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Economic Policy

Economic Policy is published by Blackwell Publishing for CEPR (Centre for
Economic Policy Research), the Center for Economic Studies of the University
of Munich (CES), and Paris School of Economics (PSE) in association with
the European Economic Association.

In October 2005, Economic Policy celebrated its 20th anniversary with a
special celebration at the Bank of England. During that anniversary year,
some of the journal's contributors took a moment to reflect on a retrospective
of Economic Policy's contributions over its existence.

Economic Policy provides timely and authoritative analyses of the choices
confronting policy-makers. The subject matter ranges from the study of how
individual markets can and should work to the broadest interactions in the
world economy. It has earned a worldwide reputation for identifying current
and emerging policy topics and subjecting them to an analysis that is both
rigorous and accessibly presented.

It offers an independent, non-partisan, perspective on issues of worldwide
concern. It emphasizes problems of international significance, either because
they affect the world economy directly or because the experience of one
country contains important lessons for policy-makers elsewhere.

All the articles are specifically commissioned from leading professional
economists. Their brief is to illuminate topical policy issues by combining the
insights of modern economics with best available evidence.Prior to
publication, each article is discussed by a Panel of distinguished economists.
Summaries of Panelists' comments are included in each volume in order to
provide readers with alternative interpretations of the evidence and a sense of
the liveliness of the current debate. "Controversial, decisive, informative, one
step ahead."

Rudiger Dornbusch, Massachusetts Institute of Technology

"One of the best sources of European policy analysis -- Economic Policy can
be relied on to be interesting, relevant, and thoroughly professional." Stanley
Fischer, IMF

"Over the years, the journal has built a reputation as an accessible, relevant
and respected input into the European economic policy debate. Jean Tirole,
Institut d'Economie Industrielle, Toulouse

"EP is a convincing response to those who claim that economics has little to
offer the real world." Mervyn King, Deputy Governor, Bank of England

"Economic Policy has clearly established itself as an excellent source for
timely, accessible and relevant economic analysis of high quality." Jacob A.
Frenkel, Merrill Lynch

Economic Policy is indexed/abstracted in: Contents of Recent Economics
Journals; Current Contents/Social and Behavioural Sciences; Economic
Literature Index; Geographical Abstracts; Human Geography; International
Bibliography of the Social Sciences; International Development Abstracts;
Journal of Economic Literature; PAIS International in Print; Research Alert;
Sage Public Administration Abstracts; Social Science Citation Index; Social

Economic policy refers to the actions that governments take in the economic field.
It covers the systems for setting interest rates and government budget as well as
the labour market, national ownership, and many other areas of government
interventions into the economy.

Such policies are often influenced by international institutions like the
International Monetary Fund or World Bank as well as political beliefs
and the consequent Contents.

• 1 Types of economic policy
• 2 Macroeconomic stabilization policy
• 3 Tools and goals
• 4 Discretionary policy vs policy rules
• 5 Economic policy through history
• 6 References

Types of economic policy

Almost any aspect of government has an economic aspect and so many terms are
used. A few example of types of economic policy include:

• Macroeconomic stabilization policy tries to keep the money supply growing,
but not so quick that it results in excessive inflation.
• Trade policy refers to tariffs, trade agreements and the international
institutions that govern them.
• Policies designed to create Economic growth Policies related to
development economics,
• Redistribution of income, property, or wealth
• Regulation
• Anti-trust
• Industrial policy
• Technology-based Economic Development Policy

Macroeconomic stabilization policy

Stabilization policy attempts to stimulate an economy out of recession or constrain
the money supply to prevent excessive inflation.

• Fiscal policy, often tied to Keynesian economics, uses government
spending and taxes to guide the economy.
o Fiscal stance: The size of the deficit
o Tax policy: The taxes used to collect government income.
o Government spending on just about any area of government

It is concerned with the amount of money in circulation and. interest rates and inflation. Gold and silver were in supply in different proportions. Throughout the 19th Century. • Monetary policy controls the value of currency by lowering the supply of money to control inflation and raising it to stimulate economic growth. However. roads and other projects like building the Pyramids. as trade policy became associated with both national wealth and with foreign and colonial policy. Contents • 1 History • 2 Sectors • 3 External trade and investment • 4 Currency • 5 Income and consumption • 6 Employment • 7 Economic trends • 8 See also • 9 Notes • 10 References • 11 External links . with the development of money came the first policy choice. A government could raise money through taxing its citizens. if set by the Government o Incomes policies and price controls that aim at imposing non- monetary controls on inflation o Reserve requirements which affect the money multiplier The first economic problem was how to gain the resources it needed to be able to perform the functions of an early government: the military. it could now also debase the coinage and so increase the money supply. consequently. Which metal was adopted influenced the wealth of different groups in society. Early civilizations also made decisions about whether to permit and how to tax trade. Some early civilizations. By the early modern age. such as Ptolemaic Egypt adopted a closed currency policy whereby foreign merchants had to exchange their coin for local money. • o Interest rates. monetary standards became an important issue. Early governments generally relied on tax in kind and forced labour for their economic resources. However. There was considerable debate about mercantilism and other restrictive trade practices like the Navigation Acts. This effectively levied a very high tariff on foreign trade. more policy choices had been developed.

expansionary and contractionary. Fiscal policy can be contrasted with the other main type of macroeconomic policy. altering the deficit situation. which attempts to stabilize the economy by controlling interest rates and the money supply. monetary policy. Fiscal policy refers to the use of the government budget to influence the first of these: economic activity. The simplest definitions of these stances are as follows: • A neutral stance of fiscal policy implies a balanced economy. fiscal policy is the use of government expenditure and revenue collection to influence the economy. Fiscal policy In economics. Thus. Therefore. even with no changes in spending or tax laws at all. Stances of fiscal policy • 1 Stances of fiscal policy • 2 Methods of funding • 3 Economic effects of fiscal policy • 4 Fiscal Straitjacket • 5 See also • 6 References • 7 Bibliography The three possible stances of fiscal policy are neutral. • An expansionary stance of fiscal policy involves government spending exceeding tax revenue. cyclical fluctuations of the economy cause cyclical fluctuations of tax revenues and of some types of government spending. However. • The pattern of resource allocation. This results in a large tax revenue. Government spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on the level of economic activity. • The distribution of income. these are not considered to be policy changes. these definitions can be misleading because. for purposes of the above definitions. for example. a government budget that is balanced over . • A contractionary fiscal policy occurs when government spending is lower than tax revenue. The two main instruments of fiscal policy are government expenditure and taxation. Changes in the level and composition of taxation and government spending can impact on the following variables in the economy: • Aggregate demand and the level of economic activity. "government spending" and "tax revenue" are normally replaced by "cyclically adjusted government spending" and "cyclically adjusted tax revenue".

until needed. and economic growth. in an effort to achieve economic objectives of price stability. . Economic effects of fiscal policy Governments use fiscal policy to influence the level of aggregate demand in the economy. If the interest and capital repayments are too large. Methods of funding Governments spend money on a wide variety of things. and may be invested in local (same currency) financial instruments. a phenomena where government borrowing leads to higher interest rates that offset the simulative impact of spending . usually to foreign creditors. full employment. This expenditure can be funded in a number of different ways: • Taxation • Seigniorage. Government revenue is revenue received by a government. reserves allow spending to continue at the same rate. Government revenue is an important part of fiscal policy. Its opposite is government spending.g. as during an economic slump. the benefit from printing money • Borrowing money from the population or from abroad • Consumption of fiscal reserves. land). This can be used in times of recession or low economic activity as an essential tool for building the framework for strong economic growth and working towards full employment. • Sale of fixed assets (e. The argument mostly centers on crowding out.When income from taxation or other sources falls. from the military and police to services like education and healthcare.. Keynesian economics suggests that increasing government spending and decreasing tax rates are the best ways to stimulate aggregate demand. as well as transfer payments such as welfare benefits.the course of the business cycle is considered to represent a neutral fiscal policy stance. Economists debate the effectiveness of fiscal stimulus. without incurring additional debt. These pay interest. All of these except taxation are forms of deficit financing. either for a fixed period or indefinitely. like treasury bills or consols and gilt-edged securities. Revenue may be from various taxesor non-tax revenue (such as revenue from government-owned corporations or sovereign wealth funds ). a nation may default on its debts. Borrowing A fiscal deficit is often funded by issuing bonds. Consuming prior surpluses A fiscal surplus is often saved for future use.

Fiscal Straitjacket The concept of a fiscal straitjacket is a general economic principle that suggests strict constraints on government spending and public sector borrowing. when foreign capital flows into the country undergoing fiscal expansion. to limit or regulate the budget deficit over a time period. however. if the stimulus employs a worker who otherwise would have had a job. constricts. For instance. The increased demand causes that country's currency to appreciate. if a fiscal stimulus employs a worker who otherwise would have been unemployed. In other words.[3] Various states in the United States have various forms of self-imposed fiscal straitjackets. and inflationary effects driven by increased demand. This is because. foreign investors must obtain that country's currency. To purchase bonds originating from a certain country. Consequently.[2] Other possible problems with fiscal stimulus include the time lag between the implementation of the policy and detectable effects in the economy. Therefore. Once the currency appreciates. In theory. companies wanting to finance projects must compete with their government for capital so they offer higher rates of return. goods originating from that country now cost more to foreigners than they did before and foreign goods now cost less than they did before. See also • Functional finance • National fiscal policy response to the late 2000s recession • Fiscal union • Fiscal policy of the United States . or hinders. the stimulus is increasing labor demand while labor supply remains fixed. fiscal stimulus does not cause inflation when it uses resources that would have otherwise been idle. the bonds issued from a country executing expansionary fiscal policy now offer a higher rate of return.In the classical view. When government borrowing increases interest rates it attracts foreign capital from foreign investors. expansionary fiscal policy also decreases net exports. demand for that country's currency increases. which has a mitigating effect on national output and income. there is no inflationary effect. all other things being equal. exports decrease and imports increase. leading to wage inflation and therefore price inflation. The term probably originated from the definition of straitjacket: anything that severely confines.

while contractionary policy involves raising interest rates to combat inflation. • exchange rates. which refers to government borrowing. • international capital flows of money on large scales. often targeting a rate of interest to attain a set of objectives oriented towards the growth and stability of the economy. or a contractionary policy. Expansionary policy is traditionally used to combat unemployment in a recession by lowering interest rates. where an expansionary policy increases the total supply of money in the economy rapidly. Interest rates. and was generally in the hands of the authority with seigniorage. short term interest rates. Monetary policy was seen as an executive decision. Monetary policy is referred to as either being an expansionary policy. were not generally coordinated with the other forms of monetary policy during this time. • bonds and equities (corporate ownership and debt). • financial derivatives such as options. or the power to coin. . while now thought of as part of monetary authority. etc. • credit quality. swaps. Monetary policy is contrasted with fiscal policy. or increases it slowly. History of monetary policy Monetary policy is primarily associated with interest rate and credit. spending and taxation. • velocity of money through the economy. futures contracts. • government versus private sector spending/savings. For many centuries there were only two forms of monetary policy: (i) Decisions about coinage. and a contractionary policy decreases the total money supply. • long term interest rates.[1] These goals usually include stable prices and low unemployment. Monetary theory Monetary policy the supply of money. Monetary theory provides insight into how to craft optimal monetary policy. (ii) Decisions to print paper money to create credit.

6 Unconventional monetary policy at the zero bound • 5 See also • 6 References Overview Monetary policy rests on the relationship between the rates of interest in an economy.2 Price level targeting o 3. Monetary policy uses a variety of tools to control one or both of these. exchange rates with other currencies and unemployment.1 Trends in central banking o 2.2 Reserve requirements o 4. and the total supply of money.2 Developing countries • 3 Types of monetary policy o 3.5 Gold standard o 3. All of these purchases or sales result in more or less base currency entering or leaving market circulation. The other primary means of conducting monetary policy include: (i) Discount window lending (lender of last resort).3 Discount window lending o 4.4 Interest rates o 4. This entails managing the quantity of money in circulation through the buying and selling of various financial instruments. or foreign currencies.5 Currency board o 4. . or where there is a regulated system of issuing currency through banks which are tied to a central bank. (iii) Moral suasion (cajoling certain market players to achieve specified outcomes). (ii) Fractional deposit lending (changes in the reserve requirement).1 Monetary base o 4. that is the price at which money can be borrowed. The beginning of monetary policy as such comes from the late 19th century.Contents • 1 Overview o 1.4 Fixed exchange rate o 3. Where currency is under a monopoly of issuance. the monetary authority has the ability to alter the money supply and thus influence the interest rate (to achieve policy goals).1 Theory • 2 History of monetary policy o 2. where it was used to maintain the gold standard.1 Inflation targeting o 3. (iv) "Open mouth operations" (talking monetary policy with the market). such as treasury bills. inflation. The primary tool of monetary policy is open market operations.3 Monetary aggregates o 3.6 Policy of various nations • 4 Monetary policy tools o 4. company bonds. to influence outcomes like economic growth.

or monetary authority of a country controls (i) the supply of money. Monetary policy rests on the relationship between the rates of interest in an economy. If the central bank wishes to lower interest rates. that is the price at which money can be borrowed. inflation. thereby increasing the amount of cash in circulation or crediting banks' reserve accounts. Types of monetary policy Constant market transactions by the monetary authority modify the supply of currency and this impacts other market variables such as short term interest rates and the exchange rate. central bank. to influence outcomes like economic growth. The distinction between the various types of monetary policy lies primarily with the set of instruments and target variables that are used by the monetary authority to achieve their goals. (ii) availability of money.Theory Monetary policy is the process by which the government. it purchases government debt. or by changing the reserve requirements. If private agents (consumers and firms) believe that policymakers are committed to lowering inflation. The primary difficulty is that few developing countries have deep markets in government debt. and deprecate interest rate targets as they are non-important and irrelevant in regarding to monetary policies. Monetary theory provides insight into how to craft optimal monetary policy. It is important for policymakers to make credible announcements. Monetary policy uses a variety of tools to control one or both of these. The primary way that the central bank can affect the monetary base is by open market operations or sales and purchases of second hand government debt. exchange rates with other currencies and unemployment. Trends in central banking The central bank influences interest rates by expanding or contracting the monetary base. . Developing countries Developing countries may have problems establishing an effective operating monetary policy. which consists of currency in circulation and banks' reserves on deposit at the central bank. compare for instance rational expectations with adaptive expectations). and (iii) cost of money or rate of interest to attain a set of objectives oriented towards the growth and stability of the economy. and the total supply of money. The matter is further complicated by the difficulties in forecasting money demand and fiscal pressure to levy the inflation tax by expanding the monetary base rapidly. they will anticipate future prices to be lower than otherwise (how those expectations are formed is an entirely different matter.

Multiple indicator approach Monetary base Monetary policy can be implemented by changing the size of the monetary base. This approach is also sometimes called monetarism. While most monetary policy focuses on a price signal of one form or another. Policy of various nations • Australia . cf.Inflation targeting • Eurozone .Inflation targeting • Canada .Inflation targeting • Hong Kong . above).e. open market operations. (i.Monetary targeting and targets a currency basket • Colombia . several countries used an approach based on a constant growth in the money supply. The selling of gold is very important for economic growth and stability.).Monetary aggregates In the 1980s. In the USA this approach to monetary policy was discontinued with the selection of Alan Greenspan as Fed Chairman. This approach was refined to include different classes of money and credit (M0.Inflation targeting • Chile .Inflation targeting • Brazil . Gold standard The gold standard is a system in which the price of the national currency is measured in units of gold bars and is kept constant by the daily buying and selling of base currency to other countries and nationals. M1 etc. this approach is focused on monetary quantities. .Inflation targeting • China . This directly changes the total amount of money circulating in the economy. The central bank would buy/sell bonds in exchange for hard currency. A central bank can use open market operations to change the monetary base.Currency board (fixed to US dollar) • India .

Historically. BUSINESS ETHICS Business ethics (also known as Corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. today most major corporate websites lay emphasis on commitment to promoting non-economic social values under a variety of headings (e.[8] The first style is the Individualist and this decision maker is driven by natural reason.[1] Firms and corporations operate in the social and natural environment Individual Ethical Decision-Making Styles Stanley Krolick identifies four individual ethical decision-making styles. In some cases.g. legal and business ethics. and there are plenty of evidences as in today on unethical corporate practices. ethics codes. even for merriment and diversion. The range and quantity of business ethical issues reflects the degree to which business is perceived to be at odds with non- economic social values. Contents • 1 Why business ethics? • 2 Individual Ethical Decision-Making Styles • 3 History of ethics in business • 4 Overview of issues in business ethics • 5 Business ethics in the field • 6 Business ethics as an academic discipline • 7 Religious views on business ethics • 8 Related disciplines • 9 Differing opinions regarding business ethics • 10 See also • 11 References • 12 Bibliography • 13 External links Discussion on ethics in business is necessary because business can become unethical. BP's "beyond petroleum" environmental tilt). Even Adam Smith opined that 'People of the same trade seldom meet together. Business ethics can be both a normative and a descriptive discipline. In academia descriptive approaches are also taken. interest in business ethics accelerated dramatically during the 1980s and 1990s. personal . both within major corporations and within academia. corporations have redefined their core values in the light of business ethical considerations (e.g. the field is primarily normative. or in some contrivance to raise prices'. For example. technical. but the conversation ends in a conspiracy against the public. It applies to all aspects of business conduct and is relevant to the conduct of individuals and business organizations as a whole. Applied ethics is a field of ethics that deals with ethical questions in many fields such as medical. As a corporate practice and a career specialization. social responsibility charters).

price skimming. • Ethical issues concerning relations between different companies: e. external audit are discussed in them. Operational areas of financial ethics In the sections devoted to 'Financial Ethics' in 'Business Ethics' text books ethics of financial markets. training and development. Ethics of sales and marketing Marketing Ethics is a subset of business ethics. Pricing: price fixing. • Law reform. . is a contested terrain. trading conditions. Corporate Social Entrepreneurship • Political contributions made by corporations. sex in advertising. internal audit. price discrimination. viral marketing. spam (electronic).survival. • Specific marketing strategies: greenwash. industrial relations and health and safety issues where ethics really matters. • Leadership issues: corporate governance. tax payments. planned obsolescence. Marketing ethics too. financial contracting. pyramid scheme. industrial espionage. Discussions of marketing ethics are focused around two major concerns: one is the concern from political philosophy and the other is from the transaction-focused business practice. consultancy services. stakeholder concept v. performance appraisal.. Ethics of human resource management 'Human resource management' occupies the sphere of activity of recruitment selection. The second style is Altruists who are primarily concerned for others. Overview of issues in business ethics • Corporate social responsibility or CSR: an umbrella term under which the ethical rights and duties existing between companies and society is debated. values and/or ideals by which marketers (and marketing institutions) ought to act.g. like its parent discipline. hostile take-overs. The field since operate surrounded by market interests that commodify and instrumentalize everything for the sake of profit claimed in the name of shareholders. bait and switch. The self is the only criteria involved in decisions for this style while ignoring other stakeholders. orientation. it should be predictable that there will be contesting claims of HR ethics. shareholder concept. • Issues regarding the moral rights and duties between a company and its shareholders: fiduciary responsibility. and preservation. sales practices. • Content of advertisements: attack ads. shill. such as the ethical debate over introducing a crime of corporate manslaughter. products regarded as immoral or harmful • Children and marketing: marketing in schools. financial services and financial management are discussed [42][75] Fairness in trading practices. • The misuse of corporate ethics policies as marketing instruments. subliminal messages. Ethics in marketing deals with the principles.

Property ownership is said to enhance individual liberty by extending the line of non-interference by the state or others around the person. Ethics and technology The computer and the World Wide Web are two of the most significant inventions of the twentieth century. Ethics of production This area of business ethics usually deals with the duties of a company to ensure that products and production processes do not cause harm. The success of any business depends on its financial performance. looking back on the international developments of that decade. Discourse on property gained its momentum by the turn of 17th century within the theological discussion of that time. Some of the more acute dilemmas in this area arise out of the fact that there is usually a degree of danger in any product or production process and it is difficult to define a degree of permissibility. or the degree of permissibility may depend on the changing state of preventative technologies or changing social perceptions of acceptable risk. grey markets. property rights and intellectual property rights are assiduously contested throughout the history of the concept. Financial accounting helps the management to report and also control the management to report and also control the business performance. International business ethics While business ethics emerged as a field in the 1970s. Many new practical issues arose out of the international context of businessbehaviour.. • Black markets. international business ethics did not emerge until the late 1990s. property rights and intellectual property rights The ethics of property. Medical technology has improved as well. the use of child labor. Locke justified property right from theological point of view that God has given Land 'and all inferior creatures' 'to men [134] in common'. and privacy invasion. • The permissibility of international commerce with pariah states. Ethics of property. • Comparison of business ethical traditions from various religious perspectives. This leads to data mining. . • Varying global standards – e. • Issues such as globalization and cultural imperialism. There are many ethical issues that arise from this technology. It is easy to gain access to information. workplace monitoring.g. For instance.[135][136][137][138] The idea of property is intrigued with the notion of self as individual.

that are owned by Indian residents. Extensive economic reforms were undertaken in India in the early 1990s and this led to the deregulation and liberalization of the country's economy. If you can’t find what you are looking for. also known as Enforcement Directorate is situated in New Delhi and is headed by a Director. Further FEMA aims to promote foreign payments and trade in the country. Foreign Exchange Management Act (FEMA) was thus formulated in order to be compatible with the policies of pro. The Directorate is further divided into 5 zonal offices in Delhi. Each zone is further divided into 7 sub-zonal offices headed by the Assistant Directors and 5 field units headed by Chief Enforcement Officers. Foreign Exchange Management Act (FEMA) also extends to any dispute that are committed in offices. FEMA became an act on the 1st day of June. Mumbai. A significant change that the FEMA brought with it. FEMA came into force replacing the Foreign Exchange Regulation Act (FERA). offices and agencies outside India owned or controlled by a person who is a resident of India. branches. the 1st of June. FEMA is applicable to all parts of India. FEMA was introduced because the FERA didn’t fit in with post-liberalisation policies. It was also formulated to promote the orderly development and maintenance of foreign exchange market in India. fill in the form on the right and our representative will get in touch with you at the earliest. Agencies. which was formulated in 1973. . as opposed to criminal offenses as dictated by FERA. also fall under the jurisdiction of this act. The act is also applicable to all branches. and offices. was that it made all offenses regarding foreign exchange civil offenses. agencies and branches outside India that are owned by individuals covered by this act. Extent of Foreign Exchange Management Act (FEMA): Foreign Exchange Management Act (FEMA) is applicable to the entire country. outside India. 2000. 2000. Updated details of FEMA notifications are given below. Kolkata. Another important objective of the Foreign Exchange Management Act (FEMA) is to encourage the orderly maintenance and development of the foreign exchange market in India. an important one is to revise and unite all the laws that relate to foreign exchange. The main objective behind the Foreign Exchange Management Act (1999) is to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments. Chennai and Jalandhar and each office is headed by a Deputy Director. The FEMA head-office.liberalization of the Indian government. Objectives of Foreign Exchange Management Act (FEMA): Among the various objectives of the Foreign Exchange Management Act (FEMA). FEMA The Foreign Exchange Management Act (1999) or in short FEMA has been introduced as a replacement for earlier Foreign Exchange Regulation Act (FERA).

FEMA is the short name or acronym for the Federal Emergency Management Agency. along with 22 other government agencies. or well-funded. natural and manmade alike. people also have a responsibility to protect themselves and their families. to name a few. The streamlining of emergency agencies was intended to create a more seamless system of preparedness. was absorbed by the Department of Homeland Security (DHS). President Carter issued an executive order in 1979 to create the new Federal Emergency Management Agency. organized. response and recovery. This new and improved "seamless" approach has been tested over time by disasters such as earthquakes. the Federal Disaster Assistance Administration. FEMA and other emergency management organizations have been in place for many years. The public needs to remember that "disasters" are so named for a reason. Supplies need to be in amounts sufficient to last at least 3-4 days while waiting for rescue assistance in case of a disaster. hurricanes. FEMA's motto is "A Nation Prepared. with over 2. depending on the disaster. 2001 terrorist attacks on New York City and the Pentagon. no matter how streamlined. and its director seems to change any time disaster response doesn't live up to the public's expectations. prepare for. FEMA.Implementation of Foreign Exchange Management Act (FEMA): Extensive efforts have been undertaken to ensure the effective implementation of FEMA in India. FEMA is not a new agency. but at one point there were so many different agencies that the National Governor's Association got together to ask then President Jimmy Carter to help streamline things. contamination. nuclear meltdown and terrorist attacks. FEMA has had its share of problems. respond to and recover from disasters. the Federal Preparedness Agency and the National Weather Service Community Preparedness Program. A commonly used estimate is that a federal response can take anywhere from 48-120 hours. which has been incorporated into the Department of Homeland Security. . FEMA is one of the four main components of DHS. Proper implementation measures and efficient supervision are important preconditions for the success of the Foreign Exchange Management Act (FEMA). the Federal Insurance Administration." Its goal is to insure that America is able to prevent. and that no agency on the planet can completely prevent disasters or respond perfectly to a given disaster. especially after the September 11. FEMA was created to take over the responsibilities of several other emergency management organizations.000 full time employees and 5.000 reserves. including Civil Defense. While FEMA works to protect the public. In 2003. although it has had more press in recent years. Billions of dollars have been funneled into FEMA programs since its inception just over 25 years ago.

615. I and to Pondicherry by Regulation 7 of 1963.e. including. COMPANIES ACT The Companies Act. partner or relative is a partner. (2) "articles" means the articles of association of a company as originally framed or as altered from time to time in pursuance of any previous companies law or of this Act. II. 1913. (2) It shall come into force on such date2* as the Central Government may.Short title. s. Daman and Diu. 1956 ACT NO. 3 and Sch. 3. Sec. s. 1956. in Table B in the Schedule annexed to Act No. Subs. In this Act. 1 OF 1956 [18th January. relative or relatives.f.. 3. partner or relative is a partner. if any. 1882. (b) where the managing agent is a firm: any member of such firm. Sec. 1956.e. relative or other firm is .S. any firm in which such individual. s. p.: to Dadra and Nagar Haveli by Regulation 6 of 1963. s. 2 and Sch. (w. BE it enacted by Parliament in the Sixth Year of the Republic of India as follows - Short title. by Act 62 of 1956 s. commencement and extent 1. by notification in the Official Gazette. 15-10-1965).1. 2 and Sch. firm or firms. for sub-section (3) (w. such individual. 1-11-1956). Ins. as the Central Government may. partner. subject to the exceptions. dated 8-3. Amended in its application to Goa. s. Daman and Diu by Reg. any private company of which such individual or any such partner. 5. 3(i). Extraordinary. 11 of 1963. any partner or relative of such individual. 2 (w. 1956. 1965 (Gazette of India. unless the context otherwise requires – (1) "alter" and "alteration" shall include the making of additions and omissions. 670). vide Notification No. modifications and adaptations contained in the Schedule to G. or any such member. 19 of 1857 or in Table A in the First Schedule annexed to the Indian Companies Act. any private company of which the firm first mentioned. II. 4. (1) This Act may be called the Companies Act.e. 6.] 2.) or in Table A in the First -------------------------------------------------------------------------------------------------------- 1. Pt. 15-8-1968). Schedule annexed to the Indian Companies Act. -------------------------------------------------------------------------------------------------------- (3) "associate". means any of the following.f. 1st April. (6 of 1882. commencement and extent. or in Table A in Schedule I annexed to this Act. so far as they apply to the company. in relation to a managing agent.f. s. The word "further" omitted by Act 25 of 1968. (w. the regulations contained. as the case may be. specify. 9. 15-8-1968). 2 and Sch. by notification in the Official Gazette. relative or firm is the managing agent or secretaries and treasurers or a director or the manager. Proviso omitted by Act 25 of 1968.R. and no others – (a) where the managing agent is an individual. 612.O.f.R. by Act 31 of 1965. Daman and Diu by Regulation 12 of 1962 (with modifications).The provisions of this Act shall apply to Goa. Pt. 3 and Sch. 3[(3) It extends to the whole of India: 4 * * * * *] 5[Provided 6* * * that it shall apply to the State of Nagaland subject to such modifications. 473. This Act has been extended to Goa. Gazette of India. 1956] An Act to consolidate and amend the law relating to companies and certain other associations. and any body corporate at any general meeting of which not less than one-third of the total voting power in regard to any matter may be exercised or controlled by any one or more of the following. and private company or companies. s.e. appoint. any partner or relative of any such member. partner or partners. 2. S.Definitions.1956. p. 2 and Sch. dated the 24th April. namely. and any other firm in which any such member.

the managing agent. s. ibid. or the manager . or a director.-If one person is an associate in relation to another within the meaning of this clause. any partner or relative of any such director or manager. any partner or relative of any such director or manager. -------------------------------------------------------------------------------------------------------- (d) where the managing agent is a private company or a body corporate having not more than fifty members: in addition to the persons mentioned in sub clause (c). 2. relative or other firm is the managing agent. 2. or secretaries and treasurers. namely. partner or relative. and 2[(iii)any subsidiary of the other body corporate referred to in paragraph (ii) above: Provided that where the body corporate is the managing agent of the other body corporate referred to in paragraph (ii) above. manager. and 2 [ (iii) any subsidiary of the other body corporate referred to in paragraph (ii) above: Provided . any such member or members. the manager or an officer of the body corporate or of any subsidiary or holding company thereof . and private company or companies. the manager or an officer of. namely. a subsidiary of such other body corporate shall not be an associate in relation to the managing agent aforesaid . (c) where the managing agent is a body corporate: (i) any subsidiary orholding company of such body corporate. means any of the following. any firm in which such director or manager. namely. partner or partners. or the manager. (b) where the secretaries and treasurers are a body corporate – (i) any subsidiary or holding company of such body corporate. other firm or firms. in relation to any secretaries and treasurers. any member of the private company or body corporate. the body corporate and the companies and other persons specified in paragraph (i) above. or secretaries and treasurers. the managing agent or secretaries and treasurers. partner or partners. any such member or members. the firm first-mentioned. is a partner. and any other firm in which any such member. 2. relative or relatives. the firm first mentioned. and no others – (a) where the secretaries and treasurers are a firm: any member of such firm. and any body corporate at any general meeting of which not less than one-third of the total voting power in regard to any matter may be exercised or controlled by any one or more of the following. any firm in which such director. or a director. Ins. relative or relatives. the latter shall also be deemed to be an associate in relation to the former within its meaning. partner or relative. is a partner. partner or relative is a partner any private company of which the firm first-mentioned. the body corporate and the companies and other persons specified in paragraph (i) above. the managing agent or secretaries and treasurers. or a director. namely. The "and" omitted by Act 65 of 1960. Explanation. partner. and any body corporate at any general meeting of which not less than one-third of the total voting power in regard to any matter may be exercised or controlled by any one or more of the following. 1 * * * (ii) any other body corporate at any general meeting of which not less than one-third of the total voting power in regard to any matter may be exercised or controlled by any one or more of the following. (4) "associate". any partner or relative of any such member. other firm or firms and private company or companies. by s. or a director. the body corporate or of any subsidiary or holding company thereof .1 * * * (ii) any other body corporate at any general meeting of which not less than one-third of the total voting power in regard to any matter may be exercised or controlled by any one or more of the following. and] -------------------------------------------------------------------------------------------------------- 1. or any such member.

within one month of the receipt of Director Identification Number from the Central Government. documents inspection etc. balance-sheet. a subsidiary of such other body corporate shall not be an associate in relation to the secretaries and treasurers aforesaid. that where the body corporate is the secretaries and treasurers of the other body corporate referred to in paragraph (ii) above. register change of registered office. issue certificate of incorporation or certificate of commencement of business. furnish the Director Identification Number of all its directors to the Registrar or any other officer or authority as may be specified by the CentralGovernment. that— (a) such applications. Obligation to indicate Director Identification Number 266F. register. the electronic form as may be specified in the rules. or any other particulars or document as may be required to be filed or delivered under this Act or rules made there under. (f) the Registrar shall. notice. within one week of the receipt of intimation under section 266D. prospectus. required to be served or delivered under this Act. articles of association. particulars of charges. shall be served or delivered under this Act through the electronic form and authenticated in such manner as may be specified in the rules. register such document. receive such communication as may . (2) Every intimation under sub-section (1) shall be furnished in such form and manner as may be prescribed. Every person or company. articles of association. information or particulars as are required to be furnished under this Act. through electronic form (1) Notwithstanding anything contained in this Act. particulars of charges. shall be filed. (c) such applications. (b) such document. and] Obligation of Director to intimate Director Identification Number to concerned company or companies Every existing director shall. prospectus. memorandum of association. return. Provisions relating to filing of applications. issue such certificate. ( ε ) such fees. the Central Government may. Obligation of company to inform Director Identification Number to Registrar (1) Every company shall. by notification in the Official Gazette. balance-sheet. any communication or intimation. alteration of memorandum of association or articles of association. and without prejudice to the provisions contained in section 6 of the Information Technology Act. there under shall be paid through the electronic form and in such manner as may be specified in the rules. information or particulars in case such return. prospectus. return. declaration. make rules so as to require from such date as may be specified in the rules. while furnishing any return. shall quote the Director Identification Number in such return. information or particulars relate to the director or contain any reference of any director. intimate his Director Identification Number to the company or all companies wherein he is a director. 2000. record notice. memorandum of association. charges or other sums payable under this Act or rules made. through the electronic form and authenticated in such manner as may be specified in the rules.

before the expiry of the session immediately following the session or the successive sessions aforesaid. to the records in electronic form under section 610B. or in relation. shall apply. shall be issued only in such modified form as may be agreed upon by both the Houses. and if. 2000 relating to the electronic records (including the manner and format in which the electronic records shall be filed). while it is in session. All the provisions of the Information Technology Act. both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification. The Central Government may provide such value added services through the electronic form and levy such fees as may be prescribed. .Power to modify act in relation to electronic records (including the manner and form in which electronic records shall be filed) (1) A copy of every notification proposed to be issued under sub-section. shall be laid in draft before each House of Parliament. as the case may be. for a total period of thirty days which may be comprised in one session or in two or more successive sessions. Providing of services through electronic form 610D. in so far as they are not inconsistent with this Act. Application of provision of Act 21 of 2000 610E. the notification shall not be issued or.

Share markets have recently seen several up and downs as is IT industrydue to recession and satyam fiasco. chances of toppling are always around. Services: Services basically means public services such as banks. that will present before yoou the present situation of India. SBI. Privatisation of many industries played a key role. Bharti Airtel with active foreign pareticipation of telecom giants such as Vodafone. These two sectors have really made us proud. India as we all know is an agricultural and a multicultural country. Industry: Presently India is witnessing an IT boom which mainly relies on outsourcing of jobs from first world countries of America and Europe. SEBI are the major players in banking industry. In the past few years India has gone through several ups and downs. hotel industry. 2. Indian postal departments and railway have made a steady progress. Apple. Some of the key private players of our country are reliance. eletronics such a s Nokia. . Infosys. but still India is standing amongst all the nations helding her head high up in the air. But unemployment and poor distribution of services and resources still remains a headache. The economy in India again is being built by foreign money. TATA. BUSINESS IN INDIA India is doing good because the call centres have started a chain of events that shifted the economy to a running gear.. ceramics such as Saint Gobian. The incomes of a big chunk of young Indians suddenly went tops. Intel etc. But its like a colossal building being built on a shaky foundation. pharmaceuticals such as glaxo Smith. travel and tourism and aviation industry. giving rise to a whole bunch of new money making businesses in India. It also witnessed rise in the hospital and healthcare industry. UBI. Several new hospitals with world class facilities have come up. along with their buying and borrowing power. financial sectors and other basic services. Lets throw some light on the following aspects. 1.

ABP also publishes Ananda Bazar Patrika. pollution etc. and the only business weekly in the country. The Marketing Whitebook. have become important . one of India's largest media groups and the brand leader in eastern India. petty politics. reviews and other materials herein are those of the author(s) of the article(s). The Businessworld Roundtables and Great Place to Work seminars. Understanding Behaviour. student suicide due to immense pressure. damage or inconvenience caused as a result of any information within these pages or any information accessed through this site. The sixth pay commision have increased salaries. Pakistan still remains the centre of foreign politics. media and pharma and provide exclusive analysis on infrastructure. a widely popular Bengali daily. IT. Please contact respective author/us for any kind of escalations or clarifications in this regard. This year(2009)'s election have witnessed people showing immense faith in change. In the past few years. and The Telegraph.Leveraging on its brand leadership. economy and the stock markets. the largest read English daily in the eastern region. which attract the best minds from the corporate and economic world. still rules the day. Businessworld is the largest selling Indian business magazine. 4. biotech. Boddunan will not be held responsible for any claim. The COMMON man: The common man still remains common. Politics: Presently congress is ruling at the centre with active support from several small parties. More younger generations have joined politics this year.Over a period of two decades. emerging leaders and emerging concerns.3. and Businessworld Mega B-School Guide . Businessworld has now moved into other media platforms like publishing and events. boddunan cannot guarantee of such incidents occur. Businessworld has established itself as a magazine that offers incisive and high-quality reportage on economic and business affairs. It also co-owns Star News television channel along with Rupert Murdoch's Star Group. Businessworld is part of the ABP Group. it has focused strongly on understanding the meaning of Global India -. Its recent publications include Doing Business in Asia.its emerging sectors. BJP still remains the active opposition. Its team of journalists and domain experts cover extensively trends and movements in markets such as telecom. While every care has been taken not to have any false/abusive information published. DISCLAIMER: Statements and opinions expressed in articles. loss. But farmer suicide.

.forums to set agendas and address crucial issues.A. 3) Objectives of Business. ASSIGNMENT – 1 NAME :S. SUBJECT : BEGP TOPICS : 1) The present situation of Business in our Country. The magazine's Most Respected Companies Awards and the BW-NID Design Award are considered as benchmarks of corporate excellence by Indian corporates.B. 2) Economical Reforms in our Country.AHMED BASHA CLASS : I ST M.

SUBJECT : BEGP TOPICS : 1) Economic Policy .com ASSIGNMENT – 2 NAME :S.AHMED BASHA CLASS : I ST M. SUBMITTED (Shaik Ahmedbasha) Allagadda Institute of Management Sciences. 2) Fiscal Policy.B. Allagadda(2010-2012) aimsalg@gmail.A. . 3) Monetory Policy.

com ASSIGNMENT – 3 NAME : S.M. 2) Companies Act.A.E.A) . 3) Foreign Exchange Management Act. SUBJECT : BEGP TOPICS : 1) Business Ethics. (F. SUBMITTED (Shaik Ahmedbasha) Allagadda Institute of Management Sciences.AHMED BASHA CLASS : I ST M. Allagadda(2010-2012) aimsalg@gmail.B.

Graham Mackay is Chief Executive Officer.was born on June 28. and chief executive officer of Monsanto. Monsanto Company [[MON]]. Then Chairman Frank AtLee said that Grant played an instrumental role in the company’s transition from a chemical-focused company into a biotechnology one. 1995 and Chief Executive Officer since April 30.Reckitt Benckiser CEO Bart Becht has been named as one of the top 20 best-performing CEOs in the world by Harvard Business Review.Gareth led the successful demerger from Hanson and subsequent listings on the London and New York Stock Exchanges. Miller was engineer-economist. from April 1997 to November 2001. since July 2001 and served as Chairman of Board of Directors of Google Inc. Bezos founded Amazon. Upon graduation A. Gareth Davis. SABMiller plc [[SBMRY]]. Bezos. and. Inc. He joined The South African Breweries Limited (SAB Ltd) in 1978 and has held a… Eric E. he has played a key role in the development and execution of the Group’s strategy and its development into one of the world’s leading multinational tobacco businesses. B.A. Snow. a computer networking company. 2002. Benjamin Steinbruch. Within one decade. He is also the Founder of Bezos Expeditions. president. placed Bart Becht at 16 out of the top 100. Imperial Tobacco Group [[ITYBY]]. Voznesenskii Leningrad Finance and Economics Institute from 1986 to 1989.. A. Steinbruch is also Chief Executive Officer of Vicunha Siderurgia. The award recognizes Medco Chairman.000 CEOs worldwide. D. Reckitt Benckiser Group [[RB]]. 1962. Prior to joining the company. sponsored by eHealthcare Strategy & Trends. Gazprom OAO [[OGZPY]]. our controlling shareholder. from March 2001 to April 2004 and again from April 2007 to the present. Gareth will be retiring on 12 May 2010 and will be succeeded by current Chief Operating Officer Alison Cooper. LenNIIProekt – Leningrad Civil Construction Research and Design Institute. He graduated from high school in 1979 and became a student of N. the General planning division.Mr. Jeffrey P. Allagadda(2010-2012) aimsalg@gmail. serving in a variety of senior positions and became CEO and president of the company in October 2003 after a 5-month search.A. David B. from April 1997 to July 2001. for his dedication to leveraging the Internet and technology to achieve strategic business objectives. Eric served as Chairman of the board of [[AMZN]]. (Economics) degree in 1989. he rose to the management level. and obtained Ph. Alexey Miller was a post-graduate student at Aleksey Borisovich Miller. The list. Bezos is a Principal Advisor of A9. Bart Becht.Hugh Grant is chairman of the board. Mr. Medco Health Solutions [[MHS]]. Executive Director of SABMiller plc.For the second year in a row. In putting together the list. In April 2004.Mr. Medco earned the prestigious CEO eHealthcare Commitment Award. With 37 years’ experience across all aspects of the Company. Amazon. Mr. and has been its .Alexey Miller was born on January Inc. Jr. in Leningrad. Schmidt. Companhia Siderúrgica Nacional [[SID]]. Snow Jr.He joined the company as a product development representative for Monsanto’s agricultural business in 1981.Graham Mackay. the authors looked at who had led firms that outperformed other firms in the same country and industry. Hugh Grant. Eric was named Chairman of the Executive Committee of the board of directors. E. President and Chief Executive David B. Google [[GOOG]]. SUBMITTED (Shaik Ahmedbasha) Allagadda Institute of Management Sciences. Jeffrey P.Eric Schmidt has served as Chief Executive Officer of Google Inc. 1953 and has been Chairman of our Board of Directors since April 28. A. compiled by collected data on close to 2. Voznesenskii Leningrad Finance and Economics Institute. as the Chief Executive Officer of Novell.

Mr. from 1978 until 1984. became president and chief executive officer. University of Mumbai (earlier University of Bombay). John T. Mark G. Thompson is chairman of the board of directors of Symantec Corporation. Lau served in a number of senior executive roles within the Cheung Kong (Holdings) Limited and Hutchison Whampoa Limited group of companies. Papa was elected Chairman of the Board and Chief Executive Officer of EOG in August 1999.John Chambers is Chairman and CEO of Cisco. 1998. Chambers was named Chairman of the Board. During his 10-year tenure as chief executive officer. and the President since October 2000. President and Chief Executive Officer and director in September 1998. Inc.) native’s preppy appearance and Old Economy experience didn’t seem to fit the online flea market’s freewheeling culture. Robert L.Chief Executive Officer since May John C. Papa joined Belco Petroleum Corporation. was just what the funky upstart needed–especially as dozens of dot-coms crashed and burned last year. has been a Director of Husky Energy Inc. named to company’s board of directors in 1994. 1996. Papa. and was President-North America Operations from February 1994 to December 1996. Martin joined Gilead Sciences in 1990 and currently serves as Chairman of the Board of Directors and Chief Executive Officer. (EBAY) three years Inc. Reliance Industries [[RELIANCE]]. Tillman.A resident of Calgary. to its current run-rate of approximately $40 billion.Joined Lowe’s Companies as entry–level employee. Margaret C.Y. in 1981. He served as President and Chief Executive Officer from 1996 through May 2008. executive vice president of merchandising. eBay Inc [[EBAY]].John C. Husky Energy [[HUSKF]]. . Florists Transworld Delivery. a predecessor of EOG. from 1994 to June 1999. Thompson. he helped transform Symantec into a leader in security. Whitman signed up as CEO of eBay Inc. Inc. EOG Resources [[EOG]]. Martin. Papa is also a director of Oil States International. Lau. and executive vice president and chief operating officer. Prior to joining Husky in 1992. Mukesh D. joined ranks of corporate management in the 1980s. Mr. since 2000. from individual consumers to the largest enterprises in the world. in addition to his CEO role. he served as the President of Amazon. Dr. Ambani is a Chemical Engineer from University Institute of Chemical Technology (earlier University Department of Chemical Technology). President and Chief Operating Officer in September 1997 and President in December 1996.Mukesh D. 1962. Martin held several leadership positions in the antiviral chemistry division at Bristol-Myers Squibb and worked for six years with Syntex Corporation.Margaret C.S. Ambani. Inc. Mr.. Cisco Systems [[CSCO]]. worked his way up through the ranks to manager of one of the chain’s most successful outlets in Wilmington. and children’s shoemaker Stride Rite (SRR). an oilfield service company. He has helped grow the company from $70 million when he joined Cisco in January 1991. So what? Whitman. Symantec Corporation [[SYMC]]. Bezos served as the President and Chief Executive Officer at Padcom. to $1. John C. John W. Gilead Sciences [[GILD]]. storage and systems management solutions delivered to a broad base of customers. the Long Island (N. the Chairman of the Board since 1994. serving as senior vice president of merchandising and marketing. Previously. Lowe’s Companies. North Carolina. Whitman. named chairman. [[LOW]]. an alumna of Hasbro toys (HAS).2 billion when he assumed the role of CEO. Before heading west to start Amazon. Mr. He has pursued MBA from Stanford University. In November 2006. Mr. Prior to joining Gilead.John W. Chambers. USA.

Craig Newmark (CEO. He was made chief executive in 1997 not because of any great vision but because he had the skills to get Samsung out of a bad mess: As prices of computer chips tumbled. Socialtext) 5. Novell) .. Wang is a professor-level senior engineer with extensive knowledge and 31 years of experience in the telecommunications industry.iUpload) 9.. with a fortune that is only surpassed by Bill Gates of Microsoft fame. Warren Buffett. He formerly served as Deputy Director General and Director General of the Posts and Telecommunications Bureau of Hangzhou. and Chairman of China Mobile Communication Co. Director General of the Department of Planning and Construction of the Ministry of Posts and Telecommunications. President and Chairman of China United Telecommunications Corporation. which he co-founded in 1976. Mr. Mark Cuban (Owner. Executive Vice President. having sold more than 200 million iPods and over eight billion songs from its iTunes online store. Terry P. Top 10 CEO blogs (in no particular order of preference): 1. China Mobile [[CHL]].Steve Jobs is the CEO of Apple. Director. Samsung Electronics [[SMSD]]. He is also the President of China Mobile Communications Corporation (the ultimate controlling shareholder of the Company). Director General of the Department of General Planning of the Ministry of Information Industry (“MII”). Craig's List) 3. John Dragoon (CMO. the company was barely avoiding losses.He has been with Samsung Electronics Co. one of the most conservative of South Korea’s chaebol . joined the Board of Directors of the Company in November 2004. Sun Microsystems) 2. and Chairman and President of China United Telecommunications Corporation Limited. Kevin Lynch (Chief Software Architect. Weblogs) 10. Leahy . Jonathan Schwartz (President & CEO. Founder . Apple is also leading the digital music revolution. Mr. Apple has also entered the mobile phone market with its revolutionary iPhone. Chairman and Chief Executive Officer of the Company. Mr..Executive Director. Dallas Mavericks) 4. Executive Director. Apple [[AAPL]]. Jupiter Media) 7. Wang is in charge of the overall management of the Company.Steve Jobs. Deputy Director General of the Posts and Telecommunications Administration of Zhejiang. He is one of the worlds richest men. Ross Mayfield (CEO.Warren Buffett was born in Nebraska. and consumer and professional applications software. Omaha USA on the 30th of August in 1930. He is considered one of the most successful investors of all time and has picked up the nickname of the “Oracle of Omaha”. OS X operating system. Tesco [[TSCO]] -Terry Leahy became Chief Executive in 1997. Ltd. Wang Jianzhou. Matt Blumberg (CEO. Jason Calacanis (CEO. Adobe) 8. he held a number of marketing and commercial positions prior to being appointed to the Board of Tesco PLC on 5 October 1992. Berkshire Hathaway [[BRK. President. Wang graduated in 1985 from Department of Management Engineering of Zhejiang University with a Master’s Degree in Engineering. for 37 years. Return Path) 6. and holds a doctoral degree in business administration from Hong Kong Polytechnic University. Alan Meckler (CEO. Joining Tesco in 1979. Chairman and Chief Executive Officer of China Unicom Limited. Robin Hopper (CEO. Yun Jong-Yong. Apple leads the industry in innovation with its award-winning Macintosh computers.A]].

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