Obama Visits India: Bilateral Cooperation Enhances

India and the United States on January 25 announced policy resolution on two key issues paving the way for a nuclear trade within the ambit of domestic laws and international obligations. The pact ends a six-year old stalemate in operationalizing the path-breaking civil nuclear agreement. The agreement was signed in New Delhi by Prime Minister Narendra Modi and the visiting US President Barack Obama, who was the chief guest at the 2015 Republic Day parade. The 123 or civil nuclear deal was inked between India and the United States in October 2008. The pact, however, failed to deliver business for US companies.

Breakthrough in Civil Nuclear Deal

There was a “breakthrough” in civil nuclear agreement and both countries have sorted out the two pending issues. The American companies were concerned over the Indian nuclear liability laws that apply to the equipment suppliers in the event of an accident.  They have also demanded tracking of fuel supplied by the United States and other nations for the proposed nuclear power plants. While India will create an insurance pool to tackle the nuclear liability issue, on tracking it stated the matter will be dealt with under the International Atomic Energy Agency (IAEA) safeguards.

The civil nuclear deal was the centerpiece of our transformed relationship, which demonstrated new trust. It also created new economic opportunities and expanded our option for clean energy.

Primary among these is the Defense Technology Trade Initiative (DTTI) which not only intensifies military-to-military cooperation but also puts the spotlight on technology transfer and joint production, which India has been seeking with almost all its military partners.

The January 25 deal builds on the first plan that was signed in 2005 and provides the blueprint for India-US defense cooperation for the next 10 years. If the 2005 DTTI was historic for breaking the ice and laying the groundwork for an unprecedented partnership, the 2015 version marks a definite shift from a transactional relationship to a more organic one. In other words, if the past decade saw India sourcing an increasingly large proportion of its defense needs from the United States — by some estimates, India bought $10 billion worth of military hardware from the United States — the next decade will see the two countries sharing technology and co-producing weapons.

Delhi Declaration of Friendship

In addition to the major civil nuclear deal, both the Indian prime minister and the US president issued a 59-point statement encompassing the entire gamut of relationship, decided to renew the decade-old defense framework agreement for another

10 years and within it opened the defense technology and trade initiative. Both India and the United States issued a Delhi Declaration of Friendship — Shared Effort, Progress for All — in keeping with national principles and committing to hold regular summits with increased periodicity, elevate strategic dialogue, establish hotlines between the Indian prime minister and the US president and national security advisers, besides cooperating to develop joint ventures on strategically significant projects.

On clean energy, Washington is keen to work with New Delhi on the ambitious project of 100 gigawatt of solar energy by 2022 and air monitoring for megacities.

On Climate Change, the Indian prime minister said there was an urgent need to address the issue. He, however, said there was no pressure to work out an arrangement that the United States has with China.

Focus on Bilateral Ties

Noting that the multifaceted partnership between Washington and New Delhi is rooted in shared values of democracy and strong economic and people-to-people ties, the Indian prime minister and the US president elevated the bilateral relationship through their endorsement of a new India-US Delhi Declaration of Friendship, which builds on their September 30 Vision Statement by articulating tangible principles to guide ongoing efforts to advance mutual prosperity, a clean and healthy environment, greater economic cooperation, regional peace, security and stability for the larger benefit of humankind.

Joint Strategic Vision for Asia-Pacific and Indian Ocean Region

India and the United States also issued a joint strategic vision for the Asia-Pacific and Indian Ocean Region to support regional economic integration by accelerated infrastructure connectivity, safeguard maritime security in ensuring freedom of navigation and over flight throughout the region, especially in the South China Sea.

Terrorism Menace

Prime Minister Modi President Obama stressed the need for joint efforts to disrupt terror entities, including the Lashkar-e-Taiba (LeT), D Company and the Haqqani Network, and asked Pakistan to bring the perpetrators of 26/11 attack to justice. Pakistan-based terror outfits that are not just a threat to India, but also spawn the jihadi network worldwide, are on the joint target list.

Obama said there should be no distinction between terror groups and pressed for countries to fulfill their commitment to wipe out terror safe havens.

Finally, the establishment of two hotlines — one between the two heads of Government and another between the two National Security Advisors — also speaks volumes about deepening cooperation between the two countries.

Agreement on Smart Cities

India and the United States signed three Memoranda of Understandings (MoUs) on January 26 to give a boost to the Center's flagship “smart cities” scheme. Washington has agreed to partner with Indian in developing three smart cities in Allahabad, Ajmer, and Visakhapatnam.

Three MoUs were signed by the representatives of United States Trade and Development Agency and the respective Chief Secretaries of State Governments of Uttar Pradesh, Rajasthan and Andhra Pradesh in the presence of Union Urban Development Minister M. Venkaiah Naidu.

As per the agreements, the United States will assist the cities in project planning, infrastructure development, feasibility studies and capacity building.

Trade and Business 

The US president has announced a slew of initiatives that included $4 billion in loans from US banks, $2 billion in financing for renewable energy projects in India and $1 billion from the Exim Bank of the United States for project financing. Executive action to help Indian techies who currently have to undergo a painful and agonizing process of obtaining H-1B visas, to get legal permanent status (LPR), was also on the cards

India and the United States were moving in the right direction and there was untapped potential to be realized. Bilateral trade between the two countries had increased 60 percent in the past couple of years to a record $100 billion, but India’s exports to the United States were still less than 2 percent of all US imports, he said welcoming the Modi government’s reforms agenda for making it easier to do business in India.

This has been made possible, of course, by smartly balanced laws that fully comply with India’s World Trade Organization (WTO) obligations on intellectual property while incorporating protections that support public health. These laws have ensured a strict review of patent applications to avoid spuriously granting monopolies on drugs that are not actually new or innovative or whole new patents on minor changes to existing drugs. India has also focused on its WTO obligations rather than implementing excessive IP rules that undermine health, such as “data exclusivity” which, in the United States, makes clinical trial data private to create a whole additional monopoly separate from patents that prevents approval for generic drugs for periods of time.

Needless to say, the major multinational pharmaceutical companies oppose India’s finely balanced intellectual property system and are trying to topple it. What is less understandable is why the Obama administration would be backing their drive.

Religious Freedom

Unveiling his sweeping vision for the future of the India-US ties, President Obama, at the conclusion of his three-day trip on January 27, suggested his country could be the “best partner" while underscoring the importance of religious freedom and tolerance for India's success.

Citing the Indian Constitution on the right to freedom of religion, he said: "Your Article 25 says all people are equally entitled to the freedom of conscience and have right to freely profess and practice and propagate religion. In both our countries, in all countries upholding freedom of religion is the utmost responsibility of the government but also the responsibility of every person... Every person has the right to practice his faith without any persecution, fear or discrimination. India will succeed so long it is not splintered on religious lines," Obama also said. The importance of the message strikes when seen in the backdrop of the controversy over "Ghar wapsi" program run by the RSS-Sangh Parivar as also complaints of attacks on a church in the city. Obama further said, “Around the world we have seen intolerance, violence, and terror perpetrated by those who profess to be standing for upholding their faith stating that all have to guard against any efforts to divide people on sectarian lines or any other things.”

The US president said, "In both our countries, in India and the United States, our diversity is our strength... your Constitution begins with the pledge to uphold the dignity of the individual. Our Declaration of Independence proclaims that all men are created equal.”

Characterizing the qualities of countries being world leaders, Obama added, was not about the size of the economies or the number of weapons but the ability to show the way and how they work together.

New National Telecom Policy 2012: Roaming To Become Free

The Union Cabinet has approved the National Telecom Policy (NTP) 2012, which has been released after a delay of over a year. The policy aims to ultimately abolish roaming charges, allow users to retain their numbers even if they move from one zone to another, in addition to boosting transparency and growth in the scandal-hit sector. 

The draft of the new policy was released by Minister for Communications and IT Minister Kapil Sibal in October 2011. The target is one nation-one mobile number portability and working toward one nation free roaming.

Advantage

Under the new policy, roaming charges would be done away with thus allowing subscribers to use same number across country without having to pay extra money. Also, it would allow a subscriber to retain his/her original number while shifting base from one city or state to another.

However, consumers will have to wait for some time for this, as the Department of Telecom will first work out modalities of the new scheme before it is brought into force. No timeframe has yet been fixed for the implementation of the policy. The new policy seeks to provide a predictable and stable policy regime for a period of nearly 10 years.

The NTP 2012 envisages increasing penetration of telecom services in rural area from current level of around 39 to 70 per cent by 2017 and 100 per cent by the year 2020. Incidentally, the draft NTP had suggested a 60 per cent rural penetration by 2017.

Under the new policy, broadband speed has been increased to minimum of 2 megabit per second (mbps). This change will come into force with immediate effect.

Delinking of Licenses

Moreover, the NTP-2012 will also separate telecom licenses and spectrum, against the current practice of bundling them, and will charge a market-derived price for the airwaves; the same will apply in the case of broadcasters. Also, rules for Internet telephony would be relaxed under the new policy as it envisages increasing penetration of telecom services in rural areas from the current approximately 39 per cent to 70 per cent by 2017, and 100 per cent by 2020.

However, post the Supreme Court judgment of February 2, 2012, which mandates spectrum auctions, the separation of license and spectrum has already become an undeniable reality. Regardless of the NTP 2012, the DoT would have to separate licenses from spectrum just as it did through an executive order following a Group of Ministers (GoM) direction to auction 3G and BWA spectrum in 2010.

The policy also seeks liberalization of spectrum even though the Telecom Regulatory Authority of India (TRAI), in its latest recommendations, while setting up the reserve price, has already cleared service and technology neutrality with regard to future spectrum auctions. Critical of this move, industry body AUSPI says the proposal to liberalize spectrum in the 1800 MHz band is one of the policy's biggest flaws.

Provisions Under Draft Policy

Originally intended to be NTP 2011, the draft policy was released for public comments only in October 2011, forcing it to be rechristened NTP 2012. The actual timelines for implementation of individual announcements within the new telecom policy are yet to be made known.

With the new policy in place, consumers who use national roaming can now expect to pay local call charges though it is unclear when ‘free roaming' will be initiated. At present, consumers pay local call charges and a premium when traveling outside their service area. The policy also allows national number portability, but again, with no visible timelines.

Other forward-looking propositions like resale of services could become critical in the backdrop of the Supreme Court's cancellation of 122 licenses, which will cease to exist as of August 1, 2012. A sharp reduction in the competition level from 14 operators currently to 7-8 operators could be made up by allowing mobile companies to set up resellers. Services resale is universally recognized as a way to increase competition without duplicating infrastructure or fragmenting the spectrum.

Additionally, it mentions cloud computing, next generation networks, IPV6 and Voice over Internet Protocol (VoIP) as thrust areas — all of which are forward-looking and embrace future technologies. It remains to be seen whether average Internet users will be allowed to use VoIP, especially since this move has been opposed vehemently over the last 5 years by cellular mobile operators.

There is very little in the policy that will help end the impasse faced by the telecom sector. Spectrum pricing, reserve price for the upcoming 2G auctions, historical pricing of spectrum for operators who have received spectrum beyond 6.2 MHz and the more recent contentious issues of reframing, etc, will have to be dealt with through executive decisions, most of which fall outside the purview of the NTP 2012 announcement.

It is also unlikely that the policy by itself will see any major reestablishment of investor confidence, which has been on the decline since late 2010. Both Foreign Direct Investments (FDI) and domestic investments faced a sharp decline during 2010-11 vis-à-vis previous years, according to a recent PWC report. The trend has continued downwards even for the fiscal year ending 2012.

Global Hub of Domestic Manufacturing

The policy aspires to make India a global hub of domestic manufacturing, though not much detail on how this mammoth objective will be achieved is available. The draft policy had mentioned preferential market access for Indian vendors as one of the tactics to ensure a boost to telecom manufacturing in India. This drew severe criticism from the Commerce Ministry on grounds that it violated India's commitments at WTO and GATT. The DoT was forced to give an explicit commitment that WTO and GATT's concerns would be kept in view while issuing guidelines on operationalization of the policy.

The NTP 2012 expects to take India's rural teledensity from 39 to 70 percent in the next 5 years with the target that every single Indian will have a phone by 2020. The policy also gets a formal approval of the new unified licensing regime which allows companies to provide ISP, fixed line, international long distance, national long distance, and a few other services through a single license, whose cost has been proposed by the Department of Telecommunication (DoT) at Rs. 10 crore. So far, very few companies, if any, have shown a desire to acquire the new unified license.

Earlier policies

The policy will be seen as driving small incremental changes with very little ability to solve the existing sector crises, unlike the NTP 1994, which spurred not just private sector investment in mobile and fixed line services but also initiated 49 percent FDI for the first time — ushering in telecom liberalization.

Earlier in 1999, a second policy — which lasted nearly 13 years — slashed costs across the board for the operators and by extension the consumers by moving from a license fee regime to a revenue share structure.

It also opened up the sector to future competition, breaking the duopoly contractual arrangements which had existed in mobile and fixed line telephony until 2000.

Later, starting 2002, additional competition was introduced in the national and international long distance sectors, which led to the slashing of tariffs, in some cases, by more than 90 percent.

Assessment

The new telecom policy is very welcome as, among other things, it brings in transparency and takes away powers of vital decision-making from the telecom minister of the day and vests it with a ministerial panel. Perhaps there should be a time frame set for the panel so that decisions are not in limbo waiting for the panel to meet.

The other laudable provision is to make India a manufacturing hub for telecom equipment. This is a challenge as manufacturers will have to compete with China in terms of price and volume.

New Benefits

Roaming Fun: With national roaming set to become free, the subscribers need not worry about charges being levied on them while traveling to a different city or state.

Broadband Boost: Speed increased to minimum of 2 mbps. This will come into force with immediate effect

More Transparency: Licenses to be de-linked from spectrum. The policy will allow operators to provide services based on any technology by using airwaves and will not restrict them to use it for particular service using any specific frequency band.

4th BRICS Summit: Playing Crucial Role at World Level

The BRICS (Brazil, Russia, India, China and South Africa) is a grouping of the world’s emerging economies, representing five continents. The BRICS countries together account for 40 per cent of global GDP ($18.49 trillion). Intra-BRICS trade is worth $212 billion, and is growing at 28 per cent a year. It has set itself a trade target of $500 billion by 2015.
The importance of BRICs in the world economy has increased manifold since the acronym was first coined approximately seven years ago. Few could have imagined then how the US economy would collapse and bring down with it much of the rest of the world. It is worth revisiting the original formulations on the significance of these four major countries that were made by representatives of a major US investment bank
Some member countries in the organization are among the fast emerging economies in the world. At the same time, the world has come to realize that to bring an end to the unipolar world and to maintain the power balance, the importance of Russia cannot be ignored. Countries such as China and Brazil not only want to maintain close relations with the United States, but with Russia as well.
However, the aim of the BRICS is to enhance cooperation among member countries and working together at the international forums. Clearly, it is an opportunity for India to improve and strengthen its relations with China and strive to get their disputes resolved.
The fourth BRICS Summit was held in New Delhi on March 28-29. The summit’s theme was “BRICS partnership for Global Stability, Security and Prosperity.” The participants included Presidents Hu Jintao of China, Dmitry Medvedev of Russia, Jacob Zuma of South Africa and Brazil’s Dilma Rouseff. Prime Minister Manmohan Singh hosted the summit, and also held a series of bilateral sessions with his guests, including China’s Hu Jintao.
The summit held against the backdrop of continued profound and complex changes in the international situation, uncertain prospects in world economic recovery and the steadily rising status and role of emerging markets and developing countries in international affairs. It was yet another important event in the ongoing BRICS cooperation. India has worked effectively in preparing for the summit. China tried to work with other BRICS members to push for positive outcomes. On the summit’s eve, the five nations resolved to resist protectionist tendencies worldwide.
The leaders of five emerging economic powerhouses affirmed not just their growing economic clout but also their impact on the global political order.
Delhi Declaration
At the end of the summit, BRICS leaders issued a Delhi Declaration. The Declaration hinted at backing an alternative candidate for the World Bank president's post which has always been appropriated by an American and exhorted the Bank and the International Monetary Fund (IMF) to quickly realign their priorities and approach to the needs of the developing world. This is an agenda the five countries intend pursuing at the coming G20 meeting in Mexico as well.
The leaders also weighed the consequences of setting up a “BRICS Bank” and opted for a more contemplative approach by asking their Finance Ministers to examine its feasibility and report back at the next summit in Russia. They agreed that the bank should in no way emerge as a competitor to the World Bank and the IMF but provide funds for projects that do not find favor with these institutions.
In line with their professed commitment to multilateralism in economic and political problem solving, the leaders agreed to invest more in the United Nations Conference on Trade and Development (UNCTAD) which played a major role in catering to the interests of developing countries in the run-up to the setting up of the World Trade Organization (WTO).
Seeking to reinforce their growing economic heft with diplomatic clout, the BRICS grouping pitched for a bigger say in global governance institutions, including the United Nations and the IMF, and told the West that dialogue was the only way to resolve the Iranian nuclear issue and the Syria crisis.
The leaders of BRISC’s formulation on Iran came close to condemning the West's pressure tactics to make other countries obey their latest restrictions on trade ties, especially in the energy sphere. Saying that a conflict would have disastrous consequences, it wanted the two antagonists to resolve suspicions over Iran's nuclear program through talks on multilateral fora.
On Afghanistan, BRICS exhorted the international community to stay the course on the development front for 10 years after the West withdraws most of its combat troops by 2014-end and, on Russia's insistence, made a mention of checking narcotic trafficking.
In a fresh assertion, BRICS asked the West to implement the 2010 governance and quota reform before the 2012 IMF/World Bank annual meeting, as well as the comprehensive review of the quota formula to better reflect economic weights. They asked for enhancing the voice and representation of emerging market and developing countries by January 2013, followed by the completion of the next general quota review by January 2014.
In a signature step, the BRICS decided to create their first institution in the form of a BRICS-led South South Development Bank that will mobilise "resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries." The leaders directed their finance ministers "to examine the feasibility and viability of such an initiative, set up a joint working group for further study, and report back by the next summit."
The development banks of the five countries signed two pacts, including a master agreement on extending credit facility in local currency and BRICS multilateral letter of credit confirmation facility agreement, which could help scale up bilateral trade from $230 billion to $500 billion.
India’s Major Points
Addressing the summit, Prime Minister Manmohan Singh also said that the grouping has agreed to examine in "greater detail" a proposal to set up a South-South Development bank, funded and managed by BRICS and other developing countries.
Singh also urged member countries to speak in one voice on key issues such as the United Nations Security Council (UNSC) reforms. He suggested that BRICS countries should speak in one voice on issues such as reforms of the international body.
On UNSC reforms, Singh suggested that BRICS countries should speak in one voice on issues such as reforms of the international body.
He also said in their restricted session, the grouping also discussed the ongoing turmoil in West Asia and agreed to work together for a peaceful resolution of the crisis.
Touching upon the issue of terrorism, Singh said the countries should enhance cooperation against terrorism and other developing threats such as piracy, particularly emanating from Somalia.
UN Millennium Development Goals
BRICS nations are the defender and promoter of the interests of developing countries. In their cooperation, BRICS countries have committed to promoting South-South cooperation and North-South dialogue, endeavored to implement the UN Millennium Development Goals, worked for early realization of the goals set out in the mandate for the Doha development round negotiations, strived to secure a greater say for developing countries in global economic governance and fought all forms of protectionism.
Cooperation among BRICS countries is made necessary by the ongoing economic globalization and democratization in international relations. It is consistent with the trend of the times characterized by peace, development and cooperation, and fully conducive to building a harmonious world of durable peace and common prosperity.
Role of China
An impression is sought to be created that with its massive monetary reserves and political clout, China may exert undue influence in this bank. This is unlikely. Such a bank will not require too much paid-up capital (relative to the average size of respective sovereign reserves) if intelligent financial engineering can help sequester foreign reserves. This would mean that the smallest BRICS economy, South Africa, could easily commit an amount similar to that of China in the capital structure. Such doubts could be further allayed with the institution of a rotating Presidency of, say, a two-year term that could initially be restricted to the BRICS countries alone.
India-India Strategic Ties
The China-India strategic and cooperative partnership has made all-round progress in recent years. A sustained, sound and steady growth of relations between China and India, the two large developing countries sharing borders with each other, will serve not only the well-being of the two peoples but also peace, stability and prosperity in Asia and the world as a whole.
The Delhi Summit will be remembered forever for one major achievement, at least. Its expected decision to set up a BRICS bank on the lines of the World Bank may change the course of economic activity in the member-countries. The setting up of this new financial institution by the bloc that has brought together half of the world’s population may speed up infrastructure development programs in the BRICS countries and serve as a second line of financial defense in times of economic crisis as is being faced by Europe today.

India, South Africa Agree To Strengthen Bilateral Cooperation

India and South Africa have agreed to strengthen bilateral cooperation in the medium, small, and medium enterprises (MSME) sector. This was agreed in a bilateral meeting between Jyotiradiya M Scindia Minister of state Commerce and Industries and Scindia is on a one day visit to South Africa heading a Confederation of Indian Industries (CII) business delegation to South Africa. Scindia held wide ranging discussions with Elizabeth Thabethe, Deputy Minister for Trade & Industry. During the discussions Scindia referred to the historical ties and their common struggle against colonialism and apartheid. Addressing the press after the meeting the Minister for State for Commerce & Industry said, "South Africa houses many prominent centers of learning and excellence. There is a scope for the universities and research and scientific institutions to enter into R&D collaborations.
The MSME sector accounts for a large share of industrial output, employment and exports in both countries. There are immense opportunities of cooperation and strategic alliances in MSME sector, which could be in the form of joint ventures, technology collaborations or marketing tie-ups."
Bilateral Trade in 2010-11
The total trade between the two countries in the financial year 2010-11 was $10.6 billion, higher than bilateral trade target of $10 billion by the year 2012, set during the visit of South African President Jacob Zuma to India in June, 2010. A revised bilateral trade target of $15 billion has been set for the year 2014 during the meeting of Minister of Commerce and Industry, the Indian Government and the Minister of Trade and Industry, South African Government held on 10 January 2011. Scindia expressed hope that the India-SACU Preferential Trade Agreement (PTA) will be concluded soon, which will give a considerable boost to our exports in the Southern African region. South Africa is India's 2nd largest trading partner in Africa. There is, however, ample scope of diversifying the existing trade basket by bringing in many more manufactured goods.
Addressing the business conference "India-South Africa: Developing Partnerships for Future" at Johannesburg, Scindia said "Our economies are placed in similar positions in the global economic order, and both our governments are faced with similar socioeconomic imperatives. It is imperative for us to step up the bilateral cooperation, intensify knowledge sharing and jointly address developmental issues, leading to inclusive growth in our respective economies. "Speaking about the potential areas of cooperation he mentioned that there are tremendous prospects for South African diamond mining companies to enter into long term contracts with the Indian diamond companies/rough purchasers like DIL, MMTC etc. and there exists tremendous scope for co-operation and JVs between Public Sector undertakings of the two countries in the coal sector. He mentioned about the significant contribution made by 1.5 million strong Indian Diaspora in South Africa. The business conference was jointly organized by the CII and the Business Unity South Africa (BUSA).
Structured Engagement and Interaction
Addressing the conference he mentioned that the 1st India-Africa Forum Summit in New Delhi in 2008, and the 2nd Summit, recently held in May 2011 at Addis Ababa, have designed a new architecture for a structured engagement, interaction and cooperation between India and Africa in the 21st century. At the 2011 Summit, our Prime Minister Manmohan Singh, made several announcements for the next three years, including the availability of $5 billion Lines of Credit; more than 22,000 scholarships and an additional $700 million to establish new institutions and training programs in consultation with the African Union and its institutions.
In a meeting organized by the Indian High Commission, he also interacted with the leading CEOs of Africa and explained to them the opportunity India offers due to its unique democratic and demographic dividend.
There is active contact between India and South Africa in multilateral fora, particularly at the NAM, Commonwealth, G77, G20, New Asian-African Strategic Partnership (NAASP), and World Trade Organization (WTO). Both countries are part of the India, Brazil and South Africa (IBSA) trilateral initiative. Both countries are currently non-permanent members of the UN Security Council (2011-2012). South Africa rendered pro-active support in the NSG decision to enable full civil nuclear cooperation with India. South Africa recently participated in the BRICS summit held in China in April 2011.

Globalization Needs New Equilibrium

Globalization with tendency to adopt western norms needs new equilibrium by creating union of eastern and western norms. Therefore, an equal and fair international regulation reform is needed.
The message is revealed during the closing session of World Economic Forum (WEF) on East Asia entitled ‘Responding New Globalization’ in Jakarta on 27 June. The event which was participated by more then 600 CEOs, global businessmen, government officials, and scholars from various countries was closed by Thai Prime Minister Abhisit Vejjajiva.
Pascal Lamy, director general of the World Trade Organization (WTO), insisted that international community reassesses global architecture system. He underlined that current global management is referring to norms implemented 65 years ago which were truly western norms.
Lamy said: ‘Many developing nations in this planet which feel the norms do not belong to them. Therefore, new globalization norms need to reassessed. What is missing is platform of norms, which could tie all nations together.’
Lamy also mentioned that national interest becomes a problem in globalization era because added value is unequal. Exploitation of natural resources in developing nations has also caused injustice.
Therefore, Lamy urged that a more serious discussion on the ideology and philosophy to set norms which could strengthen modern global management.
Thai Prime Minister Abhisit Vejjajiva supports Lamy’s idea. He underlined that the world needs to create new globalization by implementing management reform which directs to a fairer international system. Therefore, it makes possible for all nations to acquire the benefits of globalization pressure. He said: ‘All this time we have been passive observer of globalization.’
He said: ‘Globalization is about how we actively respond an extraordinary process. Therefore, it has made us to be a passive witnesses and victims.’ To create a new globalization, an equal and fair regulation reform is needed. In addition, new globalization still have to refer to market mechanism; yet, it must be well-implemented, so that efficiency is created.’
Vejjajiva supports the idea of new norms formulation suggested by Lamy. Vejjajiva said: ’We must find a more inclusive, fair, and sustainable new growth model. We need new policy which is more inclusive based on the principle of equilibrium, equality, and sustainability.’
He also revealed that Asian countries and other countries can no longer depend on past solution such as state spending, dependency on tax, and regulation. He said,’Because we will fall into a unsustain welfare trap and irresponsible consumption by doing that’.
Dominic Barton, worldwide managing director of McKinsey & Company, is optimistic that Asian region can respond the globalization pressure. Referring to its successful rise of economy, Asia has the rights to lead the new globalization.
Infrastructure
Dominic Barton and Stuart T. Gulliver, group chief executive of HSBC Holdings, suggested Asia to focus on infrastructure development in facing globalization, because infrastructure in this region is still insufficient.
However, Asian countries would better focus on 1 or 2 successful infrastructure projects which could be a reference. Gulliver said: ‘Just choose 1 or 2 concrete infrastructure projects and then develop them well.’
Barton views the infrastructure problem is not on the funding, but more to priority. In East Asia, the need for infrastructure is crucial, especially roads, bridges, and electricity. He said: ‘To undergo infrastructure development cooperation between the government and private sector is needed.’ Gulliver added that Asia, which owns huge savings needs to utilize it for infrastructure development. Furthermore, the region needs to eliminate obstacles in financial sector by developing insurance and pension industry, as well as developing bond market.’
Gulliver mentioned that the world is experiencing 2 stages. First, industrial nations (the West) develop industry in the East to acquire cheap labor in generating cheap products then sell them to the West. Second, western consumers buy the products and that is the origin of financial crisis, especially in the United States and the United Kingdom.
Competitiveness and Environmental Problems
Meanwhile, CEO of Pertamina Karen Agustiawan who is also cochair in WEF underlined that energy architecture development is needed in Asia to cope with competitiveness and environmental problems as an attraction for investment in oil and gas sector. This effort must have the support of the government and people.
She also mentioned Asia's commitment to develop alternative energy. Unilever CEO Paul Polman stressed out about issues of lackness in fuel supply in globalization. Polman was concerned about lack of clean water, climate change issue, and food crisis. According to him, the world exploits two thirds of the natural resources which can not be renewed. If we do not change the current way to deal with this issue, the world will lose direction. He said: ’Therefore, a new business model is needed.’
Polman observed that companies no longer think about nationalism, but more to how generate cheap products with high quality through creativity and innovation.
Intellectual Property Rights
In another occasion, Lamy brought up issues regarding intellectual property rights which is less protected to a certain level. Lamy said: ’If we agree that there must be accessibility to natural resources, why do not we agree that intellectual property can also be accessed. The difference in natural resources is that we must invest for it.’
Regarding intellectual property rights, Sehat Sutardja, CEO of United States' Marvell Technology Group, believes that intellectual property is natural resources in a different form. Intellectual property rights is more valuable than natural resources. Taiwan and China has human resources which could be utilized for new innovation. The people start to realize that science is the most important resources. It could be the same or even more valuable than natural resources.
China is believed to have the awareness by investing big in universities. Taiwan also invests big in semi conductor.
He said: ‘I think that intellectual property rights is a property with a different form of natural resources. However, intellectual property rights could create a magnet for developing science.’
There were public worries regarding technology development in the middle of Indonesia's rapid economic growth. Technology advancement is considered to be too fast. Therefore, it causes challenges such as transparency, unequal distribution of wealth, and revolution. With huge natural resources and productive population, Indonesia is worried on whether it could be involved in world economy and use technology to improve economic growth.

Vietnam-China Strategic Cooperation Partnership

At the invitation of the Government of the People Republic of China and of the Shanghai and Jiangsu provinces, Prime Minister Nguyen Tan Dung accompanied by his wife, today visits the 2010 Shanghai World Expo and on this occasion will visit Shanghai, Zhejiang and Jiangsu provinces.

The visit of Prime Minister Nguyen Tan Dung and his wife to the Opening ceremony of the 2010 Shanghai Expo and to the provinces of Shanghai, Zhejiang and Jiangsu will create a new momentum to deepen the Vietnam-China total partnership cooperation in every aspects in the time to come, especially during the "Vietnamese-China Friendship Year" and the year when Vietnam hold the ASEAN 2010 Chairmanship.

New Opportunities
The people rejoice at the great achievements made by China on its road of reform and open door policy during the last 30 years. The average annual Gross Domestic Product (GDP) growth is over 9 percent and in 2009, has reached RMB 31,404.5 billion (approximately US$ 5,000 billion); the trade turn-over in 2009 has attained over $2,200 billion and foreign reserves now have reached $2.4 billion, the highest in the world. The 2010 Shanghai Expo, with the theme "For a greener city and a better life" is a big event in Asia attracting the attention of billions of people on the globe. The Chinese government has given special attention to this big scale non commercial exposition. General Secretary and Chairman Hu Jintao together with foreign leaders, heads of government and dignitaries will attend the opening ceremony. The expo will be an opportunity for countries and peoples in the world to exchange and learn from each other on culture, science and technology to increase mutual understanding and trust for a better life. The exposition attracts the participation of about 200 countries around the world. China has reserved for Vietnam an area of 1,000 m² to construct a Pavilion to introduce and promote image of the country and people of Vietnam.

The Hua dong region of China which includes Shanghai city, Zhejiang and Jiangsu provinces with a population of 170 million inhabitants is one of the biggest economic centers and regarded as both the economic locomotive and most thriving financial center of China. These are the localities that have had good relations with Vietnam like the Jiangsu province has established direct ties with Dong Nai province of Vietnam. The visit to the 2010 Shanghai Expo and to Shanghai city, Zhejiang and Jiangsu provinces of Prime Minister Nguyen Tan Dung this time once again reasserts that the Party, State, government and the people of Vietnam highly value the Vietnam-China total strategic cooperation partnership following the motto of "friendly neighbors, comprehensive cooperation, long term stability and looking towards the future" and the spirit of "good neighbors, good friends, good comrades and good partners" and continue to elevate this relationship to a new quality development level for the interests of the people of the two countries and at the same time contribute to the enhancement of the friendly and cooperative ties between Vietnam and these localities of China.

Comprehensive Strategic Partnership
The people pleased to see that the relationship between Vietnam and China has achieved important developments in recent times, particularly on the occasion of the China's visit of Party Secretary general Nong Duc Manh (May 2008), the two sides have unanimously agreed to develop the comprehensive strategic partnership between the two countries according to the 16 golden words and the four "good" spirit and to establish a hot line between the leaders of the two countries with a view to help the development of sustainable and long term bilateral relationship.

The two sides have successfully organized a series of important and practical activities to commemorate the 60th Anniversary of the establishment of diplomatic relations between China and Vietnam, the first event to kick off the "China-Vietnam Friendship Year." The two countries maintain the good tradition and regularly exchange visiting delegations of high ranking leaders of the two parties and governments. During these visits, the leaders have stressed that the Vietnam-China friendship is a valuable asset of the two countries and peoples that should be carefully preserved and upheld; they pledged to spare no effort to consolidate and deepen this relationship to build trust and to support each other in the work of renewal, open door reform and building socialism in each country.

Enhancing Trade Ties
The economic and commercial relations between the two countries never cease to expand. China has become the top trading partner of Vietnam. In 2009, though affected by the global financial crisis and economic recession, the two-way trade turn-over still reached US$ 21.35 billion with an increase of 5.76 percent. The leaders of the two countries have spent time to mull over measures to implement the sustainable growth target of trade turn-over while improving the trade balance. The two sides have signed the two treaties on animal and plant quarantine cooperation and are working towards the completion of the "Five-year plan for Vietnam-China trade development". The two countries will further boost cooperation for big projects, especially the ones within the framework of the "two corridors, one economic belt" agreement. Exchanges between the two countries various ministries, departments and localities have expanded continuously. Vietnam and China have cooperated effectively on multilateral forums such as the UN, WTO, APEC, ASEM, East Asia Summit, ASEAN+3 and so forth.

The settlement of issues relevant to the borders between the two countries is progressing positively. The two sides have signed the Treaty on land borders demarcation (1999); the Treaty on the Gulf of Tonkin demarcation (2000); the Treaty on fishery cooperation in the Gulf of Tonkin (2000); the Protocol on fishery cooperation in the Gulf of Tonkin (2004). The two countries have completed the demarcation work on land borders and have organized a ceremony to mark this event at the Friendship border gate on 23 February 2009. The two sides pledged to carry on the smooth implementation of these two important treaties.

Increasing Friendly Relations
The visit of Prime Minister Nguyen Tan Dung to the 2010 Shanghai Expo and to Shanghai city, Zhejiang and Jiangsu provinces is aimed at consolidating the trustful relationship among leaders of the two countries; increasing friendly relations and expanding cooperation between Vietnam and China in general and with the mentioned localities in particular; concretizing the total strategic partnership cooperation between the two Parties and States through important programs, plans and measures with a view to make the areas of cooperation more practical and effective, in particular in economic, trade, investment and tourism cooperation.

I wish the trip of Prime Minister Nguyen Tan Dung great success in achieving the promotion of the Vietnam-China comprehensive strategic partnership cooperation to a higher level for the happiness and prosperity of the two peoples and thus, contributing to maintaining of peace, stability, cooperation and development in the region and in the world.

Advent of G-14

The decision of Group of Eight (G-8)--the United States, France, the United Kingdom, Germany, Italy, and Japan--leaders to turn it into G-14, made in L'Aquila, Italy, is a historical step in many respects. If it does materialize, five countries with a growing economy, namely India, China, Brazil, Mexico, and South Africa, will join the world's eight leading industrial countries.

If Egypt is also included in the group, it will be a forum representing almost 80 percent of the world's population. This is an indication of the rapid changes to be introduced in global governance.

Emerging Economic Powers
Before Russia joined G-8, it used to be an organization of the world's seven most prosperous capitalist countries. They were regarded the deciding factor in world economy. They wielded the power to direct it, and took full advantage of this situation. As long as the erstwhile Soviet Union existed, they faced some challenges in pushing their agenda of a capitalist market.

However, with its disintegration, they had their way. Russia, bearing the mantle of the Soviet Union, itself opted for capitalist economy. China had already moved fast toward a market-led economy. With Russia joining the G-8, the organization seemed to be all-powerful. With rapid changes in global balance of economic power, it, however, soon turned into an anachronism. Rich countries were forced to reach out to emerging economic powers.

To endorse their professed intention for a developed world, invitations were extended to them gradually. These countries known as G-5 hold their meetings regularly. Their decisions also have an impact on the decisions made by the G-8.

Strong Case for G-14
Italian President Silvio Berlusconi has now made a strong case for G-14. This came as no surprise. Yet, this development could hardly be imagined one-and-half decades ago. What of treating them on equal footing, rich nations even refused to take their demands seriously.

The US President Barack Obama says in reply to a journalist's question that a solution of the economic crisis problem was unthinkable if a country like India remained outside the group. The world has really undergone a vast change!

Present Realities
According to reports received from there, the global system will be reviewed. That implies that the governance of the international organizations will have to be changed. The World Bank, International Monetary Fund (IMF), and other global financial institutions, and also the WTO will have to be reconstructed.

The process of political decisions must also change in accordance with the present realities in the world. In other words, the structure of the United Nations has to be changed. The alterations in global governance suggested at the G-8 summit can, therefore, be expected to prove to be a more suitable format to show a new world economic way.