Taller men ‘make more money’

Washington, July 13 (ANI): Taller men are able to earn more money than their shorter counterparts, according to a study.

The study suggests that taller people make more money simply because they are perceived to be more intelligent and powerful.

The study, conducted in Australia, found that men who are 6-foot tall had annual incomes nearly 1,000 dollars more than men two inches shorter.

“Our estimates suggest that if the average man of about 178 centimetres [5 feet 10 inches] gains an additional five centimetres [2 inches] in height, he would be able to earn an extra 950 dollars per year – which is approximately equal to the wage gain from one extra year of labour market experience,” Live Science quoted study co-author Andrew Leigh, an economist at the Australian National University, as saying.

Arianne Cohen, author of ‘The Tall Book’ said: “The truth is, tall people do make more money. They make 789 dollars more per inch per year.”

Cohen says there’s nothing else that differentiates these people other than their height.

“They’re not nicer. They’re not prettier. They’re not anything else. But they’ve sort of gotten a halo in society at this point,” Cohen said.

Cohen crafted out her book using a 2003 review of four large U.S. and UK studies led by Timothy Judge, a management professor at the University of Florida.

Judge and his colleague concluded that someone who is 7 inches taller – for example, 6 feet versus 5 feet 5 inches – would be expected to earn 5,525 dollars more per year.

Height was found to be more important than gender in determining income and its significance doesn’t decline with age.

Judge said that being tall might boost self-confidence, helping to make a person more successful and also prompting people to ascribe more status and respect to the tall person.

Of course all such studies generate averages. A shorter person can certainly beat the odds, and not every tall person is raking it in.

Cohen says the pay advantage is conferred partly because taller people tend to exude leadership.

“Tall people tend to act like a leader from a very young age because other children relate to them like a slightly older peer. In the workplace, when you’re automatically acting as a leader, that’s really important when it comes time for promotion,” she said.

The study has been published in The Economic Record by Wiley-Blackwell. (ANI)

Scanty rains ring alarm bells in Agra

Agra, July 9 (IANS) Poor agricultural yields, high irrigation costs and exorbitant prices of essential commodities – all this and more are causing alarm bells to ring as parts of western Uttar Pradesh are facing “drought-like” conditions. Farmers are concerned about the lack of action by the government.
The Agra division, which comprises the districts Mathura, Firozabad, Mainpuri, Etah and Agra, and the adjoining Aligarh division have yet to receive significant rain this year.

“Sowing has been delayed already, the yield will be poor, input costs and irrigation costs will shoot up, resulting in skyrocketing prices of essential commodities which will make life tough for the agricultural wage earners or the landless. We are definitely in the grip of a very serious crisis,” agricultural economist B.B. Barik told IANS.

“Unfortunately the government machinery has its lop-sided priorities and has not yet finalized its emergency plan to tackle the drought,” he added.

Across western Uttar Pradesh, at least 30 districts have been impacted by the prevailing dry conditions.

“A few scattered showers have been there but are hardly sufficient to start agricultural operations,” said Barik.

In Agra the situation has taken a grim turn, as of the more than 30 check dams and reservoirs in the district, only a few have a little water while most are dry. The water level in the biggest of them all, Tereh Mori dam in Fatehpur Sikri, is zero and so are the Utangan and Khari rivers. More than 700 community ponds in the districts are dry. What will happen after a couple of months is a question that is worrying farmers.

Sachchendra Kumar Singh, a farmer, said: “the situation is truly alarming. The water scarcity has affected the crops. The fields are dry and the standing summer crop has been partially scorched.”

“Government agencies should have woken up and done something to ensure that farmers did not suffer,” said Surendra Singh Chandel of Kachchpura village.

“These government agencies have squandered thousands of crores on the Taj Trapezium and other useless projects. If that money had gone on developing infrastructure, sprinklers and drip irrigation systems, the results would have been encouraging.

“The sad part is that the official machinery has not yet woken up to the fear of the farmers. If it rains in a few days or a low pressure area is created, there could be some relief in store, but if that doesn’t happen, we are in deep trouble for sure,” Chandel warned.

In 51 years British economy contracts at fastest rate

June 30th, 2009 – 6:20 pm ICT by IANS

London, June 30 (IANS) The British economy shrank by 2.4 percent in the first quarter – the fastest rate of shrinkage in more than 50 years, according to official figures released Tuesday.
The Office for National Statistics (ONS) said the contraction between January and March was the fastest since 1958.

The ONS said construction output was revised down from -2.4 percent to -6.9 percent in the first quarter.

The services sectorof the British economy, accounting for more than two-thirds shrank by 1.6 percent and industrial output was down -5.1.

The ONS said the British recession started earlier than first thought last year – it began during the second quarter of 2008 rather than during July to September, so that the recession has now been running for a whole year.

Andrew Goodwin, senior economic advisor to the Ernst & Young Item Club, said “We had expected a downward revision to GDP, given the plunge in construction output since the last quarter, but the scale of revision comes as a real shock, and highlights the extreme weakness of the economy in the early months of the year,”

chief European economist at Capital Economics onathan Loynes, said, “The average GDP growth in 2009 now looks likely to be -4 per cent or weaker rather than the -3.5 per cent we previously expected,”

Radio Pakistan sees Indian Punjab, Pakistan’s mirror image

p
Abohar, June 22 (ANI): The Punjabi Durbar programme of Radio Pakistan is seeing Indian Punjab similar to what is existing in Pakistani portion of the State. /pp
This was evident when one heard the latest Punjabi Durbar programme, which alleged that the Congress-led Government at the centre doesn’t pay attention towards the poor people and instead favours the rich people, thus causing the poor become poorer and rich get richer. /pp
The producers of the programme would like all listeners to believe that at a time when global financial downturn has affected almost all countries, causing a number of banks and companies to go bankrupt, India too is going through a difficult time./pp
Pawan Kumar Bansal, an economist in Abohar, said: The Indian economy has remained balanced. The poor people of India have established good sources of income for themselves. They are making good money. The statements made by Pakistan are completely wrong because our country is experiencing growth in every sector. /pp
At the time of our independence, we had very little resources because at that time the England was ruling over us. But the situation has changed, the per capita income has increased and a number of big industries have been established, he added. /pp
Perhaps the broadcasters of Radio Pakistan need to see how India has progressed and the Governments of the day have tried to solve the problems of rich and poor in every possible way. /pp
Be it the much appreciated debt-waiver policies, reservation schemes to safeguard interests of the schedule tribes or schedule castes and the socially backward, National Rural Employment Guarantee Act, and various other steps have perhaps missed the notice of Radio Pakistan’s broadcasters. /pp
The poor people of India have got pension plans, they are provided foodgrains at cheaper rates and a number of industries have been established to provide employment opportunities to them, Pawan added. /pp
People of Pakistani Punjab would like their government to carefully look at the state of people in Pakistan. /pp
It would be a shock for them to know that Punjabis on the Indian side live life king size. (ANI)/p

Manmohan Singh calls first Cabinet meet today

New Delhi, May 23 (ANI): A day after taking oath as Prime Minister for the second term, Manmohan Singh called a meeting of the Union Cabinet today.

According to sources, it is likely to take a decision on convening a Parliament session to enable new members to take oath. President Pratibha Patil will be addressing a joint sitting of both the houses during the session.

Earlier, Dr. Singh visited Mahatma Gandhi’s memorials besides those of other departed leaders and placed a wreath on them.

He was sworn-in as Prime Minister for a second term along with 19 other Cabinet ministers on Friday.

The 76-year-old, soft-spoken economist is the first Prime Minister since post-independence after Jawaharlal Nehru to be returned to office after completing a full term.

Senior Congress leader Pranab Mukherjee, NCP chief Sharad Pawar, A K Antony, P Chidambaram, Trinamool Congress chief Mamata Banerjee, former Chief Ministers S M Krishna, Ghulam Nabi Azad, and Veerappa Moily were inducted in the Cabinet.

Kamal Nath, Sushilkumar Shinde, S Jaipal Reddy, Meira Kumar, Vayalar Ravi, Murli Deora, Kapil Sibal, B K Handique, Ambika Soni, Anand Sharma and C P Joshi also took oath as Cabinet Ministers.

Friday’s swearing-in would be followed by an expansion of the Council of Ministers on May 26. The expansion would include Cabinet Ministers, Ministers of State (MoS) with independent charge as well as other Ministers of State. (ANI)

Manmohan Singh takes oath as PM along with 19 cabinet ministers

New Delhi, May 22 (ANI): President Pratibha Patil administered oath of office and secrecy to Prime Minister Manmohan Singh along with 19 Cabinet ministers.

The 76-year-old, soft-spoken economist is the first Prime Minister since post-independence after Jawaharlal Nehru to be returned to office after completing a full term.

Senior Congress leader Pranab Mukherjee, NCP chief Sharad Pawar, A K Antony, P Chidambaram, Trinamool Congress chief Mamata Banerjee, former Chief Ministers S M Krishna, Ghulam Nabi Azad, and Veerappa Moily were inducted in the Cabinet.

Kamal Nath, Sushilkumar Shinde, S Jaipal Reddy, Meira Kumar, Vayalar Ravi, Murli Deora, Kapil Sibal, B K Handique, Ambika Soni, Anand Sharma and C P Joshi also took oath as Cabinet Ministers.

Mukherjee is likely to retain finance portfolio, which he got as additional charge towards the end of the tenure of the outgoing government.

The names of Krishna and Kamal Nath are being mentioned for External Affairs Ministry. Chidambaram and Antony are expected to retain home and defence respectively.

Today’s swearing-in would be followed by an expansion of the Council of Ministers on May 26. The expansion would include Cabinet Ministers, Ministers of State (MoS) with independent charge as well as other Ministers of State.

National Conference leader Farooq Abdullah, Mukul Wasnik, Vilas Muttemwar figure in the list of names, who will likely find place on Tuesday in the expanded Cabinet.

The Congress would also be looking to bring the DMK around by then so as to also include its representatives in the Cabinet.

The grand swearing-in ceremony, which started around 6:30 p.m., took place in Ashoka Hall of the Rashtrapati Bhavan where President Pratibha Patil administered the oath of office and secrecy to Dr Singh and his council of ministers.

The first session of the newly constituted Lok Sabha is expected to begin from June 2, and is likely to continue till June 10. (ANI)

Manmohan Singh gets unique greetings from artists

Allahabad/Ludhiana, May 22 (ANI): As Dr. Manmohan Singh gets ready for his second term as Prime Minister, artists have greeted him in their own unique way.

A youth from Allahabad city has built a sand sculpture of Dr. Singh at Sangam on the banks of the river Ganga.

“On the banks of the holy river Ganga, I have built sand sculpture of Prime Minister Manmohan Singh. As he will take oath today, I am expressing my happiness in a creative way,” said Rajkapoor Chetera, Sand Artist.

The sculpture has been built at Sangam, union of three of the holiest rivers – Ganga, Yamuna and the mythical Saraswati.

In Ludhiana, another artist has created wax statue of Dr. Singh and Congress President Sonia Gandhi to greet them on their resounding electoral win.

“We feel proud that a person like Manmohan Singh who is an economist, an honest person, dedicated and a visionary is working whole heartedly for the country’s progress,” said Chander Shekhar Prabhakar, the wax artist.

Elated that Dr. Singh will continue his second term, Prabhakar distributed sweets among his relatives and friends.

He also offered sweets to the statues. (ANI)

India set to emerge as the next economic superpower: CSM

Washington, May 19 (ANI): India is set to emerge as the world’s next economic superpower, given its growing economy and stable Congress-led government.

According to an article in the Christian Science Monitor, in comparison to China, India will be better able to make international deals on critical topics such as climate change and the territorial dispute with Pakistan over Kashmir.

While accepting that growth has slowed a bit during the global economic crisis, the CSM says India is poised for the takeoff it has long deserved as the world’s largest democracy.

Its 712 million voters have just given a surprise win to a party that transformed itself from its quasi-socialist roots to bring about both high market growth and a boost to the lowliest, “slumdog” Indian.

The Congress Party, along with its partners in the United Progressive Alliance, defied expectations and won enough seats in Parliament to rule with confidence for five years.

Congress Party-led reforms since 1991 have opened the economy to market forces and quadrupled the gross domestic product, enabling India to achieve 9 percent growth in recent years. These efforts were led in large part by a humble economist, Manmohan Singh, who first showed his chops as finance minister and lately as prime minister – but one without a strong mandate.

A stable, growing India is just what South Asia needs right now as smaller countries contend with political and terrorist upheavals. (ANI)

Tall, fat men earn more than their shorter, slimmer counterparts

Melbourne, May 17 (ANI): Being tall can really have its advantages, for a new study has found that the taller you are, the more you earn.

What’s more, overweight people earn more than their skinny workmates, the study found.

Australian researchers have found that a man who is six foot can expect to take home a “wage premium” of almost 1000 dollars a year.

Researcher Andrew Leigh, an economist at the Australian National University, said the reason behind tall men’s pay perk was that they were more capable at some physical tasks, such as reaching the top shelf.

“Beyond that is basically discrimination,” the Australian quoted Leigh as telling AAP.

“We tend to think that tall people are more powerful and smarter, even when they’re not necessarily,” he added.

Leigh, who stands at 180.34 centimetres, said it was unfortunate that society was biased towards taller people.

For the study, Leigh crunched the numbers on the height, weight and pay of thousands of people around the country.

He found than an extra 10cm in height meant 3 per cent higher wages for men, and 2 per cent higher wages for women.

However, it was a different story when it came to weight. Fat men earn 5 per cent more than their trimmer colleagues. And thin women don’t earn higher wages.

Leigh said it was possible that being overweight had become so common that it was no longer a problem for workers. (ANI)

Murdoch may start charging for access to online newspapers within a year

London, May 7 (ANI): Aussie media mogul Rupert Murdoch has revealed that he will soon start charging people for obtaining access to News Corporation’s newspaper websites.

The change is expected to take place within a year, as he strives to fix a “malfunctioning” business model.

Encouraged by booming online subscription revenues at the Wall Street Journal, the billionaire said on May 6 that papers were going through an “epochal” debate over whether to charge.

“That it is possible to charge for content on the web is obvious from the Wall Street Journal’s experience,” the Guardian quoted him as saying.

Murdoch, 78, said that even his British papers-such as the Times, the Sunday Times, the Sun and the News of the World-were being considered for the change.

“We’re absolutely looking at that,” he said.

Plunging earnings from newspapers led the way downwards as News Corporation’s quarterly operating profits slumped by 47 percent to 755 million dollars, although exceptional gains on sale of assets boosted bottom-line pretax profits to 1.7 billion dollars, in line with last year’s figure.

Dwindling advertising revenue across print and television divisions depressed the News Corp numbers despite box office receipts from Twentieth Century Fox movies such as Slumdog Millionaire and Marley and Me. But Murdoch said he believed signs of hope were appearing.

“I’m not an economist and we all know economists were created to make weather forecasters look good,” he said.

“But it is increasingly clear the worst is over.

“There are encouraging signs in some of our businesses that the days of precipitous declines are done, and things are beginning to look healthier,” he added. (ANI)

Introducing ‘congestion pricing’ at airports could help avoid delays

Washington, Apr 23 (ANI): London’s “congestion pricing”-the fee motorists pay to drive into certain parts of the city during peak traffic hours- could solve the problem of flight delays, says an economist at Tel Aviv University.

Dr. Itai Ater, from TAU’s Faculty of Management, is suggesting that introducing “congestion pricing” at airports could save travellers time and airlines money.

“What I propose is a policy to reduce the amount of delays in the airline industry,” said Ater.

In his opinion, airlines that want to use an airport’s runways during the busiest times of the day should pay an additional fee.

And such premium access fee to the runway could reduce airport congestion – and the inevitable delays, as well as the risks, linked with crowded skies.

His suggestions are aimed to save airlines from future catastrophes as airports, and skies, get busier.

He said: “Airport congestion is a big problem in the U.S. and around the world. The estimated annual costs of delays are $10 billion. When there are delays on take off or landing, a cascading effect is created, with lots of associated problems, risks and financial costs.”

Ater, who evaluated flight records from America’s busiest airports for his doctoral thesis at Stanford University, said that some airlines would prefer not to pay the charge and operate during non-congested periods.

As a result, overall congestion would drop.

Currently, airlines at most airports pay for runway use depending on the weight of the aircraft, except for a few such as Chicago O’Hare, where airports use pre-determined slots to determine charges and time of operation.

Ater has warned that not all airports can benefit from his plan.

“At airports where there is a monopoly or almost a monopoly by a single airline, charging a tariff during peak hours has less meaning. In these airports, like those in Atlanta, Charlotte, or Detroit, we already find fewer delays. So why intervene? Individual airlines that dominate an airport do a better job of organizing flights more intelligently and efficiently to reduce the level of delays,” he said.

He will present his advice at the National Bureau of Economic Research conference in Boston this May. (ANI)

Introducing ‘congestion pricing’ at airports could help avoid delays

Washington, Apr 23 (ANI): London’s “congestion pricing”-the fee motorists pay to drive into certain parts of the city during peak traffic hours- could solve the problem of flight delays, says an economist at Tel Aviv University.

Dr. Itai Ater, from TAU’s Faculty of Management, is suggesting that introducing “congestion pricing” at airports could save travellers time and airlines money.

“What I propose is a policy to reduce the amount of delays in the airline industry,” said Ater.

In his opinion, airlines that want to use an airport’s runways during the busiest times of the day should pay an additional fee.

And such premium access fee to the runway could reduce airport congestion – and the inevitable delays, as well as the risks, linked with crowded skies.

His suggestions are aimed to save airlines from future catastrophes as airports, and skies, get busier.

He said: “Airport congestion is a big problem in the U.S. and around the world. The estimated annual costs of delays are $10 billion. When there are delays on take off or landing, a cascading effect is created, with lots of associated problems, risks and financial costs.”

Ater, who evaluated flight records from America’s busiest airports for his doctoral thesis at Stanford University, said that some airlines would prefer not to pay the charge and operate during non-congested periods.

As a result, overall congestion would drop.

Currently, airlines at most airports pay for runway use depending on the weight of the aircraft, except for a few such as Chicago O’Hare, where airports use pre-determined slots to determine charges and time of operation.

Ater has warned that not all airports can benefit from his plan.

“At airports where there is a monopoly or almost a monopoly by a single airline, charging a tariff during peak hours has less meaning. In these airports, like those in Atlanta, Charlotte, or Detroit, we already find fewer delays. So why intervene? Individual airlines that dominate an airport do a better job of organizing flights more intelligently and efficiently to reduce the level of delays,” he said.

He will present his advice at the National Bureau of Economic Research conference in Boston this May. (ANI)

Miliband praises Pranab Mukherjee

London, April 20 (IANS) British Foreign Secretary David Miliband paid handsome tributes to his opposite number Pranab Mukherjee Monday three months after raising eyebrows in New Delhi with a statement about Kashmir.

Miliband made opportunistic use of a London Book Fair event to praise Mukherjee’s ‘breadth of vision’ following the Indian external affairs minister’s call for an immediate cessation of hostilities in Sri Lanka.

During a much-publicised visit to India in January Miliband was reported to have addressed Mukherjee – the senior of the two – by his first name.

His statement calling for efforts to resolve the Kashmir dispute – made in the context of the 26/11 terrorist attacks in Mumbai – also upset India before Mukherjee stepped in to declare the incident a ‘closed chapter’.

Appearing alongside the economist Amartya Sen on the opening day of the book fair Monday, Miliband said Mukherjee’s was a ‘loud and clear voice’ on the need for Sri Lankan authorities to declare a ceasefire in order to help civilians escape the current civil war with Tamil Tiger rebels.

Billed as a conversation, the half-hour event saw Miliband interviewing Sen on a variety of subjects about India, including what kind of role it would play if made a permanent member of the UN Security Council.

Miliband praised India as a ‘remarkable success story in a very challenging part of the world’ – for its democracy, economic growth, traditions of tolerance and mutual respect, internationalism and traditions of thought.

India was the third largest contributor to international peacekeeping, he said.

British foreign minister to interview Amartya Sen

London, April 19 (IANS) Britain’s foreign minister will be in a high-profile ‘conversation’ with Indian Nobel-laureate Amartya Sen before the world’s press Monday but organisers can’t say what they will be talking about.

More than 50 journalists from 26 countries have signed up for the Monday morning event that will mark the launch of the London Book Fair.

Coming from countries as diverse as Croatia, China, Russia, America, Saudi Arabia, Taiwan and Iran, the journalists have been told only that British Foreign Secretary David Miliband will be ‘interviewing’ Sen, a leading international economist.

‘We don’t know what they’ll be talking about… could be the economy,’ a Foreign Office spokesman guessed.

A spokeswoman for the London Book Fair thought the conversation – or interview – could be about ‘books’.

Miliband, who left his Indian hosts mildly miffed by referring to Kashmir in a January speech, said in a short statement that he was ‘delighted to be taking part in this conversation with Amartya Sen’.

Sen, the Lamont University Professor of economics and philosophy at Harvard University, flies in from the US, where he has been speaking to packed audiences about ‘Capitalism and Confusion’.

Sen said: ‘I am looking forward to the conversation with David Miliband, and later in the day with (writers) Vikram Seth, Nandan Nilekani and Ramachandra Guha.’

Lord Neil Kinnock, Chair of the British Council, the cultural diplomacy arm of the British government, added: ‘I am very pleased that the British Council has been able to bring David and Amartya together at the London Book Fair.

‘We are part of the biggest festival of Indian literature ever outside the sub-continent and I am proud of the British Council’s role in making this happen.’

Alistair Burtenshaw, group exhibition director, The London Book Fair, said he was confident that Sen will be ‘greatly impressed by the diversity and range of publishing innovation being showcased in London’.

Sen will also give the London Book Fair’s keynote speech at the prestigious Chairman’s Breakfast, entitled ‘India in the Modern World’.

Some 50 leading writers, translators, critics and academics as well as 90 publishers working in 15 Indian languages are set to attend the April 20-22 fair – the largest ever festival of Indian writing in Britain.

The writers include Javed Akhtar, Amit Chaudhuri, Namdeo Dhasal, Ramachandra Guha, Jaishree Misra, Daljit Nagra, Anita Nair, Bhalchandra Nemade, Nandan Nilekani, K. Satchidanandan, Shankar, Vikram Seth, Pavan Varma and Sunil Gangopadhyay.

Obama’s bailout plan for banks will probably fail’

The Obama administration’s bank-rescue efforts will probably fail because the programmes have been designed to help Wall Street rather than create a viable financial system, Nobel Prize-winning economist Joseph Stiglitz said.

“All the ingredients they have so far are weak, and there are several missing ingredients,” Stiglitz said in an interview on Thursday. The people who designed the plans are “either in the pocket of the banks or they’re incompetent.”

The Troubled Asset Relief Program, or TARP, isn’t large enough to recapitalise the banking system, and the administration hasn’t been direct in addressing that shortfall, he said. Stiglitz said there are conflicts of interest at the White House because some of Obama’s advisers have close ties to Wall Street. “We don’t have enough money, they don’t want to go back to Congress, and they don’t want to do it in an open way and they don’t want to get control of the banks, a set of constraints that will guarantee failure,” Stiglitz said.

The return to taxpayers from the TARP is as low as 25 cents on the dollar, he said. “The bank restructuring has been an absolute mess.” “Rather than continually buying small stakes in banks, weaker banks should be put through a receivership where the shareholders of the banks are wiped out and the bondholders become the shareholders, using taxpayer money to keep the institutions functioning,” he said.

Stiglitz won the Nobel in 2001 for showing that markets are inefficient when all parties in a transaction don’t have equal access to critical information, which is most of the time. His work is cited in more economic papers than that of any of his peers, according to a February ranking by Research Papers in Economics, an international database.

The Public-Private Investment Program, PPIP, designed to buy bad assets from banks, “is a really bad program,” Stiglitz said. It won’t accomplish the administration’s goal of establishing a price for illiquid assets clogging banks’ balance sheets, and instead will enrich investors while sticking taxpayers with huge losses.

“You’re really bailing out the shareholders and the bondholders,” he said. “Some of the people likely to be involved in this, like Pimco, are big bondholders,” he said, referring to Pacific Investment Management Co, California.

Californians say “baby, baby, no more drilling”

SAN FRANCISCO (Reuters) – U.S. Interior Secretary Ken Salazar confronted a host of sea creatures and polar bears on Thursday as costumed Californians told the new administration ‘no’ to offshore oil drilling.

Salazar did not hint at the contents of President Barack Obama’s energy policy, but said it would address climate change and include oil and gas.

“We’re not going to turn off the oil and gas requirements we have for this country overnight or even in a decade. We’re going to see oil and gas production,” he told a packed hearing on offshore drilling.

The crowd booed a lonely supporter of offshore drilling and waved dollar bills to signify that they thought increased production of oil and gas was a sell-out of environmental policy.

Californians, known for their cars as well as their love of the outdoors, on the whole have been less united.

Last summer, when gasoline prices surged above $4 a gallon and chants of “drill, baby, drill” became a rallying cry at the Republican National Convention, a majority of Californians supported offshore drilling for the first time.

The July poll by the Public Policy Institute of California found 51 percent of Californians favored expanding offshore drilling, up 10 points from a year earlier.

But the poll also found that 52 percent of Californians believe global warming is a serious threat to their state.

Last week the Board of Supervisors of California’s Santa Barbara County, the site of a 1969 oil spill that galvanized the modern environmental movement, voted to reverse a decision backing offshore energy development.

SHAPING NATIONAL ENERGY POLICY

When Salazar took office in January he was handed a five-year plan drafted in the final days of the Bush administration to open parts of the Atlantic, Gulf Coast, Pacific, and Alaska to outer continental shelf drilling between 2010 and 2015.

The outer continental shelf is 1.75 billion acres of federally administered sea floor, the equivalent of 80 percent of the United States landmass. As of 2006, the shelf was believed to have about 87 billion barrels of recoverable oil and 420 trillion cubic feet of natural gas.

At current prices of about $50 a barrel, only about 50 percent of the remaining reserves are economically recoverable, according to a federal report.

“Our national policy has been hijacked by ‘drill, baby, drill,’” California Congresswoman Jackie Speier told the audience. “The new rallying cry is ‘baby, baby, no more drilling.’”

California Lieutenant Governor John Garamendi told reporters funds should be spent on clean energy such as solar thermal, wind and geothermal. Governor Arnold Schwarzenegger targets 33 percent of electricity from renewables by 2020.

“We’re on the very early stages of a new industrial revolution, a new industrial revolution not based on fossil fuels but, rather, based on renewable energy,” Garamendi said.

But the country will not be able to avoid oil, chief economist of the American Petroleum Institute John Felmy said in an interview with Reuters prior to the hearing.

“We need energy efficiency, we need alternatives, but we also need oil and gas,” he said, noting that oil provides power for 96 percent of all transportation.

“Hopefully we will see a fleet of electric cars come in place, but until they do, there’s no way,” he said.

No drilling policy is expected until after the comment period ends on September 21, but Salazar said an energy policy should be made public by the end of 2009.

(Additional reporting by Braden Reddall in San Francisco)

FACTBOX: What’s at stake in India’s giant general election

(Reuters) – Indians began voting on Thursday in a staggered general election that will end on May 13. Results are due on May 16.

The main battle is between the Congress-led coalition government and the main opposition bloc, headed by the mainstream Hindu nationalist Bharatiya Janata Party (BJP).

Here are some of the key issues at stake in the outcome.

ECONOMY

Investors fear a weak or unstable coalition government could emerge as the country grapples with the effects of the global economic slowdown and layoffs.

Business wants, but may not get, a strong government to push ahead with a quick raft of reform policies — such as privatizations and relaxation of labor laws — that stalled in five years of Congress rule, and impose fiscal discipline.

Many of Congress’ attempts at reforms were blocked by its former communist partners who may once again join a ruling alliance.

Investors would largely welcome the return of the main opposition, pro-market BJP, which pushed liberalization and privatization until it lost power in 2004.

Investors also worry about the rise of a group of smaller, regional parties known as the “Third Front” who are presenting themselves as an alternative to the two giant blocs, and widely seen as an unknown quantity if they come to power.

SECURITY

India is still tense after a string of militant attacks last year, including a rampage on Mumbai that killed 166 people in November and spiked tensions with nuclear-armed Pakistan.

Under Congress, India pressed the pause button on a slow-moving peace process with Pakistan after Mumbai and says relations will improve only if Islamabad gets serious on clamping down on militants operating on its soil.

The BJP has accused its main rival of being soft on militancy and Pakistan. The party has shown signs of being more hawkish than Congress but proved pragmatic in dealing with India’s neighbor when in power.

A new government needs also to deal with a long-running Maoist insurgency which has killed thousands since it began in the 1960s. The BJP has hinted it would be tougher on insurgents.

Again, if the Third Front comes to power it may be weaker or unpredictable in the way it deals with security threats.

INDIA ON THE WORLD STAGE

Congress’ prime minister, the economist Manmohan Singh, is credited with liberalizing India’s socialist economy in the 1990s which led to years of economic boom and made India an emerging giant on the world stage.

A weak coalition government, unable to press ahead with economic reforms, may slow India’s rise and may prove to be an obstacle in its fight to revive economic growth and compete with China.

Relations with the United States improved both under BJP and Congress rule. Singh signed a civilian nuclear deal with Washington last year, taking India out of decades of nuclear isolation and paving the way for the country to meet its bulging energy needs.

But Congress’ former leftist allies, who are suspicious of the United States, walked out of the coalition over the deal, and may damage ties with Washington if they return to hold the balance of power in parliament.

RELIGIOUS TENSION

In this election, the BJP has been criticized for playing too strongly its Hindu nationalist card — the concept of “Hindutva” that sees India as more of a Hindu than secular nation.

A win by the BJP will reignite fears of religious tensions similar to what was seen in the BJP-run state of Gujarat in 2002, in which hundreds of Muslims were killed by Hindu mobs.

The BJP says it believes in equal treatment of all sections of Indian society, and points to Muslims that are members of its party.

(Compiled by Matthias Williams; Editing by Alistair Scrutton and Sanjeev Miglani)

Japan wholesale prices slide, deflation ahead

TOKYO (Reuters) – Japanese wholesale prices are falling at their fastest rate since 2002, March figures showed on Monday, as weakening domestic demand on top of falling commodity prices drives Japan toward its second bout of deflation this decade.

With interest rates already almost at zero, analysts say the Bank of Japan has limited weapons to fight deflation in the country’s worst recession since World War Two to fight deflation.

“The BOJ has reached its limit in terms of conventional monetary policy moves,” said Norihiro Fujito, general manager at Mitsubishi UFJ Securities.

“If prices continue to slide, the BOJ may need to expand its purchases of government bond buying, and move toward quantitative easing. It may also broaden the scope of corporate bonds it buys, relaxing its standards on credit ratings, for example.”

The 2.2 percent annual decline in wholesale prices was bigger than a median market forecast for a 1.8 percent decrease, Bank of Japan data showed.

It followed a revised 1.6 percent fall in the year to the February and was the third month in a row of annual decline.

Analysts say it is inevitable that consumer prices will soon turn negative after flat annual figures for the years to January and February.

March figures are due at the end of the month.

Overall final goods prices, which track prices of final products charged to businesses, fell 2.6 percent in March from a year earlier. Domestic final goods prices fell 1.7 percent.

Wholesale inflation quickly lost steam after hitting a 27-year peak in August, as the worsening global financial crisis sent the price of commodities tumbling.

Now, with both domestic and external demand faltering, Japan could be the slowest among major economies to recover from recession even as the government scrambles to pull the economy out of the deepening recession.

“Even though there have been some positive signs on the economy recently, today’s data showed prices are under pressure from a widening output gap,” said Junko Nishioka, chief Japan economist at Royal Bank of Scotland.

“Pressure on consumer prices will be strong at least for the first half of this year.”

Japan’s economy tumbled 3.2 percent in the last quarter of last year and plunging business confidence has raised fears the situation is getting worse.

The world’s No.2 economy has been more severely hit by the global recession than other major economies due to its heavy dependence on exports.

Japan’s government on Friday announced new stimulus spending of 15.4 trillion yen ($154 billion), equivalent to 3 percent of GDP, to help lift the country out of its deepest recession since World War Two.

($1=100.22 Yen)

Medical researchers face conflicts of interest

By Julie Steenhuysen

CHICAGO (Reuters) – Dr. Bruce Psaty of University of Washington in Seattle knows how easy it can be to fall under the spell of a friendly relationship with drug companies.

As an assistant professor, he published an article on using beta-blockers to treat high blood pressure that caught the attention of the pharmaceutical industry.

“My family and I were invited to a first-class resort, where I presented the results at a sponsored conference,” Psaty wrote in a commentary this week in the Journal of the American Medical Association.

He agreed to help develop a set of slides on beta-blockers and soon found himself suggesting that the drug company’s studies be featured, in part because he felt “a kind of social duty to reciprocate both the kindness and the investment made by the sponsor in the slide set.”

Psaty said his own story illustrates the subtleties of conflicts of interest. He is dissatisfied with the current debate among doctors, spurred by reports last year by Iowa Republican Senator Charles Grassley that a prominent Harvard psychiatrist failed to fully disclose hefty payments from drug companies.

“The debate has not been terribly fruitful,” Psaty said in a telephone interview. He said conflicts are sometimes hard to recognize, pointing to the work of Dan Ariely, a behavioral economist at Duke University in North Carolina.

Ariely’s research suggests that most people are comfortable with just a little bit of cheating, without considering themselves dishonest. He says subtle conflicts of interest often color decision making, yet most people — especially doctors — think they are immune.

HUMAN INSTINCT

“It’s human instinct,” Ariely said in a telephone interview. “If someone does something nice — gives you $5 million in a research grant — don’t you want to do something nice back to them?”

Ariely said return favors could come in the form of excluding a sicker patient from a clinical trial, which might affect the study results. “Not on purpose, but I’m trying to help my friends, just a little bit.”

Several states including Massachusetts, Minnesota and Vermont are tightening restrictions on gifts to doctors in the hopes of preventing such conflicts.

And a bill introduced by Senators Grassley and Wisconsin Democrat Herb Kohl would compel doctors to disclose their financial ties with drug companies or face stiff fines.

Psaty said such laws may curb some financial conflicts, but a bigger challenge will be addressing the influence drugmakers have over company-funded research supporting the safety and effectiveness of the drugs they make.

Psaty said he accepts no funding from drug companies for his research, but short of having all clinical trials funded with public money, he suggests doctors look for red flags in studies that might indicate bias.

“Was the question a good question? Did they set the study up right? Did they use the weakest possible comparator to make a drug look good in a trial?” he said.

And when a medical journal editorial disagrees with the primary interpretation of the author, “that is a potential marker of a study where there may been some bias from conflict of interest,” he said.

(Editing by Maggie Fox and Sandra Maler)

BoE holds interest rates, vows to pump more cash

The Bank of England on Thursday froze interest rates at a record-low 0.5 percent and vowed to continue pumping out billions of pounds under “quantitative easing” in a bid to crack the recession. Skip related content
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Have your say: Financial Crisis

“The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5 percent,” the central bank said in a statement.

The BoE, pausing after a series of six interest rate cuts since October, added that it has so far pumped 26 billion pounds of new money into the economy.

“The Committee also voted to continue with the programme, announced on 5 March, of asset purchases totalling 75 billion pounds financed by the issuance of central bank reserves,” it said.

The bank launched the quantitative easing (QE) plan last month to buy government bonds from commercial banks in an attempt to kick-start lending and unblock the credit crunch.

The BoE added Thursday that the programme would take another two months to complete. The government has already granted permission for it to turn out as much as 150 billion pounds in new money under QE.

Britain entered recession in the second half of 2008 due to the international financial crisis that has also driven growth in the eurozone, Japan and the United States into negative territory.

In response, the BoE has slashed its key lending rate in a series of sharp cuts as it seeks to breathe new life into the struggling economy.

But with borrowing costs close to zero, Thursday’s decision to put its key lending rate on ice could mark the end of a series of steep rate-cuts, according to economists.

“The BoE’s bringing to an end of the intense interest rate cutting programme that it started last October is no surprise at all,” said IHS Global Insight’s Howard Archer.

“The MPC has made it clear that they believe that bringing interest rates below 0.5 percent would have only a very limited positive impact at best and could even be harmful.”

He added: “This is primarily due to the negative impact that this would have on banks’ spreads and profitability, and hence potentially their lending.”

The decision to hold borrowing costs was in line with market expectations. Rates remain at the lowest level in the Bank of England’s 315-year history after a half-point cut last month.

Investec economist Philip Shaw added that the troubled economy had begun to turn the corner and that no additional stimulus was required from the BoE.

“To our minds the economy has started to show the very first signs of improving after months of sharp contraction,” Shaw said.

“This is likely to have dominated a decision that no further policy stimulus is required for now.”

No other details were given about the MPC’s deliberations on their decision to hold interest rates. BoE watchers must wait until April 22, when the minutes from the two-day gathering are slated for publication.