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Pre-requisites to a Successful Commodity Exchange

The concept of commodity exchange is not new to this world. Commodity is not a new word- people have been dealing with the word commodity since the global economy started with a barter mechanism. Earlier, it was commodity against commodity later it turned out to be money against commodity but the concept always remained the same. After the foundation to the trading scenario was laid, and then injected economics into it. People started knowing that an economy of scale is a vital factor for trade. A producer produces less and prices it more, s/he earns a handsome profit but even if a produces prices his/her produce less but produces more, the profit is higher than in the earlier case. Thus, commodity exchange came up as a combo of the above mentioned trade facilitation and the economy of scale which is supposed to facilitate the traders and make them sure about the fair price of the product. Investopedia defines commodity exchange as “An entity, usually an incorporated non-prof...

Nepal and its Out-of-World Economy!

Few days back when the dollar rate was sky-rocketing, few interesting things happened which drew my attention as an economics student. We went to the local vegetable market there at New Baneshwar, of course to buy some fresh vegetables. The price of cauliflower had shown an increment of around 40 percent overnight and very interesting was the reason for that- look at the dollar rates that have gone up. Around those days only, we faced a similar story on the verge of buying cashew nut from a departmental store. These incidents kept me stunned till date but I believe there are few things within that the general public in our country should know. One would not be surprised if I say- we do not import cauliflower every morning but one has to accept the fact that our import-export data produced by Trade and Export Promotion Center (TEPC) did not show the import of cashew nut either. But we paid higher prices by choice- and the choice was there is no government to control these fantasized m...

Crude Oil and Gold: Prime Investment Concerns

It is all absolutely clear that commodity market is a two-way profitable market compared to the stock market which is rather a one-way. An investor can earn in the commodity market when either the price rises or falls but s/he can earn in the share market only in either of the scenario- when the prices rise. The recent trends of the major commodities have been very tumbling and that has led too much confusion among investors regarding the choice of the profitable commodity. Gold had maintained its reputation of an influencing price since few months, especially due to its higher demand owing to the festive seasons of the Hindu community all around the globe. But now gold has started falling, falling sharply as Federal Reserve is set to reduce the monthly bond purchases, i.e. tighten its monetary stimulus which will decrease the liquidity in the market. In Nepal, the significant decrease might not have been felt but the reason for that is the exchange rate with USD calculated from ...

Election Campaigns: Investment, Knowledge and Politics

Nothing on earth is immortal, not even the earth herself because she was born too - irrespective of the birth process. There are political boundaries on earth made by people where several governments run in their own styles and usually think themselves above the natural government. It is up to you to decide if any government on earth is seriously above the natural government. But coming back to the governments run on the earth, I felt it interesting to discuss the election campaigns - birth processes for the governments, in terms of Investment, Knowledge and Politics. Few months back, I heard a dialogue in a movie- Election campaigns are the investments made by the politicians and it is their every right to think about their returns from it in every way possible. This changed my perception on politics. If the politicians take election campaigns as their investments, the ones who will suffer the most will be public. It is an untold truth that the money for the election campaigns c...

US and Euro Crisis: Pandora’s Box

Europe and United States of America have long been the dream-destinations for people in the developing parts of the world. Now, those economies have been facing turbulence impacted each region of the world. They have not been silent observers; it’s just that their efforts have not worked out well. Euro area is still facing a high level of unemployment and it is too frustrating to acknowledge that the recovery seems almost invisible in the straight economic highway of the region. Structural unemployment has become tedious challenge for the European economy because the organizations have not been able to generate the required jobs in the market meeting the job demand. At a glance, this situation looks like provoking the social imbalance and insecurity very soon as the situation is adversely affecting the social security of the region. A bigger threat is that the recovery measures are not working well and this situation would worsen the unemployment situation in the coming years too...

Will ADS be another APP

Agricultural Perspective Plan (APP) is still supposed to be one of the best policy papers developed by the country but the bitter fact beholds that the plan did not work, to be harsh- it failed. Why did that happen? There is no one reason to explain the unsatisfactory work of the APP, but above all I would not step back to blame the fragile legislation and bureaucracy for the same as others do. Few of the objectives that made APP wonderful were: to accelerate the growth rate in agriculture through increased factor productivity; to alleviate poverty and achieve significant improvement in the standard of living through accelerated growth and expanded employment opportunities; to transform the subsistence-based agriculture into a commercial one through diversification and widespread realization of comparative advantage. What lacked in presence of such wonderful objectives were the 3I- Implementation, Intention and Institutionalization. Coming towards the end of Agriculture Perspecti...

“Access to Health services represents quite a significant challenge for countries like Nepal.”- Solutions

Before I start up with the challenges that the health sector is actually facing in the country, let us have a quick glance at the current status of the health infrastructure in the country. These days, taking a tour of health access services in the country has become easier due to the use of technology like Health Management Information System (HMIS) where we can find the steps and hierarchy of the health access services available in the country. Therefore, the major part of our discussion will be based the reporting institutions in the HMIS as that is the most authentic source for the review.  The latest annual report published by the Department of Health Services is the Annual Report 2067/68, so the data referred will be from them and the findings will also be based on the following report. According to the reporting status in the HMIS, there are 95 public hospitals, 209 Primary Health Care Centers, 676 Health Posts and 3129 Sub-Health Posts. Besides these major entities, t...