kerela presentation4
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POLITICO-LEGAL
FACTORSAFFECTING
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So what constitutes the POLITICO-
LEGAL ENVIRONMENTof a state?
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3 PoliticalInstitutions
Legislature
Executive
Judiciary
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POLITICAL FACTORS
Political factors are how and to what degree a government
intervenes in the economy.
These include:
Environmental regulation and protection
Taxation
International trade regulation.
Consumer protection Competition
Employment
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LEGAL FACTORS
How and to what degree does law affects the
economy in the state.These include:
Civil law: based on a detailed set of laws that
constitute a code and focus on how the law is applied.
Common law: is based on traditions and precedence.
Religious law: also known as theocratic law and is
based on religious guidelines.
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POLITICAL AFFECTS ON
KERALA
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EX:1 Congress-led UDF not to allow retail FDI in Kerala
"FDI will not be allowed in
the retail sector during
the tenure of this
government. There is no
change in the government
stand, for which we have
got the permission of thecentral leadership," Chief
Minister Oommen Chandy
said.
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FDI in retail: Why Kerala is fiercely opposing big foreign investment
Why do we need foreign investment to do what we are already
doing?
Why does one want Walmart-style operations if they bring no local
advantage
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Ex:2 KSIDC & HUDCO, MoU
Kerala State Industrial
Development Corporation
and HUDCO signed an
MoU to harness
opportunities in the
infrastructure sector in
Kerala.
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Ex:3 After Munnar, Kerala government trains its guns on
The government has also directed the local self-government
institutions not to grant licenses to retail monopolies like Reliance
and to cancel licenses already granted if the law permits.
"The public mood is
against Reliance, so we
will stop them in theirtracks, Food and Civil
Supplies Minister, C
Divakaran said.
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EX:4 With no licenses, Telenor, Videocon, Tata
Teleservices to lose 10 mn users on January 18
Telecom operators Telenor, Videoconand Tata Teleservices, which
collectively have about 10 million
subscribers in the circles where their
licences expire next month, areamong the nine telcos whose mobile
permits were cancelled by the
Supreme Court in February this year
in the 2G-spectrum allocation case.
The affected operators have
permission to use their allocated
spectrum till January 18.
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EX 5 : Kerala to charge fishing boats from
other states, Tamil Nadu fishermen upset
According to a government order dated August 9, 2012, issued by state
fishing and ports department, all fishing boats from neighbouring states
engaged in fishing in Kerala coast should pay Rs 15,000 as user fee to
the state government every three months.
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LEGAL FACTORS AFFECTING
KERALA
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EX:1 Palmolein case
Former Chief Minister K Karunakaran Wednesday alleged that Kerala's governmentpetition urging the Supreme Court to lift its three-year-old stay on the trial of the
Palmolein import case,in which CVC PJ Thomas is an accused, was a result of "personal
vendetta".
Chief Minister V S Achuthanandan has decided to pursue the prosecution in the casebecause he wanted to settle personal scores with Karunakaran, the veteran's Congress
leader's lawyer K K Venugopal alleged.
Hearing on Karunakaran's petition, opposing his trial along with others, assumes
significance as its outcome could have a bearing on the fate of Thomas.
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EX 2: Toddy to stay on as health drink:
Kerala HC
The Kerala High Court had last month asked the state government to
consider banning toddy but reversed this on Thursday, with the
government assuring it would ensure the supply of quality toddy.
One reason why the courts observation caused distress was that many
consider toddy or natural alcohol a health drink.
Toddy has an alcohol content of just 8.1 per cent, and is preferred by
women in central Kerala districts.
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