INTERNATIONAL AFFAIRS ChinaChange of Guard On March , 2013, Chinas old guard led by President Hu Jintao bowed out of power

after highlighting the communist giants rise as a world power during their decade long rule, paving the way for new leader Xi Jinping to assume charge of the worlds second largest economy. Premier Wen Jiabao, who along with Hu steered China for the last 10 years, made his final bow before the 3,000 strong National Peoples Congress (NPC) after presenting a lengthy work report listing out achievements of his era, especially the nations emergence as the worlds second largest economy, over taking Japan in 2011. Wens 29-page report mainly focused on achievements like creating vast infrastructure with dozens of airports, thousands of kilometres of roads and high speed trains, besides all round development. At the same time, the 70-year-old leader, who in 2012 refuted allegations of his family accumulating USD 2.7 billion assets, called for unwavering efforts to combat corruption, excessive concentration power and strengthening of political integrity. He also spoke about problems China faced, prominent of which is the unbalanced, uncoordinated and unsustainable development. The NPC formally elected 59-year-old Xi Jinping as President and 57-year-old Li Keqiang as Premier. Uhuru Kenyatta is elected President of Kenya Deputy Prime Minister Uhuru Kenyatta has been declared the winner of Kenyas Presidential election, beating out his rival, Prime Minister Raila Odinga, to clinch a first-round victory. The victory, however, could complicate Kenyan foreign relations with Western nations, as he is to face trial at the International Criminal Court (ICC) in June 2013, for his alleged involvement in ethnic violence after an election in 2007. Kenyans endured an agonising four days waiting for results, during which the anxieties rose about the tallying process after electronic systems failed and were subsequently abandoned in favour of a manual count. With the manual count set to serve as a cross-check of results submitted electronically, party agents and civil society activists raised questions about the integrity of the process. Kenyan voters had defied widespread fears of violence on election day and thronged to polling stations in their millions, with many queuing for hours to cast their vote. Isolated incidents of violence that left at least 15 people dead marred an otherwise peaceful polling, which was widely commended by international and domestic observers. Kenyatta would be Kenyas fourth President since independence from Britain 50 years ago. His father, Jomo Kenyatta, was the first President and was in office for about 13 years. The new President faces a country suffering from underdevelopment and unemployment. Tribalism is also rife and is seen as a hurdle to overcome. This was Kenyas first election since the December 2007 Presidential run-off descended into ethnic bloodshed, in which at least 1,000 people died and hundreds of thousands were displaced. A coalition government had been formed several months later with international support, ending the violence. Chief Justice of Nepal takes over as PM to help end political crisis Nepals efforts at ending political stability took a new turn on March 13, 2013, with the countrys incumbent Chief Justice entrusted the task of heading the government, a move aimed at ending a political deadlock in a nation still recovering from a decade of civil war. Chief Justice Khil Raj Regmi was administered oath as Chief Executive of an interim election council by President Ram Baran Yadav, as part of a deal among four major political parties. The parties differed on details regarding ranks to be given to Maoists joining the army, the commission to investigate cases of human rights violations during the civil war and voters list.

Regmis elevation, however, was opposed by sections within the major parties and by 23 fringe parties that include the breakaway faction of the ruling Maoist party, who threatened to launch street protests against the decision. Cyprus secures bailout On March 25, 2013, Cyprus secured a package of rescue loans in tense, last-ditch negotiations, saving the country from a banking system collapse and bankruptcy. The cash-strapped island nation needed a 10 billion euro bailout ($13 billion) to recapitalize its ailing banks and keep the government afloat. Without an agreement, the European Central Bank had threatened to cut crucial emergency assistance to the countrys banks. Under the plan, Cyprus second-largest bank, Laiki, will be restructured and holders of bank deposits of more than 100,000 euros will have to take losses. Human Development Report 2013 The 2013 Human Development Report The Rise of the South: Human Progress in a Diverse World was launched on March 14, 2013, in Mexico City, by President Enrique Pea Nieto of Mexico and UNDP Administrator Helen Clark. The 2013 Human Development Report examines the profound shift in global dynamics driven by the fast-rising new powers of the developing world and its long-term implications for human development China has already overtaken Japan as the worlds second biggest economy while lifting hundreds of millions of its people out of poverty. India is reshaping its future with new entrepreneurial creativity and social policy innovation. Brazil is lifting its living standards through expanding international relationships and antipoverty programs that are emulated worldwide. But the "Rise of the South" analyzed in the Report is a much larger phenomenon: Turkey, Mexico, Thailand, South Africa, Indonesia and many other developing nations are also becoming leading actors on the world stage. The Report ranks Norway on the top with HDI value of 0.995, followed by Australia (0.938), USA (0.937), Netherlands (0.921) and Germany (0.920). India is ranked 136 with HDI value of 0.554. DR Congo (0.304) and Niger (0.304) are ranked 186, at the bottom of the ranking. The Report classifies the world into four broad segments: Very High Development (Norway, Australia, USA, Netherlands, Germany, Japan, South Korea, UK), High Development (Russia, Saudi Arabia, Malaysia, Mauritius, Brazil, Sri Lanka), Medium Development (China, Thailand, Egypt, India, South Africa, Bhutan), and Low Development (Bangladesh, Pakistan, Nepal, Afghanistan, Niger). The 2013 Human Development Report identifies more than 40 countries in the developing world that have done better than had been expected in human development terms in recent decades, with their progress accelerating markedly over the past ten years. The Report analyzes the causes and consequences of these countries achievements and the challenges that they face today and in the coming decades. Each of these countries has its own unique history and has chosen its own distinct development pathway. The 2013 Human Development Report also identifies policies rooted in this new global reality that could promote greater progress throughout the world for decades to come. The Report calls for far better representation of the South in global governance systems and points to potential new sources of financing within the South for essential public goods. With fresh analytical insights and clear proposals for policy reforms, the Report helps chart a course for people in all regions to face shared human development challenges together, fairly and effectively. Fourteen countries recorded impressive HDI gains of more than 2 percent annually since 2000in order of improvement, they are: Afghanistan, Sierra Leone, Ethiopia, Rwanda, Angola, Timor-Leste, Myanmar, Tanzania, Liberia, Burundi, Mali, Mozambique, Democratic Republic of the Congo, and Niger. Most are low-HDI African countries, with many emerging from long periods of armed conflict. Yet, all have made significant recent progress in school attendance, life expectancy and per capita income growth, the data

shows. Most countries in higher HDI brackets also recorded steady HDI gains since 2000, though at lower levels of absolute HDI improvement than the highest achievers in the low-HDI grouping. Hong Kong, Latvia, Republic of Korea, Singapore and Lithuania showed the greatest 12-year HDI improvement in the Very High Human Development quartile of countries in the HDI; Algeria, Kazakhstan, Iran, Venezuela and Cuba were the top five HDI improvers in the High Human Development countries; and Timor-Leste, Cambodia, Ghana, Lao Peoples Democratic Republic and Mongolia were the HDI growth leaders in the Medium Human Development grouping. When the HDI is adjusted for internal inequalities in health, education and income, some of the wealthiest nations fall sharply in the rankings: the United States falls from #3 to #16in the inequality-adjusted HDI, and South Korea descends from #12 to #28. Sweden, by contrast, rises from #7 to #4 when domestic HDI inequalities are taken into account. The 2013 Reports Statistical Annex also includes two experimental indices, the Multidimensional Poverty Index (MPI) and the Gender Inequality Index (GII). The GII is designed to measure gender inequalities as revealed by national data on reproductive health, womens empowerment and labour market participation. The Netherlands, Sweden and Denmark top the GII, with the least gender inequality. The regions with the greatest gender inequality as measured by the GII are sub-Saharan Africa, South Asia and the Arab States. The Multidimensional Poverty Index (MPI) examines factors at the household level that together provide a fuller portrait of poverty than income measurements alone. The MPI is not intended to be used for national rankings, due to significant differences among countries in available household survey data. In the 104 countries covered by the MPI, about 1.56 billion people are estimated to live in multidimensional poverty. The countries with the highest percentages of MPI poor are all in Africa: Ethiopia (87%), Liberia (84%), Mozambique (79%) and Sierra Leone (77%). Yet the largest absolute numbers of multi-dimensionally poor people live in South Asia, including 612 million in India alone. The Report also reviews key regional development trends, as shown by the HDI and other data: Arab States: The regions average HDI value of 0.652 is fourth out of the six developing country regions analysed in the Report, with Yemen achieving the fastest HDI growth since 2000 (1.66%). The region has the lowest employment-topopulation ratio (52.6%), well below the world average of 65.8%. East Asia and the Pacific: The region has an average HDI value of 0.683 and registered annual HDI value growth between 2000 and 2012 of 1.31%, with Timor-Leste leading with 2.71%, followed by Myanmar at 2.23%. The East Asia-Pacific region has the highest employment-topopulation ratio (74.5%) in the developing world. Eastern Europe and Central Asia: The average HDI value of 0.771 is the highest of the six developing-country regions. Multi-dimensional poverty is minimal, but it has the second lowest employment-to-population ratio (58.4%) of the six regions. Latin America and the Caribbean: The average HDI value of 0.741 is the second highest of the six regions, surpassed only by Eastern Europe and Central Asia average. Multi-dimensional poverty is relatively low, and overall life satisfaction, as measured by the Gallup World Poll, is 6.5 on a scale from 0 to 10, the highest of any region. South Asia: The average HDI value for the region of 0.558 is the second lowest in the world. Between 2000 and 2012, the region registered annual growth of 1.43% in HDI value, which is the highest of the regions. Afghanistan achieved the fastest growth (3.9%), followed by Pakistan (1.7%) and India (1.5%). Sub-Saharan Africa: The average HDI value of 0.475 is the lowest of any region, but the pace of improvement is rising. Between 2000 and 2012, the region registered average annual growth of 1.34 percent in HDI value, placing it second only to South Asia, with Sierra Leone (3.4%) and Ethiopia (3.1%) achieving the fastest HDI growth. The Human Development Index (HDI) was introduced in the first Human Development Report in 1990 as a composite measurement of development that challenged purely economic assessments of national progress. The HDI in the 2013 Report covers 187 countries and territories. Data constraints precluded HDI estimates for eight countries: Marshall Islands, Monaco, Nauru, the Peoples Democratic Republic of Korea, San Marino, Somalia, South Sudan and Tuvalu. HDI values and rankings as presented in the Reports

Statistical Annex are calculated using the latest internationally comparable data for health, education and income. The HDI rankings and values in the 2013 Human Development Report cannot, therefore, be compared directly to HDI rankings and values published in previous Human Development Reports. UN Report on Water Security Stresses on water supplies aggravated by climate change are likely to cause more conflicts and water should be considered as vital to national security as defence, according to a United Nations report: Water Security and the Global Agenda. About 145 nations share river basins with their neighbours and need to promote cooperation over a resource likely to be disrupted by more frequent floods and heat-waves, says the report. The World Health Organization estimates that each person needs between 50 and 100 litres of water a day to meet basic needs. Water for irrigation and food production constitutes one of the greatest pressures on freshwater resources. Agriculture accounts for 70% of global freshwater withdrawals (up to 90% in some fast-growing economies). Water supplies are under increasing stress from a population of more than 7 billion people, likely to reach 9 billion by 2050. Water-related diseases, from diarrhoea to malaria, kill about 3.5 million people every year, mostly in developing nations. Climate change could worsen the toll in some areas. Of the 783 million people worldwide without improved drinking water, there are 119 million in China; 97 million in India; 66 million in Nigeria; 36 million in DRC; and 15 million in Pakistan. The figures for sanitation are even bleaker. Those without improved sanitation in these countries are: India 814 million; China 477 million; Nigeria 109 million; Pakistan 91 million; and DRC 50 million. Among encouraging signs, Brazil, Paraguay, Uruguay and Argentina had signed a deal in 2010 to cooperate and prevent conflicts over the Guarani Aquifer, which extends over more than 1 million square kilometres. UN-Water, which coordinates water programs within the United Nations system, claims that a single description of the problem will help global collaboration around water, one of the worlds most vital needs. Water security is defined by the report as the capacity of a population to safeguard sustainable access to adequate quantities of acceptable quality water for sustaining livelihoods, human well-being, and socio-economic development, for ensuring protection against water-borne pollution and water-related disasters, and for preserving ecosystems in a climate of peace and political stability. This definition is a starting point, said Zafar Adeel, co-chair of the UN water task force on water security. Food and water, as well as sanitation, are drawing attention as the United Nations prepares to write a new agenda for social and economic well-being. The Millennium Development Goals (MDGs), which came into effect at the turn of the century, expire in 2015. The United Nations announced in 2012 that the MDG for water was attained, but the sanitation target will not be met. The latest UN-Water report calls for the still-evolving sustainable development goals to include a numerical target for water security. The report argues that water securitybecause of the broad definitionis something of an umbrella goal. In other words, if water is adequately addressed, success will cover other areas such as health, nutrition, environmental protection, and employment. Visit of Chinese Prime Minister to Russia On March 23, 2013, Russia and China agreed to significantly expand cooperation in the energy sector and boost bilateral trade to $150 billion in coming years, during the visit of Chinas new President Xi Jinping to Russia. Russian President Vladimir Putin said the visit will have historic results and strengthen the strategic character of our relations. Russia will boost oil shipments to China by 10 million tons from the current level of 15 million tons a year, against a $10 billion Chinese loan. The two have also signed an agreement for the construction of an oil refinery and petrochemical factory in

Tianjin, which will use Russian oil. Russias gas monopoly Gazprom signed an MoU for the supply of natural gas to China along a pipe to be built in Russias Far East. A 30-year contract for the shipment of 38 billion cubic metres of gas a year will be signed before the end of 2013. BRICS Summit In a sign that the worlds five most influential non-Western countries have moved away from political rhetoric and a loose arrangement of meeting once a year, the BRICS countries, at their Fifth Summit, which ended in the port city of Durban, South Africa on March 27, 2013, decided to set up an infrastructure-oriented development bank, sought a Director General for the World Trade Organisation (WTO) from the developing world, set up a $100 billion fund for themselves to guard against currency fluctuation, and ruled out any other option but a negotiated solution for the Iran nuclear issue. In a gesture to India, BRICS reiterated the need for quickly completing talks on a Comprehensive Convention on International Terrorism, a concept first mooted by New Delhi. The Summit also displayed a distinct non-Western tendency by acknowledging the important role that State-owned enterprises played in their economies and resolving to encourage them to interact with each other. The BRICS Summit acknowledged the lacunae in their functioning and resolved to set up a virtual secretariat to impart continuity and manageability to the large number of BRICS deliberations at various levels. Meeting a day before the fifth summit of the heads of State was to formally begin, Finance Ministers of the five countries thrashed out an agreement to establish a BRICS Development Bank on the lines of the World Bank. The idea of starting a bank was first mooted by BRICS countries during the New Delhi summit. The bank will cater to the infrastructural needs of the members of the group which accounts for 43% of the world's population. The bank and the Contingency Reserve Arrangement (CRA) provide a solid basis for greater cooperation among these countries whose economies are growing faster than the global average, and have the potential to influence decision-making on key international issues. China has agreed to contribute $41 billion for CRA, while India, Russia and Brazil have agreed to provide $18 billion each. South Africa will chip in with $5 billion. The CRA is supposed to buffer BRICS nations against any liquidity crisis. BRICS countries have a combined foreign exchange reserves of an estimated $4.4 trillion. The Durban summit also saw the launch of the BRICS Business Council to promote engagement among business-persons of the member countries. The five BRICS countries together account for 26 per cent of the worlds geographic area, 43 per cent of the worlds population, 17 per cent of international trade and 25 per cent of global GDP in terms of purchasing power parity. The decision on the trade, business and financial fronts will see for the first time after the grouping was formed in 2009, a more time-bound and result-oriented agenda on the economic front. On the sidelines of the Summit, in the first-high level contact after the new Chinese leadership took over, Prime Minister Manmohan Singh met Chinese President Xi Jinping. All aspects of the relationship were discussed, except the South China issue. Prime Minister Manmohan Singh raised the issue of Beijings proposal to construct three dams across the Brahmaputra river on its side. India feels that the proposal would affect water flow to India, while China says it was just run-of-the mill project that would not hold water. Notwithstanding pledges to take the bilateral relationship to a new level, Prime Minister Manmohan Singh sought a joint mechanism to assess the construction work on dams on Brahmaputra river in Tibet.

China becomes worlds fifth largest arms exporter China has become the worlds fifth-largest arms exporter, its highest ranking since the Cold War, with Pakistan the main recipient, according to a respected Sweden-based think tank, the Stockholm International Peace Research Institute (SIPRI). China's volume of weapons exports between 2008 and 2012 rose 162 percent compared to the previous five year period, with its share of the global arms trade rising from 2 percent to 5 percent. China replaces Britain in the top five arms-dealing countries between 2008 and 2012, a group dominated by the United States and Russia, which accounted for 30 percent and 26 percent of weapons exports, SIPRI said.

Germany and France ranked third and fourth on the arms exporter list. China followed only India in the acquisition of arms, though its reliance on imports is decreasing as it ramps up weapons production capabilities at home. Now the world's second-largest economy, China's rise has come with a new sense of military assertiveness, with a growing budget to develop modern warfare equipment including aircraft carriers and drones. SIPRI maintains a global arms transfers database base that tracks arms exports back to the 1950s. It averages data over five-year periods because arms sales vary by year.

Business News Infrastructure major GMR Group has decided to divest its 70 per cent stake in GMR Energy (Singapore) Pte (GMRE) to FPM Power for SGD 660 million (Rs 2,907 crore). The auction of second-generation CDMA spectrum ended on March 11, 2013, after three rounds, with lone bidder Sistema Shyam TeleServices (SSTL) bidding for eight circles. SSTL submitted bids worth Rs. 3,639 crore. While the firm, which offers services under the MTS brand, bid for the Delhi circle, it skipped the Mumbai, Maharashtra and UP East circles. The telecom company will be able to provide services in nine circles now, having retained the Rajasthan circle from the auction in 2012. Iraq has shortlisted Reliance Industries Ltd (RIL) and six other firms for developing its Nasiriya oilfield and the construction of an associated 300,000 barrels per day refinery. In a deal that will help it gain more share in the European market, Infosys announced that it has won a five-year deal from BMW Group for application basis infrastructure management services. Infosys will open a new delivery centre in Munich as part of its global service delivery team and cover services, such as maintenance and operations of the web infrastructure, content management, SAP Basis operations, IT for IT (the companys internal IT system) and the business intelligence systems of BMW Group. Kenichi Ayukawa has been appointed as Managing Director and Chief Executive Officer of Maruti Suzuki. Nimbuzz provides a common platform to use VoIP calling services as well as instant messaging services via different client for free. According to the data revealed by the company it has its strongest user base in Asia with 37 million users in the Middle east and over 41 million in rest of Asia, including India. India by itself contributes to 25 percent of its global user base. M&M has launched an all-electric passenger car e2o. Google executive chairman Eric Schmidt made his maiden trip to India in March 2013. The trip was part of an Asian itinerary that included the much publicised visit to Myanmar. During his visit, he visited the Bangalore office of Google, engaging with employees, including in a 32-minute address that was simultaneously webcast to employees in Hyderabad. He also attended a panel discussion in Delhi, hosted by NASSCOM by name of Catalysing Tech Start-ups in India. Domestic carriers will no longer need the governments permission to import aircraft as the Civil Aviation Ministry has reversed its policy and abolished the Aircraft Acquisition Committee (AAC) that had been scrutinising every purchase. On March 23, 2013, Cairn India began natural gas sales from the Raageshwari field in Rajasthan to a fertiliser plant in Gujarat. Cairn and its 30 per cent joint venture partner, Oil & Natural Gas Corp (ONGC), will initially produce about 0.15 million standard cubic meters per day of gas, which will go up to a maximum of 1 mmscmd by 2014. Besides, the joint venture has also started production from Aishwariya oilfield, third of the famous MBA (Mangala Bhagyam Aishwariya) discoveries in the block. The field will initially add about 2,000 barrels per day to Rajasthan blocks current production of about 170,000 bpd. Mangala, the largest of the 25 oil and gas finds Cairn has made in the Barmer desert block, was put into production in August 2009 and is currently producing about 150,000 bpd. Bhagyam, the second biggest find in the area, began producing in 2012 and is currently doing about 20,000 bpd. Tata Consultancy Services (TCS) and global outsourcing services firm Capgemini have been awarded contracts worth $43 million (about Rs 233 crore) each from Norway Post to operate and manage its applications. Kishore Biyani-led Future Group has agreed to sell 50 percent stake in its life insurance business, Future Generali General Insurance (FGGI) , to L&T Finance for around Rs 550-600 crore. This deal is part of Future Groups strategy to cut down its mounting debt and focus on the organised retail sector. Formed in 2007, Future Generali is a JV between Future Group and the Generali Group of Italy. The Future Group owns 74% stake in the company while the Italian insurer owns 26%the highest permissible under Indian laws.