Parmalat’s Fall: Europe’s Enron?

By Kavaljit Singh | Commentary | February 7, 2004

In December 2003, Italian food and dairy giant, Parmalat, went bust. The dramatic fall of family-owned Parmalat was triggered when Bank of America claimed that a document showing 4 billion Euro in company’s Cayman Islands bank account is forged. Just a couple of months ago, Parmalat’s bosses had claimed a cash balance of 4.2 billion Euro but on December 19, 2003, they admitted a 4 billion Euro hole in company’s finances. Given the complex way of financial wizardry employed by Parmalat’s bosses coupled with off-balance sheet financial transactions (such as derivatives) and funds stashed away in offshore subsidiaries in Cayman Islands, there is no…

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Cancun Conundrum

By Kavaljit Singh | Commentary | September 24, 2003

The Fifth Ministerial Conference of World Trade Organization (WTO) held in Cancun during September 10-14, 2003, failed to arrive at any agreement on several contentious issues. Since Cancun Conference was expected to provide a further push to the Doha Round, both the proponents and critics were apprehensive about its outcome. To many critics, Cancun Conference was destined to be a failure as the mandated deadlines (for agreement on the modalities on agriculture, special and differential treatment, implementation issues, and TRIPs and public health), agreed upon at the Fourth Ministerial Conference at Doha in 2001, were missed. But the way Ministerial Conference collapsed at Cancun has surprised everyone. As anticipated, the trade talks did…

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Keep Investment Pacts off Cancun’s Agenda

By Kavaljit Singh | Op-Ed, Financial Times | July 7, 2003

If the European Union, Japan and Canada have their way, negotiations for a multilateral investment agreement will begin at the World Trade Organisation meeting in Cancun in September. But many developing countries are doing everything they can to ensure they do not. They are right to do so: an MIA has the potential to cause them serious economic damage.

There is no conclusive evidence that investment agreements lead to increased foreign investment. Since the 1980s, developing countries have signed numerous bilateral investment agreements, yet they receive less than one-third of the world’s total foreign direct investment flows. Africa, consisting of 53 countries, receives less than 2 per cent of the total FDI flows to…

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The Never Ending Story of Coke’s Divestment

By Kavaljit Singh | Commentary | September 20, 2011

In its latest attempts to dilute the divestment conditions, Coke has sought permission from the Indian authorities to deny voting rights to the Indian shareholders. The proposal of offering voting rights to Indian shareholders is “substantive and onerous,” says the company. In a letter (dated January 23, 2003) addressed to the Foreign Investment Promotion Board (FIPB), Coke has sought deletion of the condition under which its bottling subsidiary, Hindustan Coca-Cola Beverages Private Limited (HCCBPL), is bound to provide 49 per cent voting rights to resident Indian shareholders.

Coke was granted permission to carry out business in India through its 100 per cent owned subsidiary with the condition…

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Trading Away Capital Controls under Bilateral Trade Agreements

By Kavaljit Singh | Commentary | April 13, 2003

The sinister move by the US to curb the use of capital controls under the guise of just concluded bilateral trade agreements with Chile and Singapore has not received adequate attention. America’s economic predominance – and the resulting shape of the global economy – has long rested on a combination of bullying, threats and inducements, but recent US bilateral trade deals signed with Chile and Singapore hint at something entirely more sinister. This is because both agreements include strict financial conditions alongside aggressive safeguards for intellectual property which go beyond multilateral benchmarks agreed by the World Trade Organization.

The fact that Chile and Singapore have agreed to surrender the use of capital controls in return for more favorable market access should set…

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