Crusade for total control
The campaign in many countries against cryptocurrencies such as bitcoin is part of a larger government quest for citizen control. Oversized transaction and compliance systems, ostensibly imposed on financial institutions to help fight the gray economy and terrorism, are in fact control tools, used both by democratic and authoritarian governments. At the end of this road is socialization of all property.
Global Outlook 2017: Indian leader braces for tough challenges
Multiple, interconnected challenges that stem from launching structural economic reforms at home and the mounting pressure from India’s two powerful neighbors, Pakistan and China, will test the political mantle and popularity of ambitious Prime Minister Narendra Modi.
India gambles with its currency
By suddenly pulling most paper money in India out of circulation, Prime Minister Narendra Modi sought to weaken the massive shadow economy and political rivals who feed on it. He also hoped to prepare the ground for a nationwide value-added tax. Ultimately, the scheme may work, but it is causing economic turmoil that could hurt the audacious Indian reformer.
India, a nation where few pay income tax
A low tax base, poor tax compliance and ineffective, often abusive tax administration not only have constrained Indian governments’ revenue, but also hampered growth and Indian society’s capacity to hold the government accountable. The government of Prime Minister Narendra Modi has chosen to focus on the Goods and Services Tax with the aim of simplifying indirect taxes rather than to tackle the direct tax structure.
Threat of global conflict between the West, Russia and China is increasing
Tensions across the globe have increased to a level where Russian President Vladimir Putin speaks openly of Russia’s nuclear strength. Spending on military budgets is increasing in many countries except the West. And a desperate Russia is looking for new alliances with an emerging China as the West’s sanctions begin to bite. This could lead to a new Russia-China al...
Germany pays the price of losing direct access to critical raw materials
ACCESS to industrial raw materials, particularly rare earth elements (REEs) is proving increasingly difficult for German companies. Some, like chemical giant BASF, have been able to meet the dramatic rise in price of 80 per cent between 2008 and 2011 and have maintained imports of criti...
Japan’s ‘safe haven’ status is shifting it towards the West
In spite of its many economic problems, Japan appears to have retained its ‘safe haven’ status because it has its own currency, it has low exposure to international debt and it does not have to rely on a foreign central bank. At a time when the country is at odds with its largest export market, China, over disputed islands, it appears to be turning away from its gi...
Economics: India looks outside its borders for investment opportunities
With no end in sight to the global economic crisis, India’s economy looks less healthy than a few years ago. This report looks at why Indian businessmen are investing in companies and projects outside India rather than putting money into the country itself. INDIA fared relatively well during the initial months of the glo...
Economics: India counts the cost of corruption
A range of new laws is being introduced to stop corruption and tax evasion which is costing the Indian economy billions. But it will take new policy initiatives to change the way Indians do business, reports GIS expert, Barun S. Mitra. CORRUPTION and tax evasion are major political issues in India with senior politicians ...