Fundamentals and Basic Principles of Economics - Domestic and International Approach

Wherever we go, economics is everywhere all over the world and it can be located in all major continents around the globe. This begins in domestic up to global approach. In my own opinion, economics is a social science. There are several branches of economics to deal with and these are: Sociology that studies the society and culture, Physics that studies the useful in the production of goods and services that produces machines and electricity,Political Science because it will study the economic policies of each leaders across the globe because it influence from the government of economic activities,History that studies the past, present, and future events of economic developments, Religion because it will based on the studies of religious traditions and beliefs that can encourage or discourage of economic development.

Readers and Viewers must discover and know the content of economics. This article will be tackling fundamental and basic principles of economics. Fundamentals of economics is focus on banks or banking, business, business cycle, depression, economic freedom, income, inflation, investment, labor force, manufacturing, marketing, money, monopoly and competition, consumer price index, cost of living, physiocrats, price, production, profit, property or dealing with real estate business, recession, rent, standard of living, supply and demand, trust, unemployment, value added tax in which I believed that this term will be understand by the viewers. The meaning of economics is very simple. According to Fajardo, the author of his book titled "Economics" third edition, The meaning of economics is the social science that deals with proper allocation and efficient use of available resources for the maximum satisfaction of human needs and wants.

Here in economics, there is also an economic system and theories to be learned by the readers and viewers. They must know the information of capitalism, communism, economic determinism, Facism, laissez faire theory, Theories of business cycle, Manioralism, Mercantilism, Socialism, and Syndicalism. They must take note that economic system is a set of an economic institutions that dominates a given economy. There is also a history in Economics from past to present times, even in the future. According to Fusfeld, who has a knowledge of John Meynard Keynes or known as "Baron Keynes of Tilton" that has a famous books which is very popular until now titled "Keynes General Theory of Employment, Interest and Money" which was written in the year 1936 which ranks among the most important books on economics. Aside from this, among his other works are A Tract on Monetary Reform written in year 1923, The End of Laissez Faire Theory written in year 1926, and also A Treatise on Money written in year 1930. There are also future in economics and these are called "ethico-economics in which I will discover it on my next article and next is economic crisis that cannot predict when will it happen so it belongs to the future.

After mentioning the introductory part and historical background of Economics, this time I will proceed to domestic approach. The writer of this article will focus on the Philippine Financial System in order to share ideas, thoughts, and opinions from other nations. This article is a big help for those who will take Master's and Doctoral Degree in Economics. In Philippines, the most common financial institutions are based on banking, pawnshops, insurance companies,lending, financial or lending companies. The Banngko Sentral ng Pilipinas or known as BSP (former Central Bank of the Philippines) is the central monetary authority and their purpose is to maintain monetary stability, and to promote a balance and sustainable economic growth.

The last part content will be international approach because it deals with global economy. In our planet Earth, seven continents around the globe gather to participate in International Trade. To those who are interested in this part of my article, they can find or search it in tariff, trade, International Monetary Fund or known as IMF, Asian Development Bank or known as ADB, Exports and Import, Common Market, Exchange Rate, World Bank.

To understand the meaning of international trade, according to James B. Calderwood, "International trade is the exchange of goods and services between countries and it is sometimes called "world trade" or "foreign trade". to explain this meaning, it enables a nation to produce the goods it can make the most cheaply and exchange them for goods it finds more costly to produce from one country to another countries. That is how the international trade means to the economics. The good example that practice International Trade is Japan because they can compete with other countries.

The World Bank, International Monetary Fund, and Asian Development Bank are the major lenders to our country. Their development funds have been focus on economic development such as agriculture.

After mentioning my content of economics from domestic up to global approach, they must take note that we are in the concerns of social responsibility this is not referring to the rich or poor people.

A. Books

Calderwood, James B. "International Trade" Vol. 10, The World Book Encyclopedia. Chicago, World Book, Inc.,1985.

Fajardo, Feliciano R. "Economics" 3rd Ed. Sta. Mesa Heights,Quezon City:Rex Printing Company, Inc. May,1996.

Fusfeld, Daniel R. "Keynes, John Maynard" Vol. 11, The World Book Encyclopedia. Chicago, World Book Inc.,1984.

The International Baccalaureate: Why Parents and Students Should Demand It for Their Schools

Happily for all of us in the "Good Old US of A", our friends in other parts of the world tend to be patient with us. Either that or they are happy to allow us to sleep soundly as the rest of the world moves quietly past us- perhaps like the Aesop's Fable of the Hare and the Tortoise. We will return to Aesop shortly. Let's push onward...

When you hear the recent group of Republican candidates pander to the denizens of the far right of the political spectrum, there is a lot of flag-waving and Bible thumping and gun-toting going on that we didn't see even 10 years ago. Remember, for example, when all of the baseball stadiums in the mid- seventies had foot signs as usual with the metric equivalent underneath. You remember the metric system don't you?- its adoption was at least being given something less than "short-shrift" by our politicians at that time. This logical process of measuring by tens should be a "no-brainer" as they say. It loses, not because of its logic, but because "it's a foreign thing." What are the chances of America adopting something "foreign" today?

As an Italian acquaintance pointed out to me... You folks in the United States always depict Italians as gangsters. Your history book goes back perhaps 300 years. Have you heard of the Roman Empire whose roads and government, for example, facilitated the spread of Christianity, brought water hundreds of miles, accurately measured time and seasons, had architecture that today could not be duplicated, while providing a measure of 14th Amendment due process to important people like the Apostle Paul who could say, "I am a citizen of Rome" which guaranteed at least a trial when he was captured. Or perhaps you have heard of Leonardo DaVinci, Marco Polo, Christopher Columbus, Guglielmo Marconi, to name a few. Our history goes back over 2000 years. You have been here for 5 minutes and you think you invented science, art, government, mathematics, medicine, etc.

American ethnocentrism is legendary. Sinclair Lewis wrote about it in the early 20th Century. His book "It Can't Happen Here" should be read today- right now-Quick! People in the Tea Party want it to be 1955 again when those "foreigners knew their place dag nabbit!" Its time to change all of this if we really expect to be "competitive" (Presidents love this cryptic word) in the 21st Century. Parents should be demanding the International Baccalaureate as an option at the very least.

Interestingly, those same politicians of the present-day are strong supporters of former American Corporations that have become multi- national and know no national boundaries nor do they have any national affiliations. Globalization has made that a reality.

So when you hear the President saying that our schools must become more competitive - we must ask the questions, Competitive with who?, and About What? Must Exxon America be competitive with Exxon India? Its just plain Exxon anymore isn't it? It's not USA vs. India, or China. You might think that it is- and the media and the politicians frame it that way for those of you who still wish there was a Memorial day parade and a July 4th Parade. They show you the new incredibly large Chinese aircraft carrier as a distraction since hacking another country's computerized power grid, air traffic control system, and banking system for example will be causing far greater chaos and can already be done- without a big aircraft carrier- and if it was we'd all be killing one another in the streets while the Chinese Army is asleep in their beds. Do you think the Chinese are unaware of this?

Where are we going? Simply stated, we in America think we invented Education. Our history books still act as though everything started in the Middle east *(just for Adam and Eve and some inconvenient religious stuff- like Jesus for example)- quickly went to Europe, then came here with Columbus. We don't talk about the Arabs for example who invented Algebra and did surgical things that astonished the people in Europe- or the amazing things Marco Polo found at the court of Kublai Khan? The astonished Europeans were, of course, the ones who were actually permitted to learn to read without fear of being killed as heretics in the "Dark Ages."

They say that Patton had a difficult time convincing his superiors about the concept of tanks in the next war because there was still horse cavalry in the US Army, circa 1938. The tanks are called "Cavalry" today. Progress takes time here.

Our public school system like the cavalry up till the second world war is still trying to catch up to Sputnik, and spending most of its time taking or preparing for the decontextualized- who wants to be a millionaire multiple choice tests. The current system of Standardized testing has only one objective, that of discouraging young people- while sorting and classifying them- so that eventually many will lower their aspirations intuitively, quit school, and take the jobs that people with green cards are now happy to take. I know some of you don't believe that, so start by reading about something called the "Mudsill Theory". Stated succinctly by a South Carolina Senator in 1858 or so, a society succeeds or fails based on the quantity of people it has who are willing to do the menial tasks for minimum wage and no benefits. If a country lacks those kind of people, some think, they must import them or create their own. Witness the turmoil in Europe in countries where the first choice to import was made.

It should not be a surprise to you, then, that every Independent school in the world awards the International Baccalaureate to its graduates, and there is a very successful Pre K-12 process designed to develop scholarly, innovative, creative, humanistic citizens prepared to confront the global challenges and rewards that lie in the future. By the way, they don't give those endless multiple choice tests to their students.

What is it about the International Baccalaureate that is so appealing?

The International Baccalaureate was founded in Geneva, Switzerland in 1968. It starts out being far more humanistic and it demands thinking on a higher level by young people. In a brilliant proactive move which foreshadowed the world of the 21st Century, the program was created with the focus being to create "World Citizens" meaning people who would be able to live, work, and compete anywhere in the world. Recently, the IB added its 4,000th program to its worldwide list of institutions in approximately 150 countries. (Trying naming more than 50 countries some time- Forget it, you are an American, bet you can't do it!) Similar to the AP Program, students with IB credit for specified courses can get college credit. Of course, the American Association of University Professors, AFT, and the various state college unions in America hate to allow anybody to get credit for anything because it means less people in the class that remains required to protect jobs- like a stat course for teachers- who will never calculate a standard deviation in their professional lives.

The difference between Advanced Placement and the International Baccalaureate is that American students selecting AP course may do so at their pleasure, selecting the courses they wish to take based on the schools requirements for eligibility. The IB requires students to take 6 interdisciplinary courses, complete appropriate detailed research papers, and complete a community service requirement.

The IB encourages young people to debate topical, moral, and social issues. Children as young as 3 years old can be involved in the program under the PYP Program (Primary Years Programme). Students follow this until they are 12 years of age, then they enter the MYP (Middle Years Programme) till age 16, followed by the IB Diploma programme at the age of 16.

The course offerings for the student who has reached 16 years of age includes the following:

3 courses that are standard level subjects.

3 courses that are higher level subjects

A Theory of Knowledge Course(TOK)

A Scholarly Essay (4000= words)

They are also, vis a vis their course, assessed as to Creativity- Action- and Service to Others.

The groupings of courses are as follows:

Students select one from each of the following:

Group 1: Native (First Language)

Group 2: Second Language- French, Spanish, German, Mandarin, Latin, Greek (minimum) and these can be taken over three years, i.e. Mandarin I, II,III.

Group 3: Individuals and Societies- Business and Management, Economics, Geography, or History

Group 4: Experimental Sciences- Biology, Chemistry, or Physics.

Group 5: Mathematics

Group 6: Arts Selection- Music, Theater Arts, Visual Arts.

The theory of Knowledge course, as explained by Prof. Thomas Brown is the core of the IB and it challenges the students to think critically. Some examples of questions include:

How is knowledge gained and from what sources?- this relates to epistemology

To what extent do personal experience and ideology influence our knowledge claims?

What differentiates statements like "It is certain" and "I am certain".

Does a moral life manner?

It is important to note that this type of interaction does not produce one correct answer. Factual recall is a very low level of learning. There are some people who want it that way in this country. The IB moves to higher levels of thinking and encourages human interaction and mutual respect of the opinions of others.

There exists sufficient flexibility in the system such that one could, instead of taking a group 6 offering, could take a second language, or science, for example. The courses go much further in depth than the typical American courses that, like Olympic Game television coverage, tries to cover a "Little bit about a Lot" rather than a "Lot about a little Bit"- an over- simplification, to be sure, but it hasn't worked very well with the Olympic coverage- remember the drama of watching the WHOLE High Jump event for example?

A statement from the 1996 IB Organization Subject Guide asserts that, "An international education must go beyond the provision of information and is involved in the development of attitudes and values WHICH TRANSCEND BARRIERS OF RACE,CLASS, RELIGION, GENDER.OR POLITICS."

There are people on the right side of the political spectrum who hate statements like this because it means really acting in the Judeao-Christian mode and living and succeeding in a diverse world while being kind to the less fortunate. Yet, these same individuals support strongly the laissez-faire, less government, capitalist, Ayn Rand,Corporate paradigm that is taking their corporations to international places leaving behind the menial jobs. Was it Einstein who said that the definition of Insanity is to keep doing the same thing and expecting different results? At the present rate that the world is changing and the jobs are going elsewhere, all but a small amount of American Public school children will be doing something other than taking the menial jobs, while IB educated professionals will be taking the real jobs in places other than Main Street. At the same time, the IB is designed to insure that its graduates will be significantly more employable internationally than their American counterparts. They will also approach things in a more scholarly and statesmanlike manner.

Siva Kumari, Chief Operating Officer of IB asserts that one purpose of the program is to provide a knowledge base to our students that they will be able to apply to a variety of different jobs in many different nations. Wow, can your locally run school district make such an assertion? But wait, there's more... Kumari is all about pragmatism too as she adds that, "We teach a canon of knowledge we think students should know so that it does not matter what job they have or where they go, students WILL BE ABLE TO ADAPT TO ANY CONTEXT. We are, she continues, "CREATING LEARNERS." Some of this would be heresy in our schools- Philadelphia for example where, at standardized test time, everything on the walls that might provide a morsel of an answer to a student must be covered in black drapes- whew, "The Land of the Free" huh?

What is the American reluctance to embrace a program of study that will prepare students for the world that is and that is to come? "Real"( a scary term) Americans who embrace freedom and independence and creativity should be outraged at the classifying and sorting process that is occurring vis a vis the standardized testing process- cleverly tied in with the shibboleth "No Child Left Behind", all the while guaranteeing a steady stream of uncreative undereducated consuming robots with a high dropout rate, while students in Independent Schools the world over are not so burdened but are granted the precious opportunity to be creative, think out of the box, apply their learning to real, authentic settings anywhere in the world.The teacher is given much greater respect in the IB process as well- compared to American Public Schools where a sincere effort is underway to "teacher-proof" the curriculum. Does anyone in America really think that if all the test scores suddenly went up, the corporations who have left the country would all come back? What is the stage you want your child competing on in a scholarly sense? The little one in the church basement on Main street or on the World Stage?

As always, we want to look beyond valuing something based solely on "snob appeal", but as a Principal, I can assure you that children's course choices were often based upon what the really smart kids on your street were taking. So, even if you do not examine this program in a scientific manner as you should, allow your children to be able to "come to the table" so to speak with the same credentials that the children have who have graduated from Independent schools where they don't have to take standardized state exams longer then the bar exam every year. There is a story, perhaps apocryphal, that the owners of the Pony Express were sitting around a table brainstorming about improving service... "Faster horses", said one exec... "Riders with Master's Degrees" said another, "Bigger but lighter mail sacks", said a third," "More guns and ammo to fend off Indians and wild animals", offered the fourth. At the end of the meeting, they were all fired up about the new improved Pony Express. In the same week, the last spike was driven in the new intercontinental railroad. The Pony Express filed for bankruptcy the following year.

There are moral implications to how a country educates their young people. In America, people who were "different" have always had a difficult time and continue to do so. Women, Blacks, Jehovah's Witnesses, Indians, Japanese-Americans in WWII, Gays, all have had to fight for things which were already spelled out in the constitution. The International Baccalaureate fosters discussion on uncomfortable topics, allowing for divergent thinking among its students. The Apostle Paul said this in his letter to the Romans... "Don't be conquered by the evil but conquer the evil with good..." As you read the next paragraph, ask yourself which system of education tries to adhere to Paul's admonition.

Thomas Baker, an IB teacher stated the matter with eloquence when he said that in the USA it was once thought that you could have "Separate but Equal" schools for white and non-white children.(Guess who got the hand me down books and football helmets in a southern city in this "separate but equal" system) In the early 1950's, Brown v. Board of Ed. caused this fallacy of false equality to be overturned. This of course opened the door for special needs children and victims of gender bias, for example. But if education( the United States public schools), continues Baker, conceives of itself as separate from the rest of the world, it is committing the same fallacy that Brown v. Board of Ed. Sought to reverse, only this time, its on a massive, global scale"...with the United States system serving as the "Non-white" schools for this analogy. Stated simply, Americans should be demanding the IB program for their children because it reflects more accurately the chain of events now occurring and the zeitgeist that we exist in at the present moment. Eight weeks studying Civil War battles, really? Not offering Chinese, German, French.Latin, Greek, etc., to name a few?

Emmett Mc Groarty, Executive Director of Preserve Innocence, an initiative of the American Principles Project argues against the IB by asking, Should we spend taxpayer dollars on a public school curriculum commissioned by the United Nations, made in Europe, and at odds with the principles of the American Founding? Through the IB, this is already happening."

Having heard that quote, we must return to Aesop's Fables and this time, The Emperor's New Clothes. When will someone be like the little boy on the corner who yells that the King has no clothes on- to the dismay of the townspeople pretending everything was OK- and tell Mr. Mc Groarty and our leaders that there is more to learning than standardized tests? The people demanding less government have militarized and micro-managed the schools.

What do you think? America is approximately 30th in the world in infant mortality among industrialized nations, 18th in math test scores and clearly not the leader in a host of other metrics. Vacations and health care and other benefits are hopelessly demode as taking care of our people is no longer a priority. How is that ostrich approach(head in the sand) working? In many American schools, 4 year of Social Studies is required along with English- every day, every year. Why? The English teachers only teach literature and poetry anymore anyway. One leading politician thought it a disgrace that children did not know that Columbus discovered America in 1492. Who cares? You can find it on your laptop if you really needed it -which you don't. Our students need to be learning, discussing, sharing, comparing, contrasting, in situated cognitive learning situations with a transfer of learning happening between the theory and the practical application. Why would people in this country not want their high school graduates put in a position that maximizes their talents and gives them an opportunity to compete on the world stage?

The IB has been doing this since 1968. The baseball fences had meters under the foot measurement in those days. Do you want fries with that cheeseburger sir?

Daniel L. Chandler is a Professor of Pedagogy at The College of New Jersey. In a previous life, he was a high school principal for 18 years.

Lease Of Male' International Airport To GMR

CONSTITUTIONAL AND LEGAL QUESTIONS, AND FINANCING RISKS INVOLVED

November 29th, 2010

This brief document summarizes the award of the Male' International Airport (MIA) to GMR of India, the prior and subsequent events leading to the award, constitutional and legal issues involved, ethical and moral questions, questions involving lack of transparency in the awarding process, and financing risks involved.

1. Introduction

On 28th June 2010 the Government of the Maldives entered into a contract with GMR to lease the airport for a period of 25 years. It offered the Government:

a. A sum of U$78 million as advance payment which is to be deducted from the profit due to Government.

b. 1% of the Gross Revenue in the first four years (2010-2014) and 10% of the Gross Revenue from the general business in the remaining years.

c. 15% of the Gross Fuel Sales in the first four years and 27% of the Gross Fuel Sales in the remaining years.

d. GMR is also to invest a USD 375million over a period of 25 years.

In return GMR is given right to levy over US$2billion dollars from international bound passengers. These include:

a. A levy of USD25 for every international departure passenger (this is in addition to the current levy of USD18 for foreigners and USD14 for locals).

b. A levy of USD2 for every international departure passenger.

c. In addition to that several other concessions are given to GMR.

Despite the huge concessions given to the GMR as well as billions of dollars the company stands to gain, the proposal does not involve extension and expansion of MIA runway which means for the next 25 years airplanes like A380 would not be able to land at the MIA.

2. Circumstances Surrounding the Award

a. On18th October 2009 President Nasheed's 20 month old Government sold, without any competitive bid process, majority shares of the State's most profitable company Dhiraagu to Cable and Wireless (Britain) 122 days later, in the height of world financial crisis, the Government bought and few days later sold 20% shares of the country's second most profitable government shareholding company - MWSC to Hitachi of Japan for MRF209.4 million. Government lost a total of MRF3.88 million from this later sale alone. Initially Parliament recommended not to sell state assets without its approval. However the Government, continued. Eventually the Parliament passed an amendment to Public Finance Act which effectively barred sale of state assets without parliamentary approval. Two hours later, in clear violation of the amended Public Finance Act, the Government leased MIA to GMR for 25 years!

b. MIA is a property of the Maldives Airports Company Limited (MACL) - a statutory body created under the Company Act [1996]. MACL board, headed by President Nasheed's relative, was summoned to the President's Office, and was asked to rubber stamp theGMR deal. It refused to do so on the ground that the Government did not share basic information and relevant documents with it. The Government, in violation of the Company Act, immediately dismissed the MIA board and replaced with its own cronies which there and then rubber stamped the deal.

c. Earlier on 26th June 2010, four opposition parties, representing majority members of Parliament, formed an Opposition Alliance to oppose the Airport Lease. In a nationally televised event the Opposition Alliance warned all the concerned people not to proceed with the deal and signed a written pledge to:

-Undo any deal,

-Propose a specific law dealing with the MIA,

-Mount legal challenges in the Courts,

-Ask the country's independent anti-corruption watch dog to investigate allegation of corruption involving the deal,

-Take action (including taking no-confidence vote) against ministers responsible for the deal (Minister for Finance and Treasury and Minister responsible for privatization)

d. The Government rushed the award of MIA to GMR after a comprehensive bill on Privatization has been adopted by open Parliament and committees thereof.

Despite all the above factors and events GMR proceeded with the contract!

3. Subsequent events

a. One day after the award of the MIA to GMR, the entire cabinet resigned citing no-cooperation from the Parliament. However the real reason appears to be to avoid parliamentary scrutiny of the GMR deal, including possible impeachment of senior ministers.

b. Only four hours after the cabinet resignation, the government in clear violation of Constitution mobilized military to arrest leaders who formed a united front to oppose the award. When the Criminal Court ordered to produce the two for a habeas corpus hearing the Government declined. The government also prevented, again in clear violation of the Constitution and Parliamentary Rules, the detained leaders from attending the Parliament.

c. Fourteen days later the Supreme Court declared their arrest unconstitutional and ordered them to be released. The Government then sent military with tanks and heavy armory to re-arrest one of the Opposition Alliance Leaders and held him for 9 days. When the Criminal Court ordered to produce the detained leader for a habeas corpus hearing senior military officials told the Chief Judge that they WILL NOT obey any court order!

d. After a series of street marches and protests led by the resigned ministers, and a series of threats and intimidation to judges and members of Parliament, the President, again in outrageous disregard to the Constitution, on 7th July 2010 "re-appointed" his cabinet! Under the Constitution ministerial nominees must obtain parliamentary consent before assuming office or taking oath of office. However, since 7th July these self-proclaimed "ministers" have acted as ministers without parliamentary consent!

e. To make things worse, on 28th September 2010 these self-proclaimed ministers and the Cabinet decided that they will subject themselves to Parliamentary scrutiny!

f. Upon submission of the "re-instated" ministers for Parliamentary consent, the Parliament refused consent to seven out of twelve ministers, including Minister for Finance and Treasury, Minister for Home Affairs, Minister for Defence and Minister for Foreign Affairs. The President says that regardless of the rejection by the Parliament they will continue as ministers! The issue is being challenged in the Supreme Court.

g. In the meantime the President on 3rd June 2010 returned the amended Public Finance Act to Parliament (which he is entitled to do so under the Constitution). The Parliament however, passed the amendment with sufficient numbers to overrule presidential veto. The president then refused to gazette the law! The issue too is being challenged in the Supreme Court.

4. Current status

a. Currently the opposition has filed a case with the independent Anti-corruption Commission to investigate suspected corrupt dealings involving MIA lease to GMR.

b. Four Opposition Parties which commands majority in the Parliament have challenged the MIA lease to GMR in the Civil Court. Initially the Civil Court Registrar on 30th September 2010 rejected it on procedural grounds. The Opposition has challenged the Registrar's decision in the High Court.

c. Deputy Leader of the Dhivehi Qaumee Party (Maldivian National Party) Mr. Imad Solih has also filed a case in the Civil Court challenging MIA lease to GMR.

d. More cases are likely to be filed in the coming days and months challenging the MIA lease to GMR.

e. Opposition Alliance is in the process of drafting a law to overrule the MIA lease to GMR and to nationalize the MIA. The Bill is expected to be tabled before the Parliament in the current session.

5. Grounds for challenge

Unconstitutional

a. MIA lease to GMR involves a levy of USD25 and a USD2 as insurance for every international departure passenger (this is in addition to the current levy of USD18 for foreigners and USD14 for locals).

b. Article 97 of the Constitution prohibits any form of taxation without legislation. Levy on departure passengers have always been done through legislation, including amendments thereof. In fact the current levy of USD18 for foreigners and USD14 for locals was introduced by the present government through amendments to the relevant law.

c. However, the right to levy a USD25 and a USD2 (a total of USD27) was given to GMR by the Government without the passage of any law.

d. According to news reports GMR has sought and the Government has agreed to give sovereign guarantee MIA related loans GMR takes. However, Public Finance (Amendment) Act clearly bars issuance of any such guarantee without Parliamentary endorsement. The Government has so far not sought such approval and the opposition dominated Parliament is unlikely to give such approval.

Illegal

a. Parliamentary recommendation not to sell state assets without its approval is binding on the Government. Therefore, any contract in breach of the recommendation is null and void.

b. Award of MIA to GMR is in clear breach of Public Finance (Amendment) Act which was passed to prevent the Award of MIA to GMR in particular and prevent of state assets in general. Therefore, the award is null and void.

c. MIA is a property of MACL - a statutory body created under the Company Act. Company Act requires the Board act in the best interests of the Company. Therefore, the Board's dismissal and subsequent appointment of a crony Board which rubber stamped the MIA to GMR is in breach of Company Act.

d. Against the privatization Regulation (first opportunity to the MIA itself).

Suspected Corruption

a. Secrecy - The deal was kept highly secret. Government has refused to provide copies of the Concession Agreement despite demands under Article 29 of the Constitution which provides right to information as a fundamental right. Opposition is in the process of challenging Government's refusal to provide copies of the document in the Courts.

b. Furthermore, under Article 61(c) the Government is duty bound to make public all government decisions and actions, except information that is declared as State secret by law.

c. Minister of Finance and Treasury Mr. Ali Hashim and Minister responsible for privatization Mr. Mahmood Razi are biggest Duty Free operators at MIA, while major financial contributors of the ruling Maldivian Democratic Party (MDP) also holds major takes and interests in the airport.

6. Due diligence

GMR is the first major foreign investor since the president Nasheed assumed office in 2008. Therefore, GMR ought to have conducted a comprehensive due diligence. Even a superficial test would have failed for the following reasons:

Political instability

a. President Nasheed came to power with a united opposition support and with a promise of mid-term election. He has since reneged that promise, and partners who propelled him to power have since left. As a result his support has plummeted (70% eligible voters did not take part in a referendum he called in October this year while of those who did take part majority rejected his proposition!)

b. Government lacks majority in the Parliament - hence state contracts involving taxations (as is the case with MIA award to GMR) are likely to fail unless Opposition supports.

c. Important ministerial nominees like Finance Minister, Home Minister, Defence Minister and Foreign Minister all have failed to secure Parliamentary consent.

d. Ministers remaining are under constant fear of no-confidence motion being taken against them.

e. Arrest and detention of Opposition leaders contrary to the Constitution and laws and refusal to release them even when the court orders to do so.

f. Currently four Opposition MPs are facing serious charges - two of them are facing Sedition charges filed a day after they formed an opposition alliance to oppose the MIA award to GMR!

g. Election Commission has already declared that the forthcoming Local Council Election will not be free and fair because of Government's meddling.

Undermining rule of law

During the last few months alone President Nasheed's Government has:

a. Padlocked the Supreme Court and prevented Justices from entering the Court premises.

b. Shut down the Independent Judicial Service Commission - responsible for hiring and firing judges.

c. Shut down the independent Department of Justice - responsible for providing administrative support for the judges and the judiciary.

d. His ministers and senior government officials have refused to subject themselves to Parliamentary scrutiny as required by the Constitution!

e. His Government has refused to provide information required by the Constitution to the Parliament, Political parties, as well as citizens.

Inexperience Government

a. The Government is barely two years old.

b. Most of the senior Government officials are street activists who never had any private or public sector experience and some top official in the current government have past criminal records

Corruption and nepotism

a. Several contracts have been awarded to the ruling MDP activists - many of them against clear and specific instruction of Anti-Corruption Commission.

b. The Opposition has challenged in the courts several such awards.

c. In less than two years in power President Nasheed's government has seen a 28 points fall in Transparency International's Corruption Index.

d. Government has called the judiciary corrupt and ruling MDP has even setup its own public courts to disperse justice!

e. Cabinet Ministers have called Parliamentarians as wild animals! and they have marched on the streets of the capital Male' against the Parliament and the Parliamentarians.

f. President and ministers continue, despite constitutional requirements, to disclose their financial reports.

g. The Government since March 29, 2010 continues to function without an Auditor General - a constitutional requirement.

h. Until 13 October 2010 President Nasheed prevented the Anti-corruption Commission from functioning effectively by refusing to appoint his own nominee to the Commission despite Parliamentary endorsement. Eventually he did so 13 days after the Civil Court ordered the President to do so.

Absence of good economic policies

a. Government lacks economic policies.

b. Government has flooded market with new islands (including parts of inhabited islands) to be developed as resorts.

c. On one hand it keeps selling most profitable state assets while at the same time keeps forming non-profitable companies.

d. Discontinuation of IMF assistance to the Government of the Maldives for failing to comply with the agreements of the agency.

e. Locally based foreign banks as well as overseas banks have all but frozen new loans, save very exceptional cases. As a result newly leased islands as well as a number of ongoing resorts with near-completion are unable to secure finance/bridge finance. Even highly cash rich and reputable companies are struggling to secure new loans or re-finance existing ones.

Multiple taxation

In less than two years in office the Government has:

a. Introduced without adequate time a resort land tax replacing resort lease rent.

b. Introduced without adequate time a GST replacing current bed tax.

c. Is about to introduce a Business Profit Tax.

d. Has proposed a Green Tax.

Growing religious extremism

United Kingdom has imposed more stringent screening of air cargo from Maldives (along with countries like Sudan and Somalia). President Nasheed too concedes this is a result of growing religious extremism.

Growing crimes

Serious crimes, including murder, robbery, rape etc have increased dramatically over the years forcing the Government to introduce legislations on gang and organized crimes as well as dangerous weapons.

7. Financing risks

Huge risks involve in financing the GMR-MIA project. Among them include:

a. Possibility of the whole transaction being revoked by the country's Anti-corruption Commission which has the mandate to do so under the Constitution and under the Anti-corruption Commission Act.

b. Very really likelihood that the courts would declare the transaction as unconstitutional because it involves taxation without legislation as required by the Constitution.

c. Possibility of the courts declaring the deal illegal on the ground that it was done in violation of Public Finance (Amendment) Act which bars sale of State assets.

d. Possibility of the courts declaring the deal illegal on the ground that acquisition of the MAC assets was in violation of the Company Act.

e. Possibility of the courts declaring the deal illegal on the ground that the dismissal of the Board of MAC and the subsequent rubber stamping of the whole deal by Government appointed Board violates the Company Act.

f. Possibility of the courts declaring the deal illegal on the ground that it was done contrary to the Privatization Regulation.

g. Opposition that holds majority in the Parliament, is in the process of reversing the award through specific law.

h. If the President carries out his promised midterm election (which will be due in the middle of next year) the Opposition is very likely to win the election. They have already pledged to reverse the deal.

i. In any event presidential election is due in three years time. The current Government which is highly unpopular is expected to lose and the Opposition is likely to carry out its promised nationalization of the MIA.

FOR MORE INFORMATION:

Tel:+960- 3304548

Fax:+960- 3343844

Email: sitee@qaumee.org.mv.

International Trade NewsWeek

News reports this week contained good and bad news for certain people in the technology, business, economy, trade, and entertainment industries or sectors around the world.

First, the technology industry is reported to be booming.

A proof of the flourishing technology industry is the 3GSM World Congress held in Barcelona and participated by three biggest cellular phone technology firms in the world - Nokia, Sony Ericsson, and Motorola. These companies presented their latest products in the fair, most of them using the latest 3G technology. Motorola released ROKR. Nokia revealed plans to release Nokia 6136. Sony-Ericsson disclosed the release of the K610 phone and music player. Moreover, Sony Ericsson and Nokia will have a joint venture in developing cellular phone technology-mobile television.

However, some consumers do not avail of this latest technology because they want to avail of discounts and bargains because of offered to last year's technology. But this won't be the case this year as inventories are kept lean because of the new ability of retailers and manufacturers to share sales and inventory information with each other. Yet, they can still get the best price if the consumer to determined to put some effort and acquire knowledge about the technology.

Another event that took place is the twentieth edition of the Olympic Winter Games last weekend in Turin, Italy, which brought in a host of businesses. Companies collaborated with the local government of Turin under the supervision of the International Olympic committee. They hope to have an international publicity by advertising its product in the uniform of athletes participating the sports event, flooding television airtime with their commercials, and plastering the venue with advertisements.

This week, companies have made announcements of either joint ventures, downsizing or takeovers.

Volkswagen announced over the weekend that there will be 20,000 jobs will be cut from 2006 to 2008. They said they want to improve their market standing as they face fierce competition and declining markets. Even though the job cuts dismayed Volkswagen employees, investors were pleased with that decision as the companies shares rose to almost a 3-year high. The company also projects to enjoy a 61 percent increase in profit.

Toy Company Lego Group and Star Wars franchise owner Lucasfilms Ltd. has agreed to continue their partnership until 2011. In 1999, Lego received the rights to create Star Wars toy products. During the release the "Star Wars Episode 1: The Phantom Menace", Lego earned more than $400 million.

Under new ownership, MySpace ties up with SK Telecom and Earthlink, Inc. and Hello LLC will launch this service after a few months. The company will offer its subscribers new service of mobile phone access to MySpace. Together with the launch of MySpace's mobile phone access service, they will also release 'Hero' and 'Kickflip' phones that will be manufactured by Pantech and VK.

Nokia and Sanyo Electric Co. will have a joint venture in order to develop new mobile phone with CDMA chips and 3G technology. Nokia aims to capture the American and Japanese market, while Sanyo hopes to be relieved of its financial debt.

Arcelor plans to increase its dividend by 85% in order to prevent their rival, Mittal Steel's hostile takeover. Earlier, Arcelor rejected Mittal's bid, and has employed investment banks to formulate a defense plan. However, if the takeover happened, Mittal will scrutinized by the European Commission.

However, a company has been entangled in certain issues, but has resolved their predicaments already. Google created a Chinese version of their search engine and will comply with the Communist Party's regulations. With 30,000 Internet censors commissioned by the government, China aims to deter its citizens from gaining access to websites that feature or discuss issues that are sensitive to Chinese policy. Although it baffled industry insiders, Google's compliance was in line with their aim to capture the lucrative Chinese market, home to more than a hundred million Internet users.

Weather also affected businesses this week.

On Sunday morning, residents of Northeastern United States including New York experienced a snowstorm which caused thousands of dollars worth of property insurance and led businesses to halt on Monday. Last September, Hurricane Katrina left insurance companies headaches as its havoc caused more than $5 billion worth of structural damages.

Meanwhile, residents and authorities in New Orleans, Louisiana is preparing for the Mardi Gras, the first one to be held after Hurricane Katrina left many people dead and depressed in August of last year. Although the city's infrastructures are still under repair, the event is expected to revive the city by making their tourism industry active again.

US trade deficit also widened in 2005 because US developed a strong consumption for foreign-made products and the price of oil hit a record high of almost $71 per barrel more than five months ago. US is also threatened by China's booming economy as Chinese products have a trading edge due to lower pricing. The White House is also alarmed with their increasing deficit.

On the other hand, Europe is doing better as their market shares closed upward on Monday. Banks shares in Italy rose, as there have been speculations of consolidation between top Italian banks and foreign banks, such as French bank Banque National de Paris Paribas and Spanish Banco Bilbao Vizcaya Argentaria.

International organizations are also facing some tough issues.

The World Trading Organization has accused the European Union of violating rules by halting the importation of genetically modified foods since 1998. United States, Argentina and Canada, three of the biggest agricultural product exporters in the world, filed a complaint against the EU ban. However, social cause groups, like Friends of the Earth, are criticizing WTO's recent move. They claim that Austria, Germany, France, Greece, Luxembourg and Italy, which implement the ban, have sovereignty to make decisions for themselves.

The Group of 8 Nations, the most exclusive club of developed countries in the economic and political stage, had a meeting over the weekend for the first time in St. Peterburg, Russia to discuss the impact of rising oil prices to world economic development and energy supplies. Russia also assured G8 that they maintain the level of their oil and gas exports this year, despite its cutting off gas supply to Ukraine and the entire Eastern Europe. G8 discussions also included talks on new leadership of Palestine, which the US believes to be a terrorist faction, and the threat of bird flu in Asia and Europe.

The price of oil rises again on Monday after Iran, the fourth largest exporter of oil in the world, continued its uranium enrichment activity and ended their cooperation with the United Nation's International Atomic Energy Agency. Reports state that Iran is using uranium in creating nuclear weapons and it has intermittent cooperation with international inspectors. The oil price situation is even worsened by Nigeria's protests against foreign oil companies and kidnapping of Royal Dutch Shell employees.

Iran, the fourth largest exporter of oil in the world, announced that they ended their cooperation with the United Nation's International Atomic Energy Agency and they will continue its uranium enrichment activity. Because of this, oil prices rose again on Monday. Reports state that Iran is using uranium in creating nuclear weapons and it has intermittent cooperation with international inspectors. The oil price situation is even worsened by Nigeria's protests against foreign oil companies and kidnapping of Royal Dutch Shell employees.

China is also reported to be more active in the world trade scene.

China has purchased oil from African nations, such as Algeria, Angola, Chad, Equatorial Guinea, Gabon, Nigeria and Sudan for their growing need for energy to sustain their flourishing industries. However, some countries, like the United States, are threatened because they also have oil interest in this continent.

China and Australia recently met in Canberra in January to talk about the possible export of uranium found in Australia to China, and to ensure that the uranium supplies would not be used for constructing nuclear weapons. However, environmentalists and majority of Australian citizens warn of its destructive consequences, such as greenhouse gases emission and possible future resistance of Chinese nuclear industry to international scrutiny.

On the lighter side of things, the entertainment industry is continuing to do well.

The movie industry in New Zealand boomed because of the box-office success of films shot or partially shot in the country, which includes the "Lord of the Rings" trilogy, "Chronicles of Narnia: The Lion, the Witch and the Wardrobe", and Peter Jackson's "King Kong". Because of this, funds for producing local films are growing. Hollywood now opted to shoot films in this country because of its breathtaking scenery and its offer of special premiums that will minimize the film studio's production cost.

In 2004, Forbes magazine released their list of 100 Richest Celebrities. They proclaimed Sir Paul McCartney, Sir Elton John and Madonna as wealthiest persons in tinseltown. It also signifies that the music and film industries are flourishing. The Rolling Stones, U2, Greenday, The Eagles, Dave Matthews band, Kenny Chesney, Celine Dion and 50 Cent are also included in the list.

By Vasily Klimko http://TOBOC.com - leading importers exporters directory

Copyright Violations and International Challenges

Many authors and publishers have been quite alarmed to find their books pirated, and reproduced in other nations and then distributed throughout the world. There have been big cases where stories from very famous authors have been pirated by the container loads. This happens all over the world, and it has been a big issue in China, probably because they produce most of the world's books now.

Imagine a pirating publisher taking all the books on the New York Times bestseller list, and printing tens of thousands of each, putting them into containers and shipping them to the United States for sale in our markets. Also, shipping the same books to many other countries before our publishers get the actual books on the shelves and into those markets. Yes, this is a serious issue.

Indeed, there was a very interesting article the other day in the Los Angeles times titled "China Gives a Shred about Piracy" by Barbara Demick reporting from Beijing China. The article explained that the Chinese government in Beijing had found pirated DVDs, books, and even magazines and they were destroying them. There was even a picture of a large Caterpillar skip loader moving everything into a pile to be burned. Indeed, it seems like a big waste of money to do that, but Beijing figures that it's the best way to send a message to prevent copyright infringement and piracy.

China now has The National Copyright Administration and the leadership in China wants everyone to know around the world that they are trying to stop the problem of copyright violations. This is a very good thing and it's going to make most of their trading partners quite happy, as it has been a very big complaint for a number of years. Indeed, China is also worried about copyright infringements concerning its own material now, as other countries are copying Chinese produced material, and now they understand the economic loss that can occur.

Yes, China is growing up and they are joining the world in getting rid of copyrighted contraband and pirated material. Some critics charge that this is merely a ploy and a drop in the bucket compared to the tens of thousands of cargo containers shipped all over the world of pirated products, and copyrighted material.

Perhaps, there is some truth to both sides of this debate, but just the fact that China is stepping up to the plate to do this, and to make a very public statement shows that things are improving. And that is a good thing. Indeed, hope you'll please consider all this and think on it.

Lance Winslow is the Founder of the Online Think Tank, a diverse group of achievers, experts, innovators, entrepreneurs, thinkers, futurists, academics, dreamers, leaders, and general all around brilliant minds. Lance Winslow hopes you've enjoyed today's discussion and topic. http://www.WorldThinkTank.net - Have an important subject to discuss, contact Lance Winslow.

International Investment - Italy in the Spotlight

As the sixth largest world economy and with 60 million consumers, Italy has always offered numerous opportunities for international investment. Its location at the crossroads of the Mediterranean, its reputation for creativity and design, its high number of SMEs, its highly skilled workforce and high standard of living make it an attractive option for the overseas investor.

Italy is unique in the EU for the number of SMEs, often family-run businesses employing less than 100 people. Many of these are located in Italy's 'industrial districts'. An industrial district is defined as a conglomeration of small and medium sized businesses focussing on single production in a specific geographical area.

As with other economies, Italy's situation has changed dramatically in the last two years. Industries have been repositioning themselves to take account of the global credit crunch, the effect of competition from the Asian market, particularly China, and the exchange rate fluctuations between the stronger Euro and other currencies including the dollar and the pound.

At the lower end of the market, Italy cannot compete with cheap produce from overseas. Many local markets throughout the country are now flooded with goods made in China. Therefore the focus is now on doing what Italy does best - producing high end, cutting edge, quality products in the areas of consumer goods (such as footwear, fashion and design) and precision engineering.

Opportunities for Investment

Three areas stand out as having been relatively unaffected by the current global crisis: wine making, tourism and real estate.

Italy is the fourth most-visited country in the world and so anything connected with the hospitality industry from restaurants to hotels and agritourism is still a good investment bet as long as it is in an established tourist area (the cities - Rome, Florence, Venice for example) or in a growth area like Puglia or Basilicata.

Wine making generated 3,919.4 million Euros in 2008, outperforming confectionary production and pasta making. Despite a fall in national wine consumption, this continues to be a flagship Italian export.

The amount of cross-border investment in real estate increased from 41% (2006) to 58% of total estimated investments, to reach 4,215 billion euros in 2007. (Source: assoimmobiliare association) Although the value of property has decreased along with other industrialised countries, the percentage fall has been far better than the 5 - 10% drop in other countries. The commercial and shop sector is continuing to do better than the residential sector. The south is also doing better than the north.

A number of incentives both from the EU and the Italian government are available for regional development and the government is focussing particularly on development of the traditionally less industrialised southern regions of the country known as the mezzogiorno, namely Calabria, Puglia, Basilicata and Sicily. A budget of $125 billion, resulting from a merging of national and economic funds, has been made available between 2007 to 2013 to encourage investment and growth in the south.

Subsidies available are in the form of grants, interest rate subsidies, tax credits, equity participation and state guarantees. Eligible areas include manufacturing, mining, power generation (particularly for ecological and renewable energy projects) and the agricultural and fishing industries.

The Italian government is committed to encouraging long term growth of the market and has made numerous reforms recently- These include changes in company and tax law and the e-government system to simplify the infamous Italian bureaucracy.

International Reverse Phone Directory - Search International Numbers in Reverse Number Lookup Direct

Have you ever tried to find out who the owner is of an anonymous phone call placed from another country? It's a fairly easy process to discover the identity of a caller from your own country, but the directories that work so well with these numbers won't work when searching international phone numbers. If you have missed a mysterious phone call from another country, chances are you may already be familiar with the country's area code. The best method for getting to the bottom of international phone numbers is to make use of an international reverse phone number lookup directory.

The first thing to do when researching an unknown number that registers on your Caller ID is to identify whether the area code is local, national, or international. If you don't recognize the area code, you can simply enter that code into a search tool of any of the major search engines. Just type in something along the lines of "area code+country", and you should easily find out which country the call originated from.

Once you find out which country the call came from, you can start the process of doing a reverse phone number lookup. From this point you can try finding out who the number belongs to by going to that country's specific phone directory website. For example, if you have determined that your anonymous phone call originated from Canada, you can try to find out the identifying information behind that number at a Canadian phone directory site.

If the above method falls short, you can try one of the reverse phone number lookup directories for international numbers available online. Some of these sites are free and some are not. You can also try using Google or any of the other major search engines to find people by phone number in foreign countries. What you'll probably find, though, is that the free sites and search engines won't be able to produce the results you are looking for. So, if you still need to find out the owner's information behind that anonymous missed phone call, you'll have to use one of the paid sites to do your search. Fortunately, the cost is minimal and you can get your results almost instantly with one of the few reputable sites available online.

To do a fast, easy, and reliable international reverse phone number lookup all you have to do is Click Here Now!