BRICS – such a passé

BRICS (Brazil Russia India China & now South Africa) have been the center of attention for many years now, at times also viewed as an alternative which can turn the current worldwide recession. The “Analysts” had pegged high hopes on these nations as the next big thing and had forecasted that these nations will impel the world economy back to the growth trajectory. But it is unrealistic to expect the group can challenge the US hegemony.

One look at these nations and it’s easy to perceive that these economies, the developing economies, are the net suppliers to the world’s developed nations aka economic giants. BRICS are net providers of materials/goods to the big European nations and also to the US. E.g. Brazil provides raw material, China manufactured goods and India is seen for outsourcing hub for IT and ITES. There are only two big cities in Russia, Moscow & Saint Petersburg, which have been much publicized and showcased as symbols from developing nation. One close look and it is apparent that the entire growth in Russia is limited to the perimeters of these two cites.

Mixing Insurance with Investment!

Insurance is supposed to arrange for compensation in the event of damage to or loss of property or in case of death of someone. Insurance in no way gives your return on your investments. Then why should one mix up both investment and insurance.

Insurance should give a person peace of mind, that in case something untoward should

Insurance

Insure meaning arrange for compensation in the event of damage to or loss of (property), or injury to or the death of (someone), in exchange for etc.

Insurance essentially helps as a buffer in testing times in case of loss of property or life. Any individual should realize why & how much insurance is required basis his earning capacity and forecasted expenses. One should not just do insurance just for the sake of it.

It is a common myth that insurance is an investment product, whereas it is merely a cover to see through the expenses of the family during intricate times.

Now to extrapolate the myth further all the Insurance companies came out with swanky products like:

Wretched Economy in Punjab !

Political rhetoric about the upswing in Punjab’s economy aside, the state has slipped from sixth spot to twelfth in six years as per the latest edition of the Economic Freedom Index (EFI).

The Economic Freedom of the States of India, 2012, which ranks 20 states on three parameters -- size of the government, legal structure and security of property rights, and regulation of business and labour -- debunks reasons given by politicians to explain the sorry state of affairs in Punjab. It maintains that the huge power subsidy bill, fiscal crunch, tapering off of the Green Revolution, failures in agricultural marketing and inability to catch the services revolution have led to the decline in the state’s economy.

The report claims that the state sharing its border with a hostile neighbour or terrorism causing a decline in the state’s economy were mere myths created by policy-makers to absolve themselves of responsibility for the state’s steady decline.

While most other states such as Gujarat have dramatically improved their ratings, the report says that the freedom rating (indices used to rate states) has remained almost static for Punjab, showing that not much effort is being put in to improve its condition. The report, which has undertaken a study called ‘Why Punjab has suffered long, steady decline’ by noted economist Swaminathan S Anklesaria Aiyar, has said that the chief culprit for the fiscal crunch in Punjab is free power to farmers.

Taxing the Rich ..... and the poor

Well the idea of taxes has developed from the ancient times when kings used to collect taxes on the pretext of taking care of their kingdoms. When the rulers vowed for the welfare and concierge of their citizens.

Prior to seeking higher taxes from its citizens the Indian Government should consider doing its bit first. It should ensure that all the basic amenities are provided for and if not then there’s at least a plan for the same to be provided in future.

Merely by taxing people, rich or poor, and filling out the coffers on the pretext of reducing CAD (current account deficit) won’t solve the problem.

Well it appears to everyone all around the world that by merely increasing the taxes this entire problem of stagflation and higher CAD will get solved.

Here are some interesting quotes from prominent people in the business: