The Burning Issue: Latvia is the Eighteenth

Latvia has got the go-ahead to adopt the Euro from 2014, signalling to the world that the crisis ridden euro zone is still expanding. Although fewer than 40% Latvians like the idea, their country will become the 18th member of the single currency bloc from the start of next year.Latvian Prime Minister Valdis Dombrovskis maintains that switching to the euro would foster growth, bring increased foreign investment and upgrades of Latvia’s credit ratings.The euro, launched as notes and coins on January 1, 2002, is now used by around 330 million people and has become a major reserve currency.To adopt the euro, Latvia had to meet five entry criteria: low inflation and long-term interest rates, a stable exchange rate and low public debt and deficits. We have kept saying that Euro Zone will remain a burning issue for some time to come. Previously we have discussed the crisis of Cyprus, and entry of Croatia as the newest member of European Union. Today we look at the process, advantages and disadvantages of joining the Euro Zone.

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The Burning Issue: Asteroids

An asteroid that measures nearly 2.7km (1.7 miles) across has flown past the Earth.The space rock, which is called 1998 QE2, is so large that it is orbited by its own moon. In February of this year, one asteroid 2012 DA14 made a close pass of Earth, missing it by at a distance of 28,000 km – less than that of moon from earth. 1998 QE2 was (thankfully!) about 200 times more distant than the asteroid 2012 DA14 – but it is more than 50,000 times larger. We have spent some time discussing how the how the virus may end the world, how destructive tornadoes can be, and how the killer robots may bring doomsday. Today, we examine asteroids and other space rocks. Earth is terribly underprepared to identify and destroy or atleast deflect these rocks – few of which are so huge, they will burn the earth upon collision. NASA is struggling to come up with ways to change the trajectories of these huge rocks. We will also look at the technical definitions of asteroid, meteor, meteorite and comet. The plans of NASA to deal with ‘earth colliders’ sound like science fiction! A very fascinating session – read on…

The Burning Issue: TestCracker (www.testcracker.in)

The Burning Issue: Murthy returns to Infosys

Dangerous maladies need drastic remedies. Infosys, which recently lost its second position in the Indian IT industry to Cognizant, has re-appointed its co-founder Narayana Murthy as its Executive Chairman. In an extra-ordinary move, Infosys has increased the age limit for holding Chairman’s post to 75 years, to facilitate the return of Murthy at the top position. Murthy also brings his son Rohan(who renamed his surname to ‘Murty’ instead of ‘Murthy’!) along as his ‘Executive Assistant’, which is surprising for he had always maintained that his family will be out of the leadership roles at Infosys. Grappling with disappointing results and loss of market share for quarters at stretch, this might be the last attempt by Infosys to regain lost ground. Murthy, poster-boy of India’s IT success, has replaced chairman K V Kamath, who has moved on to the role of independent director. The current executive co-chairman, S Gopalakrishnan has also been re-designated as executive vice chairman, while S D Shibulal will continue as Chief Executive Officer (CEO). What is wrong with Infosys? Is India still the driving force behind Information Technology? Can Murthy revive the company which he calls his ‘second child’?

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Remember our discussion on the GDP growth rate of India? The official figures for the last quarter of the last financial year (Fiscal Year 2012-13 or FY13) are out, along with the consolidated numbers for the entire year.  The growth rate in the fourth quarter ending on March 31, 2013 stood at 4.8 per cent showing a marginal improvement over 4.7 per cent recorded in the third quarter of 2012-13.India’s manufacturing sector grew at 2.6% during the latest quarter while farm output rose by just 1.4%.For the entire year, the GDP growth rate was 5% – in FY13 India’s economy grew at its slowest pace in a decade! The BSE sensex slipped by 485 points during the intra-day trade.India was recording annual growth of 9% until two years ago, but in recent months it has seen a sharp decline blamed on a slowdown in its manufacturing and services sectors. So, what happens to India’s ‘growth story’ with such a low growth rate? We look at the future of Indian Economy in the context of the current trend in growth – but we start with the basics on GDP! TestCracker thinks that GDP would rank right at the top of the list of the words which are frequently used but are rarely understood JThis is an indispensable session for you to not just understand the GDP as a concept but also appreciate the challenges in front of India relating to its growth.

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IAS Prelims Paper I – Analysis, Solution & Cut-off

Analysis of Civil Services (Prelim) 2013 Paper I (GS)

“The tragedy of life doesn’t lie in not reaching your goal. The tragedy lies in having no goal to reach. It isn’t a calamity to die with dreams unfulfilled, but it is a calamity not to dream. . . . It is not a disgrace not to reach the stars, but it is a disgrace to have no stars to reach for. Not failure, but low aim is sin…”~ Benjamin Elijah

So it is over – The Stage I of The Exam. Judging on the above parameters, we congratulate you for not aiming low, for not falling for the easy and for testing the maxima of your strength and talent – for this is no ordinary exam, which you wrote recently – it is the most demanding of all exams, the fountainhead of perseverance. Months of preparation of a subject as vast as the universe itself was put to test in two instalments of 2 hours each on 26^th May 2013! TestCracker presents you the definitive analysis of this paper in the following pages (there is a separate analysis of the CSAT Paper II on our website). In the following pages, you will find the solution (we have used the actual paper to give the real feel) of the Paper I.

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The Burning Issue: D for Drone

President Obama has recently spoken about the damage done by the Drone attacks carried out by the United States on Pakistan and Afghanistansetting out more clearly than ever before the legal justifications for targeted killing. He also mentioned that four US citizens killed in strikes since 2009. The United Nations has praised this “significant step towards increased transparency”. There is a UN inquiry currently examining 25 attacks, in Pakistan, Afghanistan, Yemen, the Palestinian territories and Somalia.Pakistan, the main focus of the strikes, has reiterated its view that drones are “counter-productive”.And Obama has pledged to continue strikes, but with tighter oversight of the programme and stricter targeting rules. Today we examine the dangerous drones.

The Burning Issue by: Testcracker.in

The Burning Issue: Funding our Elections

Legislative Assembly elections in India were scheduled for nine legislative assemblies in 2013. The tenure of the assemblies of Karnataka, Delhi, Tripura, Rajasthan, Nagaland, Mizoram, Meghalaya and Madhya Pradesh were due to expire during the year while that of Chhattisgarh will expire on 4 January 2014. So far, the Election Commission of India (ECI) has successfully conducted elections in Tripura, Meghalaya and Nagaland in February and in Karnataka on 5th May. Elections are due to take place for rest of the states in later half of the year. And of course, in 2014 we will have the General Elections for the 16^thLokSabha. Success in elections often depends on the use of muscle and money power. Today we look at the legal limits of money power in the Elections of India and the way forward for election funding. This is as fascinating as it is troubling.

The Burning issue by: Testcracker.in

The Burning Issue: Chindia – rising & shining?

This visit carries symbolism. China”s new prime minister has chosen India for his first foreign trip as the two Asian countries look to speed up efforts to settle a decades-old border dispute and strengthen economic ties. LiKeqiang”s choice of India for his first trip abroad since taking office in March shows the importance the country attaches toimproving relations with its western neighbour. Experts say this gesture shows a change in the way of thinking of Beijing. As Premier LiKeqiang left for India, China said that if the two Asian giants “tango” together, the BRICS grouping would get a boostand efforts to safeguard the rights of developing countries strengthened. This visit is happening just weeks after the meeting between Prime Minister Manmohan Singh and Chinese President Xi Jinpingin Durban on the sidelines of the BRICS summit held in March 2013. So, in spiteof what was happening at our Ladakh border recently,can we trust China, just because its PM chose India as the first country to visit. By the way, he goes to Pakistan next.

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The Burning Issue : WTO has a new boss

Image Source: Getty Images

A Brazilian trade diplomat has been named as the next head of the World Trade Organisation (WTO). Roberto Azevedo will succeed France’s Pascal Lamy in September. Though not the first from the developing world to occupy the post, he is the first from Latin America and is set to become a symbol for the growing clout of the developing economies, especially BRICS, in the international economic arena. Although the selection process at the WTO is opaque, it is known that Roberto had the near unanimous support of the developing countries which helped him overcome the lukewarm response of the U.S. and the European Union. The vote is a pointer to what would happen at the World Bank and International Monetary Fund if those institutions were to ever be democratised. He however inherits what is seen to be a failure – the Doha Round of the WTO – which has only managed to divide the world into two halves – the developing and the developed. In 2012, global trade grew by just 2 per cent — a rate lower than global GDP growth — and turned in the second worst performance since records began in 1981.

The Burning Issue sourced from: http://www.testcracker.in

The Burning Issue : In defence of more FDI in Defence

With a land frontier of 15,200 km, a coastline of 7,516 km and an exclusive economic zone of 2.2 million sq km, as well as island territories, vital offshore installations and vast open airspace, not to mention two hostile neighbours – our country has a lot to defend. The Indian forces, therefore, have to be kept prepared and well equipped to repel any external threat. India’s defence spending has grown manifold since the country announced its first defence budget in 1950, to USD 37 billion (estimated) in 2012-13. Of this, approximately 40% relates to capital expenditure which is currently driven by equipment modernization programmes in each of the three services — the army, the air force and the navy. India is also amongst the world’s top countries in terms of defence expenditure, including imports of defence hardware. Presently, the FDI limit in the Indian defence sector is 26%. The Department of Industrial Policy and Promotion (DIPP) has recommended that the FDI limit be raised to 74% – Anand Sharma, the Minister for Commerce & Industry wants it to be 49%. There is a very strong case to increase this limit significantly. Should the FDI limit in defence be increased beyond 26%? Let’s discuss.

The Burning Issue, sourced from: http://www.testcracker.in