Economy continues....
ADB
The Asian Development Bank (ADB) is a regional development bank established on 22
August 1966 to facilitate economic development of
countries in Asia. The bank admits the members of the United Nations Economic
and Social Commission for Asia and the Pacific (UNESCAP) and non-regional
developed countries.
The ADB offers
"hard" loans from ordinary capital resources (OCR) on commercial
terms, and the Asian Development Fund (ADF) affiliated with the ADB extends
"soft" loans from special fund resources with concessional
conditions.The headquarter is at Manila.
DEPRECIATION
& DEVALUATION
A devaluation is when a country makes a conscious
decision to lower its exchange rate in a fixed or semi fixed exchange rate. Therefore,
technically a devaluation is only possible if a country is a member of some
fixed exchange rate policy.
When there is a
fall in the value of a currency in a floating exchange rate. This is not due to
a government's decision, but due to supply and demand side factors. Although if
the government sold a lot of pounds they could help the
depreciation.
REER & NEER
The indices of Nominal
Effective Exchange Rate (NEER) and
Real Effective Exchange Rate (REER) are used as indicators of external competitiveness.
NEER is the weighted average of bilateral nominal exchange rates of the home
currency in terms of foreign currencies. Conceptually, the REER, defined as a
weighted average of nominal exchange rates adjusted for relative price
differential between the domestic and foreign countries, relates to the
purchasing power parity (PPP) hypothesis.
The Reserve Bank of
India (RBI) has been constructing five-country and thirty six-country indices
of NEER and REER as part of its communication policy and to aid researchers and
analysts. Theses indices are published in the Bank's monthly Bulletin.
The NEER is the
weighted geometric average of the bilateral nominal exchange rates of the home
currency in terms of foreign currencies. The REER is the weighted average of
NEER adjusted by the ratio of domestic price to foreign prices.
PURCHASING
POWER PARITY
Purchasing power parity (PPP) is an economic theory and
a technique used to determine the relative value of currencies, estimating the
amount of adjustment needed on the exchange rate between countries in order for
the exchange to be equivalent to (or on par with) each currency's purchasing
power.[1] It asks how much money would be needed to purchase the
same goods and services in two countries, and uses that to calculate an
implicit foreign exchange rate. Using that PPP rate, an amount of money thus
has the same purchasing power in different countries.
HDI
The Human Development Index (HDI) is a composite statistic used to rank countries by
level of human development, and distinguishing "very high human
development", "high human development", "medium human
development", and "low human development" countries.
HDI was devised and launched by Pakistani economist Mahbub ul Haq, followed
by Indian economist Amartya
Sen in 1990.
The HDI is a
comparative measure of life expectancy, literacy, education, and standards of
living of a country. It is a standard means of measuring well-being, especially
child welfare. It is also used to distinguish whether the country is a
developed, a developing or an underdeveloped country, and also to measure the
impact of economic policies on quality of life. The HDI formula result, is a
number from 0 to 1, (1 is the best outcome possible).
GNI
The Gross
national income (GNI) consists
of: the personal consumption expenditures, the gross private investment, the
government consumption expenditures, the net income from assets abroad (net
income receipts), and the gross exports of goods and services, after deducting
two components: the gross imports of goods and services, and the indirect
business taxes.
The GNI is similar to the gross national product
(GNP), except that in measuring the GNP one does not deduct the indirect
business taxes.
NAMA
The Non-Agricultural Market Access (NAMA) negotiations of the World Trade Organization are based
on the Doha Declaration of 2001 that calls for a reduction or elimination in
tariffs, particularly on exportable goods of interest to developing countries.
NAMA covers manufacturing products, fuels
and mining products, fish and fish products, and forestry products. These
products are not covered by the Agreement on Agriculture or the negotiations on
services.
The WTO considers
the NAMA negotiations important because NAMA products account for almost 90% of
the world's merchandise exports.
GATS
The creation of the
GATS was one of the landmark achievements of the Uruguay Round, whose
results entered into force in January 1995. The GATS was inspired by
essentially the same objectives as its counterpart in merchandise trade, the
General Agreement on Tariffs and Trade (GATT): creating a credible and reliable
system of international trade rules; ensuring fair and equitable treatment of
all participants (principle of non-discrimination); stimulating economic
activity through guaranteed policy bindings; and promoting trade and
development through progressive liberalization.
The GATS applies in principle to all service sectors,
with two exceptions. Article I(3) of the GATS excludes "services supplied
in the exercise of governmental authority".
SANITARY
& PHYTOSANITARY CONDITIONS
Sanitary or phyto-sanitary
measure — Any measure applied:
(a)
to
protect animal or plant life or health within the territory of the Member from
risks arising from the entry, establishment or spread of pests, diseases,
disease-carrying organisms or disease-causing organisms;
(b)
to
protect human or animal life or health within the territory of the Member from
risks arising from additives, contaminants, toxins or disease-causing organisms
in foods, beverages or feedstuffs;
(c)
to
protect human life or health within the territory of the Member from risks
arising from diseases carried by animals, plants or products thereof, or from
the entry, establishment or spread of pests; or
(d)
to
prevent or limit other damage within the territory of the Member from the
entry, establishment or spread of pests.
Sanitary or phyto-sanitary
measures include all relevant laws,
decrees, regulations,
requirements and procedures including, inter
alia, end product criteria; processes
and production methods; testing, inspection, certification and approval
procedures; quarantine treatments including relevant requirements associated
with the transport of animals or plants, or with the materials necessary for
their survival during transport; packaging and labelling requirements directly
related to food safety.
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