The collapse of the Dubai dream is not without any implications; it may be an indication that the travails of finance capitalism are not over. GLOBAL capitalism is in a phase in which it must deal with the fruits of the overextension during the previous boom, and there is no doubt that this is going to be painful. The financial crisis in the United States and some other developed countries...

Government and regulators need to focus on the systemic risk engendered by excessive compensation. As calendar year 2009 draws to a close, it is bonus season for the financial sector in the West. In the last several months, the need to cap bonuses and compensation packages has been extensively discussed in the context of limiting the future impact of the next financial sector breakdown. On December 9, 2009, the UK was...

After dedicating most of 2009 to jump-starting financial markets through stimulus packages, developed countries are now turning their attention to reforming the basic architecture of those markets, especially the incentives for risk-taking. In a major step towards regulating systemic risks, the United Kingdom last week announced a one-off 50 per cent “super-tax” on bankers’ discretionary bonuses exceeding £25,000. The move could raise £550 milli on, which would be used to...

Despite a booming economy, nutrition deprivation among India’s children remains widespread.  “All human beings are born free and equal in dignity and rights.” So begins the Universal Declaration of Human Rights established 60 years ago and celebrated today around the globe. This year’s theme is non-discrimination. When it comes to nutrition, all of India’s children are not equal. According to India’s third National Family Health Survey (NFHS-3) of 2005-06, 20...

Nearly 37,000 expatriate Keralites have already lost their jobs due to recession. How do you plan to combat the effect of the latest Dubai crisis on Gulf NRIs? This is not going to be on any scale as with Kuwait during the Gulf War. But nevertheless, it is a matter of serious concern. It is better to be prepared than underprepared. We are planning two schemes. One, we are constituting...