The Ecobizz Newsletter
1
IBS HYDERABAD
THE TEAM
FROM THE EDITOR
Published by Club Ecobizz, IBS Hyderabad Editor In Chief Mr. Abhishek Sharma E-mail: abhishek.sharma0404@gmail.com
Chief Advisor Mr. Siddharth Padhiary Vice President, Club Ecobizz Designed and conceived by Mr. Siddharth Padhiary E-mail: sidpadhiary@gmail.com
Editor’s Message
Proof Read by Team Ecobizz
Editorial team Mr. Abhishek Sharma Mr. Vivek Parekh
Contributions Team Ecobizz
Amidst the eventful schedules and vibrant happenings of IBS Hyderabad, Club Ecobizz is proud to come up with the September 2015 issue of its ever old, yet still young magazine, ‘THE FOCUS’. Read on to find out the cover story on “One Rank One Pension”. The story is about how after long wait of our Ex-Servicemen they finally got what they deserved. As always, we are open for feedback and suggestions. We also take the opportunity to thank our readers and cherish their continued association with ‘FOCUS’ . Here’s hoping that you have an augmented reading. Warm Regards The Editorial Team
Copyright Regulation This material has been reproduced and communicated to you by or on behalf of Club Ecobizz, IBS Hyderabad pursuant to part VA of the Copyrights Act 1968 (The Act). The material in this communication may be subject to copyright under the Act. Any further copying or communication of this material by you may be subject of copyright or performer’s protection under the Act.
2
September 2015
CONTENT
WHERE ECONOMY MEETS BUSINESS
04 Ethics in Economics - Samarth khanna
06 Iran Nuke deal -Sushmita Baksh
COVER STORY
12 One rank one pension -Vivek Parekh 20 Ancient Trade - Rohit Tillu
24
Events, GLs and Workshops - Growth of Digital India & EB Pathshala
The Ecobizz Newsletter
3
IBS HYDERABAD
“ETHICS� IN ECONOMICS
I Samarth khanna Batch of 2017
4
s there any trace of Ethics in Economics? Yes there are numbers and satisfying factors. But does Economics really take into account the righteousness exhibited by a party in whatever economic activity it undertakes. There is the split between being nice to other individual and using the machinery for selfish gains. The split has come down between Economics and Ethics. Economics is concerned with the ifs of everything operating at a set amount of efficiency. Ethics on the other hand tries to make sense of the entire world around them. Common perception says that economists are morally oblique and are merely concerned
with growth and profit maximization. The viewpoint of ethicists is similarly sarcastic in calling them armchair experts having more similarities to sports fans then actual economists. The schools of thought have different approaches but the end takeaway is the same for both. Both schools of thought are aiming for an ideal world. Both are in search of a utopian fantasy coming to life. The hard truth is that both are dependent on each other. Ethics in public domain feeds Economic Theory. Adam Smith in Wealth of Nations talked of a utilitarian and steam pumping industrial world. That was his time and there could be no derision of his ideas as he has September 2015
come to be the Father of Economic Theory. But the world has gone through too much since this book. There have been wars on every front, famine in many and catastrophes in a few. Ethics had already been an important part of the world but every time morality is questioned, the ethicists come into the fray. Ethics has opened up many opportunities in countries nay economies. The idea of a nation or a country is superficial. What we truly live in are economies and citizens rarely have control over the next development but if it impedes the morality of the public then ethics comes into action. Economics is not an evil cousin of ethics and even ethics is not the righteous partisan. They are like the Yin and Yang; Ethics has always stepped in to smoothen the change. Changes in situations are caused by The Ecobizz Newsletter
the economy and also affect it. It is always the ethics that has stepped in to ease the transition of change which would help in successfully completing an operation. Economics is about everything that there is to see. But it also needs a softer side. Ethics is that softer side. In the present world, ethics has had somewhat of an inception in the economic mindset with Corporate Social Responsibility and Philanthropy. Economics is the subset of Ethics which calls for a unified order and justice in the world. Yes, Economics is big but ethics are etched into individuals. Any economic order where there is absence of ethics is doomed for disorder one day or another. Progress, Growth and Survival are all Economic concepts when we think about them but the whole idea behind them is notion of morality and ethics.
Economics is concerned with the ifs of everything operating at a set amount of efficiency.�
5
IBS HYDERABAD
6
Your time is limited, so don’t waste it living someone else’s life. Dont be trapped by dogma- which is living with the results of other people’s thinking. September 2015
IRAN NUKE DEAL
The Ecobizz Newsletter
7
IBS HYDERABAD IN F ORMAT I ON , N E WS A N D S UPPOR T
FACETS OF
IRAN NUKE DEAL
O Sushmita Baksh Batch of 2017
8
n 15 July 2015 Iran and P+1 agreed on a nuclear deal. The main purpose of this deal is to halt the advancement in Iran nuclear programme and lifting the various sanctions imposed on Iran. P+1 represents six of the world’s most powerful nations – Britain, China, France, Russia, the United States (permanent members of the UN Security Council) and Germany. The original name of the nuclear deal is “Joint Comprehensive Plan of Action (JCPOA)”. Iran has the world’s second largest gas reserves and fourth largest oil reserves. It is also abundant in various resources like Petroleum, natural gas, phosphate and sulphur. United Nations imposed sanctions on Iran because of its refusal to stop its nuclear weapon program. In
addition to the sanctions imposed by the United nations, European Union and the United States also imposed further sanctions on Iran. The UN sanctions prevent all members and international financial institutions from entering into new commitments for grants, financial assistance, and concessional loans, to the Iran, except for humanitarian and developmental purposes. The UN ratified four rounds of sanctions against Iran between 2006 and 2010; these sanctions include a ban on the supply of heavy weaponry and nuclear-related technology to Iran, a block on Iranian arms exports, and an asset freeze on key individuals and companies, and mandates cargo inspections to detect and stop Iran’s acquisition of illicit materials. The EU imposed several sanctions like September 2015
restrictions on trade in equipment which it believed could be used for Uranium enrichment In 2012, the EU, which until then accounted for about 20% of Iran’s oil exports, banned the import, purchase and transport of Iranian crude oil. It also froze assets belonging to the Central Bank of Iran, and banned all trade in gold and other precious metals with the bank and other public bodies. It also banned the import, purchase and transport of natural gas from Iran. After the landmark Nuke deal Iran has to reduce its uranium enrichment capacity Currently, Iran has 19000 gas centrifuges. Under The Ecobizz Newsletter
the JCPOA, the number of centrifuges will be reduced to 6,104. Also, Iran, for the first 15 years of the JCPOA, cannot enrich uranium beyond 3.67% purity. Iran has to reduce the current stock of Uranium that is already enriched, as of now it possesses a stockpile of 7,500 kg of Low Enriched Uranium (LEU) according to JCPOA it will be reduced by 96% to 300 kg; this is expected to be achieved either by diluting the uranium or by shipping it out of the country. There will be stringent restrictions on the research and development the Tehran (Iran’s Capital) could carry out on centrifuges. Iran will be able to
conduct research on new centrifuges only on a small scale. These restrictions are put in place so that Iran does not upgrade its uranium capacity suddenly. Under the JCPOA, the nuclear plant at FORDOW can only be used for non military research. In addition, no weapons-related material will be allowed to be carried out at this plant. These restrictions at FORDOW plant will last for 15 years. For ARAK heavy water reactor, Iran has to remove the reactor core and fill it with concrete. Also, under this deal Iran will not be allowed to construct any new heavy water plant in the next 15 years, it will also
Iran has the world’s second largest gas reserves and fourth largest oil reserves. ”
9
IBS HYDERABAD
10
Constantinople (present day Istanbul) was the trade hub of for the trade September 2015 between Europe and Asia;
IN F ORMATIO N, NE WS AN D S U P P OR T
not be allowed to build a reprocessing plant or even carry out research on reprocessing.
JCPOA will take effect only after 90 days, as the parties involved need to fulfil domestic legal formalities.
Under the JCPOA, Iran will provide access to nuclear facilities and people (nuclear researchers) suspected of involvement in past nuclear experimental work, including weapons and warhead design, though mostly before 2004. Inspections will be done by IAEA (International Atomic Energy Agency) and they will have full access to all the sites where they think nuclear work is going on. Once they are satisfied that no nuclear work is going on, they will certify Tehran’s cooperation then only the country will get benefit from sanction removal.
There is one major thing to remember: while the economic sanctions will be lifted soon, an arms sanctions against Iran will remain in place for five years while a ban on the transfer of missile technology would stay for eight years.
In case, Iran fulfils its side of the conditions as per the JCPOA, the United States and the European Union (EU) will provide guarantees that financial and economic sanctions can be lifted. The EU will lift its oil and banking sanctions while allowing Iran to participate in the Swift electronic banking system, which facilitates all international monetary transactions. The U.S. will issue presidential waivers, by the current president, which will suspend the operation of American economic (including trade and financial) sanctions. Further, the UN can remove the sanctions in the following manner: the JCPOA will be made inserted into a UN Security Council resolution, which will override the six earlier sanctions resolutions imposed on Iran over its nuclear programme. However, the The Ecobizz Newsletter
FEATURES
1
On July 2015 Iran and P+1 agreed on a nuclear deal
2
Iran has the world’s second largest gas reserves and fouth largest oil reserves.
3
The EU imposed several sanctions like restrictions on trade in equipment which it believed could be used for uranium enrichment.
4 Under the JCPOA, Iran will provide access to nuclear facilities and people suspected of involvement in past nuclear experimental work.”
The EU will lift its oil and banking sanctions while allowing Iran to particpate in the swift electronic banking system,which facilitates all monetary transactions.
5
The US will issue presidential waivers ,by the current president ,which will suspend the operation of American economic sanctions.
11
IBS HYDERABAD
O C
12
R E V
O T S
September 2015
Y R O
The Ecobizz Newsletter
13
IBS HYDERABAD
14
The implementation of OROP Scheme will have a significant impact on the country’s fiscal bill.
September 2015
IN FORMATIO N, NE WS AN D S U P P OR T
ONE RANK ONE PENSION SCHEME Ex-servicemen’s wishes fulfilled.
A
decade long wait of veterans has finally ended when Prime Minister Narendra Modi last Week announced One Rank One Pension scheme for ex-servicemen. The government has “In principle” accepted OROP a demand by India’s defence personnel that uniform pension should be paid to armed force retirees. In simple terms it implies that a uniform pension will be paid to the Armed forces personnel retiring in the same rank with same period of service, irrespective of their date of retirement. If there are future enhancements in the rates of pension it would be automatically passed on the past pensioners. This will narrow the gap between the rate of current and past pensioners at regular intervals. It has been decided that the gap will be bridged every 5 years between rate of pension of current and past pensioners. We will take a look at some of the important features of OROP Scheme as announced by our Defence minister Manohar Parrikar The benefit of the scheme will be given with effect from 1st July 2014.The present government assumed office on 26th May 2014 and therefore, it has been decided to make the scheme effective from a day immediately later. Arrears will be paid in four half yearly
The Ecobizz Newsletter
instalments. All widows, including war widows will be paid the arrears in one instalment. In the beginning, OROP would be based on the basis of calendar year 2013. Personnel who will retire voluntarily will not be covered under the OROP Scheme, but it was later clarified by our Prime Minister that servicemen who have taken early retirement will also be eligible to receive benefits of the scheme.Ex-servicemen who have been injured in the line of duty will also receive benefits from the scheme. There are many in the army who work in junior posts and fight from the front lines who have to retire early, they will be the among the first to get the benefits and not the other way round. In future, the pension would be re-fixed every 5 years. Ministry of Defence will soon issue detailed government order specifying all the details regarding the OROP Scheme. OROP is still a complex issue; lot of work still needs to be done to make it a transparent one. A thorough research on interest of retirees of different periods and different ranks is still needed. It has also been decide that a one member judicial committee would be formed which will give its report in six months. Implementation of OROP was a very
Vivek Parekh Batch of 2017
The government has “In principle”accepted OROP a demand by India’s defence personnel .”
15
IBS HYDERABAD INF ORMAT I ON , N E WS A N D S U P POR T
OVERVIEW
16
important decision taken by the current government for the welfare of exservicemen but it will have a significant impact on the country’s fiscal bill and the overall cost will be around Rs 16000 crore which is a huge amount in a single financial year. It will have a huge impact on the fiscal bill. It is estimated to cost around 16000crore which is 0.1 per cent of GDP in FY 16.As per the leading global brokerage firm, the existing defence pension bill will shoot up by Rs 10,000 crore,whereas arrears totalling Rs12000 Crore will be paid over two years. In total
we can predict the fiscal implication to be Rs16000 crore in fiscal year 2015-16. The amount they are allocating for OROP Scheme is huge but by implementing the Government of India has shown its respect to our Ex-servicemen for their patriotism and sacrifices. We are proud of their devotion to duty and bravery in natural calamities and other difficult circumstances.
September 2015
The Government of India has shown its respect for their patriotism and sacrifices.
. P
r d
t
The Ecobizz Newsletter
17
IBS HYDERABAD
ANCIENT ECONOMICS 18
September 2015
The Ecobizz Newsletter
19
IBS HYDERABAD
20
September 2015
ANCIENT TRADE
T
o understand the present, one must look into the past. The Renaissance, It is one of the world’s most influential eras. It was an era of progress. Martin Luther, a German friar and priest was the one responsible for this radical shift in mindset. He strongly disputed that God’s punishment for sin could be exchanged with money. When Luther read the bible and translated it as per his perception. It made sense to everyone. The bible seemed less of a punishment commandment as many of the previous clerics has deciphered it to be. And that was just how the Renaissance began. The epicenter of this movement was Europe. Most of the Europeans were focused on the Mediterranean. It was a major axis of trade. The Italian and Sicilian states were difficult to reconcile with each other and cities had become battlegrounds. And when war is there, there ought to be an economy in state of war. There will be born lord of wars- people who benefit from the wars financially. One such person who had designed a plethora of weapons for Rome under the Borgias was Leonardo Da Vinci. Da Vinci was a man who donned many hats. The Mona Lisa is just one of his accomplishments. He was a thinker, a writer, an inventor and much more than that. Most of his scientific musings were centered on water. He along with Niccolo Machiavelli (*wink wink*) planned to build a canal along the Arno River which would Florence (erstwhile Firenze) an economic power. But it was not to be as nature had other plans for this man made marvel. This is just one of Da Vinci’s interests which have impacted the world globally. The Renaissance was also an era of revolutionary literature. Nature was an important aspect of literature, be it plays, novels or short stories. It has been established that Leonardo Da Vinci was a man with an artistic mindset. His inventions mimicked nature. He was one of the few people to conceptualize the aircraft with wings on it. All of this and more such concepts are contained The Ecobizz Newsletter
within his 300 page codex which is currently owned by Bill Gates. He came up the idea of taking inspiration from nature. The term has since been coined as Biomimicry. As the 16th Century had recovered from the 300 long years of the Dark Ages to move forward and Da Vinci is also credited with the birth of another industry, the Art Industry. Mona Lisa and the Last Supper are a few of his important works mired in mystery. The Art Industry has since relied on mystery and introspection as its selling point. Although European Paintings are known to be more definite and detail oriented but the ambiguity of Mona Lisa’s smile gave birth to a larger concept. This concept is known as abstract art which relied on the perception of the people looking at the painting. The culmination of all of this is just one thing, Progress. When we look at the past we see finished products as cogs to bigger machinery. The CD’s are now dead but they paved way for digitalization of multimedia. The same goes for a vinyl record player or a bulb. The aim is not to trace economic growth here but to understand a vague concept which will birth new ideas central to the economy and lead to societal growth.
Rohit Tillu Batch of 2017
Leonarda Da Vinci was a man with an artistic mindsets. He was one of the few people to conceptualize the aircraft with wings on it.”
21
IBS HYDERABAD
EVENTS,GL’S & WORKSHOPS
22
September 2015
Creativity is allowing yourself to make mistakes. Art is knowing whihc ones to keep. The Ecobizz Newsletter
23
IBS HYDERABAD
The guest shared insights about the skills an MBA should acquire for a sound digital marketing.
Building a successful brand isn’t just about ROI, it’s also about building authentic relationships with people.
24
September 2015
IN F ORMAT IO N, NE WS AN D S U P P OR T
GROWTH AS AN ENTREPRENEUR “How entrepreneur can bring change”
O
n 7th September 2015, club EcoBizz hosted a Guest Lecture from one of India’s renowned motivational speaker Mr. Santosh Dev Thakur at IBS Hyderabad. Mr. Thakur, the CEO of campusview. co.in & Udaan commenced his career in public speaking during the IInd year of his graduation and aims to promote ‘entrepreneurship’ across the nation. The man, filled liveliness into each and every student right from the beginning till he got off stage. A quick glance at this personality and one wouldn’t be able to predict that
he is a CEO. A simple and down to earth personality, Mr. Thakur took the students away from books on a life and entrepreneurship tour during his two hour speech. Even though, the session for the students was post class hours, the insights provided by him were a complete cut off from the exam-tension and was followed by a brisk interaction in the auditorium. On behalf of the entire IBS student community club EcoBizz is thankful to Mr. Thakur for his presence and we hope the CEO (more of our friend now) all the best for his future ventures.
Santosh Dev Thakur CEO, Udaan
He was the CEO of campusview.co.in & Udaan , he commenced his career in public speaking during the 2nd year of his graduation and aims to promote “entrepreneurship”across the nation.
The Ecobizz Newsletter
25
IBS HYDERABAD
26
September 2015
INF O RMATI ON , NE WS AND S U P P OR T
EBOVERVIEW EVENTS
F
“Fun filled activities.�
rom darkness, lead me to light. With this motto Club Ecobizz started off its year with fun filled events,hidden with the concepts of economics.Both the events were a huge success and was greatly appreciated by all. Betting , bidding and stock investment were the main contents of the events.The events attracted more then 100 participants. Participants were asked to predict future and invest money on their gut feeling .Both the events revolved around the concept of economics.
The Ecobizz Newsletter
The events were about team work. Both the events were enjoyed by participants as well as the organisers. It was great to see the passion and enthusiasm with which the new ecobites went on with their new responsibities and roles.The future seems to be bright and hope we have many more fun filled events in the future.-
27
IBS HYDERABAD
Dear Readers, We believe you appreciate the transformation of ‘The Focus’. Your praise and encouragement has always been a source of motivation for us. Therefore, in case you have any comments or suggestions for improvement please leave them in the COMMENTS section of our website www.ecobizz.weebly.com. We at EcoBizz will be more than happy to incorporate your suggestions. For keeping in pace with latest developments, discussion forums and online events follow us on Facebook at https://www.facebook.com/eb.focus. Regards, Team Ecobizz
28
September 2015