NEW DELHI // India's Prime Minister Manmohan Singh reshuffled his Cabinet on Sunday in a bid to overhaul his government's image ahead of state and national elections over the next 18 months.
Seven new ministers and 15 junior ministers took the oath of office at a brief ceremony to mark the changes aimed at bringing in younger faces into the Cabinet.
However, Congress Party star campaigner Rahul Gandhi was not part of the new Cabinet. Congress party leaders said he would concentrate on reviving the fortunes of the party before the national elections in 2014.
The 42-year-old Gandhi, whose father, grandmother and great-father all served as prime ministers, had decided to remain in his post as a secretary general of the main ruling Congress party, Mr Singh said as he unveiled a cabinet reshuffle.
"I wanted Rahul Gandhi in government, but he wants to strengthen the party," Mr Singh said after a ceremony at the presidential palace.
The portfolios of the new ministers were not announced immediately. Traditionally, responsibilities of the ministers are announced several hours after they are sworn in.
Five senior ministers had resigned over the weekend to allow the introduction of younger new faces in the ministerial line-up.
The long-awaited Cabinet changes gained urgency after the Congress Party-led coalition government was hit by a wave of corruption scandals. The revamp also filled several vacancies after a key ally opposed to recent economic reforms quit the coalition.
"This reshuffle is to bring in fresh faces and is an important step keeping in view the general elections in 2014," Milind Deora, a junior minister said Sunday.
The induction of younger lawmakers and the shuffling of ministerial portfolios were being viewed as a major makeover for Singh's government that has been hit by charges of corruption and lethargy even as provincial elections are due in 11 states in the coming year.
Several ministers were facing corruption charges stemming from scandals over the hosting of the 2010 Commonwealth Games, the sale of mobile phone rights and allocation of coal fields that auditors said lost the country of billions of dollars.
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The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
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