Insight July 2015

1 | P a g e

Narsee Monjee College of Commerce and

Economics

Department of Commerce

Insight July 2015

Whether all is well in Euro-zone?

Even in 2012 Greek debt exchange was a watershed event in the euro area debt

crisis. It generated fears of contagion and was viewed as a threat to the euro

itself. Although it achieved historically unprecedented debt relief, amounting to

€106 billion (55 percent of GDP), it was ―too little, too late‖ in terms of

restoring Greece’s debt sustainability. There was a heated debate as to whether

the debt restructuring should have taken place sooner, when Greece’s

adjustment program was agreed to in May 2010.

The 2012 Greek debt exchange and subsequent buyback was a key episode in

the euro area debt crisis that erupted in 2009. It was the largest debt

restructuring in the history of sovereign defaults, and the first within the euro

area..

Insight July 2015

2 | P a g e

In 2012 Greece’s imbalances were allowed to reach unprecedented proportions

under circumstances that are unlikely to be repeated. First, there was

monumental market failure as bondholders did not consider that there is credit

risk in the euro area. Second, there was institutional failure as the Stability Pact

failed to impose fiscal discipline. Third, there was regulatory failure, as all euro

area bonds carried the same zero-risk weight irrespective of credit risk, which

meant that banks investing in Greek bonds did not have to set aside capital and

reserves. The corollary of the large imbalances that were allowed to develop

was the historically unprecedented size of the bailout package that was required

to achieve a soft landing. Nearly €240 bailout packaged received for revival

from IMF and EU.

The problem today with Greece Economy :

Greece has received nearly €240 billion in two bailouts from the European

Union and IMF since 2010 is set a miss a €1.6 billion debt repayment to the

IMF which falls on 7th July 2015 creating a history of IMF that an advanced

economy defaulted on loan from the world’s financial backstop , questioning

the viability of Athen’s, Zimbabwe, Sudan, Cuba which has seen there economy

crippled 25 % since 2009.

As we feel is that the Euro to remain stable , members need to regularly pay the

debts on time , where as Greeks are not able to pay the debts as they do not have

Insight July 2015

3 | P a g e

enough Euro’s in the Greek financial system (both public & private ) also the

investors have panicked and almost want to withdraw their money from the

Greece economy.

The possible reason is that the new government has demanded the European

countries to be more realistic and has conveyed that they cannot pay all debts .

There can be two solution to the problem:

1) Greece can stay in the euro and try to endure grinding depression for years

and years or 2) they can leave the euro and endure a financial crisis.

I feel Europeans by now should accept the fact that Greece is not going to pay

most of its debts. They also need to accept that these debts are partly their fault.

These loans were made by Northern European financial institutions, and the

Northern Europeans should suffer for making stupid loans, too. Also it can be

that Greece will have to issue IOUs to their creditors and their businesses which

will mean you have a currency in Greece that is not the euro. It will be a kind of

scrip. However people have been pulling their money out of the Greek financial

system because they don’t believe this scrip will be worth as much as the euro.

Close observation points out that Greeks government were never good at

revenue generation as in many of cases they kept richest people outside the

spear of taxation say for the Shipping industry and Real Estate industry were

never a major tax contributor .

Support from the International Agencies is must as country needs Euros 36

billion (Dollar 40 billion) from the euro region over the next three years and an

easier terms of payment to make the debt sustainable.

Insight July 2015

4 | P a g e

Impact On Euro – Zones :

Short run impact at present seems to be negligent as the total amount of debt,

which is about $200 billion Euros , is real money, but it’s really just about 1-2

percent of total euro area GDP.

Euro has fell against the Dollar in the International Market however European

shares which have been roasted well in the International Stock Exchanges are

expecting steady recovery post the referendum.

However other struggling economy with Euro-area can follow the Greeks

footstep in near future which can doubt capability of the euro and will be seen

as less safe a currency than it once was and that will permanently raise interest

rates in many European countries. It will permanently reduce the appetite for

euro assets. The long-term impact is the IMF will be out billions of dollars

which they need to pay back to their poorer members.

So what we conclude is a recheck for all the economy (including India) and

their governments to design a policy of self dependency and be more fiscal

disciplined.

For more details :

https://www.cigionline.org/sites/default/files/cigi_paper_33.pdf

http://www.vox.com/2015/6/29/8863313/theres-a-simple-solution-to-greeces-

problems-but-europe-wont-try-it

www.livemint.com

Insight July 2015

5 | P a g e

Foreign Trade News

Silk Routes versus Sea Lanes: Rediscovering Land

International trade is thought to be synonymous with ships and sea lanes of

communication, until of course China proposed their signature idea of ―One-

belt-One Road‖ (OBOR). OBOR is about connecting China with Europe

through Central Asia and Russia through land routes. The purpose is to limit the

maritime component in the global supply chain and thereby reduce dependence

on the international merchant fleet of bulk carriers and tankers. China

understands well that, to lead the global economy, it is important to control over

the channels through which business travels.

Rediscovering Land

On 9 December, 2014, a cargo train which started its rail journey from the

manufacturing hub of Yiwu (Near Shanghai) reached the Spanish city of

Madrid covering about 8000 miles. The world’s longest rail journey passed

through China, Kazakhstan, Russia, Belarus, Poland, Germany and France. It

took 21 days to complete this maiden journey, less than half the time to travel

by sea. OBOR is not purely land based; it has a maritime component. The ports

and harbours in Indonesia, Africa, Myammar, Bangladesh, Pakistan, Sri Lanka

and possibly India are part of the scheme to shorten sea time that the to-and-fro

Insight July 2015

6 | P a g e

trade from West Asia and Africa has to traverse to reach China. The reason for

China diversifying trade routes is that firstly, Chinese trade does not feel safe

using American-dominated ships and sea lanes of communication (SLOC).

Second economic reason could be the desire to garner a greater share in the

global service sector that is currently dominated by the US. Presently the US is

controlling $375 billion shipping industry and the shipping insurance and

reinsurance business.

The Chinese strategy hinges on bringing down the usage of Ocean for trade and

develops trains and road links for global trade.

Impact on India

Some analysts suggest that India should refrain from joining OBOR initiatives

on the basis of border security issues. It is not going to have much greater

impact on India’s foreign trade as India neither has much stake in marine

insurance and reinsurance industry nor it is global shipbuilding hub that is likely

to lose business due to opening up of land routes.

(Source: EPW, May 30, 2015 pp10-16)

Insight July 2015

7 | P a g e

BRANDGyan……

I. About Cannes Lions International Festival of Creativity:

The Cannes Lions International Festival of Creativity is considered the largest

gathering of worldwide advertising professionals, designers, digital innovators

and marketers. Every year in June, around 11,000 registered delegates from 90

countries visit the Festival, to celebrate the best of creativity in brand

communication, discuss industry issues and network with one another.

II. Awards

8 much-anticipated Glass Lions were presented, including a Grand Prix to

BBDO India, Mumbai, for Procter & Gamble Whisper, "Touch the Pickle". Jury

Insight July 2015

8 | P a g e

President Cindy Gallop, Founder and CEO, IfWeRanTheWorld said judges

came to the decision following lengthy discussion, informed by a strong sense

of responsibility for what the category represents. "Ultimately we unanimously

agreed on work tackling a gender issue that impacts every single woman

worldwide; does it in a way that is innovative and disruptive while entertaining

and engaging; comes naturally from a brand for whom effecting change in this

area is not only its innate social responsibility but of tremendous business

benefit; and which has achieved amazing results in one of the most conservative

markets in the world."

131 Outdoor Lions were awarded. TBWA/Media Arts Lab Los Angeles and

Apple Cuppertino claimed the Grand Prix for the "World Gallery" iPhone 6

integrated campaign, described by Jury President Juan Carlos Ortiz, President &

CEO of DDB, as a ground-breaking blend of innovation and simplicity-of-

thought that made the jury's choice easy. "We didn't choose the Grand Prix - the

Grand Prix chose us," he said.

The Creative Effectiveness Lions saw the continuation of a winning streak for

Volvo, with Forsman & Bodenfors receiving the Grand Prix for Volvo Trucks

"Live Test Series" which Jury President Wendy Clark, President Sparkling

Brands & Strategic Marketing, Coca-Cola North America, emphatically called

"a gift to the industry" that demonstrated the power of creative bravery as a

conduit to exceptional effectiveness. "This was unapologetic advertising, proud

to communicate its message. Every jury member was jealous of the work." A

further 16 Lions were also awarded.

PR Lions Jury President, Lynne Anne Davis, President & Senior Partner Asia

Pacific, FleishmanHillard, movingly described discussion amongst the jury that

had led to the awarding of their Grand Prix to MSL Group NY and Leo Burnett

Insight July 2015

9 | P a g e

Toronto for Procter & Gamble, Always "#Like A Girl". "There were two jury

members who had showed it to their children, and they will never know 'like a

girl' to be a put-down," she said. "This is a campaign that marries a brand

promise with brand purpose and commercial pursuit. It's not just counting the

people reached, but reaching the people who count." She also highlighted that

over half of this year's 79 PR Lion-winners had come from PR specialists,

attributing the increase to the creativity gap having "completely closed"

between advertising and PR agencies.

Finally, in Media, 80 Lions were awarded including the Grand Prix to Y&R

Team Red, Istanbul for Vodafone, "Vodafone Red Light Application / Between

Us". Speaking about the work, Nick Emery, Global CEO, Mindshare, said that

it was clever, a good cause and a great media idea. "It embraces the best of both

a corporate campaign and the originality of an NGO approach. Technology was

at its heart and it also has an adaptable and flexible media approach,

personalised to the women of Turkey."

Earlier in the day delegates heard from Pharrell Williams on unleashing

creativity through collaboration; caught a glimpse of the coming AI revolution

from visionary pioneer Sir Tim Berners-Lee, explored the creative universe

with Professor Brian Cox and got a recipe for purpose-driven innovation from

Jamie Oliver.

III. About 62nd

Cannes Lions International Festival of

Creativity

The 62nd Cannes Lions International Festival of Creativity, this 21-27 June,

also known as Cannes Lions, is the world's leading celebration of creativity in

communications. Founded in 1954, the Festival takes place every June in

Cannes, France.

Insight July 2015

10 | P a g e

As the most prestigious international annual advertising and communications

awards, close to 37,500 entries from all over the world are showcased and

judged at the Festival. Winning companies receive the highly coveted Lion

trophy, a global benchmark of creative excellence, for Film, Print, Outdoor,

Interactive, Radio, Design, Product Design, Promo & Activation, Film Craft,

Mobile, Branded Entertainment and Integrated advertising, as well as the best

Media, Direct, PR, Titanium, Creative Effectiveness, Creative Data and

Innovation ideas. The Festival is also the only truly global meeting place for

advertisers, advertising and communication professionals. More than 12,000

delegates from 95 countries attend a week-long programme of exhibitions,

screenings and talks by worldwide thought leaders. As the networking and

learning opportunity of the year, Cannes Lions is the must-attend event for

anyone involved in brand communications.

IV. Lions Festivals

Lions Festivals is the organiser of Cannes Lions International Festival of

Creativity, Lions Health, Lions Innovation and Eurobest, as well as co-

organisers, with its joint venture partners, of Dubai Lynx International Festival

of Creativity, Spikes Asia Festival of Creativity, and the Asian Marketing

Insight July 2015

11 | P a g e

Effectiveness & Strategy Awards. www.lionsfestivals.com. Lions Festivals is

powered by Top Right Group.

(Source: Cannes Lions International Festival of Creativity)

V. Around the world

After a Record 8 Lions in Cannes, Ad Council Brings 'Love Has No Labels'

to NYC Pride

Ad Council's "Love Has No Labels" campaign didn't just set records for the

nonprofit PSA maker. With 110 million online views, the launch video is the

second most watched social and community activism ad of all time, behind

"Kony 2012."

And across earned and social media, the campaign garnered more than 1 billion

impressions in its first two months, the Ad Council says.

There was plenty of love for the R/GA-produced work at last week's Cannes

Lions festival, too. It won eight Lions—a record for an Ad Council campaign—

picking up a gold and two silvers in Direct, a silver in Outdoor, a bronze in

Titanium & Integrated and three more bronzes in Cyber (including one for

spatial tech).

The Ad Council got a chance to celebrate the Cannes success in the best way

possible—by bringing the campaign to NYC Pride on Sunday, a day after the

festivities wrapped up in Cannes. Check out the video below from Sunday's

event, showing how the "Love Has No Labels" message has resonated with the

LGBTQ community. (Source ADWEEK)

Insight July 2015

12 | P a g e

Green Diary

Editorial

Green July, Welcome. Most awaited monsoon rains have finally been arrived.

With these rains the hopes for better rain nearly fulfilled but still brought with it

the excessive rains in parts of Gujarat. So this month’s focus is on the ―Floods

in Gujarat‖.

Happy Reading!

Editor.

Contents

I. Editorial

II. Recent News

III. Floods in Gujarat

IV. National Park of the Month.

V. Important Environmental Days in July

Recent News:

Sanjay Gandhi National Park to turn in to city's star attraction in two years

Monday, 6 July 2015 - 6:56am IST | Place: Mumbai Retrived this article from

Agency: dna --- Author Ateeq Shaikh

Insight July 2015

13 | P a g e

Days after it reported a rise in leopard count, the Sanjay Gandhi National

Park has more good news to offer. The 104 sqkm park is all set for a makeover

to make it more interesting for visitors.

Under the project, the park will get a lakeside promenade, tourist huts,

mangrove walkway, taxidermy gallery, nature trails, nature interpretation

centres, open gymnasium, machans, new leopard safari, mobile application, etc.

Vikas Gupta, director and chief conservator of forest, shared, "In two years time

the revamp should be done and the national park will look more promising."

The revamp plan has been shaping up for a year and has now been approved by

the state Forest Department for implementation. In October 2014, dna had

reported some of the features that would be part of the SGNP, but in the last

eight months more ideas have been included.

Currently, Kanheri caves, boating, lion and tiger safari, mini-train, tents, rest

houses, children play area and the Gandhi Memorial draw a scores of visitors to

SGNP. The project includes all possible aspects of the national park, except for

the construction of the boundary wall which is simply not gathering pace.

The process will begin with the appointment of a consultant, who will prepare a

detailed project report, followed by floating of bids.

Insight July 2015

14 | P a g e

The idea is to make SGNP more active towards sharing information pertaining

to nature by having nature trails at different locations like Manpada, Sasupada,

Yeoor, Borivli, highest point, etc. Instead of going to zoo, one will be able to

see different birds and animals at the proposed taxidermy gallery.

Souvenir shop is another feature that will be bettered. The present shop is

outside the park boundary next to the ticketing counter, but is usually missed by

visitors. There's a possibility that the location may changed with additions in the

items on sale by including Warli art and artefacts and other tribal arts.

Adventure sports plans such as rock climbing and rappelling, which have

remained on paper for long, have been included in the project.

In another eco-friendly measure, officials plan to procure 14-seater battery

operated vehicles to ferry visitors. Fifteen such vehicles will be acquired, they

added.

Leopard Safari

Already approved and funds allocated by the Maharashtra government, leopard

safari at SGNP is part of the larger plans of the Forest Department. Currently,

tiger and lion safari exists inside the park. The existing safaris would be

revamped too under this multi-crore plan.

In all, there are 15 leopards housed at the rescue centre apart from the 35 big

cats that are roaming in the wild. During his budget speech, finance minister

Sudhir Mungantiwar had given impetus to ecotourism and announced putting in

place the leopard safari at SGNP. He had also said that the caged leopards will

be part of the leopard safari.

Insight July 2015

15 | P a g e

Learn about nature

As part of the eco-tourism facilities, the periphery or several areas on the

boundary of the SGNP would be developed by way of Nature Interpretation

Centres (NEC) or nature trails.

"Infrastructure is already there at Sasupada of Nagla Block and at other

locations. We just need to refurbish them and start activities. We want people to

come to national park ignorant and leave with loads of information about

nature," said park director Vikas Gupta. Similar features at Manpada and Yeoor

too would be revived to conduct nature trails on a regular basis. Currently the

only Nature Interpretation Centre exists is at Borivali.

Nature trails would go hand-in-hand with the centres as various trek routes

would be revived where forest guides would lead nature lovers into the forests.

One of the trails that are likely to be revived is mangrove walk at Sasupada.

A taxidermy gallery will showcase stuffed animals that are not usually seen

during one's visit to SGNP. Some of the animal and birds include mouse deer,

vulture, leopard, etc.

Food and fun

As part of the upgradation of renovation and development of infrastructure

several new things would come up at the SGNP. Some of these would include

Insight July 2015

16 | P a g e

cafeterias, lake side promenade, better ticket counters, improved souvenir shop,

upgraded mini-train, etc.

First, the main entrance gate where ticket counters are situated will undergo

modernisation. Battery operated vehicles will ferry tourists to certain points.

The boating arena too will witness improvement with plans of developing sit-

outs or lakeside promenade. Mini train – Vanrani – too would be getting an

upgrade of technology. "We will explore the possibility if a better engine can be

brought to haul the mini train," said Gupta.

Three tourist huts and cafeterias too would come up inside the park. At the

moment, there isn't any cafeteria and people from padas or hamlets within the

SGNP sell eatables to the visitors at Kanheri caves and other locations.

There's also a larger plan of watershed management, which will include

desiltation of lakes. It will ensure Mumbai has water for an extra month apart

from conserving environment within the national park boundary.

SGNP mobile app

The aim is to improve SGNP's promotion and make a brand image to attract

more visitors to the park. For this, officials will come up with a mobile app.

Local tourist circuits will be recognised and activated that will be of larger

public interest. While the features of the app are yet to be finalised, it is

expected that in the next few years booking like Kanheri caves, lion and tiger

safari can be through the application.

A greater deal of this mobile application will focus on sharing information

about the flora and fauna of the national park.

Warli/tribal art

Insight July 2015

17 | P a g e

Apart from maintaining a modern outlook, local flavour too would be included

to the national park. The idea is to promote the skills and arts among the

communities residing within the SGNP. There are plans to have Warli paintings

and artefacts at the souvenir shop. Other local tribal art too would find a place

on the shop's stands.

In order to achieve this, skills of local communities would

In order to achieve this, skills of local communities would be honed so that they

can support themselves by finding employment opportunities within the park

including becoming guides for visitors.

G) POINTS UNDER SEVEN CATEGORIES

1) Renovation and development of infrastructure

Modern entrance gate, Roads and drainage system, Public water kiosks, 3

tourist huts, Administrative building, Conference hall, Cafeterias, Lakeside

promenade, Repairing of staircase leading to Pagoda and Gandhi Tekdi, Safari

and boating ticket counters, Souvenir shop, Technology upgrade of mini-train

facility

2) Development of eco-tourism facilities

Developing Nature Interpretation Centres at Borivali, Manpada, Yeoor and

Sasupada, Developing nature trails, Developing mangrove walkway at

Sasupada, Developing Cats , Orientation Centre, Taxidermy Gallery, New

Signage system, Eco-friendly transport system

Machans and Canopy walks Butterfly Park, Landscaping, Developing water

harvesting and storage structures, Desiltation of lakes, ,Children Park,

,Adventure sports Open gymnasium

Sit-outs, Eco-friendly toilets, Developing garbage collection and disposal

facilities

3) Development of safari tourism

Developing existing tiger and lion safari, Developing newly proposed Leopard

Safari,

4) Use of information and communications technology in managing SGNP

Developing mobile Apps, MIS for visitor management,, Security solutions,

Insight July 2015

18 | P a g e

5) Promotion and branding of SGNP

Developing promotional and publicity material, Developing sustainable model

providing, linkages with publicity houses, Facilitating and augmenting local

tourist circuits

6) Promoting livelihood of local communities

Enhancing and imparting skills to local communities to be used as guides and

work for running various facilities, Providing local warli/ tribal art

7) Developing self-sustainable revenue model

Developing commercially viable and self-sustainable concept, Ecotourism

structure assessment and elements of market demand.

---Ateeq Shaikh, DNA

Floods in Gujarat

Much awaited monsoon finally arrived in the month of June and covered the

entire country which otherwise takes Mid July to cover the entire country.

However this monsson in June took its toll on some parts of the country such as

low lying regions of Gujarat.

Gujrat one of the progressive state of india, has overcome the dry climate

conditions with well developed irrigation methods. Major perennial rivers such

as Narmada, Tapi, flows across the state, thus proves to be lifeline of the state.

However there are also temporal rivers which receive water from the monsoon

rains. The topography of Gujarat is so, that majority of region is low-lying

while towards west it is Rann of Kutch. Therefore, Saurashtra is the only

agricultural rich area in Gujarat.

Insight July 2015

19 | P a g e

In the recent times, this physiography is the main cause for floods in the state.

Floods have been recorded in 2013, 2014 too but this year the floods have

caused huge damage to the state especially to the environment.

Insight July 2015

20 | P a g e

2015 Gujarat flood

Deep Depression ARB 02 over the Arabian

Sea shortly before landfall over the coast of

Gujarat on 23 June 2015

Date 23 June 2015–26 June 2015

Location Gujarat, India

Deaths more than 70 dead

Torrential rains battered Gujarat, with peak accumulations of 636 mm (25.0 in)

in Bagasara, 511 mm (20.1 in) in Dhari, and 400 mm (16 in) in Variyav. Severe

flooding ensued across the region, isolating many villages in the Saurashtra

region

In Saurashtra, Amreli district was affected heavily facing worst flood in ninety

years. Nearly 600 villages of 838 village of district were flooded. More than

400 villages were inaccessible as road and rail was washed away due to flesh

flood and they had no electricity. Shetrunji river and its tributaries were flooded.

The railway bridge near Gavadka collapsed and railway line washed away near

Borala village near Savarkundla. Paschim Gujarat Vij Company Ltd (PGVCL)

Insight July 2015

21 | P a g e

declared that 705 electricity poles damaged. In Rajkot district, more than 1700

houses damaged. Jetpur town waterlogged as gates of Bhadar dam were opened.

There was a heavy damage to crops and large number of cattle died. The flood

and heavy rain resulted in more than 70 deaths across Gujarat.

The Gir Forest National Park and adjoining area housing Asiatic lions, an

endangered species with only 523 living individuals documented in May 2015,

was severely affected. Nine lions and more than one hundred and

fifty Nilgai died in flood while dozens are still missing. The carcasses of

several spotted deers, porcupines and wild boar were also found.

Heavy rains, which caused a flood in Gujarat's Saurashtra region, claimed lives

of five Asiatic lions in the Amreli and Bhavnagar districts.

Three lions, including a three-month-old female cub, were killed after they

drowned following heavy rainfall in the Amreli district, while carcasses of two

other lions were found from the Bhavnagar district.

Heavy rains also took a toll of other wild animals like blue bulls, spotted dears,

porcupines and wild boars, the three 'cheetals' (spotted deer), a porcupine and a

wild boar from the forest range. Carcasses of about 150 neelgai (blue bulls)

from the Bhavnagar forest range also recovered.

Rescue and Relief

The state government deployed the Indian Air Force (IAF) and National

Disaster Response Force (NDRF) for rescue and relief operation. On 25 June

2015, IAF helicopters delivered more than 2 lakh food packets to villages

affected by flood. Around 4000 people were evacuated from seventeen villages

downstream of Bhadar dam. More than 200 people were rescued from various

places caught in flood. Chief Minister of Gujarat, Anandiben Patel declared Rs

4 lakh as compensation to the kin of each of the deceased.

Source: Wikipedia,

www.ndtv.com

National Park of the Month

Gir Forest

Also known as Sasan – Gir, it is the sole home to the Asiatic Lions in

India. The ecosystem of Gir, with its diverse flora and fauna, is protected

as a result of the efforts of the government forest department, wildlife

activists and NGOs. The forest area of Gir were the hunting grounds of

the Nawabs of Junagadh. However, faced with a drastic drop in the lion

Insight July 2015

22 | P a g e

population in Gir, Nawab Sir Muhammad Rasul Khanji Babi declared Gir

as a "protected" area in 1900.

Factfile

Name Gir forest sanctuary

Also Known As Sasan – Gir

Located Junagadh, Gujarat

Area 1412 sq. km.

Flora Dry Deciduous Scrub Forests

Fauna Asiatic Lion, Nilgai, Chital,Indian

Leopards

Major Attractions Lion breeding programme, Gir

Interpretation zone, Devalia

Important Days in July

July 11 World Population Day – Population has to be given special attention, as

it is an ever-increasing problem especially in India.

July 29 International Tigers Day – Annual celebration to raise awareness

for tiger conservation, held annually on 29 July. It was created in 2010 at

the Saint Petersburg Tiger Summit. The goal of the day is to promote a global

system for protecting the natural habitats of tigers and to raise public awareness

and support for tiger conservation issues.

**********