From 038bced80497d5daf99d30184aa6db1267750cc3 Mon Sep 17 00:00:00 2001
From: Keerthana-A-V Profit margins peaked for the big techs despite the uncertainties created by the pandemic. Many companies experienced a precarious position but the tech industries shone throughout as they evolved opportunities for people. And since people were quarantined, digital platforms became a necessity for them. Hence, the digital curve accelerated with time without bouncing back, and it seems unstoppable. FAMAG, a well-known acronym for the big techs- Facebook, Apple, Microsoft, Amazon, and Google, showed a substantial increase in its revenues and profits during the second wave. People relied more on social media platforms during the pandemic because it helped them stay in touch with each other. Facebook, one of the many social networking sites, benefitted the most in the global turbulence. During the mid of the second Covid wave, its revenue increased by more than half, causing its profit to double. The tough times forced people to depend on online shopping, deliveries that helped giants like Amazon to perform even stronger. Its extending services, subscriptions, prime memberships, and third-party seller services have helped it to rise to new heights. Owing to the fact that people had to work from home, Microsoft Azure, a cloud computing platform, saw a surge in its services. Thus, it saw an increase in its revenues by one-fifth, which was much higher than any year. "Google is embracing remote work post-pandemic," said Google CEO Sundar Pichai, as its advertising and cloud computing services saw tremendous growth. Consequently, Alphabet, the parent company of Google, saw an increase in its revenues by one-third. Many companies believe that the work-from-home culture will remain prominent so that cloud service providers may continue to reap benefits even after the crisis. While the pandemic strictures were fatal for most economic sectors, the big techs are among the few winners. The stock market has dominated the global market since the beginning of the pandemic. The total value of the S&P 500 in 2020 stands at more than $7 trillion, accounting for almost one-fourth of the index's market capitalization. It is 20% less than before the pandemic. This reflects a shift to an increasingly technology-driven economy that is stimulated by the coronavirus outbreak. The big techs have seen their shares jump by 22% this year, with Amazon flying at 86%. Compared to 2020, the overall stock performance in the S&P 500 to date is less than 4% in 2021. The capitalization of the S&P 500 in 2015 has increased by $6 trillion. Out of this, $4 trillion is from the big six techs: Apple, Facebook, Microsoft, Alphabet, Amazon, and Netflix, up to two-thirds of the total profits in the S&P 500. Since 2015, the index has gained 56.5%. And after 23 March 2021, the index is up to 42.1%, which is approximately three-quarters of the gains of the previous five years. The holdings of major technology companies flew beyond other markets. After months of agony, the group staged a comeback with several tech giants who broke records in recent sessions. Additionally, beyond achieving its first high since January at the start of the week, Apple Inc.'s stock closed at a new high. These few companies can dominate their contemporary companies and set the rules of the global economy. This kind of constant dependency was never seen before. However, this kind of concentrated power is predicted to be dangerous. The rise in shares and profitability of big tech is highlighting their monopoly in the market and triggering competitors. Allegedly, the big techs were trying to either subjugate their rivals or acquire them to grab the market, just like Facebook acquired WhatsApp and Instagram. In addition, they use local media information and publish it on their platform, for which a proper share of revenue is not given to the concerned authorities. The emerging companies are condemned by the big techs, as they manipulate market practices to increase their dominance and suppress their competitors. Like Facebook, it didn't offer sufficient data to show that the world's largest social network is a monopoly. Google has constantly made efforts to monopolize the mobile search market and its power over advertising technology. Play Store is seen as the default app store on Android, although users can also download apps from stores operated by companies like Amazon or Samsung or even install them. The company has loosely forced application developers to use its payment system for purchases made through the Google Play Store. Moreover, the company also paid higher to the app developers to prohibit them from removing their app from its Play Store. They must refrain from using their monopolistic power in a hyper-dominant market position to unlawfully leverage billions of added dollars from small companies' competitors and consumers beyond what should be paid. This illustrates how the concentration of power in a few hands leads to helplessness in the hands of the many. Tech giants leading the world market have come under the suspicion of analysts. Glaring at the uncontrolled behavior of big techs, some countries have formulated rules and regulations. They have proposed legal restrictions on them to promote healthy competition among small, medium, and big companies. For instance, the European Union enacted the Digital Services Act (DSA) and the Digital Markets Act (DMA). These laws regulate intermediary services like social media platforms, internet providers, and e-commerce intermediaries. They also act as a sentry between companies and end-users to provide safety for users' data and create a healthy competitive environment among other companies. On the same lines to proscribe unlawful business practices in the U.S., Antitrust law was formulated in 1890. Under this law, several acts, like the Sherman Act, Free Trade Commission Act, and Clayton Act, promote fair competition and provide economic liberty. The U.S. president, Joe Biden, approved 72 recommendations and actions. These were executive orders to crack down on big tech and other sectors for anti-competitive practices. These orders will not only protect smaller competitors but also protect the consumer's personal information from exploitation. On the other hand, the Indian government had a tussle with Twitter for not appointing India-based nodal officers, compliance officers, and grievance redressal officers. On this issue, the new IT minister of India, Ashwini Vaishnaw, warned Twitter to follow the "law of the land." Otherwise, Twitter could be held accountable for users' content, and lose protection under section 79 of the IT act. In addition, last year, the French finance ministry decided to levy a digital tax on big techs. The country adopted a "digital services tax" bill in July 2019 that imposed a 3% tax on digital turnover for companies whose annual sales exceed €750 million worldwide and €25 million across France. The American tech companies, Google, Amazon, Facebook, and Apple (GAFA) were asked to pay 3% tax on the annual turnover for the year 2020. The U.S. government retaliated and warned of levying up to 100% on $24 billion worth of French goods. Later, France agreed to delay the imposition of the digital tax on American companies. The tax was to be levied on 27 companies including, American, German, French, and Dutch companies. However, it has been delayed due to the political differences between the countries and concerns about the pandemic worldwide. The European Union and the U.S. laws should inspire and motivate other countries to frame laws to regulate the tech giants in their respective countries. This will provide opportunities for small businesses to thrive. Hence, it would help in curbing monopolies across the world. Tech giants leading the world market have come under the suspicion of analysts. Glaring at the uncontrolled behavior of big techs, some countries have formulated rules and regulations. They have proposed legal restrictions on them to promote healthy competition among small, medium, and big companies. For instance, the European Union enacted the Digital Services Act (DSA) and the Digital Markets Act (DMA). These laws regulate intermediary services like social media platforms, internet providers, and e-commerce intermediaries. They also act as a sentry between companies and end-users to provide safety for users' data and create a healthy competitive environment among other companies. On the same lines to proscribe unlawful business practices in the U.S., Antitrust law was formulated in 1890. Under this law, several acts, like the Sherman Act, Free Trade Commission Act, and Clayton Act, promote fair competition and provide economic liberty. The U.S. president, Joe Biden, approved 72 recommendations and actions. These were executive orders to crack down on big tech and other sectors for anti-competitive practices. These orders will not only protect smaller competitors but also protect the consumer's personal information from exploitation. On the other hand, the Indian government had a tussle with Twitter for not appointing India-based nodal officers, compliance officers, and grievance redressal officers. On this issue, the new IT minister of India, Ashwini Vaishnaw, warned Twitter to follow the "law of the land." Otherwise, Twitter could be held accountable for users' content, and lose protection under section 79 of the IT act. In addition, last year, the French finance ministry decided to levy a digital tax on big techs. The country adopted a "digital services tax" bill in July 2019 that imposed a 3% tax on digital turnover for companies whose annual sales exceed €750 million worldwide and €25 million across France. The American tech companies, Google, Amazon, Facebook, and Apple (GAFA) were asked to pay 3% tax on the annual turnover for the year 2020. The U.S. government retaliated and warned of levying up to 100% on $24 billion worth of French goods. Later, France agreed to delay the imposition of the digital tax on American companies. The tax was to be levied on 27 companies including, American, German, French, and Dutch companies. However, it has been delayed due to the political differences between the countries and concerns about the pandemic worldwide. The European Union and the U.S. laws should inspire and motivate other countries to frame laws to regulate the tech giants in their respective countries. This will provide opportunities for small businesses to thrive. Hence, it would help in curbing monopolies across the world. Afghanistan, also known as the 'Central Asian Roundabout', is a crossroads of unresolved paradoxes. The country retreated into peace after the Third Anglo-Afghan War, granting it a stable and peaceful period from 1929 to 1978. These almost 50 years saw culture, skills, and freedom flourishing again for travelers to take back exquisite artifacts, experiences, and the mystical presence of this land. The journey through these valleys tapered mountain folds along the Silk Route, came to be mapped as the Hippie Trail in the 1960s and 70s. Thousands of explorers, mostly in their youth traveled overland from Europe to India, and beyond. Some arrived from Australia through Southeast Asia and advanced back in the opposite direction, while others were trailing from Western Europe and passing through former Yugoslavia, Greece, Bulgaria, Turkey, Iran, Afghanistan, Pakistan, India, and Nepal. Hopping on a Volkswagen to cover these 11,000 kilometers, or trekking and hitchhiking into these life-changing experiences, the assurance of tranquility en-route, kept more coming, the 'Lonely Planet', is an example of a bi-product from the trail and the visionaries it birth. Afghanistan was one of the most popular destinations on the trail - from the folk instrumentality of sound to the authenticity found in traditional pottery, weaving, carvings, paintings, and every sublime expression of mastery for the exploring hearts. Some on the trail managed decent import-export businesses in handmade Afghani wedding coats and quality spices, but overall, the locals and foreigners both believed their major gains were freedom and love. This opening came with some early visitors and rulers instrumental in introducing social reforms and new ideologies to Afghanistan. From Nadir Shah's reign in 1929 to the end of Daud Khan's rule in 1978, many changes were introduced. Mohammed Zahir Shah (1933-1973) was the longest-serving ruler of Afghanistan, he reformed the army and extended diplomatic relations with many countries. A new constitution was adopted under Zahir's rule to promote National unity, and the Afghan National Independence Day known as the 'Jashn' joined the festivals collectively celebrated by the diverse tribes and ethnicities of the land. Afghanistan, in these years, was like any other western country with liberal ideologies that granted education for all and freedom for women to own their expression, including the right to vote, drive and travel; 40% of the doctors and 60% of the professors in Kabul University were women at the time. It was a time when everyone had a moral ambition of aspiration. The Afghans were very understanding and courteous towards foreign visitors, their influence was felt and absorbed strongly through aid, cultural programs, and growing tourism. However, the condition of Afghanistan at present does not bear any resemblance to what it was in the 1960s and 70s. It is claimed that Afghanistan is unconquerable and the 'Graveyard of Empires' for having witnessed the imperial powers submit to their end on this land time and again. Afghanistan's geography has not only been an impediment, but also a lure for conquests owing to the country's strategic geopolitical location. Being at the heart of Asia that links six countries, the Afghan land shares borders with Uzbekistan, Turkmenistan in the North, Iran in the West, Pakistan in the South-East, and Tajikistan and China in the North-East. Afghanistan is home to some of the highest mountains in the world, covering three-fourths of the country's region, occupied by the Hindu Kush at the Center and to the South, and the Pamir Mountains in the East. The Pamir Knot is in Badakhshan, Afghanistan, where the Hindu Kush, Tian Shan, Kunlun, Pamir, and the Himalayas all meet, serving as a natural wall preventing outsiders from entering, and also making connectivity difficult within the country. These labyrinths paired with guerrilla skills have always seen countrymen at an advantage in their fight against the invaders. This terrain, familiar to the local warlords has been enabling defining attacks on main supply roads, less defended bases, and small units that control communications; strengthening the operations by organizing themselves into small, highly mobile fighting groups advancing with unfaltering intent to protect their territory. Imperial arrogance seemed to have forgotten every time that the Afghan land has always been one of the warlords. Starting with the first Anglo-Afghan War in 1839, Russia sent an emissary to Kabul to offer support to the Afghans if they decided to attack Peshawar (an Afghan city that had come under British-supported Sikh rule), the British then sent a strong military force to defeat Afghan forces. British brute and careless provocation gave way to increasing resentment among Afghans, which grew into a rebellion in Kabul on December 23, 1841, after the British cut back subsidy to the Ghilzai tribes. The uprising had substantial support from the local population, and the British were coerced by the rebels to sign the Anglo-Afghan Treaty of 1919, also known as the Rawalpindi Treaty, it denied access to the British beyond the Khyber pass, while subsidies to the Afghans were stopped, it also served as a precursor to a growing friendship between Afghanistan and Russia. Afghanistan continued to be a vital point during the Cold War, with the Soviet Union in the North, and U.S. allies Iran and Pakistan in the East. Americans feared a Soviet push South, and both blocs knew Afghanistan was central to their hold, this saw more investments and infrastructural developments coming into the Nation from these opposing powers. Capitalism and Communism clashed, but paved the way for the acceptance of new ideologies and expression. The Afghans adopted Communism with the acceptance of Nur Mohammad Taraki as their leader and the new Communist President in 1978. A manifesto with some progressive reforms was introduced, however, this new governance foresaw the end of Islam and all mosques to be empty within a year. They were predominantly an atheist regime, and this did not work well with the rest of the Muslim population resisting the communists who were already lashing out with unregulated prison sentences and executions. Russians then decided to enter Afghanistan with military force to support the Afghan Communist Regime, this strengthened the resistance from the local Mujaheddin further. The U.S. then started supplying high-grade military supplies to the Mujaheddin through Pakistan to weaken the communists. The ensuing 10-year war has been "Russia's Vietnam," with the country sending in thousands of troops, spending millions, and eventually withdrawing. As with most empires that enter Afghanistan, too much blood and resources have them overstaying their demise. The Soviet-Afghan war became a humanitarian disaster for the disintegrating Soviet Union by the late 1980s. The decision to finally withdraw their forces was taken by Mikhail Gorbachev when he became the General Secretary of State in 1985, though more time was asked and he granted. The Geneva Accords were signed between USSR, U.S., and Pakistan on Russia's final withdrawal from Afghanistan in 1988. After the Russian Revolution, Afghanistan began to be known as "The Graveyard of the Empires." No foreign power in history has been able to maintain control in Afghanistan owing to its strict adherence to the Pashtunwali, its faith, strong patriotic ideology, and Afghanistan's difficult terrain. Afghans have a strong history of combat, not in the sense of frontlines and open battlefields, but guerrilla warfare. After The Russian forces withdrew, International aid continued to pour in, even from the Soviet Union, this led to growing conflicts and chaos internally, and the Taliban- orphans of the warring Blocs, emerged stronger. The rising of the Taliban appeared as a promise to end local corruption and war in the country, but the result was counterproductive. Gradually, the Taliban conquered several provinces in the Southern and Central parts of Afghanistan in 1994 and quickly extended their influence in the city of Kandahar, taking control of Herat in September 1995. The militant group developed enough strength to expand its control throughout the country. In September 1996, the Taliban attacked the residential areas of Kabul with the military support of Pakistan and financial support of Saudi Arabia. As a result, the Taliban emerged and took control of the capital Kabul by overthrowing the regime of President Burhanuddin Rabbani. They were also influenced to rename the country as the "Islamic Emirate of Afghanistan." The Taliban especially targeted civilians of the Hazara community or Shia Islamists. In 1998, the Taliban executed approximately four thousand civilians from this community and tortured many more in Mazar-E-Sharif. From 1996 to 2001, the Taliban took control over one-third area of Afghanistan, and their enforcement of Islamic laws resulted in a massacre against the Afghan people. The Taliban denied UN food supplies, destroyed thousands of homes, and burned vast areas of land in Afghanistan. The Taliban imposed a strict interpretation of Sharia law, which included punishments such as public executions and amputations of body parts. During that period, they banned all forms of entertainment, including television, the media, photography, cinema, painting, movies, music (except daf, a type of drum), etc. The group committed human rights violations, particularly against women, such as forbidding them from working outside, attending schools, coming outside of their home unless accompanied by a male member. By the end of 2000, the Taliban managed to control about 95% of the country while receiving continued resistance from Northern Alliances in the Panjshir Valley. After the 9/11 attack, the United States deposed the Taliban from power in Afghanistan in less than two months. Furthermore, the U.S. bombing and massive defections successfully blocked the Taliban and restricted them to a small region around Kunduz. In 2009, the counter insurrection accelerated with the decision by Barack Obama to send the U.S. troops to Afghanistan. After the U.S.-led forces overthrew the Taliban government, people made great strides in Afghanistan. And in August 2021, the Taliban regained power when the U.S. troops withdrew from Afghanistan. Following the fall of the capital Kabul, the Taliban re-captured Afghanistan on 15th August 2021. Afghan people were in fear of losing their liberty and these concerns are apparent, as the Taliban have already started imposing old restrictions. They have formulated dress and public behavior standards for women and prohibited their employment and movement in public places. They have also tortured journalists for covering protests in Kabul, they again made it compulsory for women to wear burqa outside their home, failing to do so would amount to harsh punishment, they also declared they would punish unmarried men and women if seen together. The Taliban are inspecting all the checkpoints, driving around heavily armed in pickup trucks and humvees. Thousands of people were seen racing to flee the country from the Kabul airport. The U.S. and some other nations sent military helicopters to evacuate their citizens and embassy personnel from Afghanistan. The militants moved inside the presidential palace in Kabul, declaring the restoration of the Taliban. The Afghan President also flew away as he asserted that he wanted to save Kabul from bloodshed. Half the population is hiding behind closed doors, and this is the new Afghanistan in 2021. Afghanistan's economy is at a standstill under the Taliban regime, with the country's internal banking system completely frozen. The Biden administration officially declared that any financial institutions' assets belonging to Afghanistan within the U.S. won't be made available to the Taliban. Similarly, the U.S. Federal Reserve and International Monetary Fund (IMF) have also frozen all of Afghanistan's foreign exchange reserves and their access to IMF resources to restrict the misuse of these funds by the Taliban. There's a crowd of local afghans outside the banks regularly as they are not allowing them to withdraw their money. People living there are at high risk due to poor health facilities, and the Taliban has banned the COVID-19 vaccination in the country. With no economic activity and zero financial sustainability, people are selling their household items to avoid starvation. The suffering for the Afghans seems indefinite. However, there are some people who are not scared of the terrible situation in Afghanistan and are trying to fight back and help however they can. Farhan Hotak, who not only helped his family flee from Afghanistan to Pakistan but many others in need too. At the age of 22, he first made sure that his family was safe and then he returned to help others. In addition, he is keeping a very keen eye on his crypto portfolio because the local currency has touched new lows. Although Afghanistan still works on a cash economy, his crypto gives him peace of mind during these unstable times. The rising of the Taliban appeared as a promise to end local corruption and war in the country, but the result was counterproductive. Gradually, the Taliban conquered several provinces in the Southern and Central parts of Afghanistan in 1994 and quickly extended their influence in the city of Kandahar, taking control of Herat in September 1995. The militant group developed enough strength to expand its control throughout the country. In September 1996, the Taliban attacked the residential areas of Kabul with the military support of Pakistan and financial support of Saudi Arabia. As a result, the Taliban emerged and took control of the capital Kabul by overthrowing the regime of President Burhanuddin Rabbani. They were also influenced to rename the country as the "Islamic Emirate of Afghanistan." The Taliban especially targeted civilians of the Hazara community or Shia Islamists. In 1998, the Taliban executed approximately four thousand civilians from this community and tortured many more in Mazar-E-Sharif. From 1996 to 2001, the Taliban took control over one-third area of Afghanistan, and their enforcement of Islamic laws resulted in a massacre against the Afghan people. The Taliban denied UN food supplies, destroyed thousands of homes, and burned vast areas of land in Afghanistan. The Taliban imposed a strict interpretation of Sharia law, which included punishments such as public executions and amputations of body parts. During that period, they banned all forms of entertainment, including television, the media, photography, cinema, painting, movies, music (except daf, a type of drum), etc. The group committed human rights violations, particularly against women, such as forbidding them from working outside, attending schools, coming outside of their home unless accompanied by a male member. By the end of 2000, the Taliban managed to control about 95% of the country while receiving continued resistance from Northern Alliances in the Panjshir Valley. After the 9/11 attack, the United States deposed the Taliban from power in Afghanistan in less than two months. Furthermore, the U.S. bombing and massive defections successfully blocked the Taliban and restricted them to a small region around Kunduz. In 2009, the counter insurrection accelerated with the decision by Barack Obama to send the U.S. troops to Afghanistan. After the U.S.-led forces overthrew the Taliban government, people made great strides in Afghanistan. And in August 2021, the Taliban regained power when the U.S. troops withdrew from Afghanistan. Following the fall of the capital Kabul, the Taliban re-captured Afghanistan on 15th August 2021. Afghan people were in fear of losing their liberty and these concerns are apparent, as the Taliban have already started imposing old restrictions. They have formulated dress and public behavior standards for women and prohibited their employment and movement in public places. They have also tortured journalists for covering protests in Kabul, they again made it compulsory for women to wear burqa outside their home, failing to do so would amount to harsh punishment, they also declared they would punish unmarried men and women if seen together. The Taliban are inspecting all the checkpoints, driving around heavily armed in pickup trucks and humvees. Thousands of people were seen racing to flee the country from the Kabul airport. The U.S. and some other nations sent military helicopters to evacuate their citizens and embassy personnel from Afghanistan. The militants moved inside the presidential palace in Kabul, declaring the restoration of the Taliban. The Afghan President also flew away as he asserted that he wanted to save Kabul from bloodshed. Half the population is hiding behind closed doors, and this is the new Afghanistan in 2021. Afghanistan's economy is at a standstill under the Taliban regime, with the country's internal banking system completely frozen. The Biden administration officially declared that any financial institutions' assets belonging to Afghanistan within the U.S. won't be made available to the Taliban. Similarly, the U.S. Federal Reserve and International Monetary Fund (IMF) have also frozen all of Afghanistan's foreign exchange reserves and their access to IMF resources to restrict the misuse of these funds by the Taliban. There's a crowd of local afghans outside the banks regularly as they are not allowing them to withdraw their money. People living there are at high risk due to poor health facilities, and the Taliban has banned the COVID-19 vaccination in the country. With no economic activity and zero financial sustainability, people are selling their household items to avoid starvation. The suffering for the Afghans seems indefinite. However, there are some people who are not scared of the terrible situation in Afghanistan and are trying to fight back and help however they can. Farhan Hotak, who not only helped his family flee from Afghanistan to Pakistan but many others in need too. At the age of 22, he first made sure that his family was safe and then he returned to help others. In addition, he is keeping a very keen eye on his crypto portfolio because the local currency has touched new lows. Although Afghanistan still works on a cash economy, his crypto gives him peace of mind during these unstable times. The pandemic has made its presence felt globally, but the effects of this presence have been distributed unevenly. Some social minorities have had to brave more severe consequences, while others have had ancient wisdom and a humanitarian foresight to keep the torch ignited for the collective. Either way, the spotlight that these two parallel pillars deserve was granted to them by the pandemic. The ancient knowledge and harmony that some indigenous cultures have managed to preserve can offer great insights and solutions to handle many practical and emotional vulnerabilities of these times and beyond by not denying them, but rather turning the same vulnerabilities into the strength of trusting what is not familiar, and respecting that which has always been there for us to nurture and be nurtured by. The pandemic brought online, circles and gatherings offered by and for the indigenous communities to connect more deep and organic with the world community, so both the sides could benefit equally from the sharing. Many spontaneous initiatives to contradict the limitations of the crisis were born, to only grow from here. In Cachar district in the state of Assam, India. A small group of boys aged 14-25, shared a common interest in cricket, and used WhatsApp group for scheduling their matches, but, when the lock-down was imposed, they came to know about issues being faced by people of this area, embarking them on a mission to assist their community. The group first organized funds by sharing links to UPI-based applications like Google Pay at local medical and supply stores. In the beginning, they delivered 50-60 packets of ration to the needy, in some time, with better management and recruitment of volunteers they began to reach a large number of people. Further, they were supported by the elders of their community, and till today they are working to provide resources to the needy, daily wage earners, migrants, tea garden laborers, and beggars in their area. A small change of attitude can light up the entire society. By the same token, in remote villages of Odisha state when weaver communities were impacted by the pandemic and their income was forced to closure, they utilized their weaving skills in mask manufacturing, these masks were made with 'Ikat', a distinctive fabric dyeing method consisting of natural fabric that creates a beautiful design on clothes, a tradition being passed on through generations by these weaver communities in Odisha. Moreover, these masks were sustainable, handmade, and reusable, and with the help of PARINAMA and RYTHM Foundation, they were able to fulfill an order of 30000 masks for QNET. This not only supported a particular community, but gave natural and sustainable protection to many during the pandemic. David Sanchez from Colombia worked with his team "Colombia help" teaching the countryside people self-dependency for survival - like cooking, skill development, and production for a living, he is also helping them to export their products now. Linda Kemoli from Kenya began spreading Covid-19 awareness at its onset, as most of them did not have an internet connection and not even electricity, she trained the ones who had access to it so they could teach others through visual activities explaining to them how the world was before the pandemic, during this pandemic, and what they can do to better prepare for a world after the pandemic. These interactions also provided everyone participating with the opportunity to share insight and exchange opinions, traditional knowledge and technological advancements that can be merged for better living in times to come. These are just some of the authentic nuances from the many that are shaping more self-reliant lives for an equitable movement forward. Economics for a common good is the core motivation fueling new economic models. "Generative Economy" - introduced by Marjorie Kelly, is a living socio-economic design aligned with solutions focused on the cradle to grave approach. Rich in biodiversity and not limited by mono-culture, generative economy's main purpose is to sustain fair and just conditions that benefit all layers by organizing the structure and objective of the living body or community as a whole. Regenerative economics begins with giving respect to source capital - sun and earth. Though complex in the fact that humans are the driving force, regenerative economy has the ability to operate at a consciousness higher than other non-holistic and linear systems, given to its deeper understanding of ecological patterns and principles while integrating valuable wisdom from traditions in present systems to meet changing dynamics and supporting balanced participation and collaboration. According to Charles Eisenstein, 'Scarcity is built into the money system,' in Sacred Economics, he talks about how we didn't earn anything that keeps us alive, the air we breathe is a gift, and so is life itself, and therefore, the most important skill we can own, is gratitude. With grace we can continue giving and receiving, in a gift economy - the surplus that we have is shared with who needs it, there is no competition or insecurities to feel any lack. A Circular Economy is based on the 3R's- Reduce, Reuse and Recycle; where resource use is minimized and reuse of products is maximized to create a close-loop system. It's confirmed! Current systems of money are insufficient and lob-sided. Progress has been restricting itself with different faces of ruling classes, bureaucracy and governance. And now these restrictions are shifting. Decentralized financial (DeFi) systems are already enabling alternatives a step closer towards a fair economic environment. According to the P2P Foundation, "Society is shifting from a system based on value created in market through labor and capital, to a system that recognizes broader value streams such as social and creative value generated online. The rise of new types of value generated by commoners working outside of typical market structures - is forcing us to go beyond the simple equation of price = value." A truly developed society does not cater only to the needs of a few, but to the needs of the society as a unit. Doughnut economy envisions economic humanity, it is said to be far more inclusive than other parallel economies and is being discussed by governments worldwide. The doughnut economy model consists of two rings where one forms a social foundation so that nobody is left out and the other one is a ceiling ring to make sure that it doesn't overshoot planetary boundaries. The doughnut is at the core. Doughnut economics proposes an economic mindset that's fit for the challenges of the present world, It's this very creative thinking that makes this unique and logical; drawing insights from various complex economies and beliefs, it presents itself as a comprehensive model, focused on the big picture, and not limited to a Gross Domestic Product (GDP). Bhutan, a small kingdom in the Himalayas was far more foresighted than the rest of the world to mandate in 2008, (GNH) Gross National Happiness as a measure instead of GDP, for National Development. Today it is the only carbon-negative country in the world. Collaboration can be experienced as a science and art of life, 'we are not constant, we are an arrow in flight, the sum of the angles of change', and this dynamic constant is a product of our interactions within and out, human conditions are forever transforming, so to live without a sense of being grounded with respect to inter-dependability stiffens individual and collective purpose and well-being. The pandemic has displayed some positive patterns in re-building a sense of collaborative responsibilities, bringing the world closer into understanding our short-comings and strengths to build on for a resilient future. From art and cultural collaborations on-line to exploring International support mechanisms and relationships; collaborative efforts continue to keep hope ignited, one lamp, torch, lighter at a time. It has been noticed that cross-collaboration leads to a decrease in the collective healthcare risks that are difficult to manage independently. Sharing experiences, ideas, and knowledge, accelerates productive ties and implementation, and providing support standards increases the impact of research in development, while building mutual trust and understanding. A holistic approach to any given problem always serves better, specially when it's the collective well-being in concern. The pandemic has been another reminder that self-satiation can never satisfy sustainably, and neither can wealth ever be health, and our environment and local communities are not independent of one another. As the Greek philosopher, Socrates once said, "A part of us can never be well unless the whole is well." Therefore, the only way forward from all the ignorance so far, is to see the solutions through together. Flexible leadership, inclusive cooperation, equality, and just decision-making are all important for healthy resilience planning, which should become central to communities, Nations and all fellow beings. 'Resilience planning', includes personal responsibility in making the right decisions and supporting positive collaborations. Our relationship with the environment and how we interact with what we produce and consume are all important for future resilience. With as many solutions to disease as we have found, we must also nurture a healthy relationship with our bodies - physical, emotional and spiritual, as this is the core collaboration that is going to raise the collective consciousness to empower all other collaborative efforts more, and these preventive solutions will continue strengthening resilience further. Many initiatives are encouraging free learning sessions, sharing spaces and dialogues to assist this movement of self-empowerment, while raising funds to direct them where they are needed. Collaborative efforts at every layer, from the grassroots up are re-aligning our world into one we create and nurture, assuaging insecurities and vulnerabilities along the way, claiming the human rights that have gone neglected, while dissolving outdated oppressive structures now frail and crumbling. Art is the most beautiful expression of human emotions and this space for freedom to express raises collective consciousness, it gives the most vulnerable sections of society a voice and an element of respect, while serving as a channel for learning and healing to tackle many issues like violence, harassment, etc. The pandemic has created many safe spaces for alternate voices and these discussions and sharing allow more creative solutions to real-world contradictions. For many, art has been the breath they could count on to keep serving the suffocating reality that was erupting around them. Many doctors began to create an alternate reality on their canvases and screens. "At a time when viruses can seem unknowable and scary, turning them into decorations, and including non-pathogenic viruses, is a reminder that viruses are only another part of the natural world." - Ed Hutchinson, lead of the molecular virology group at MRC. Sharing spaces allows us to go beyond our comfort zones, exchange thoughts, and cooperate, even if sometimes only possible electronically; this has been made possible by the generous spirit of thousands of individuals who read, watch, listen to, and respect artistic expression, particularly now. This outpouring of support reflects that a creative life is vital to society. It is essential to seek purpose in life during such moments, and self-expression and self-exploration through any creative channel creates a fluid space for new ideas to create new experiences. Keeping in mind the inalienable role of expression for serving human rights, UNESCO has issued guidelines to promote and protect freedom of expression through electronic mediums to encourage regional art and culture, individual artists, and cultural activists. Many artists have been performing to raise funds during the pandemic, while children are now strumming and drumming with their parents more. The spaces created by unscheduling and absent rush hour distractions are finding the rhythm for unbound expression that our global family is always there to celebrate. Art is the most beautiful expression of human emotions and this space for freedom to express raises collective consciousness, it gives the most vulnerable sections of society a voice and an element of respect, while serving as a channel for learning and healing to tackle many issues like violence, harassment, etc. The pandemic has created many safe spaces for alternate voices and these discussions and sharing allow more creative solutions to real-world contradictions. For many, art has been the breath they could count on to keep serving the suffocating reality that was erupting around them. Many doctors began to create an alternate reality on their canvases and screens. "At a time when viruses can seem unknowable and scary, turning them into decorations, and including non-pathogenic viruses, is a reminder that viruses are only another part of the natural world." - Ed Hutchinson, lead of the molecular virology group at MRC. Sharing spaces allows us to go beyond our comfort zones, exchange thoughts, and cooperate, even if sometimes only possible electronically; this has been made possible by the generous spirit of thousands of individuals who read, watch, listen to, and respect artistic expression, particularly now. This outpouring of support reflects that a creative life is vital to society. It is essential to seek purpose in life during such moments, and self-expression and self-exploration through any creative channel creates a fluid space for new ideas to create new experiences. Keeping in mind the inalienable role of expression for serving human rights, UNESCO has issued guidelines to promote and protect freedom of expression through electronic mediums to encourage regional art and culture, individual artists, and cultural activists. Many artists have been performing to raise funds during the pandemic, while children are now strumming and drumming with their parents more. The spaces created by unscheduling and absent rush hour distractions are finding the rhythm for unbound expression that our global family is always there to celebrate.
- Upvote
-
-
- Upvote
-
-
- Upvote
-
-
- Upvote
-
-
In an advanced economy, the Reserve Bank of India is probably the only central bank that decides how many branches a bank can open and what ATMs can do. It also decides whether SMS is required to be sent after a transaction. Small operational decisions like what products to offer, what rates to offer, which usually should be performed inside the bank, all must be approved by the Reserve Bank of India. To grow innovation, creative destruction is an essential condition. Newer forms of banking must emerge in marketplaces freely and offer better and efficient services challenging the incumbent. Thus, newer and multiple choices are offered to customers that would force the incumbent to make rapid changes in response. If the incumbent is too slow and becomes fossilized, it must fail. If failure is not permitted, then the system freezes, and innovation stops. The Western World sees massive innovations in the banking sector driven by common people like independent third-party ATMs in stores and petrol stations, pure online banks, narrow functional banks, and the multitude of credit and investment products, none of which go to the Central Bank for approval. In India, if Times Group launches an innocuous international money transfer service using Bollywood actor, Amitabh Bachchan as a brand ambassador, it gets shut down instantly by the RBI. -With a past record of being an agency actively opposing innovation Reserve Bank of India asphyxiates innovation due to a lack of other oxygen Experimentation Space. Our entrepreneurs should be making consistent innovations and newer experiments, challenging the status quo all the time. But the dark monster in the room called the Reserve Bank of India will never allow it, as two young entrepreneurs in Bangalore found out after being thrown into prison for creating a cash dispensing machine for their own customers. How can the soul of society even tolerate the consideration of a prison sentence for entrepreneurs wanting to improve customer/consumer experience? It is anything but fair that entrepreneurs of India go to prison for innovation in the blink of an eye, when western entrepreneurs can bump even the sitting President of their country, off their platform. It takes no genius to recognize that if bureaucrats are put in charge of innovation, we get neither innovation nor stability. As, is evident by the decay of the banking sector in the peak years of Indian economic growth. From 2000 to 2020, when the Indian Economy was making ravishing strides, our banks were getting saddled with bad debts almost to the point of extinction unless taxpayer's money bailed them out. How ironic? To reclaim the innovative spirit of Indian society in the banking sector, the Reserve Bank of India has to step back. We are a culture that has been provided leading innovation for centuries, and even now our people run the largest corporations in the world with a finesse that is unrivaled. Our nationalization experiment has failed. Our 1935 Central Bank experiment has failed. It is time to recognize the obvious. India needs to rediscover the inner spirit in the banking and finance sector. We need to rejuvenate our souls. We need ordinary people to be empowered by freedoms that can permit creative destruction and experimentation space without fear or favor. If a choice needs to be made between the Reserve Bank of India and Cryptocurrencies, the decision is very obvious.
The world stock markets never foresaw Evergrande facing such a big crisis. Problems started looming over the grande company last year when the real estate sector was adversely affected by the pandemic, increasing Evergrande's debts like never before. The crisis affected the company to such an extent that the company had to send a warning to its investors. It was facing a liquidity crunch, and it had left them without money to pay off its debts. Later, when Evergrande was questioned, it denied warning any of its investors. Another big reason for its downfall was its expansionary moves spread in a wide range of different categories like vehicles, food parks, groceries, dairy products, and many more. Their proliferation reportedly caused the company to continually borrow money from the market and eventually going into debt. Their situation worsened when China launched a crackdown to curb down the borrowing costs of developers and placed ceilings on their debt. As a result, the Bank of China had drafted three red lines for property developers that affected them severely. And the companies that failed to comply with those lines were not allowed to borrow from banks. Under the pressure of complying with these guidelines, Evergrande sold many unfinished projects to consumers that brought down the property rates to a huge extent. This cash crunch and the inability to pay back its investors has thrown serious questions at the company that was once the biggest real estate company in China. As of September 23, 2021, an interest payment of about 120 million dollars to the bondholders was unpaid. Similarly, according to some reports, 669 million dollars in coupon payments are due by the end of 2021.
The contagion risk that has taken place in the sprawling real estate developer is concerning the Chinese economy. There are several consequences of Evergrande's probable collapse. Firstly, the banking industry would be triggered and it could lead to an adverse affair in China. According to Mattie Bekink from the Economist Intelligence Unit (EIU), "Evergrande owes money to around 121 financial firms and 171 domestic banks." Therefore, if the company defaults, there will be economic contagion risk for the banking sectors of China. Also, if Evergrande falls flat, banks may be forced to lend a minimal amount that could lead to a situation of credit crunch. Secondly, many companies around the globe are also at risk because they share business relations with Evergrande. In addition, construction and design firms are also at risk of inducing major losses that could lead them to a state of liquidation. This may also demoralize foreign investors who could have their business relations with China. Thirdly, the contagion in the property sector will badly affect the home buyers, investors, and suppliers. People have already paid deposits for their under-construction properties and plots. Thus, they could potentially lose their investment after the collapse. In September 2021, the homebuyers and investors protested for their repayment of loans. Reportedly, around a hundred investors broke out at Evergrande's headquarters in Shenzhen. These traumas are contributing to an overall slowdown in China's economic growth. According to a report from Barclays, the company has an estimated 800 unfinished projects across China, and as many as 1.6 million people are waiting to move into their new homes. Possibilities are that Evergrande's binge on the debt will threaten China's economy.
The piling debts are becoming unmanageable for the company. The fallout of Evergrande is approaching a financial mess and weakening the economy of China. According to the Bank of America, Evergrande sold about 200,000 housing units and did not hand them over to their buyers. A disorderly collapse of Evergrande can lead to financial instability as the company solely holds about 14% of GDP in China. People who have invested money in the properties committed by Evergrande are completely devastated owing to their ruined hopes of a house. When the investors demanded to return their investments and financial products, the founder of Evergrande tried to reassure them that their homes would be ready on time. The investors believe that the government will guarantee the delivery of the houses. Some analysts believe that the government will have to invest money in Evergrande to continue the leftover construction and sell those residential properties to pay off the debts. And with the financial support of the government, the company could become a part of SOEs (state-owned enterprises). Speculations are regarding the nationalization of Evergrande, restructuring of the company into separate entities backed by the SOEs. To stop the deepening crisis of Evergrande, people hope for the government to intervene and limit the collapse of the real estate conglomerate. These speculations became uncertain when the authorities asked the local government to prepare for Evergrande's potential downfall. There are speculations that the World Bank will limit large amounts of loans to companies in the future. However, some economists believe that the bank and bank holders will probably lose money if Evergrande restructures its debt, knowing that Beijing has the sources to avoid a credit crunch in China. The clampdowns caught the attention of a Swiss central bank that volunteered to monitor the situation. The Chairman of Swiss National Bank, Thomas Jordan, said: "Evergrande should not be dismissed as a local problem because these issues could unsettle markets." In September 2021, the People's Bank of China injected liquidity for three sessions in a row. It is thus fueling expectations that the government would want to save Evergrande.
Most of the major market indexes have been falling due to concerns about Evergrande Group and the impact it could have on China's economy as well as the global economy. Evergrande Group shares have dropped lowest this time in the past 11 years. Shares in the company's property management and electric car divisions have also fallen a lot as the real estate conglomerate struggles to raise the millions of dollars needed to pay interest to its lenders over the next few days. Evergrande's shares will continue to drop because no other option appears to be helping the firm alleviate its liquidity problems. According to sources, there are still unresolved questions about what the company will do in the event of a restructuring. Investors are making assumptions on whether the Chinese government will assist in bailing out the company, whose collapse will undoubtedly have an impact on the global economy. Investors are concerned that the collapse of the real estate behemoth would pose significant risks to China's financial stability and economic growth. Many are concerned that losses will force bondholders to sell other investments or sell risky securities to raise cash, harming markets that appear unrelated. Some analysts are even referring to it as China's Lehman Brothers moment, relating to the 2008 collapse of the US investment bank that clearly indicated the onset of the global financial crisis. However, the likelihood of such broader financial consequences is low. If the firm is unable to pay its dues, there will be tremors in the foreign financial markets, but they will be short-lived. Evergrande has $18 billion in impending foreign-currency bonds, with Chinese banks holding the majority of them. China's banking system is said to be capable of absorbing defaults, with an annual profit of 1.9 trillion Yuan and reserves of 5.4 trillion Yuan against bad loans. Analysts believe that even a chaotic developer collapse would just have a minor global impact. Even if it were the first of many property developers to fail in China, it is anticipated that a policy failure would be required to create a major slowdown in the country's economy. Many feel that the crypto market's recent slump was impacted by the same, as investors scrambled to liquidate their crypto holdings. The Chinese Central Bank, on the other hand, has poured 120 billion Yuan ($19 billion) into the financial sector in the hopes of rescuing Evergrande. China's default on Evergrande might be costly, and many experts forecasted that the country would do all in its power to prevent the company from failing, and their predictions tend to come true. With Evergrande considering a bailout, the crypto market could see a bearish to bullish trend flip. China has begun to inject stimulus into its financial system, and the end of September might see the bulls return to the crypto market. Because the crypto market has historically been bullish in the fourth quarter, the start of October could assist the market in resurging to its bullish ways, as it did in August.
Most of the major market indexes have been falling due to concerns about Evergrande Group and the impact it could have on China's economy as well as the global economy. Evergrande Group shares have dropped lowest this time in the past 11 years. Shares in the company's property management and electric car divisions have also fallen a lot as the real estate conglomerate struggles to raise the millions of dollars needed to pay interest to its lenders over the next few days. Evergrande's shares will continue to drop because no other option appears to be helping the firm alleviate its liquidity problems. According to sources, there are still unresolved questions about what the company will do in the event of a restructuring. Investors are making assumptions on whether the Chinese government will assist in bailing out the company, whose collapse will undoubtedly have an impact on the global economy. Investors are concerned that the collapse of the real estate behemoth would pose significant risks to China's financial stability and economic growth. Many are concerned that losses will force bondholders to sell other investments or sell risky securities to raise cash, harming markets that appear unrelated. Some analysts are even referring to it as China's Lehman Brothers moment, relating to the 2008 collapse of the US investment bank that clearly indicated the onset of the global financial crisis. However, the likelihood of such broader financial consequences is low. If the firm is unable to pay its dues, there will be tremors in the foreign financial markets, but they will be short-lived. Evergrande has $18 billion in impending foreign-currency bonds, with Chinese banks holding the majority of them. China's banking system is said to be capable of absorbing defaults, with an annual profit of 1.9 trillion Yuan and reserves of 5.4 trillion Yuan against bad loans. Analysts believe that even a chaotic developer collapse would just have a minor global impact. Even if it were the first of many property developers to fail in China, it is anticipated that a policy failure would be required to create a major slowdown in the country's economy. Many feel that the crypto market's recent slump was impacted by the same, as investors scrambled to liquidate their crypto holdings. The Chinese Central Bank, on the other hand, has poured 120 billion Yuan ($19 billion) into the financial sector in the hopes of rescuing Evergrande. China's default on Evergrande might be costly, and many experts forecasted that the country would do all in its power to prevent the company from failing, and their predictions tend to come true. With Evergrande considering a bailout, the crypto market could see a bearish to bullish trend flip. China has begun to inject stimulus into its financial system, and the end of September might see the bulls return to the crypto market. Because the crypto market has historically been bullish in the fourth quarter, the start of October could assist the market in resurging to its bullish ways, as it did in August.