Friday, May 31, 2013

kenya on the brink?

Uhuru Kenyatta, indicted for crimes against humanity, takes the lead

As Kenya is all set to get a new leader, with Kibaki retiring from politics, the political corridors are hoping for a stable government, especially at the backdrop of violent streaks. Prior to the elections, there was a series of violent bursts that sent ripples in Kenya’s heartland. A clash in the Tana River delta involving a politician resulted in the death of around 150 people. In another incident of violence in 2012 in Mombasa, a Muslim cleric lost his life which led to unrest in the vicinity with people taking to the streets and vandalising property. To top it all, the presence of the Somali militant group al-Shabaab has added to the environment of violence. Incidents of street violence in places like Kisumu and Siaya have epitomised the political unrest ripping the country apart.

Elections in Kenya have had a history of bloodshed and violent uprisings. The protests during the 2008 election that was engineered by the opposition leader Raila Odinga left more than 1,000 people dead and rendered 600,000 homeless. In the last one year, the UN reported over 500 Kenyans dead including police officials and another 1,00,000 displaced.

Today, Kenya is plagued with severe inequality, poverty, unemployment and frequent strikes. With 40 per cent of youth being unemployed, the human capital is plainly unproductive and ends up opting for solutions through violence. So much so, the intellectual class including teachers and doctors are often found resorting to strikes. In order to curtail these social malaises, Kenya’s government had passed a new Western-style liberal constitution with reforms promising a better standard of life to police and security officials. But bills related to economic and social reforms are still to be tabled.

There are reasons to be optimistic about the new constitution that has provisions for new institutions of reforms and audit bodies. The most promise lies within Kenya's youth. As per a March 2012 World Bank working paper, “93 per cent of Kenyans are mobile phone users and 73 per cent are mobile money customers." In other words, over one-fourth of Kenyans are now online. As the youth in Kenya is all set to globalise, the least they expect is a non-violent political future. The new government must convert the young pool of talent into a demographic dividend than alienate them.



Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Wednesday, May 29, 2013

A tale of two secretaries

John Kerry and Chuck Hagel are likely to bring fresh perspective in their respective departments. And that will be the best thing to happen to the United States in decades, says Saurabh Kumar Shahi

In the recent political history of the United States of America, none of the administrations have been so dependent on its Secretaries of State and Defense for its future course as President Obama's administration is dependent on John Kerry and Chuck Hagel. And as things stand, it won't be an exaggeration to say that how history will remember President Obama will largely depend on how these two perform, especially so after a rather dispirited and lackluster first term by the president.

The very basis of both the appointments (Chuck Hagel's appointment remains yet to be approved by the Senate as this story goes to print) is that President Obama in his second term really wants to clear a few messes and more importantly, he wants to do it without venturing into the world of intervention. And hence, both the names.

Let's come to John Kerry first. As the new Secretary of State, he is expected to bring sweeping changes as far as nuances in the foreign policy is concerned. He has a fantastic personal relation with the president and has been sent by him far and wide to solve foreign policy cauldrons. And, most of all, he comes without any excess baggage.

“The area in which Kerry may be able to have the greatest impact is redefining the meaning of national security for Americans. He recognises that the main threats to the United States no longer come from foreign armies or what George W Bush liked to call 'evil-doers'. His most encouraging statements are those that suggest he recognises the enormous security challenges posed by climate change, global energy politics and economic troubles at home,” says Stephen Kinzer, celebrated US diplomat and foreign policy expert.

When Obama dropped Susan Rice from the scheme of things following protests, he did himself a favour. Rice was hardly someone who could have intervened either in the Middle East peace process or in the Af-Pak cauldron without being judgmental. In fact, she was proudly described by Zionists of all stripes as “Israel's Gladiator in the UN”. With that kind of reputation, she would have proved a non-starter.

Quite opposed to that, Kerry believes in the diplomatic vision of negotiations and keeps threats as the last resort. So, if you are expecting another round of threats warning Iran of “obliteration” a la Hillary Clinton, you would be disappointed. It is not for nothing that his appointment was welcomed by Tehran.

“We hope that he (John Kerry), given his personal characteristics, will be able to at least help revise part of the US government’s approaches and anti-Iran policies and will help reduce the loss of lives and financial losses inflicted on regional nations and the people of the United States caused by the US foreign policy,” Iranian Foreign Minister Ali Akbar Salehi told the Fars News Agency.

Also, unlike most of the top bureaucrats and appointees in the State Department, John Kerry shares an excellent rapport with the top Pakistani leadership, both in the civil as well as military structure. His insistence on involving Pakistan in the Afghanistan solution, rather than bypassing it, will ensure that the countries sit together and work out a deal rather than play out through propaganda channels. He in fact went on record to say that the US did not give Pakistan its due for providing intelligence about Osama Bin Laden.

It is therefore expected that in coming months, a new form of synergy will develop between Pakistan, Afghanistan and the US to deal with the situation following the pull-out in 2014.

If Kerry is a tough nut, Hagel is even tougher. Notwithstanding his rather tepid performance during his confirmation hearing, Hagel is known for his plain-speaking. And that is why his confirmation process was a baptism by fire. However, he has some clear ideas on how the US should behave militarily and he'll speak his mind when he is confirmed.

Considering rising deficit, it is expected that he will recommend (and see it through) some cuts on the Defence front. This might include recommendations to wrap up some of the military bases, curtailing the Air-craft Carrier Strike Groups and forgetting intervention as an option on the table.

On other matters, including relations with Russia, Hagel's views are closer to those of President Obama than the Republican camp where he previously belonged.

It is also expected that jointly, Kerry and Hagel will craft a policy that does not revolve around Israel and keeps the US interest on the top. The greatest harm that the US did to itself in the last decade or so was that it did not put any effort into making nations realise that its interests might match those of Israel's but they are not joint at the hip. That needs to change and bot Kerry and Hagel know that. It can be started by inviting Iran for direct talks and rolling back illegal unilateral sanctions that are based more on Israeli pressure than any tangible evidence that Iran has a clandestine military nuclear program.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Tuesday, May 28, 2013

Movie review: David

Tri-Try

Bejoy Nambiar’s 3 in 1 stylistic thriller tries to be more than it is, which not necessarily a bad thing, can sometimes turn against you and bite where it really hurts.

David stops just short of biting but does take it in the mouth. Beginning really well in french noir fashion with dark scenes and Neil Nitin Mukesh’s stubble glinting in the low light of the high end production sets, it keeps going and keeps trying but ultimately underwhelms.

What the film doesn’t lack is energy. There is always things happening on the screen and even though the director could have reined his leash a bit tighter and made the film shorter, it does keep you entertained throughout. David tells the tale of 3 “Davids” in 3 different places, in 3 different eras. No, this isn’t even slightly similar to any of Tarantino’s and the film does draw a bit of his style. It would also remind you of Martin Scorsese’s Goodfellas, without the witty dialogue or any of Scorsese’s customary skills.

Where the film misses on dialogues though, it makes up with its catchy soundtrack which could easily be one of the best you would hear this year. Overall the film is raw, visually appealing and backed up by some good acting but that doesn’t do enough to cover up the feeble plot.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles

Monday, May 27, 2013

Family fissures

Power is a dangerous enemy. But as a friend it is probably worse for it can tear asunder close ties and bury time honoured beliefs. As his less than a year old government hits road bump after road bump, this is one unwelcome lesson that Akhilesh Yadav must be learning as whispers about the widening chasms within his family grow.

The latest example was served a few days back when his uncle Shivpal Yadav, Minister for Irrigation, Flood Control, Cooperatives and Public Works, largely regarded as the number two in the government, said that he was no party heavyweight. While Shivpal is not exactly known for his elegant use of words, elder brother and Samajwadi Party (SP) chief Mulayam Singh Yadav is also snapping at his son’s government, having made vocal his displeasure with the functioning of the ministers, fuelling gossip about a growing distance between father and son.

Juhie Singh, the party’s state secretary, traces that speculation to a natural difference between the party organisation and the government. “During the elections, party leaders and workers saw Akhilesh as one of them. The sudden transition to CM is perhaps something they were not prepared for. They cannot make the distinction between his two roles. Hence, small lapses get magnified and much anger against the government is vented at party meetings. Netaji can see both sides and acts as the buffer,” she says.

Mulayam’s periodic critique of the government might be serving another purpose: it helps keep intact in the public mind the distinction between the party and the government such that the failings of the government do not reflect on the party while its achievements can be claimed as its own in the next Lok Sabha elections. Finger pointing at slow implementation of schemes for instance could be blamed at inadequate support from the Centre bolstering the party’s bid for a larger role on the national stage.

Arvind Singh Gope, Minister for Rural Development and the CMs senior by just a couple of years, says that the rifts and heartaches are being imagined by people who do not know the family well enough. “This is one of the most close-knit and well-behaved political families of India. There is immense respect for each other. The CM has a free hand to function and when he turns to the elders for advice, it is not a sign of subversion.”
Gope illustrates with the example of Shivpal’s earlier mentioned statement that had he been a political heavyweight, he would have been the chief minister.

“It was a light-hearted quip to dissuade a reporter who was pressing for the inclusion of a local MLA in the council of ministers. Shivpal laughed it off and said that appointing ministers was the CM’s prerogative, not his. The media however clung to only part of the statement, ignoring the context and tone,” emphasises Gope, who was present during the exchange.

Among the party’s fresh faces, which became one of its drawing powers during the Assembly elections, there is however the growing belief that the young CM has been deliberately hampered. “He is an energetic man with fresh ideas, surrounded by an obsolete team. This is not what we had hoped for,” says a first time MLA who admits to a growing frustration. More than one party insider insists that even if speculation about a growing chasm between father and son is unfounded, there is definitely substance to the conjecture that Shivpal is growing more disgruntled and can become a liability.

“The 2009 elections were guided by Amar Singh. In 2014, Ram Gopal Yadav (Mulayam’s cousin and party MP from Sambhal) will be the party strategist. This has resulted in a growing resentment in Shivpal,” insists a party old timer from the Yadav bastion of Etawah.

The last year has been littered with clues of Shivpal’s unhappiness. For instance, in August last year when the CM threw open the Yamuna Expressway, Shivpal who heads the public works department and had even been arrested during the course of demanding better compensation for farmers during the previous government, was miffed at not being in the picture.

The sacking of the party’s national spokesperson Mohan Singh last January in the run-up to the 2012 elections was seen as an indirect attack on Shivpal, who was in favour of the return of muscleman DP Yadav (staunchly opposed by Akhilesh). Later, when a decision was taken that only select senior leaders would talk to the media, Shivpal’s name did not figure.

Shivpal also held out till the very end when Mulayam proposed Akhilesh’s name as CM – a post he had hoped would come to him as the elder brother lay claim to a larger role in national politics. Even the dream of an enhanced role as guide to the new CM was undone when Ram Gopal forced himself into the role and started to have a big say in the functioning of the state government, limiting Shivpal’s power to his portfolio alone.
Also while Ram Gopal’s son Akshay has been given the party ticket to contest from the Farukhabad Lok Sabha seat (once held by Akhilesh), Shivpal’s son Aditya, who lost the zila panchayat elections in 2010, has been advised to work his way up and not depend on the family name.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Saturday, May 25, 2013

Transition phase or terminal illness?

Does the board that owns the most lucrative cricket league in the world possess the will and the means to fight the slump in team india's fortunes?

Team India gets roasted 0-4 in the English summer. The top brass of BCCI shouts in unison – it’s a one-off. The stark reality is the exact opposite. The fact that a series was to decide India’s dominance in world cricket seemed lost upon the administrators. Instead of making sure a fighting fit unit embarked on the tour, the entire pool of players were sent on the IPL trip, six days after an emotionally and physically draining World Cup win.

India receives a 0-4 drubbing Down Under. Leave alone the acceptance of the rot and the need for remedial measures, the biggest name in the Indian cricket establishment delivers a tell-all statement. BCCI president N Srinivasan said: “Next New Zealand is coming to India and it will be followed by England and Australia. We will beat these three teams on our own soil. They cannot beat us here and we will feel very happy."

Kolkata in March 2001 gave Indian cricket its self belief. The belief that battles could be won, even against the best, despite being pushed against the wall. Kolkata in December 2012 not only snatched that self belief but also the reputation of being a formidable force at home.

Victory and defeat follow teams from womb to tomb, but at Eden Gardens, England defeated India in batting, spin bowling and reverse swing in our own backyard. Kolkata to Kolkata, in 11 years, Indian cricket completed a full circle. The richest cricket board in the world is yet to acknowledge this and come out with a gameplan.

Times are changing fast. And so is the sport. As former Pakistan cricketer and coach Waqar Younis said, "Battles in cricket are still won on the 22-yard cricket pitch. But now, lot of macro and micro level planning, integration between the supply and demand line, use of experts for different conditions and situations, scientific scheduling and itinerary are required. This is not possible without a holistic approach to the game."

Having played and coached Pakistan, Waqar now lives in Australia and is keenly involved in understanding the system in that country. One thing that he would have learnt is that in these changing times, one can plan and fail, but simply cannot afford failing to plan.

Geniuses come despite the system and Indian cricket was blessed to have quite a few of them at the same time. The exit of Sourav Ganguly and Anil Kumble followed by Rahul Dravid and VVS Laxman and the near-exit of Sachin Tendlkar has created a deep void and would have tested the best system. West Indies, Australia and England went into a slide for similar reasons. England and Australia managed to come out of it, as they had a proactive system to fight back. West Indies, on the other hand,  struggled because of lack of this.

As cricketer and author Akash Chopra says “The faultlines in our system were there, but we were able to paper over the cracks because we had batting geniuses in our dressing room. Unless we devise a robust system, our present illness will become terminal and we will be permanently relegated to the middle, if not the bottom, of the cricket table." If we compare the way we are approaching the transition phase with that of England and Australia, the signs are ominous.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles

Friday, May 24, 2013

Why Yeddyurappa Feels Betrayed

It took him four decades of toil and vigil to catapult the BJP to power in Karnataka. today he feels shortchanged reports Kumar Buradikutti
It was February 19 this year. Two ministers had already been caught watching porn clippings in the Karnataka Assembly and the issue was blown ‘out of proportion by the media’. Some media representative in Shimoga compelled Yeddyurappa to respond on the issue and he literally blew hot and cold at the media:  “Everybody watches them. Don’t you watch them at home?” The thing is that all the Porngate accused happened to be his supporters!

 There was another incident in March 2011. BJP general secretary Ananth Kumar and BJP state unit president KS Eeswharappa, both being his rivals in the party from day one, were holding a meeting with some 57 rebel BJP MLAs in the party office in Bangalore without the knowledge of the then CM Yeddyurappa. Somehow the CM came to know about it. The next moment, he breezed through the meeting and breezed out, anger overflowing on his face. Media representatives blocked his car just as he was about to leave. Suddenly, an angry Yeddy hit his car driver in front of media representatives and their cameras.
Yeddyurappa has always been seen in two extremes: either emitting fury like the above two instances or crying like an abandoned child on the street.

Supporters of Yeddyurappa worship him. A highly ambitious angry young man cherishing in his heart a dream of political revolution roams village after village on his motorcycle, organises the masses, brings them into the fold of his party that then had little or no impact on state politics with its negligible presence, gradually builds the party with strong cadre force at the grassroots level, becomes his party’s first elected representative in the lower house of the Karnataka Legislature, becomes the party’s first Leader of Opposition in the state assembly and finally, after four decades of such efforts, brings his party to power and becomes the chief minister of the first BJP government in South India. But how long was he allowed to hold on to the CM’s seat? Just three years! Forty years of party-building and three years as chief minister! And    no hope for future as well. This is, perhaps, the source of his anger and desperation – and of his supporters too.

Another important reason for his anger is that he had never been allowed to function and do what he wanted as the CM. He faced three-dimensional attacks throughout his tenure: firstly from his own party men who used to gang up on  him on a monthly basis; secondly from HD Kumaraswamy of JD(S) who literally haunted him as a nightmare by unearthing one land scam after another on weekly basis involving Yeddy and thirdly from HR Bharadwaj, who left no stone unturned to threaten to dissolve the assembly and impose President's rule using his constitutional power as the Governor of the state. No chief minister, perhaps, has ever faced such multi-pronged attacks in the history of Karnataka. The second and third aspects can be understood and tolerated. What made him particularly furious was the fact that his own party men tried their best to pull him down more than any of the Opposition parties and eventually succeeded in their efforts.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Monday, May 13, 2013

“We have not dropped our prices as we don’t play short-term games”

Debashis Mitra, Former Director, Sales & Marketing, Mercedes India, speaks about his company’s long-term strategy for India and how it plans to reclaim the No.1 spot in the luxury car segment by next year

B&E: Car models in the mass segment are facing the brunt of the economic slowdown but the luxury car segment is doing well. What are reasons for its good showing? 
Debashis Mitra (DM): As elsewhere, the luxury car market in India is not dependent on economic cycles. Only individuals with surplus income purchase a luxury car. However, on the consumer front economic sentiments matter and currently those sentiments are down. But the Sensex has been moving up of late and the market too will bounce back for the auto sector in general.

B&E: Tough competition in the luxury car segment has seen Mercedes lose its top position. Looking back what do you think led to the loss of your position? 
DM: If you add up the premium and luxury segments we may not have the sales numbers to match our competitors. But then we have not dropped our car prices as there is no point playing short-term games. Dropping the price by 20% may get you the volumes but over a period of time you will not be able to sell more. You can already see this happening with the players who claim to be No.1 or No.2. The resale value of their cars has taken a big hit.

B&E: But the fact is that BMW and Audi sell more cars than Mercedes in India. Do you have a plan to reclaim your position? 
If we look at the traditional luxury market, i.e above the Rs.3 million C-class, E-class, S-class, the SUV segment, ML-class and GL-class, we are still far ahead of the competition. However, right now we are not present in the premium segment, i.e in the Rs.2.5-3 million price bracket. But we will be back in competition by 2014 when the market grows and is much bigger than what it is today.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Saturday, May 11, 2013

Budget expectations 2013

It’s the last annual budget that the present Congress-led UPA government is set to table in the parliament before the nation goes for general elections next year. irrespective of whether the FM makes hard choices or not, ICMR attempts to find out what are the expectations from this budget of the middle aged indian living in a metro (45-60 years); clearly, the results should not be seen as recommendations but as simple responses

The Finance Minister will push for reforms...

A huge 98% of India (at least from our set of respondents) believes that the FM will push for reforms in this upcoming budget. Although there is an insignificant minority that believes there will be no reforms, there’s also a growing perception that the FM might not wish to rock the boat during these turbulent times.

Will agriculture receive a fair share of the budget?

Over the years, the share of agriculture in India’s total output has continuously reduced (from 21% at the start of the century to 14% last year). Ergo, the finance minister may attempt to provide impetus to the industry in this budge; his recent comments that ”agriculture and allied sectors are critical for inclusive growth” could be a pointer to that. Irrespective of that. 65% of India thinks so too.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles

Thursday, May 09, 2013

29 suitors, 1 tuxedo

RBI should have 29 different interest rates for 29 different states based on the Taylor’s law

RBI’s interest rate fixing in India is a scattershot approach, which assumes that the country is uniform, which is not the case in reality. A uniform interest rate, therefore, is a wasteful proposition in a country that varies from the prosperity of Punjab to the utter neglect and backwardness of Tripura – both economically and socially. Progressive states like Punjab, Haryana, Gujarat, Maharashtra, Tamil Nadu and Karnataka have high per capita income, low level of hunger, better infrastructure and low poverty rate, thus inspiring confidence in the minds of investors. States like Orissa, Rajasthan, Bihar, et al find it difficult to attract investment. In this light, the current interest rate/lending rate mechanism is out of sync.

Furthermore, economist & Nobel laureate Taylor explained in his widely accepted Taylor’s law that if inflation augments by 1%, the interest rate should rise by a little over 1%. He also remarked that a rise in total output by 1% should correspond with a 0.5% rise in interest rate, and when it falls by 1%, interest rate should be cut by 0.5%. However, RBI’s methods in this direction have confounded everyone. When SDP fell for some states (like in Karnataka, last year’s growth fell to 14.92% from 17.35% the previous year), interest rate has been uniform. Similarly, when the output rose, RBI did not act in accordance with Taylor’s principle.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Wednesday, May 08, 2013

The only way to reverse the trend in the European Union

The only way to reverse the trend in the European Union is to recapture the spirit of solidarity that animated the European project from the start

To that end, I recently established an Open Society Initiative for Europe (OSIFE). In doing so, I recognized that the best place to start would be where current policies have created the greatest human suffering: Greece. The people who are suffering are not those who abused the system and caused the crisis. The fate of the many migrant and asylum seekers caught in Greece is particularly heart-rending. But their plight cannot be separated from that of the Greeks themselves. An initiative confined to migrants would merely reinforce the growing xenophobia and extremism in Greece.

We could set up solidarity houses in Greece, which would serve as community centers for the local population and also provide food and shelter to migrants. There are already many soup kitchens and civil-society efforts to help the migrants, but these initiatives cannot cope with the scale of the problem. What I have in mind is to reinforce these efforts.

The EU’s asylum policy has broken down. Refugees must register in the member country where they enter, but the Greek government cannot process the cases. Some 60,000 refugees who sought to register have been put into detention facilities where conditions are inhumane. Migrants who do not register and live on the street are attacked by the hooligans of the neo-fascist Golden Dawn party.

Sweden has made migration and asylum policy a high priority, while Norway is concerned about the fate of migrants in Greece. So both countries would be prime candidates to support solidarity houses. And other better-off countries could join them. OSIFE is ready to provide support for this initiative, and I hope other foundations will be eager to do the same. But this has to be a European project – one that eventually must find its way into the European budget.

Currently, Golden Dawn is making political headway by providing social services to Greeks while attacking migrants. The initiative that I propose would offer a positive alternative, based on solidarity – the solidarity of Europeans with Greeks and of Greeks with migrants. It would provide a practical demonstration of the spirit that ought to infuse the entire EU.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Tuesday, May 07, 2013

Bi-polar disorder

American democracy is fast making way for a two-party dictatorship, and US citizens are already seeking options

American author Gore Vidal once stated, “Apparently, a democracy is a place where numerous elections are held at a great cost without issues and with interchangeable candidates.” As the trends indicate, this seems to have become a reality for US democracy today. Even when it is suffering from a mammoth public debt of over $16 trillion and a 7.9% unemployment rate, the presidential candidates (and the campaigners behind them) in the recently concluded elections have been ambitious enough to spend an amount of around $5.8 billion (more than the GDP of Malawi) during their respective campaigns. In addition, the adverse effects of political duopoly are becoming vivid with time. The belief in the two party political system – Democrat and Republican – which is deemed “outdated” by experts, is getting shakier by the day.

Super PAC (Political Action Committee), which was established by the Citizens United Supreme Court, has massively influenced the rising expenditures in US elections as it has allowed parties to accept and spend enormous amounts of corporate, individual or union cash; often without disclosing sources. The total cost of the November 2012 election was around 12% higher as compared to 2008 ($5.2 billion) and has almost doubled as compared to the expenditure incurred in the 2004 elections ($3 billion). UK election expenditure of around $49 million in the 2010 general elections looks microscopic compared to the US (120 times more frugal). The trend of rising election expenditure in US has been severely criticized by Iranian President Mahmoud Ahmadinejad, who critically commented, “An election, which is one of the manifestations of the people’s will, has become a battleground for the capitalists and an excuse for hasty spending.”

Even the ‘battleground for the capitalists’ has been limited to only two parties, i.e., Democratic and Republican. A larger proportionate of people displayed their dissatisfaction against the current political system. A Gallup Poll conducted just before the election highlighted that the Americans are no more excited about having only two choices and astonishingly, 40% of Americans consider themselves as ‘independents’.

Over time, the US Presidential election has become more of a political farce that comes into play every four years. In reality, a duopoly is a two party dictatorship where both sides appear to be separate; yet truly represent the same agenda. The American duopoly is highly influenced by corporate interest. For instance, as per media reports, more than 70% of the people demanded a public-run health care option but both parties maintained their support for private health care. Irrespective of peoples’ unwillingness, both parties supported the war in Iraq and Afghanistan. And if we have to believe a leaked ‘Memorandum of Understanding’ signed by both Obama and Romney (Obama & Romney agree to cowardly debates, Russia Today, October 16, 2012), the three televised presidential debates were really ‘planned to prevent any unplanned circumstances’! In actuality, both candidates provided ‘pre-planned’ retorts to ’pre-approved’ queries from ‘pre-selected’ individuals.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Monday, May 06, 2013

"Our aim is to be in the top-3 players in mobile phones"

Kenichiro Hibi, MD, Sony India, speaks to B&E about his company’s plans to ramp up its mobile division and grow its other businesses in the country

B&E: It’s been three months since you took up your current job. What are your immediate priorities?
Kenichiro Hibi (KH):
I am just starting and everything looks challenging here. The market is very big, with a huge potential. We want to connect with our consumers both inside their homes and outside as well with our TV and mobile offerings. We are already the leading player in the flat panel space. In the mobile space, our aim is to be among the top-3 players. According to GFK, Sony Mobile already has a 9% share in the Indian market, and we will further build onto it. We are looking at a rapid growth in the mobile space. Our overall target is to triple our turnover three-fold by 2015-16 fiscal, from the current turnover of over Rs.63 billion to over Rs.180 billion.

B&E: Considering the steep revenue target you have set for 2016 fiscal, where will this growth come from?
KH:
We have a three-pillar growth strategy. We expect the TV business to grow further. There is the CRT replacement market, with over 10 million customers who could possibly graduate to LCDs and LEDs. Our focus is on the premium range of products only. As in the case of Bravia though majority of sales still happens in the 22-inch range, but the 55 inches TV sets are doing well too. Also the segment is a big frontier for us. As India is a youth market, so we have products that appeal to the youth like digital cameras, Vaio PCs, gaming, etc.

B&E: What’s the revenue share of your main product lines?
KH:
Our flat panel Bravia range contributes 35% of the revenue. Our laptop range Vaio contributes 20% of the revenue, while the Cyber-shot digital camera range contributes 15%. India is already the sixth-largest market for us country-wise.

B&E: Sony is facing strong headwinds in most of its major markets. How do you see those challenges affect your India business?
KH:
The global weak economic sentiments have affected us, so has the situation in China. But in India the fundamentals like customer demand are strong. Though in India too GDP growth has slowed down, there’s still demand for our products. Also, since we import all our products, the weakening rupee and the appreciation of Yen creates some price-balancing issues for us here.

B&E: Are you considering local manufacturing here to become more price competitive?
KH:
We will decide as we go ahead depending on the market conditions. For the time being we plan to use the FTA agreements that India has with Malaysia. We have production facilities in Malaysia for TV and audio products, while the majority of mobile phones are manufactured in China.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
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Saturday, May 04, 2013

Has ECB found a solution to the debt crisis?

After several failed attempts to rein in the yields on the peripheral government bonds, the European Central Bank (ECB) is back again. This time with Outright Monetary Transactions (OMTs). But can OMTs achieve what other programmes couldn’t? B&E talks to a host of experts, including the ECB President Mario Draghi, to find the answer.

The summer of 2012 was somewhat depressing for countries across the eurozone until European Central Bank (ECB) President Mario Draghi announced he was willing to do “whatever it takes” to keep the single-currency union intact. And he had reasons for it. The eurozones’s economy was (it still is) under tremendous pressure from a credit crunch, and as such fiscal tightening. While the economy had contracted for the second time in a year (Eurozone’s GDP declined 0.2% in Q2 2012 after stagnating in Q1 2012), the composite PMI for manufacturing and services had fallen in July to its lowest level in more than three years (since June 2009). Even the number of people out of work in the region was up by 88,000 to 18 million in July. Although the statement, from the head of the most important financial institution in Europe, was enough to ignite some sparks of optimism, no one had a clear idea of what Draghi really had in mind.

Come September, Draghi has finally explained what he meant; the ECB would now engage in what it calls “outright monetary transactions (OMTs),” unlimited purchases of government bonds for eurozone countries near the brink of financial crisis. With this new intervention programme – termed as European Stability Mechanism (ESM) – the central bank aims at “preserving the singleness of its monetary policy and to ensure the proper transmission of its policy stance to the real economy throughout the region.”

Interestingly, the ECB was engaged in open-market operations a year ago as well, purchasing Italian and Spanish sovereign debt, but it couldn’t achieve much out of it. Yields declined temporarily, but later rose to new heights. For instance, the yield on Spain’s 10-year government bond had again reached 7% (in January 2012), the level that prompted Greece and Portugal to seek help from ECB, after it was driven back under 6% by ECB’s bond-purchase programme in September last year. Result: The ECB purchases were essentially stopped in January 2012, replaced by two so-called long-term refinancing operations (LTROs), which boosted liquidity in the eurozone via €1 trillion in three-year loans to banks. The loans indirectly eased pressure on governments by allowing banks to buy more sovereign debt. Yet interest rates for the debt of fiscally troubled eurozone countries remained stubbornly high. Thus, the question remains: Can OMTs achieve what LTROs couldn’t?

What ECB now plans is a more direct action to keep those borrowing costs down, using open-ended purchases of short-term government bonds in the secondary markets. In fact, as a bondholder, ECB will not claim seniority over other creditors. It will also ignore potential credit downgrades by rating agencies and will not demand more collateral if that occurs. The reason is simple. Financial market fragmentation and the uneven supply of credit across eurozone are holding back growth, effectively delaying a resolution of the debt crisis. Agrees Mario Draghi, President, ECB, as he tells B&E, “Risk premia that are related to fears of the reversibility of the euro are unacceptable, and they need to be addressed in a fundamental manner. The euro is irreversible.”


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
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Friday, May 03, 2013

“We have nothing like a foodgrain surplus”

Shetkari Sangathana founder Sharad Joshi tells Chandran Iyer of B&E that lopsided policies pursued by successive governments could lead to bigger famines

B&E: Let’s take a flashback to the famine that hit India during 1965-67 and then the seventies. What are your memories?
Sharad Joshi:
Things were terrible at that time. There was not only food security but also acute drought. The whole of Maharashtra was reeling under water shortage. Most of the wells in this state had become dry. I had seen birds falling down on the roads due to thirst. You can imagine the condition of people.

B&E: Do you think India has learnt its lessons from that famine? Is our agricultural policy today strong enough to prevent it from happening again?
SJ:
I don’t think so. Successive governments have pursued lopsided policies. Wrong policies introduced during the British tenure are still being continued. The British imposed the system of land revenue and its collection posed a big problem to even better-off farmers. Even now, in many places in India, landless people are giving loans to the farmers to help them pay land revenues. Even the coolies in the Agricultural Produce Market Committees (APMC) are giving loans to farmers and turning money lenders.

B&E: The agriculture minister recently said that in 1972, there was food deficit while now there is food surplus. What is your take?
SJ:
I don’t believe that there is any food surplus. The statistics comes from Food Corporation of India, which has to show that there is excess food, which is rotting. Unless they show that food is rotting, they cannot tally their accounts. They have to show that they do not have enough storage capacity. In the case of wheat and cotton, we are doing quite well. But apart from these two, I don’t think we have anything like grain surplus.

B&E: Can you pinpoint what exactly is wrong with our government’s agricultural policy?
SJ:
What is happening now is that there is no official confirmation that the prices cover the cost of production. Farmers cannot pay taxes and the dues of the loans that they have taken and the electricity bills are a huge burden. The loan waiver scheme of the government completely forgot the electricity bills with the result that many farmers have been unable to pay these bills. So, there is no power and diesel is already in short supply as it’s expensive and there is no government policy yet on ethanol and biodiesel. At the same time, labour is in short supply. All these are precursors to a great famine.

B&E: Doesn’t it sound like a bit of a doomsday prediction?
SJ:
What we have seen earlier have been famines due to natural reasons. But what we may see in the future is going to be the result of folly of man as well as fury of nature. To avert it, India needs structural reforms. Firstly, there is a need to scrap the APMC system. It has outlived its utility. They have never been able to fix a good minimum support price. The second important step is to scrap the Food Corporation of India. Thirdly, there should be nothing like a Public Distribution System.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles

Wednesday, May 01, 2013

10 Ways to revive the Indian Economy

With faulty policies and incompetent policy makers, the Indian economy has seen its worst. IIPM Think Tank suggests ten critical policy measures that can save the Indian economy from mirroring the paralysed socioeconomic conditions of US and Europe

When the northern, eastern and north eastern power grids in India collapsed in July and left more than half the country in the dark, it was declared to be another vivid indicator of India’s incredible growth story having run its course (following S&P’s downgrade, which predicted that India would be the first fallen angel among the BRICs). What the world chooses to ignore is that structural flaws in our power sector in generation and T&D have been holding back our economy for years, including the years where they felt so overtly optimistic (and even insecure) about India’s potential on the world stage. For the record, India achieved a net capacity addition of around 4 GW per year from 1997-2007. But a McKinsey report (however much you might wish to believe it) indicates that a growing India’s needs from 2007-2017 merit a net capacity addition of 20-40 GW per year, i.e. 5-10 times that figure. And the 11th Five Year Plan added only around 53.12 GW, or a little over 10 GW per year. In fact, the last year (2011-12) was particularly a good one with installation of 20.5 GW. In other words, despite the best attempts of the ‘powers’-that-be in scuttling our growth in the past decade, the economy has somehow pulled itself together and kept up the heat.

Clearly, it appears that countries are perceived very similarly to companies today, and you are only as good as your last quarter. By that yardstick, the Indian economy is still struggling with a depressed GDP growth of 5.5% for Q1, 2012-13; which makes it 9 consecutive quarters of declining growth rates. The surprising part is the shock and awe most Indians feel with this slowdown, as if they were in the middle of a rude awakening! That’s really because even till June last year, the government was predicting 9% GDP growth for India in FY 2011-12 and the RBI was looking at an 8% figure!

However, as B&E had concluded from its statistical analysis last year (refer B&E’s issue dated August 4, 2011 titled “The Upcoming Indian Economic Slowdown”), there were really no surprises. We had predicted it based on a multifactor correlation analysis using inflationary trends in India as the base. Interestingly – and snapping back temporarily to the start of the past decade – during the year 2000, the Indian economy followed a trend in inflation similar to the US. The trend was again repeated in 2010 when the Indian economy mirrored the US economic condition of 2008 just before it (US) stumbled into a deadly recession. As per our polynomial forecasting trend line analysis, the correlation will continue till the end of 2012 with its impact lingering till the last quarter of this fiscal year. So our prognosis is that India would see a relatively depressed growth at least till FY 2012-13. But all is not lost. In fact, this trend is based on the fact that the government will continue to simply do nothing to reverse the situation. In other words, it’s quite easy to electrifyingly turnaround our prognosis.

What is it that our government spokespersons – including our Prime Minister – have done best in this economic slowdown? Blame external factors, and that’s quite a convenient thing to do at the moment! The US grew by 1.7% yoy for the quarter ending June 2012 as compared to 2% for the previous quarter. The Eurozone remained in a quandary with GDP shrinking by 0.4% yoy for the quarter and jobless rates at a record high of 11.3% in July. And that’s why the escapist reasoning by the government. But then, that is hardly an excuse for not setting our own house in order. There is no denying the fact that the Indian economy has sufficient potential of its own accord, and if given the right impetus, India can indeed get back to 8-9% and beyond sooner than expected. B&E and IIPM Think Tank present 10 critical ways in which we can bring the economy back to its high growth phase.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles