FEATURE

World Order Has Changed!
It looks like its no more G8, like we used to hear all these post World War II years. Its going to be replaced by G20. Yes, reflecting the growing economic clout of many developing countries, which include India, China & Brazil among others. The G20 are a group of 20, shall eventually replace group of 8 or G8, the elite club of rich industrial nations, as a global forum for economic policy.
The group of 20-leaders of 20 countries representing 90% of the world’s financial and industrial output-met recently at Pittsburgh in the United States, for a two-day summit, to deliberate on the financial crisis, or the meltdown as was known, and to take measures how to avoid its repetition in the future.
This group consisting G20 are the earlier G8 members and the additional 12 of those emerging economies. The original group of 8 are Canada, France, Germany, Italy, Japan, Russia, the U.K. and the U.S.A. Adding to the original, are these 12 new entrants into this elite club, and they are, Australia, Argentina, Brazil, China, European Union, India, Indonesia, Mexico, Saudi Arabia, South Africa, South Korea and Turkey.
It is slowly being realised that in the multi polar world G20 will have to replace the G8. "It is a reflection of the world economy to-day and players that make it up" said a senior U.S official. Nations like Brazil, China and India- which were earlier locked out of the exclusive club of G8-will be part of the larger G20 group along with other 9 countries.
"We are meeting at a time when, for the first time in a year, we are seeing the first sign of optimism about prospects for global recovery" U.S. Treasury Secretary Timothy Geithner was reported to have stated prior to the meeting, underlining the importance of larger number of participating countries in the deliberation.
Thus in all probability the original G8 shall only meet, if at all, on Security related issues only and is likely to carry less and less influence in the coming days. So its ‘Jai ho’ to G20!
I & C Feature

'Khuljaa Sim Sim' - Switzerland Goes Open!
Switzerland has reportedly signed 12 double taxation agreements with like number of countries. But strangely India is not one of those twelve countries. Can you believe this! Its true that despite all those noises, despite there being the cleanest and the most honest prime minister, since last over 5 years, there has been no concrete move to sign the double taxation agreement with Switzerland, supposedly one of the most non-transparent tax havens.
The latest in the list of 12 countries who agreed with Switzerland to share all information, was oil rich Qatar. Other countries are Denmark, Luxembourg, France, Norway, Austria, the UK, the USA, Mexico, Finland, the Faroe Islands and Spain.
These names indicate that there are many countries, who are not very keen on having double taxation agreement with Switzerland. It is an open secret that Credit Suisse, UBS and other Swiss banks are sitting on trillions of $ of ill gotten, unaccounted money, from laundering shady public, the world over. These stashed away funds are generally tainted and wrongfully earned sleazy money.
One of the primary objective of these double taxation agreements is sharing of information and transparency related to account holders.
According to the Bern (Swiss) datelined reports, OECD (Organisation for Economic Co-operation and Development) has removed Switzerland from the list of tax havens, upon the agreement with Qatar.
As per OECD norms, a country would be taken off the ‘gray list’ after it has signed at least a dozen double taxation agreements.
In a statement released to the international media, it said "Switzerland has signed 12 agreements containing a clause on extended administrative assistance in tax matters. Further agreements will follow. Consequently, Switzerland will be removed from the ‘grey list’ of the OECD Secretariat".
The report informs that, the ‘grey list’ was published following the pledge by G-20 leaders to crack-down on tax havens, during their summit in London last April. OECD, a group of rich nations, take into account many factors to determine, a country as a tax haven, including, its tax rates-(nil or nominal). Some of the other criterias include lack of transparency, prevention of exchange of information related to tax with other governments.
Thus at last Switzerland is unlocking its ‘Safe Deposit Lockers’ for the aggrieved nations to have a look at the accounts of those who are thought to have looted the public wealth for private gain and taken it away from the prying eyes of the national taxmen. Hope India falls in line like those 12 enlightened countries to get to the bottom of this national plunder of the last 62 years.

I & C Feature