Russia's Economic revival may be the revival of COLD WAR era...

Fall of Russian communism may have sent a good signal to the world and the feel of triumph for the western countries because of their belief that this would bring much needed stability to the world, but the humiliation within the former USSR is becoming evident as it tries to gain back its lost supremacy. Best example to resurgence of Russian might in post Cold War era was war with Georgia. Mr. Vladimir Putin is said to be a man from that totalitarian system which ended with lowering flag above Kremlin. Mikhail Gorbachev, the last president of Soviet Union, said "The totalitarian system has been eliminated.. free election ,free press, freedom of worship, representative legislatures and the multi party system have all become reality." US were the first to recognize and welcome the new independent and democratic Russia.

10 Years after cold war era ended Russia started to grow its economy the high growth rate and sought to regain its lost glory. But in its attempt to strengthen itself it has constantly increased its pre-cold war era activities as it gain economic power. Russia has tried to show that it has always been at par with US even after its great demise in 1991.Russia's war in Georgia and its unilateral recognition of South Ossetia and Abghazia copied the west's recognition of Kosovo in the Balkans, Mr. Putin said unilateral recognition of Kosovo was "immoral and illegitimate". Russia very recently developed and tried to strike a defense deal with India providing Missile Defense System when US was trying to do that.

I seem Russia has still not been able to come out of the COLD WAR era hangover. Russia still has to go a long way before it can come somewhere near might of US. Russia still suffers from low level of income and poverty, per capita earning being just 700$ per month. Divide between the rich and poor is increasing and the corruption in Russian oligopolistic system which is eating it away from inside.

Mental divide still a hinderance

This is not like my typical blog on economics rather its something related to it through my personal experience. I am in a train and 10 minutes ago was really getting bored so I decided to write a post because the constant murmuring of few people did not allow me to sleep even. I then decided to hear those murmur more seriously as the topic they discussing interested me a bit. They were discussing over the topic : The role of youth in education today.

This train goes from Delhi to Mussfarnagar. Delhi is off course well known but Mussafarnagar is a small town in Bihar, I have never visited it though. Most of the people are from Bihar except few like me and my friend, a couple sitting above talking continuously as the time is really running short for them and a pretty girl sitting in front me and reading 5 point someone. These people will probably drop at the Lucknow Station. Same sense of looking the way people are talking and doing has made me to derive this logical conclusion and this demarcation is so big in India that one can easily reach such conclusions. Again back to the group discussion taking place in my fellow compartment and which has gained even more energy and participation of the people around. I said i have a bit of interest on such topic so I had my own view point over this. As I started to listen to these people I was bit amused over the way the education is imparted in my country and the education system about which these people were talking about.

One person here is a teacher from a degree college in Balia, a place very close to Bihar. His anguish for the students was more than evident. He said, one of his fellow teacher was recently murdered by a student and it was not the first instant that this has happened in his area. It is been happening in regular succession there. This drew my attention even more towards them. He went on to demean the students in his college by giving examples as to how the students produced fake mark sheets and certificates, how they got involved in politics of the colleges and committed crimes to prove that they are best suited to the Indian politics. Another men sitting there started to applaud there own student age when they used to study and used to get beaten hard for not doing so. All of them together produced such a dismal picture of the student and education system that I had nothing to say but to be astonished. My astonishment was obvious, if I had been asked to speak or put me view I would have initiated with all applauds for the youth and would have given evidences has how youth is constructing the future of this nation by there efforts. I had been very proud of the youth of India before I listened to these people but now I think it is not whole of the young Indian lot that making India shine but a part of it and that part is really very small.

I am certainly not happy when I come to know that changing India has not changed much but unfortunately it happens very often everyday. Things have changed a lot in metros but most of the India still remains unvisited by the development. Reason has to be in the roots only. Why the youth from one part of the India is creating incredible India and why some other youth are far away from thinking about development???? We need to change the mind set of the youth and that can be done only by imparting correct education right from the basic level. Correct brining up changes the way one things. I had different perspective about Indian youth because I had been brought up in that way. For me the young Indians are my friends, my idols whom I see on TV and young entrepreneurs but for them its entirely different story. They live in environment where crimes, stealing and murders are part of life. I am still in train and something very disgusting had just happened which I will tell you some other day.

Exchanges Causing Volatility,Cant we go Euro way???

I might be questioning very fundamental on which current global exchange rate trading fraternity exists but the same economic crisis has made me to think that way. This New Year was not like the past ones. Credit crunched citizens did not spend and enjoy as they were doing in the past. The reason is very obvious, known and talked about in every corner of the world today. Many conclusions are being drafted every second and most of them pointing towards one solution and that being more regulations. Now again a question arises: How much regulation? Applying high level of regulation would question entire concept of free market and having low degree of regulation would lead to disasters like current economic crisis. So, regulation may only be the part of the solution, not the complete solution. Then what can be the other solution??

Euro has turned 10 this New Year eve.Though not much hype was created on this context but Euro has traveled a long way since its inception in 1999 when 11 nations of the Europe agreed to integrate their currency and form a common one.Current economic crisis has shown something good coming out of it. Countries using Euro as currency has  somewhat saved themselves from this meltdown and the reason is simple,they have a unified and integrated economic system between them so they are less exposed to the volatility of exchange. "The euro is sheltering businesses from the exchange rate volatility, which has battered them in previous downturns," Barroso said on Monday. "To put it simply, the euro works." Members in Euro community has increased  to 16 with the addition of its newest member Slovakia. Currently Euro is covering around 320 million population. That is remarkable  achievement for a currency started just a decade ago. Even Iceland which not a EU country is eyeing into euronization. I am not sure, will Euro replace the Dollar as the global currency or not,neither am I much bothered about arguing which one is the best but current insulation from volatility which Euro has provided to its nations has made me think that having a common world currency would save us from devaluating our currencies at the time of such crisis and save us from pathetic government and central regulations. Having a common currency would make trade between the countries lot more simple and markets more susceptible to volatility. I think rounds and rounds of WTO meeting without outcome would then finally provide more leveled play field between developing and developed world.