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Developing countries’ share in global investment to triple by 2030: World Bank

admin — Tue, 21 May 2013 10:02:23 +0000

(India and China will be developing world’s largest investors, together accounting for 38% of the global gross investment in 2030 and will account for almost half of all global manufacturing investment.) According to a World Bank report, seventeen years from now, half the global stock of capital, totaling US$158 trillion will reside in the developing world, compared to less than one-third today, with countries in East Asia and Latin America accounting for the largest shares of this stock. By 2030, for every dollar invested in the world, 60 cents will flow into developing countries, a dramatic change from 20 cents to the dollar in 2000. China will make up 30% of all investment activity, while the United States will have 11% and India 7%. The report forecasts that developing countries’ share in global investment will triple by 2030 to three-fifths, from one-fifth in 2000. With world population set to rise from 7 billion in 2010 to 8.5 billion 2030 and rapid aging in the advanced countries, demographic changes will profoundly influence these structural shifts. Productivity catch-up, increasing integration into global markets, sound macroeconomic policies, and improved education and health are helping speed growth and creating massive investment opportunities, which, in turn, are spurring a shift in global economic weight to developing countries. A further boost is being provided by the youth bulge. With developing countries on course to add more than 1.4 billion people to their combined population between now and 2030, the full benefit of the demographic dividend has yet to be reaped, particularly in the relatively younger regions of Sub-Saharan Africa and South Asia. Combined with this, strong saving rates in developing countries are expected to peak at 34% of national income in 2014 and will average 32% annually until 2030. In aggregate terms, the developing world will account for 62-64% of global saving of US$25-27 trillion by 2030, up from 45% in 2010. South Asia will remain one of the highest saving and highest investing regions until 2030. However, with the scope for rapid economic growth and financial development, results for saving, investment, and capital flows will vary significantly. South Asia is a young region, and by about 2035 is likely to have the highest ratio of working- to nonworking-age people of any region in the world. The general shift in investment away from agriculture towards manufacturing and service sectors is likely to be especially pronounced in South Asia, with the region’s share of total investment in manufacturing expected to nearly double, and investment in the service sector to increase by more than 8% points, to over two-thirds of total investment. East Asia and the Pacific is experiencing a big demographic dividend and the lowest dependency ratio in the world. However, this dividend will end after reaching its peak in 2015. Labor force growth will slow, and by 2040 the region may have one of the highest dependency ratios of all developing regions. Eastern Europe and Central Asia is the furthest along in its demographic transition, and will be the only developing region to reach zero population growth by 2030. Aging is expected to moderate economic growth in the region, and also has the potential to bring down the saving rate more than any developing region, apart from East Asia. The region’s saving rate may decline more than its investment rate, in which case countries in the region will have to finance investment by attracting more capital flows. Latin America and the Caribbean may become the lowest-saving region by 2030. Although demographics will play a positive role, as dependency ratios are projected to fall through 2025, financial market development and a moderation in economic growth will play a counterbalancing role. Similarly, the rising and then falling impact of demography on labor force growth means that the investment rate is expected to rise in the short run, and then gradually fall. The Middle East and North Africa is in a relatively early phase of its demographic transition, characterized by a still fast growing population and labor force, but also a rising share of elderly. The region has the lowest use of formal financial institutions for saving by low-income households, and scope for financial markets to play a significantly greater role in household saving. Sub-Saharan Africa is currently the youngest of all regions, with the highest dependency ratio. This ratio will steadily decrease by 2030 and beyond, bringing a long lasting demographic dividend. The region will have the greatest infrastructure investment needs over the next two decades (relative to GDP). At the same time, there will likely be a shift in infrastructure investment financing toward greater participation by the private sector, and substantial increases in private capital inflows, particularly from other developing regions.

Indian banks write off Rs 15,000 crore bad debts annually

admin — Tue, 14 May 2013 08:58:06 +0000

Recently the Parliamentary Standing Committee on Finance complained against the government policy on issuing license. The Committee earlier suggested for giving priority to financial inclusion and other social objectives while issuing addition bank license to the private banking sector. The Standing Committee is headed by the Bharatiya Janata Party leader Yashwant Sinha. It also suggested for evaluation on the basis of the Banking Correspondent Model (BCM) and rationale of levying charges on banking services through the model. The suggestions were given on the basis of Finance Minister Pranab Mukherjee’s announcement in the Budget 2010-11 on extending the geographical coverage of banks and improving access to banking services through issuance of new banking licences to private players and nonbanking finance companies (NBFCs). Despite the measures taken by the government and the RBI to extend the rural reach of banking, there are 375 under banked districts and 89 unbanked blocks in the country. The report prepared by the Committee was submitted to the Parliament in April 2010, where the panel supported the idea of financial inclusion to be included as normative feature while granting fresh license by the Reserve Bank of India (RBI). It suggested for mandating the private players to render specified banking services in rural and semi-urban areas. The government subsequently asked RBI to take action, for which the RBI issued a discussion paper and invited comments on it in September 2010. The paper was based on suggestions made for criteria on minimum capital requirements for banks and promoters’ contribution, minimum and maximum cap on promoter shareholding and other shareholders and foreign shareholding. It also speculated other issues such as allowing the industrial and business houses in promoting the banks and allowing the conversion of the nonbanking finance companies into banks. RBI in order to bring changes in present banking system in India is planning to issue bank licence to some players by March 2011. The decision will facilitate the entry of large corporate houses like Reliance, Tata and Birla in the commercial banking space, which is presently dominated by state-run State Bank of India and private lenders like ICICI Bank and HDFC Bank which are based on public shareholdings between the state, government and other stakeholders. Also for the millions of rural households in India, that was devoid of access to banks RBI suggested for the adoption of BCM which is a good alternative to reach the unbanked. This would give a doorstep service, delivered from a distance using technology, which would be a new window to the banking system. In March 2006, the RBI suggested for adoption of the BCM to reach the unbanked. Under this no-frills savings account, loans and remittance products were provisioned through BCM. This March, it asked all banks, public and private, to submit their ‘financial inclusion plans’ till 2013 — and meet them. Since they wouldn’t go out and set up branches, banks would have to do it largely through the BCM model. Unlike the branch model, in the BCM, the bank and the customer don’t talk to each other directly. A technology partner, with whom the BCMs are attached, is the go-between. The largest technology partner is Financial Information Network and Operations (FINO), which has 8,000 BCMs, who have so far serviced 17 million customers of 14 banks. However the other commercial banks have been hesitant in adoption the model due to low revenue generation potentials as these accounts exceed the cost of servicing them and the complexities in operation, a large part of which is outsourced — and hence, not directly under their control.

Macro Economic and Monetary Developments India

admin — Fri, 03 May 2013 09:41:24 +0000

Reserve Bank’s survey of outside professional forecasters shows anticipation of a modest recovery with growth in 2013-14 at 6% from 5% and average WPI inflation to moderate to 6.5% from 7.3%. Surveys show that inflation expectations have moderated slightly, while business expectations remain subdued. In view of macro-financial risks that stay significant, headline inflation remaining above the threshold and consumer price inflation remaining high, the space for action for 2013-14 remains very limited. If some of the risks come to fore, policy re-calibration may become necessary in either direction. Slow-paced recovery is likely later in 2013-14, contingent on improved governance and concerted action to resolve structural bottlenecks, especially in infrastructure sector. Output gap is likely to reduce, but remain negative. Headline inflation is likely to remain range-bound in 2013-14, with some further moderation in H1 due to subdued producers’ pricing power and falling global commodity prices, before it increases somewhat in H2 largely due to base effects. Summary of macroeconomic and monetary developments in 2012-13 During 2012-13, slowdown persisted as mining and manufacturing activity stalled, agriculture output was affected by temporal and spatial deficiency in rains and services sector witnessed moderation. Growth is likely to have stayed low in Q4 of 2012-13. Growth is hobbled by structural bottlenecks. Shortages of power, coal and natural gas, stoppage of mining activity in some states following legal enforcements on illegal mining have emerged as a major constraining factor for industrial growth. Core industries have underperformed in this backdrop. The Reserve Bank’s Order Books, Inventory and Capacity Utilisation Survey show that the slack in capacity utilisation persisted in Q3 of 2012-13. New orders picked up marginally. Inventory as a ratio of sales, reached its lowest for finished goods, but highest for raw materials in the past five quarters. Aggregate demand remained sluggish with inflation adversely impacting real consumption and cyclical and structural factors impeding investment. Investment decline was accompanied by decline in saving rate as persistence of inflation eroded financial savings of the households. Corporate sales growth moderated in Q3 of 2012-13 to its lowest level since Q3 of 2009-10. Operating profits grew at a positive rate. Planned corporate investment moderated sharply in Q3 of 2012-13, thus continuing with the downturn that began in H2 of 2010-11. There is urgency for addressing bottlenecks in coal, power, road and telecommunication sectors to revive investment and growth. Momentum towards fiscal consolidation since middle of 2012-13 continues. As a result, fiscal risks have been lowered but they have not waned. If growth slows down further, it could result in revenue shortfalls and a resurgence of fiscal risks. Removing structural impediments and public investment stimulus to crowd-in private investment can turn around falling investment. However, this would need to be balanced by offsetting reductions in government’s current expenditures. Modest pick-up in exports in Q4 of 2012-13 and some deceleration in imports are likely to help moderate current account deficit (CAD) in Q4 of 2012-13 after a record high of 6.7% of GDP in Q3. Despite this, the CAD/GDP ratio for the year 2012-13 is expected to be around 5%, twice the sustainable level. High CAD in Q3 of 2012-13 was adequately financed by capital inflows, without any reserves depletion. CAD in 2013-14 is likely to benefit from moderation in global commodity prices. Yet, its sustainability continues to face risk from event shocks that may cause a sudden stop or reversal of capital inflows. External vulnerability indicators worsened further in Q3 of 2012-13. India’s external debt rose, reflecting continued dependence on ECBs and short-term borrowings to meet the widening CAD. Short-term debt on a residual maturity basis increased to 44% of total debt and 56% of the foreign exchange reserves by end-December 2012. Headline inflation and demand-side pressures have moderated, but inflation risks remain reflected in double-digit consumer price inflation, food supply constraints and suppressed inflation in energy segment, including diesel, coal and electricity. Persistent pressures from wages remain a major risk to inflation moderation. Although the pace of increase in rural wages moderated a bit, it remains high. Divergence between WPI and CPI inflation has widened on account of higher food inflation and other factors such as increase in housing rents and transportation costs. Globally, growth turned weaker in 2012 and is expected to stay sluggish in 2013. Fiscal adjustments will drag growth down in advanced economies and delay cyclical recovery in emerging market and developing economies. Outlook for global commodity prices, including metals and oil, remains benign. It should help reduce imported inflation, subject to broadly stable exchange rate. However, some risks remain from the large and continuous doses of quantitative easing. Global financial market conditions have improved as a result of unconventional monetary policy easing and supportive policy actions. However, tail risks remain significant, calling for committed action to reduce balance sheet exposures and prepare adequate buffers against possible contagion risks.

Infrastructure Growth in India

admin — Thu, 02 May 2013 12:18:10 +0000

The core infrastructure grows to 2.9% in March 2013 as compared to 3% growth in March 2012. The marginal decline in growth in March, 2013 was on account of negative growth witnessed in the production of Natural Gas and low growth recorded in the production of Coal and Crude Oil.

Sector wise trend in monthly production

(% growth)

Sector	Weight in IIP	February’13	March’13
Crude Oil	5.22	(-) 4.0	0.2
Natural Gas	1.71	(-) 20.1	(-) 17.7
Petroleum Refinery Products	5.94	4.3	5.6
Coal	4.38	(-) 8.0	0.3
Fertilizer	1.25	(-) 4.0	3.6
Electricity	10.32	(-) 3.7	3.0
Cement	2.41	3.1	6.6
Steel	6.68	0.5	6.6
Overall	37.90	(-) 2.4	2.9

Source: PHD Research Bureau, compiled from the office of the economic advisor to the Govt. of India

In cumulative terms core infrastructure industries registered a growth of 2.6% during April-March 2012-13 as against 5% during the corresponding period of the previous year.

Sector wise trend in production (%growth)

Sector	Weight	Apr-Mar 2011-12	Apr-Mar 2012-13
Crude Oil	5.22	1.0	(-) 0.6
Natural Gas	1.71	(-) 8.9	(-) 14.5
Petroleum Refinery Products	5.94	3.1	6.9
Coal	4.38	1.3	3.3
Fertilizer	1.25	0.4	(-) 3.4
Electricity	10.32	8.1	4.0
Cement	2.41	6.7	5.6
Steel	6.68	10.3	2.5
Overall	37.90	5.0	2.6

Source:
PHD Research Bureau, compiled from the office of the economic advisor to the
Govt. of India

Electricity generation grew by 4% during Apr-Mar 2012-13 as against 8.1% growth during Apr-Mar 2011-12, while steel production grew by 2.5% during Apr-Mar 2012-13 as compared to 10.3% during Apr-Mar 2011-12. The production in crude oil grew by (-) 0.6% during Apr-Mar 2012-13 as compared to its growth at 1% during Apr-Mar 2011-12, whereas petroleum refinery production registered a growth of 6.9% during Apr-Mar 2012-13 as compared to 3.1% growth during Apr-Mar 2011-12. Fertilizer production grew by (-) 3.4% during Apr-Mar 2012-13, compared to its growth at 0.4% during Apr-Mar
2011-12 and cement production grew by 5.6% during Apr-Mar 2012-13 compared to its growth at 6.7% during Apr- Mar 2011-12. Trend in growth of steel, cement, electricity and coal and overall (%)
PHD Research Bureau, compiled from the office of the economic advisor to the
Govt. of India

Investment in Asia

admin — Thu, 02 May 2013 11:55:50 +0000

Asian countries are serving as a major engine for global growth by way of increasing its exports as well as attracting foreign direct investments. The economic success has translated to social reforms as well, poverty rates have fallen, life expectancy has risen, and the quality of life has improved significantly over the past half century. IMF has estimated developing Asia’s average growth at 7.1% for 2013 and 7.3% for 2014 as compared to world at 3.3% in 2013 and 4% in 2014 and advanced economies at 1.2% in 2013 and 2.2% in 2014. Asia has been the fastest growing region of the world for several decades, comprising more than 60% of the global population and it accounts for almost a quarter of global output (22%). The speed and extent of Asia’s economic and social progress has been inspiring and these emerging economies are now advancing at an impressive pace as a major global economic power. Asian region is emerging with strong demographics and making it lucrative for investment and trade. In the recent years, due to export diversification efforts, the share of developing economies in India’s total exports witnessed a gradual increase. Increased diversification in trade destinations from the advanced economies to the emerging economies might open up fresh avenues for progress in this area, going forward.

South Asia drives World Economic Growth

admin — Wed, 27 Mar 2013 16:51:53 +0000

The combined output of the three leading South economies—China, India, Brazil—will surpass the aggregate production of the United States, Germany, United Kingdom, France, Italy and Canada by 2020. According to United Nations Human Development Report 2013, the rise of the South is radically reshaping the world of the 21st century, with developing nations driving economic growth, lifting hundreds of millions of people from poverty, and propelling billions more into a new global middle class. The Report shows that more than 40 developing countries have made greater human development gains in recent decades than would have been predicted. These achievements, it says, are largely attributable to sustained investment in education, health care and social programmes, and open engagement with an increasingly interconnected world. Further, report reveals that this historic progress is creating opportunities for the South and the North to collaborate in new ways to advance human development and confront shared challenges such as climate change. Report pointed that the South as a whole is driving global economic growth and societal change for the first time in centuries, thereby providing a detailed look at fast-changing world. Some of the snapshots of report are: China and India doubled per capita economic output in less than 20 years—a rate twice as fast as that during the Industrial Revolution in Europe and North America. The Report projects that by 2020, the combined output of the three leading South economies—China, India, Brazil—will surpass the aggregate production of the United States, Germany, United Kingdom, France, Italy and Canada. With living standards rising in much of the South, the proportion of people living in extreme income poverty worldwide plunged from 43 percent in 1990 to 22 percent in 2008. Report notes that developing countries nearly doubled their share of world merchandise trade from 25% to 47% between 1980 and 2010. Trade within the South was the biggest factor in that expansion, climbing from less than 10% to more than 25% of all world trade in the past 30 years, while trade between developed countries fell from 46% to less than 30%. However, report projects that trade between countries in the South will overtake that between developed nations. The South is increasingly interdependent and interconnected. Brazil, China, India, Indonesia and Mexico now have more daily social media traffic than any country except the United States. The South’s growing global interconnections are personal as well virtual: migration between developing countries recently surpassed net migration from South to North. The world is witnessing an epochal “global rebalancing.” The tectonic shift has put developing countries on an upward curve. The Report predicts that the so-called “Rise of the South” should continue and could even accelerate as the 21st century unfolds. Global institutions have not yet caught up to this historic change. China, with the world’s second largest economy and biggest foreign exchange reserves, has but a 3.3 percent share in the World Bank, less than France’s 4.3 percent. India, which will soon surpass China as the world’s most populous country, does not have a permanent seat on the UN Security Council. And Africa, with a billion people in 54 sovereign nations, is under-represented in almost all international institutions. The report suggests that south itself has both the expertise and the resources to be a more powerful force in global development. Developing countries now hold two-thirds of the world’s total $10.2 trillion in foreign exchange reserves, including more than $3 trillion in China alone, and about three-quarters of the $4.3 trillion in assets controlled by sovereign wealth funds worldwide. The rise of the South is challenging existing global institutions to change and showing new ways that countries and regions can work together to confront shared challenges. As older international institutions fail to adapt, new mechanisms are emerging. Further, the South needs greater representation in global governance, which also requires assuming greater responsibility. It urges the convening of a new “South Commission” where developing countries can take the lead in suggesting constructive new approaches to effective global governance. Hence, the report lays emphasis on
the rise of the South and its potential for accelerating progress for future generations should be seen as beneficial for all countries and regions, as living standards improve and the world as whole becomes ever more deeply interdependent.

General Electric Retreat In The Face of India’s Tough Liability Laws

admin — Mon, 11 Mar 2013 10:32:11 +0000

India’s tough civil nuclear liability laws have sent at least one private company
running for the exits, while other companies backed by governments are rushing in to fill the void. General Electric became the latest private company to pull up stakes from India, announcing this week that it will not pursue the nuclear energy business in India because it can’t abide by India’s civil nuclear liability laws. GE has stated that it doesn’t want to take the risk of running afoul of India’s tough laws regulating nuclear power. This will likely leave the nuclear power business open to countries like Russia or France which are willing to meet India’s demands concerning nuclear power. “If the liability law stays the way it is, we won’t pursue the business,” said John Flannery, the CEO and president of GE India in an interview with Forbes – India. “We are a private enterprise and we just can’t take that kind of risk profiles,” he added. Strong
objections America, in particular, has voiced strong objections to India’s Civil Liability for Nuclear Damage Act that India’s government passed into law in 2010. American diplomats claim that the law violates international conventions. India has clearly gone its own way concerning the development of nuclear power in the country. After the disastrous tsunami and earthquake in Japan in March, 2011 destroyed a nuclear power plant at Fukushima, other governments have been reassessing their reliance on nuclear power and concerns around commercial property. The subsequent earthquakes that followed the tsunami triggered a meltdown of three reactor cores at the nuclear plant owned by Tokyo Electric Power Co. The plant was designed by GE. Since then, Germany announced that it would shut down 17 of its nuclear power plants within 10 years. Japan, too, pledged that it would pull the switch on all nuclear facilities by 2040 but could reverse itself with the election of the new Liberal Democrat Party. India, though, was largely unfazed by the Fukushima nuclear accident. Nuclear Power Corporation of India plans to add 37,500 megawatts of generation power to its facilities. That means billions of dollars in sales for a company that supplies the generating equipment. India is one of the few countries that has embraced nuclear power as a solution to its growing energy needs. However, the country has little or no capacity to supply fuel and reactor technology, so it must depend upon foreign companies. Major nuclear industry companies have lined up for a piece of the action, including Rosatom, Areva, GE and Westinghouse. Nuclear liability law After GE pulled its stakes from the playing table, America’s deputy assistant secretary of state for South and Central Asian Affairs complained that India’s nuclear liability law is not in sync with international nuclear principles as outlined in the Convention on Supplementary Compensation for Nuclear Damage. “There are a number of different countries on a common regulatory regime if you will. And we do business in those countries,” said Flannery. He added that India’s Nuclear Damage Act is not in line with the convention rules, and because of that, GE is not comfortable with engaging in business with India. This reluctance of conforming to India’s laws has scared away some private companies, but others see it as an opportunity to ingratiate themselves to the Indians. French President Francois Hollande, who visited India recently, embraced the civil nuclear liability law and told the country that France respected Indian law. Hollande, in a recent interview with The Times of India, said that France and India are in a “strategic embrace.” He assured the Indian people that the reactors that France is building for itself are the same reactors that France is selling to India. France is currently constructing India’s largest nuclear power plant near the port of Jaitapur in the Maharashtra State. This is a 9,900 megawatt power project and will be the largest nuclear power generating plant in the world when completed. The plant was designed to give India energy security. France is expected to supply fuel for the plant for 25 years. The estimated cost for the Jaitapur plant is $18.2 billion. The French nuclear giant Areva stands to make billions of dollars in sales as India continues to build power stations to meet the country’s expanding population. GE is saying, no, thanks. This article is written by Jennifer Swanson.

Industry Workers Seek to Enforce Legal Rights

admin — Sat, 23 Feb 2013 13:36:12 +0000

Whilst compensation claims for accidents in the workplace are seemingly commonplace these days, less is known about the rights for those suffering from other industry-related health issues. Anyone who has suffered an injury whilst in the course of their employment is entitled to seek advice on making a personal injury claim. Compensation may be payable for all sorts of industry-related health problems, from simple slips, trips and falls to more complex cases involving industrial deafness or industrial diseases such as mesothelioma, asbestosis or even vibration white finger. Responsibility: who is liable? In any kind of workplace, the employer has a legal responsibility to protect his employers, so far as is reasonably practicable, from known hazards. All reasonable precautions should be taken and the correct training and equipment should be given to all workers. This duty of care is well established in law and when breached, may leave the employer open to a claim for compensation from a sick or injured worker. Workers who come into contact with or handle dangerous chemicals might want to check whether or not such chemicals can reasonably be replaced by less harmful substances. If this is not possible, your contact with the chemicals should be kept to a minimum and the correct safety clothing and equipment should be used. Once training and equipment have been provided, it is the responsibility of the employee to utilise that training and wear the right equipment; however, employers are still ultimately responsible. Making a claim If you feel that you have suffered an industrial illness or disease, or indeed have suffered an industrial accident, after seeking help from a medical practitioner you should seek personal injury claim advice. Seeking advice as soon as you are aware of a potential problem can be enormously beneficial, as you will receive information about the sort of evidence that you will need and will find out if indeed you may have a valid claim. Professional advice will also allow you to ask any questions that you may have either about the claims process itself or about the sort of compensation figure that you may be entitled to should your claim be successful. Your initial enquiry will not, however, place you under any obligation whatsoever to pursue a claim in the future. It should be noted that many industrial diseases and illnesses can get progressively worse, even when the sufferer is removed from the environment that gave rise to the problem in the first instance. This is another good reason to seek advice early on, as although you may not feel as though you want to claim now, as your problem worsens, you could start to see a real need not only to get compensation, but also to bring your employer to task and make him improve safety procedures for other employees. Seeking personal injury claim advice early does not irrevocably tie you to making a claim, but will be of enormous benefit should you decide that this is the route that you wish to take. AUTHOR BIO Andy is a junior lawyer who specialised in helping industrial illness sufferers seek the compensation that they deserved. When not travelling with his husband, he writes for a number of industry-specific blogs and websites about various personal injury claim advice matters. For more legal advice to the workers ,author suggests this site for more information : www.phclaw.com

Internet Posting Removal Act, an Illinois Bill

admin — Sat, 23 Feb 2013 13:30:59 +0000

A new bill proposed in the Illinois State Senate looks to completely wipe out any form of anonymity on the internet by requiring that the operators of basically any website on the entire internet take down any comment that isn’t attached to an IP, address, and real name-verified poster. It’s called the Internet Posting Removal Act and was introduced on February 13th by Illinois General Assembly veteran Ira I. Silverstein [D]. New bill proposed in the Illinois State Senate looks to completely wipe out any form of anonymity on the internet by requiring that the operators of basically any website on the entire internet take down any comment that isn’t attached to an IP, address, and real name-verified poster. Creates the Internet Posting Removal Act. Provides that a web site administrator shall, upon request, remove any posted comments posted by an anonymous poster unless the anonymous poster agrees to attach his or her name to the post and confirms that his or her IP address, legal name, and home address are accurate. Effective 90 days after becoming law. Not wanting to leave any bases uncovered, Silverstein includes that an “Anonymous Poster” means “any individual who posts a message on a web site including social networks, blogs, forums, message boards, or any other discussion site where people can hold conversations in the form of posted messages.” Beyond the obvious questions about self-verification of IP addresses (?) and home addresses (wow), the logistics of this thing are mind-boggling at best. Any comment on any site that has commenting? That would not just include sites like CNN.com, Mashable, WebProNews and others. This could be taken to mean any type of social media like Facebook, Twitter, Tumblr or large online communities like reddit and 4chan. (McIntyre v. Ohio Elections Commission, 1995): Protections for anonymous speech are vital to democratic discourse. Allowing dissenters to shield their identities frees them to express critical minority views… Anonymity is a shield from the tyranny of the majority… It thus exemplifies the purpose behind the Bill of Rights and of the First Amendment in particular: to protect unpopular individuals from retaliation… at the hand of an intolerant society. “These long-standing rights to anonymity and the protections it affords are critically important for the Internet. As the Supreme Court has recognized the Internet offers a new and powerful democratic forum in which anyone can become a “pamphleteer” or “a town crier with a voice that resonates farther than it could from any soapbox,”

Rules for Clinical Trials India

admin — Thu, 14 Feb 2013 13:06:14 +0000

On November 31, 2011, the Ministry of Health and Family Welfare (“the Ministry”) had proposed certain draft amendments to the Drugs and Cosmetic Rules, 1945 to ensure payment of compensation to the study subject (“Subject”) for clinical trial related injury or death. The final amendments have been notified, to be effective from January 30, 2013 (“Amendment”). The salient features of the Amendment have been captured below:

Clinical trial subjects are entitled to free medical management as long as required, and also are entitled to financial compensation for clinical trial related injury or death. In case of death of the subject, the compensation is payable to the nominee(s) of the subject. What constitutes ‘clinical trial related injury or death’ has been laid out. Some of the provisions such as “failure of investigational product to provide intended therapeutic effect” have raised concerns. The Sponsor or his representative (“Sponsor Representative”), whosoever has obtained permission to conduct the clinical trial in India, is obligated to bear the expenses of the Subject’s medical management and provide financial compensation. With respect to the compensation, the Sponsor, whether a pharmaceutical company or an institution, is also required to give an undertaking to the Drugs Controller General of India (“DCGI”) stating that it will provide compensation in case of clinical trial related injury or death. ‘Serious Adverse Event’ has now been defined for the purpose of Schedule Y (brought in from the definitions of ‘Adverse Event’ and ‘Serious Adverse Event’ set out in the Good Clinical Practice Guidelines). A definite procedure for reporting serious adverse events and processing of incidental claims of financial compensation has been put in place. The Sponsor, Investigator and Ethics Committee have to submit their report with an analysis on the cause of the adverse event to the Experts Committee (in case of death and in case of injury, if the DCGI appoints such Committee) and the DCGI within a stipulated time. The Experts Committee to be set up by DCGI, would investigate the cause of death or injury (if required by DCGI), and recommend financial compensation, if applicable, to the DCGI. The DCGI has been authorised to decide the cause of the serious adverse event as well as pass an order on payment of compensation, if applicable, taking into account recommendations of the Experts Committee. The time frame for determination of the cause of serious adverse event and order of financial compensation is 3 months from the date of report of the serious adverse event by the Investigator. The Sponsor or Sponsor Representative has been given a time frame of 30 days from receipt of the order of the DCGI to provide compensation to the Subject. Failure of the Sponsor or Sponsor Representative to provide free medical management and/or financial compensation, as ordered, may lead to suspension or cancellation of the existing and further clinical trials in India. The Informed Consent Form has been modified to include relevant details for the purpose of determination of compensation such as qualification, occupation and annual income of the subject. It is now obligatory to hand over a copy of the informed consent sheet and duly filled informed consent form to the subject or his / her attendant. The right of Sponsor to receive the copies of the reports filed by Investigator, Ethics Committee or to be heard before the order is passed is not recognized.