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...

Since state financial corporations are set up to encourage the establishment of industries by providing loans on liberal terms, the recovery of debts from chronic defaulters is seen by courts from two angles. One is that public money is lent for starting private enterprises and, therefore, the financial institutions should be tough on the debtors. The other approach is that these units benefit the public and, therefore, the endeavour should...

Momentum suggests 9 per cent for the full year The overall Index of Industrial Production (IIP), which includes the three components of manufacturing, mining and electricity, grew at a pace of 10.3 per cent during October. This is lower than what was expected, but higher than the 9.1 per cent for September. With this, the April to October growth rose to 7.1 per cent, up from 6.5 per cent in the...

CITIES MAKE one simple promise to newcomers: Sacrifice yourself to me and your children shall prosper. This promise drew Ahmed Raza, a small-time wrestler from an Uttar Pradesh village and millions like him to the capital of newly-independent India. Raza kept his part of the bargain, yet half a century later, his daughter was pushed out of the city her father helped build, the only home she has known. “I...

The World Bank has agreed to loan India $1bn (£600m) over the next five years to clean up the Ganges, one of the most polluted rivers in the world. The 2,500km (1,500 mile) river has been badly polluted by industrial chemicals, farm pesticides and other sewage. Speaking in Delhi, World Bank chief Robert Zoellick said the clean up would target the entire river network. Plans involve building sewage treatment plants, revamping...