sci-ences: 1. Dr S K Satheesh, Indian Institute of Science,Bangalore.

AwardsEngineering Sciences: 1. Dr Giridhar Madras, Indian Institute of Sci-ence, Bangalore 2. Dr Jayant Ramaswamy Haritsa, Indian Insti-tute of Science, Bangalore.

Mathematical Sciences:1. Dr Venapally Suresh, Univer-sity of Hyderabad, Hyderabad

Medical Sciences:1. Dr Santosh Gajanan Honavar,L V Prasad Eye Institute,Hyderabad

Physical Sciences:1. Dr Rajesh Gopakumar, Harish-Chandra research Institute,Allahabad2. Dr Abhishek Dhar, Raman

Research Institute, Bangalore

The Bhatnagar Prizes are given to scientists be-low 45 years of age, for their outstanding scien-tific contributions made primarily in India duringthe last 5 years preceding the year of the Prize.The SSB Prize comprises a citation, a plaque and acash award of Rs.5,00,000/- (Rupees five lakhonly), and are given to the recipients by the PrimeMinister of India.

» The annual film awards in India, 55th Na-tional Awards (for year 2007-2008) were an-nounced on September 7, 2009. The winnersare:n Best Actor: Prakash Raj (Kanchivaram)n Best Actress: Uma Shree (Kannada film GulabiTalkies)n Best Film Award: Kanchivaramn Best Child Actor: Sharad Goyekar (Marathi filmTingya)

Section -5 (AWARDS)

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n Best Screenplay: Gandhi My Fathern Best Supporting Actor: Darshan Zariwala(Gandhi My Father)n Best Supporting Actress: Shefali Shah (The LastLear).n Special Jury mention: Gandhi My Fathern Best Wholesome Entertainment: Chake DeIndian Best Music Director: Ouseppachan for themovie Ore Kadal (Malayalam).n Best Family Welfare Film: Taare Zameen Parn Best Playback Singer (Male): ShankarMahadevan for Meri Maa (Taare Zameen Par).n Best Playback Singer (Female): Shreya Ghoshal(Jab We Met).n Best Lyrics: Prasoon Joshi (Taare Zameen Par)n Indira Gandhi Award for Best First Film of aDirector: Frozen (Hindi), directed by ShivajeeChandrabhushan.n Nargis Dutt Award for Best Feature Film onNational Integration: Dharm (Hindi), directed byBhavna Talwar.n Best Film on Social Issues such as Prohibi-tion, Women and Child Welfare, Anti-dowry,Drug Abuse, Welfare of the handicapped etc.:Antardwandwa (Hindi), Directed by Sushil Rajpal.n Best Children’s Film: Foto (Hindi), Directedby Virendra Saini.n Best Animation Film: Inimey Naangathaan(Tamil), Directed by S. Venky Baboo.n Best Feature Film in Bengali: Ballygunge Court,Directed by Pinaki Chaudhurin Best Feature Film in Hindi: 1971, Directed byAmrit Sagarn Best Feature Film in Kannada: Gulabi Talkies,Directed by Girish Kasaravalli.n Best Feature Film in Malayalam: Ore Kadal,Directed by Shyama Prasadn Best Feature Film in Marathi: Nirop, Directedby Sachin Kundalkar

n Best Feature Film in Tamil: Periyar, Directedby Gnana Rajasekaran.n Best Feature Film in English: The Last Lear,Directed by Rituparno Ghosh.n Best Book on Cinema: From Raj to Swaraj:The Non-fiction Film in India (English), By B.D.Gargan Best Film Critic: V.K. Joseph (Malayalam).

» Dr Lakshminandan Bora has been honouredwith the award Saraswati Samman, 2008 for hisAssamese novel “Kayakalpa”. The awards consistsof a citation and prize money of Rs 5 lakh.

» Mannu Bhandari has been honoured with theaward Vyas Samman, 2008 for her novel “EkKahani Yah Bhi”. The award consists of a citationand prize money of Rs 2.55 lakh.

» Renowned playback singerManna Dey has been nominatedfor the prestigious Dada SahebPhalke award for the year 2007.The 90-year-old singer is one ofthe greatest playback singers in

Indian cinema. He ruled the playback music scenefrom the 1950s to the 1970s.

Section -5 (AWARDS)

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