The world economy has just been through a severe recession marked by financial turmoil, large-scale destruction of wealth, and declines in industrial production and global trade. According to the International Labor Organization, continued labor-market deterioration in 2009 may lead to an estimated increase in global unemployment of 39-61 million workers relative to 2007. By the end of this year, the worldwide ranks of the unemployed may range from 219-241 million — the highest number on record.
Meanwhile, global growth in real wages, which slowed dramatically in 2008, is expected to have dropped even further in 2009, despite signs of a possible economic recovery. In a sample of 53 countries for which data are available, median growth in real average wages had declined from 4.3% in 2007 to 1.4% in 2008. The World Bank warns that 89 million more people may be trapped in poverty in the wake of the crisis, adding to the 1.4 billion people estimated in 2005 to be living below the international poverty line of $1.25 a day.
In this climate, globalization has come under heavy criticism, including from leaders of developing countries that could strongly benefit from it. President Yoweri Museveni, who is widely credited for integrating Uganda into world markets, has said that globalization is "the same old order with new means of control, new means of oppression, new means of marginalization" by rich countries seeking to secure access to developing country markets.
Yet the alternative to global integration holds little attraction. Indeed, while closing an economy may insulate it from shocks, it can also result in stagnation and even severe homegrown crises. Current examples include Myanmar and North Korea; before their economic liberalization China, Vietnam, and India were in the same boat.
To ensure a durable exit from the crisis, and to build foundations for sustained and broad-based growth in a globalized world, developing countries in 2010 and beyond must draw the right lessons from history.
In the current crisis, China, India, and certain other emerging-market countries are coping fairly well. These countries all had strong external balance sheets and ample room for fiscal maneuver before the crisis, which allowed them to apply countercyclical policies to combat external shocks.
They have also nurtured industries in line with their comparative advantage, which has helped them weather the storm. Indeed, comparative advantage — determined by the relative abundance of labor, natural resources, and capital endowments — is the foundation for competitiveness, which in turn underpins dynamic growth and strong fiscal and external positions.
By contrast, if a country attempts to defy its comparative advantage, such as by adopting an import-substitution strategy to pursue the development of capital-intensive or high-tech industries in a capital-scarce economy, the government may resort to distortional subsidies and protections that dampen economic performance. In turn, this risks weakening both the government's fiscal position and the economy's external account. Without the ability to take timely countercyclical measures, such countries fare poorly when crises hit.
Hi This Vinod Kumar
Hi, Every body Myself is Chettampally Vinod, i am a Stock Exchange Broker. Here I am sharing my experience with All of you...
2009 proved to be the best year for the markets
Best Year for The Marketers
With returns on investment more than 79%, 2009 calendar year emerged as the best year for investors since 2000. Even as three trading sessions are yet to go, the benchmark Sensex closed on its 18-month high on Thursday at 17360. FII’s have once again proved to be the frontrunners in terms of the inflow, pumping more than Rs 82,000 crore in the Indian market this calendar. For the first time ever, the Sensex witnessed the upper circuit limit of 20%, halting trading for the whole day. It was this year that market capitalisation of Indian bourses doubled (till December 24th) from $0.63 tn to $1.28 tn.
While a financial scam from the promoters of prestigious IT firm Satyam Computers and a four-year-low market in March 2009 rattled the players in the arena, analysts observe that 2009 represents the year of great recovery and re-establishment of India growth story on the global map. “It is a year of grand recovery of Indian economy . We have seen re-establishment of the India growth story which brought back FIIs towards India,” says D D Sharma, senior VP, Anand Rathi Securities. According to him, those who doubted the market, lost chance to make money. To recall, majority market participants were not convinced about the recovery during the early phase of the revival even as the market continued its upward ride post-March 2009. Analysts note that even now, some retail participants like retail investor Jayesh Mehta for instance, are skeptical about the market and prefer to stand aside and not invest a pie of their hard-earned money for the moment. Mehta who liquidated his whole portfolio when the Sensex was at the 15,000 level in June 2009, has been awaiting for the correction to re-enter , but hasn’t found an opportunity so far. “After the 2008 fiasco, I don’t want to burn my fingers again and hence, am being extra cautious,” he says. City based sub-broker Mayur Shah observes : “Investors are too careful at the moment and are not ready to lose money the way they did duringthe meltdown. So they are taking very small positions for the short to medium term. Majority of my clients have sold holdings in their respective portfolios without taking profit-loss in the consideration in 2009.” Sharma notes that post-mid-March 2009 the market has not seen big correction to encourage retail investors. “It isn’t that retailers aren’t convinced about the booming market. Considering no big correction is happening, retailers are hesitant to buy at a cheaper rate,” he points out. Sharma however, quips and adds that with sentiments changing, the market is seeing participation of FIIs, DIIs, HNIs and retailers . “We will see new high in the Sensex during 2010 calendar. FIIs flow will remain robust . Also internal inflow is very important and so valuation could go up further,” Sharma says.
With returns on investment more than 79%, 2009 calendar year emerged as the best year for investors since 2000. Even as three trading sessions are yet to go, the benchmark Sensex closed on its 18-month high on Thursday at 17360. FII’s have once again proved to be the frontrunners in terms of the inflow, pumping more than Rs 82,000 crore in the Indian market this calendar. For the first time ever, the Sensex witnessed the upper circuit limit of 20%, halting trading for the whole day. It was this year that market capitalisation of Indian bourses doubled (till December 24th) from $0.63 tn to $1.28 tn.
While a financial scam from the promoters of prestigious IT firm Satyam Computers and a four-year-low market in March 2009 rattled the players in the arena, analysts observe that 2009 represents the year of great recovery and re-establishment of India growth story on the global map. “It is a year of grand recovery of Indian economy . We have seen re-establishment of the India growth story which brought back FIIs towards India,” says D D Sharma, senior VP, Anand Rathi Securities. According to him, those who doubted the market, lost chance to make money. To recall, majority market participants were not convinced about the recovery during the early phase of the revival even as the market continued its upward ride post-March 2009. Analysts note that even now, some retail participants like retail investor Jayesh Mehta for instance, are skeptical about the market and prefer to stand aside and not invest a pie of their hard-earned money for the moment. Mehta who liquidated his whole portfolio when the Sensex was at the 15,000 level in June 2009, has been awaiting for the correction to re-enter , but hasn’t found an opportunity so far. “After the 2008 fiasco, I don’t want to burn my fingers again and hence, am being extra cautious,” he says. City based sub-broker Mayur Shah observes : “Investors are too careful at the moment and are not ready to lose money the way they did duringthe meltdown. So they are taking very small positions for the short to medium term. Majority of my clients have sold holdings in their respective portfolios without taking profit-loss in the consideration in 2009.” Sharma notes that post-mid-March 2009 the market has not seen big correction to encourage retail investors. “It isn’t that retailers aren’t convinced about the booming market. Considering no big correction is happening, retailers are hesitant to buy at a cheaper rate,” he points out. Sharma however, quips and adds that with sentiments changing, the market is seeing participation of FIIs, DIIs, HNIs and retailers . “We will see new high in the Sensex during 2010 calendar. FIIs flow will remain robust . Also internal inflow is very important and so valuation could go up further,” Sharma says.
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Currency trading fast Ludhiana
Currency trading fast in Ludhiana
Alike some people, who in equity market buy shares at low price and sell them few hours later after prices of share increase, people in city have adopted currency trading. The concept that came into existence around half-a-year ago was basically for the benefit of exporters and importers, to whom a little fluctuation in dollar prices at the time of making payments or receiving, made a big difference.
As importers and exporters are adopting the facility to secure their money while trading at international level, general public too has started buying and selling dollars, though they do not do it for foreign trading, but to get benefited through the margins that a dollar leaves when its price in comparison to rupee increases. The popularity of this new trading system can been gauged from the quantum of trading in country per day. The Indian currency market for a day is around ten lakh lots, whereas a lot is equal to one thousand dollars, claimed Vishal Sharma, assistant branch head, Religare Securities Limited.
‘This is a more investor friendly system as currency trading is possible from 9 am to 5 pm,’ informed Summit Janghwal, chief branch manager, India Bulls Securities. ‘The margin between the selling and buying price is what they earn,’ said Summit admitting that people indulge in speculative trading, but added that not every time they are at a better footing.
Informing that trade is monitored through NSE, he said, ‘Importers and exporters using this facility, can secure their money despite fluctuations in dollar prices.’ He elaborated that fluctuations in dollar prices sometimes make a big impact on the money, when it is converted into rupees.
Alike some people, who in equity market buy shares at low price and sell them few hours later after prices of share increase, people in city have adopted currency trading. The concept that came into existence around half-a-year ago was basically for the benefit of exporters and importers, to whom a little fluctuation in dollar prices at the time of making payments or receiving, made a big difference.
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Sensex up by 106 points in early morning trade
Mumbai, Dec 3 (PTI) The Bombay Stock Exchange benchmark Sensex today rose about 106 points in early morning trade on emergence of buying by funds and retail investors amid firming Asian markets. The 30-share Sensex, which had lost 28.36 points in yesterday's volatile trade, recovered by 105.99 points, or 0.62 per cent to 17,275.90 in early morning trade.
The wide-based National Stock Exchange index Nifty also moved up by 37.35 points, or 0.72 per cent, to trade at 5,160.60 points. Brokers said fresh buying in select heavy-weight stocks by funds as well as retail investors amid firming trend on the Asian markets mainly helped the bourses trade in the positive terrain.
Stocks of oil and gas, metals, auto and realty sectors were major gainers with increased interest from the traders. Among auto stocks, the country's largest car maker, Maruti Suzuki, continued its upward journey and gathered another.
The wide-based National Stock Exchange index Nifty also moved up by 37.35 points, or 0.72 per cent, to trade at 5,160.60 points. Brokers said fresh buying in select heavy-weight stocks by funds as well as retail investors amid firming trend on the Asian markets mainly helped the bourses trade in the positive terrain.
Stocks of oil and gas, metals, auto and realty sectors were major gainers with increased interest from the traders. Among auto stocks, the country's largest car maker, Maruti Suzuki, continued its upward journey and gathered another.
BSE Training Institute
BSE has carved out a unique position among stock exchanges in the world in respect of knowledge development and management. It set up an exclusive training facility way back in 1989 which has now emerged as the leading facility in financial and securities market training in India.
BTI currently offers 36 courses, conducted over 180 programmes attended by over 8,000 participants a year. Participants are not only from all over the country but also from South Asia, Central Asia, Eastern Europe, Middle East and Africa. BTI also conducts various customised programmes for leading corporate and financial institutions.
BTI currently offers 36 courses, conducted over 180 programmes attended by over 8,000 participants a year. Participants are not only from all over the country but also from South Asia, Central Asia, Eastern Europe, Middle East and Africa. BTI also conducts various customised programmes for leading corporate and financial institutions.