Showing posts with label IIPM Think Tank. Show all posts
Showing posts with label IIPM Think Tank. Show all posts

Monday, July 29, 2013

The ugly duckling

He sat by the tracks and felt the line come to life. The rail road quivered, excitedly. And in his little toes, he felt the same excitement as the distant rumble rolled closer. He put down the diary in which he was giving words to his angry tears and got to his feet. The ballast poked and pricked at his bare feet but he couldn’t feel any of it.

The green engine loomed into view, and charged towards the boy like a ravenous monster gobbling up the horizon. The boy, turned and looked at the train, and from the fire in his eyes, you could tell he had been waiting… for this day, and for this train.

The train too seemed to know its nemesis. As it came closer, it picked up speed, as if sure of victory. The boy though was tired… tired of being picked on… picked on for being too scared, too fat, too slow, too dull and for being too black. He swore it would all end today.

The train drew near and was nearly upon the boy when those bare feet struggled against the ballast and propelled his tiny form forward. The diary, the stubby pencil and all that remained of his inhibitions were flung into the bluebells by the tracks as his arms carved the air like a buccaneer waving twin cutlasses. The train thundered past the boy as he turned his head from side to side in a desperate attempt to pick up speed. Blur against blur tore through the country side. The train was crashing towards the opposite horizon but the boy had an old oak standing in his path. As the oak drew near, the boy calves beat down on the dirt like pistons, his nostrils flared and eyes narrowed as he drew level with the train. For a frozen moment, engine and boy were locked in a frame, and then the boy inched ahead. The boy’s head turned as he pulled away and the fierce eyes took in the victory. In that moment, the boy returned to those eyes and as he sprinted past the oak, he broke into a wide grin. It was his first victory but it wouldn’t be his last.

The train would lose many more times, and years later, still fuelled by the hurt and anger that burnt up a childhood, Herschel Walker would trample down defensive line-men like a rogue bull-elephant crashing through a brittle bamboo fence. As a shy and timid child in racially charged Georgia of the 70s, he was often beaten up by white kids. He had a speech impediment and was ridiculed for it by both students and teachers. He was too fat and slow to be any good at sports.

Then one day, he started racing the train. He raced and raced till his legs hurt and his lungs burned and the day he won, he refused to ever feel fear again. While watching television, he started doing pushups during commercials. And he ended up doing thousands of them. Pushups, sit-ups, dips, hundreds even a thousand, each day. And he ran. He even tied a rope to a tyre and pulled it as he ran.

Young Herschel came from a poor family, and his school had no gymnasium to speak of. He was un-athletic and weak. But he let none of it get in his way. Within a couple of years, Herschel had become one of the quickest and strongest boys in school. No one picked on him now. But they did pick him for the football team. And college football in the United States, just so you know, is perhaps the pinnacle of amateur sports. The stands are always full and the best players are the biggest celebrities in the state.

Years later Herschel had said that he did not hold anything against the white boys who had heckled him, nor for the racist slurs or the constant taunting, for he said he realized that they are the ones who had problems. And they just took out their problems on weak and meek little Herschel. But it is they who fuelled the fire that forged Herschel Walker as we know him today. When he talks about them now, Herschel almost sounds grateful.

But those days in school, Herschel took out all that repressed anger in the football field. He was just too fast and too strong for the opposition. Colleges queued up for him and at the University of Georgia, Herschel found immortality. He became the biggest name in college football history and broke records and bones each year to win the Sugar Bowl for his college and the Heisman trophy for himself.  And while playing football like a pro, the ‘stupid black kid’ had also studied hard and smart to become a valedictorian.
The freight trains he raced as a child had come back to haunt those who stood in his way, for Walker would charge through line ups like his old racing partner.

Though a Hall of Famer Herschel didn’t quite win the same honours in the senior NFL (National Football League). That wasn’t because of Herschel’s lack of trying though. He still continued to break records as a running back. But the teams he played for just weren’t good enough those years to make good on Walker’s enormous talents. In 1997, Herschel Walker retired from football. Some would say his career did not attain the stratospheric heights his talent and power truly deserved. But Herschel would tell you that he soared further and higher than he or anybody else ever thought that timid little kid would go.

But why am I wasting your time over a retired football player? And that too the kind of football we neither play nor watch. Well, that’s because a few days ago, while preparing for a local martial arts tournament, I went to YouTube looking for videos of Fedor Emelianenko (for the sacrilegious few who don’t know who that is, Fedor is the Muhammad Ali of mixed martial arts -MMA) for inspiration. And there I ran into videos of a 50 year old Walker who had now started competing in MMA, fighting fighters half his age and winning.

Look around you. That man is in mindboggling shape at 50, far ahead of where most of us have ever been or will be, and therein simmers the purpose of this tale.

Herschel Walker doesn’t go to a gym. He doesn’t eat any fancy foods. In fact he just eats once a day. While in college he was too busy working, playing, studying and training to think about eating, and so the habit stuck. He might have a fruit or some water through the day but at night, around 8 or 9 pm, he has soup and salads and a little something to eat, but not very much. And no red meat… in fact not much meat at all. Incidentally, even our ancient yogis recommend eating just once a day.

And as for exercise, Herschel still cranks out 1500 to 5000 push ups and sit ups every day. And some handstand push ups to wrap things up. Then he runs, sometimes with a tyre, like he used to all those years ago. And he wraps it all up in the wee hours of the morning.

 Herschel doesn’t just look young. He fights like a young man too. Herschel’s cardiovascular fitness would rank higher than most athletes half his age, or for that matter, any age. That man seems to have the fountain of youth burbling inside him and all you just read seems to be all you need to do.

Strength, especially in the upper body, usually is the last to go. Which is why most of us who have gently crept past our mid 30s and are living out our lives doing little more than swiveling in a chair never find out how unfit we have become till we have to run a few paces in an emergency. Panting for breath, we resolve to renew that gym membership, but unfortunately that’s all we do – renew the membership, not our lives.

But Herschel’s life tells you that you have no excuses. That no matter how ugly the start today, there’s a gorgeous swan flapping its wings inside us, waiting to soar... All we need to do is build a  little will and take off from our perch.


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

Thursday, June 27, 2013

Why Ray's heroes are a breed apart...

On the occasion of legendary filmmaker Satyajit Ray’s 21st death anniversary on April 23rd 2013, Monojit Lahiri pulls back to provide both, a long shot and a close-up of what made his heroes so different, special and unique.

In epics, sagas, legends and folklore, the ‘hero’ is always Mr. Perfect. Brave, bold, truthful, chivalrous and noble. In the Mumbai-manufactured ‘masala’ movies, add sexy handsome and macho (and don’t bother to strain the brain cells too much!). For over three and a half decades the one hero who blazed the screen and scorched the imagination of millions was the towering and charismatic Amitabh Bachchan.  In recent times, the likes of Sunjay Dutt, Sunny Deol, Abhishek Bachchan, Akshay Kumar, Ajay Devgn, The Khan combine (Saif included) and Hrithik Roshan have clashed swords for that coveted clot.

In serious cinema (parallel cinema that is) the concept of hero and heroism is not quite as bombastic. Here there is no specific agenda to titillate the wish-fulfillment aspect of the turned-on viewer.  He does not spew armpit rhetoric aimed at the front benchers.  He is a flesh and blood character, acting out real feelings with identifiable honesty, sensitivity and feeling. Agreed, he doesn’t always win, but who does?  Not you or me – only the larger than life caricatures in masala land!

The heroes of Satyajit Ray’s films are a breed apart.  They are even more rooted to the soil and milieu of their environment. Observes Chidananda Das Gupta with rare perception in the most definitive book written on the maestro, The Cinema of Satyajit Ray. “The natural character of an actor was important to Ray, not only in the case of the non-professional, but professionals as well. He must, in real life, reflect some of the basic qualities sought in the character to be portrayed. Acting against the grain of the actor’s nature is unacceptable in Ray’s scheme of things. That is precisely why Ray’s actors exude more or less the same impression of themselves in real life as they do on screen.  Soumitra Chatterjee, Dhritiman Chaterjee (Pratidwandi) or Pinaki Mukherjee (Jana Aranya), all have the unmistakable imprint on them of an intellectual pursuit and contemplative nature. The characters they play on screen are very like themselves.”

Let’s start with Apu in Apur Sansar, the third and last chapter of his unforgettable (Pather Panchali, Aparajito) trilogy.  Apu is a young  man who marries, writes his first novel and then loses his wife in childbirth. This tragedy sends him staggering into the wilderness.  His pathos is summed up in one magnificent image as he casts away the sheets of the novel. They flutter down the hillside in the luminous light of dawn, evoking an overwhelming sense of melancholy. Apu is filled with nostalgia, but when at last he is reunited with his on, it gives him a new vitality and joy with which to face the future.  Thus the wheel has turned full circle and the trilogy closes with Apu carrying his child just as it began with his grandmother rocking him in the cradle. Fittingly for the role of the sensitive Apu, Ray introduced Soumitra Chatterjee – an actor whose physical and intellectual parallels bore such striking resemblance to the character he was to portray, that it inspired the prestigious Time magazine to eulogise, ‘His actors act not with the usual combinations of oriental drama, but as though the camera found them alone and simply living; and they live as few characters in pictures do – real lives that swell to the skin with pain and poetry and sudden wit.’

Take Nayak where the great god, Ray, took Bengal’s (late) King of Hearts, Uttam Kumar for the first time, causing many to believe that the maestro had finally lost it!  Nothing of course was further from the truth. The essence of the film concerned itself with the emptiness that plagued the life of a celluloid superstar. The storyline oozes out of the empty confines of an air-conditioned coach carrying him to Delhi, where a State award awaits him. On the trip he meets an intelligent, young, woman journalist (Sharmila Chatterjee) in the dining car.  A rapport develops between them and in a rare moment of human contact, he tells her of his most private frustrations, doubts and weaknesses.  While it is commonly recognized that Ray’s best works are derived from literary sources other than his, his eye for impeccable casting has almost always been universally acknowledged. Uttam Kumar was Bengal’s reining superstar, whose mere name on the marquee set off serpentine queues. What Ray did was to write a script with him in mind, eliminating his popular, cliché-ridden mannerisms and concentrating on his seldom-tapped acting prowess. In this he succeeded magnificently, inspiring the late star to comment, “Manikda was the first director to really teach me what film acting was all about.”  This new insight was reflected in most of his subsequent movie roles.


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

Friday, May 31, 2013

Movie Review: The Attacks of 26/11

Brutal reality

A cinematic retelling of one of the most horrific event in India’s history is in itself a daunting task. But to attempt to do so with a dramatic yet conceivable narrative, one that does not compromise on the veracity or intensity of such atrocities, is a highly optimistic proposition. A proposition that needs a renaissance, a revival, to be shaped into being. It’s hard to argue that Ram Gopal Varma, the director, falls short.

There is no spectacular plot to speak of. Just a beautiful city and the terrible tragedy it suffered, and the intrigue and revulsion the tragedy evoked. It is told through the eyes of Rakesh Maria (Nana Patekar), the Joint Commissioner of Police (crime branch), giving his account of the eve of 26/11, leading up to the capture of Ajmal Kasab (Sanjeev Jaiswal). The linear narrative, painted in a classic noir style, excels to such an extent that it often makes for a tough viewing. The emotions it stirs are excruciating. However, the taste of bitterness the film leaves behind is suppressed by a brilliantly written penultimate scene, which adds a sane head to the ripped body. Seen through the lens of entertainment, the film is a certified thriller and is highly recommended.


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

Friday, May 24, 2013

Setting the cat amongst pigeons

New Year 2013 has announced itself with a roar in Tamil Nadu – the roar of an octogenarian politician sounding a highly complex and ticklish succession bugle.

A question which had been asked for many years now suddenly has an answer and fittingly in the hoary cinematic traditions of the state, the drama in the new year was scripted by none other than DMK patriarch Muthuvel Karunanidhi when he put his stamp of approval on his political successor by naming his third and favourite son Stalin.

“Till my last breath I will work for the upliftment of society. To the question as to who will carry on this work after me, you should not forget Stalin, who is sitting here,” said  Karunanidhi, his emotions barely in check, while delivering a speech at a party function in Chennai, evoking loud and thunderous applause from the Dravida Munetra Kazagham (DMK) cadres present.

In a state where the Karunanidhi family essentially constitutes the DMK, the battle of succession in Tamil Nadu's first political family is a keenly contested affair. Coming from the grand patriarch himself, the naming of Stalin is being seen as a signal that of all of his inheritors – and Karunanidhi has many – it is only current DMK treasurer who has the capability to lead the party and the government. Except for Karunanidhi's second son and the Union Minister of Chemicals and Fertilizers, MK Alagiri, who did not hide his obvious disgruntlement, the rest of the DMK rank and file has fallen in line for now.  “DMK is not a shankara mutt for anybody to nominate,” Madurai-based Alagiri said in statement smacking of sarcasm. For good measure, the Union minister and DMK leader hit back and added that he would not accept anybody except his father as leader, making it clear that Stalin has a battle on hand if he thought a mere nomination by his father and supreme leader was enough to clear the way for him to assume the mantle of leadership for all times to come.
According to insiders, though silent, senior party men have strongly advised the Union minister not to react adversely. “Kalignar or Karunanidhi is the final authority and we abide by his decisions. All we ask is due to respect for Alagiri,” a veteran DMK functionary and Alagiri supporter told TSI.


However, Alagiri has chosen to lie low for the time being, hemmed in by son Durainidhi’s alleged involvement in the granite scam in Tamil Nadu.

Born four days after the death of Joseph Stalin, the great Soviet Communist dictator, Karunanidhi's third son was christened after him. The Tamil Stalin, his father's political shadow, has preferred to maintain a stoic silence and has chosen not to react to his father's statement or even his brother's outburst.

Not without reason. Karunanidhi, who is credited for successfully scripting screenplay for theatre, cinema and politics in Tamil Nadu for more than a half a century, has been equally successful in scripting son Stalin’s succession for more than two decades now.

A lot of it was in evidence last fortnight. The DMK chief played Chanakya to perfection, enlisting the support of nonagenarian party general secretary K Anbazhagan to propose Stalin’s name; all that he did was to second it, on the sidelines of a meeting of DMK district secretaries. Smart move.

Anbazhagan, who was present at the media conference, said if he proposed Stalin’s name, the others would have no option but to toe the party line. “The party president cannot reject the proposal,” Anbazhagan asserted. He should know. Asked whether he would stay away from contesting the forthcoming organisational polls, Anbazhagan declared he was not certain if he would be around till then!

The man named to succeed Karunanidhi is by no means a greenhorn. Stalin took to the political arena in 1967 as a 14-year-old participating in the anti-Hindi agitation sweeping the state, an agitation that also saw the ouster of the Congress party from St George Fort in the assembly elections. He campaigned for uncle Murasoli Maran, who was contesting for a Lok Sabha seat.

A graduate from the Presidency College in 1973, Stalin was inducted into DMK’s general council. After dismissal of the party government by the Centre on charges of corruption and imposition of the Emergency in 1977, both Karunanidhi and Stalin were among the front line DMK leaders arrested.
Sudhangan, a Chennai-based veteran journalist, believes several senior leaders who could have challenged Stalin’s position in the party are either no more or too old to be active. Some have been over the years systematically sidelined or have quit DMK to float their own outfit. One such leader and a good orator was V Gopalswamy or Vaiko who quit DMK in 1990’s to start his own MDMK.


Wednesday, May 8, 2013

Nothing wrong in wanting to get richer

There is nothing wrong in wanting to get richer. But there are many ways to get richer, and entrepreneurs must be able to choose the right one

I maintain that there is nothing wrong with a youngster who is aspiring to make a lot of money as long as it is via legal and ethical means. You cannot become a saint at 20 and you shouldn’t. What is important is for you to realise that by seeking respect from every stakeholder, you will actually become richer in wealth. That is the trick that we all have to follow. That is why, right in 1981 when we started the business, I said that we must seek resect from everyone – right from customers to investors to vendor partners to employees to government to the society at large. If we sought that kind of respect, we would not short change anyone. We would adopt the finest principles of corporate governance, be fair to our colleagues, not violate any law of the land, pay our taxes properly and create goodwill with the society. We went ahead with the thought process that if we follow these tenets, revenues, profits and market capitalisation will automatically come. We said that we will separate management from ownership of shareholding and also laid down a fundamental principle that none of our family members will take up a non-merit based role in the company. So there is nothing wrong with youngsters seeking a path to get richer; all I am saying is that there are multiple paths to get richer. And one of the paths that this company has found to be effective is to seek respect.

The people I chose to partner me in this venture were chosen because they had very similar value systems. They were part of my team at Patni. Since equity, fairness, respect, value systems, et al were paramount to my mind, I took an unprecedented decision of making them equal stakeholders in the business. I have not come across any entrepreneur who picked up people with 1-1.5 years experience and gave them 15% equity. I have not seen any other case in the history of global business. Why did I do it? I did it because I believed in equity, encouraging youngsters and having good values. Even at the national level, I do strongly believe that these values will make India a better place.

When we started Infosys in 1981, India was a very different place as compared to what it is today. First of all, there was huge friction to business in the 1980s. For example, it was very difficult to get a bank loan. When we wanted to import our first computer, we went to multinational banks seeking finance – Citibank, Bank of America… where my nephew and my friends worked. They said, “We don’t give money to you guys. We only give money to very rich people.” These were the MNC banks. The Indian banks were also sceptical. Finally, we got funded by the state financial institutions. Secondly, in those days, infrastructure was very poor. It would take us two-three years to get a telephone connection. Thirdly, there were no data communication facilities in those days. We used to sometimes fax the source code to US. Fourthly, travelling outside India required approvals from the RBI as we did not have current account convertibility. We couldn’t hire consultants from outside India in quality, brand building, et al. Those are all taken for granted today. Today, it is all about competing in the marketplace based on innovation and based on how market-worthy you really are. Therefore, there is a lot of difference between the 1980s and today, and for the better.


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

Tuesday, May 7, 2013

Can Us afford to go over the fiscal cliff?

With President Obama’s re-election, the countdown begins for lawmakers to address the 2013 fiscal cliff and the Treasury’s statutory debt limit. But unless the President and House Republicans agree to change the current law, these crises cannot be resolved.

It’s been just three weeks since US President Barack Obama won the re-election, but a doubt whether he can forge a productive second term in a divided political system has already started doing the rounds across political arenas. No doubt, the Presidency is settled, but little else is. Policy uncertainty has been one of the biggest obstacles to Uncle Sam’s economic growth over the past few years, and the outcome of the recent Presidential election is unlikely to change much. The scenario could become even worse as Washington’s fiscal debate intensifies. Reason: President Obama has two big decisions to make and that too by early 2013.

The first is what to do about the so-called fiscal cliff – the substantial tax increases and government spending cuts scheduled to hit next year under current law. The second is how to achieve fiscal sustainability; that is, what long-term tax and spending changes will make future budget deficits small enough so that the nation’s debt-to-GDP ratio (103% of US GDP) stabilises. What Obama decides today will determine how the US economy performs tomorrow.

The fiscal cliff describes what will happen if the Bush-era tax cuts, this year’s payroll-tax holiday, and the emergency unemployment insurance programme all expire on schedule, just as government spending drops according to the terms of last summer’s deal to raise the Treasury debt ceiling. Those would be on top of several temporary tax and spending adjustments that Congress normally extends each year, affecting the Alternative Minimum Tax (the so-called “AMT patch”) and Medicare’s reimbursement schedule for doctors (known as the “Medicare doc fix”). If policymakers do nothing before the end 2012, the resulting tax increases and spending cuts will total $715 billion in 2013, equal to about 4.3% of GDP.

Fiscal sustainability is attained when a country’s debt grows in tandem with its GDP. The Great Recession, by contrast, resulted in a near doubling of the US debt-to-GDP ratio over the past five years. If the fiscal policy remains unchanged, the debt load will continue to outpace growth, eventually triggering an economic crisis. Under reasonable economic assumptions, Obama needs to reduce the annual budget deficits by $3 trillion over the next decade to attain fiscal sustainability. This amount includes the $1 trillion in spending cuts agreed to as part of last summer’s increase in the Treasury debt ceiling, but not the $1 trillion in automatic spending cuts, known as sequestration, that also were part of that deal. If Obama makes these necessary changes, deficits by 2020 will equal no more than 3% of GDP. Given the expected pace of GDP growth, that will stabilise the debt-to-GDP ratio.

Going by this logic, the solution to Uncle Sam’s problem seems to be simple. Obama should decide to do nothing, stick to current law, and let the nation go over the fiscal cliff. This would solve the fiscal sustainability problem: Higher tax revenues and lower spending would make future budget deficits small enough to bring the debt-to-GDP ratio back on track. Sounds like a great plan, but only on paper. In reality, the cost of this option would be another recession in 2013. In fact, the Moody’s Analytics model of the US economy shows that going over the cliff would cut real GDP by 3.6%, below what it would be if current policies were extended next year. This outlook may be optimistic, but the risks are definitely greater on the downside. The US economy is pathetically fragile at the moment. While unemployment rate is still over 8%, the trend in the three months through October shows manufacturing down more than 3% year-on-year, the worst outcome of the recovery till date. In fact, there are several such scenarios which can nullify the initial positive effect on fiscal sustainability.


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

Friday, May 3, 2013

Letters to the editor

Eye opening efforts
The Indian economy has been facing stifled growth for quite some time now and flipping through the cover story of Business & Economy magazine was an eye opening experience for me in terms of the economic conditions of the country. Both the government and the Reserve Bank are trying hard to get the economy back on track and the issue decently suggested how India can be safeguarded against the lately turned up pool of scams and incompetent policies. The feature was greatly supported by data and trend analysis generated by the IIPM Think Tank. I seriously believe that the economy could benefit through further liberalisation of FDI, as was discussed. It was interesting to see that a magazine has also uniquely considered the educational qualifications of our finance ministry! Talking about the rest of the package, it was a great mix of stories and analysis across various sectors.

Bobby Malhotra
Chief Executive Max Trade

Constant evolution
I have seen a constant evolution in the content, presentation and section planning. The factor that makes the magazine different from the rest is its dynamic supplements. I would like to give a special mention to BFM, which keeps me updated with the latest happenings in the world of finance. There are always some great columns in the issue for avid readers like me. In the last issue, the story on the crisis in the power sector was very timely and comprehensive. Really, for the Indian growth story to continue and be sustainable, the next phase of reforms should be in the power sector. I expect you to raise more such critical issues in the future.


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 1, 2013

“There is no problem in power generation in India!”

Dipak Dasgupta, Principal Economic Adviser - Ministry of Finance, in an interview with Sray Agarwal and Ganesh K Roy, on reforms for infrastructure and transport

How do you feel about the Indian Economy right now?
Dipak Dasgupta (DD):
There is no doubt that the Indian economy has slowed down and the reason for this is a function of strategy failure and that the investors have lost their confidence. The last year scenario also has not been favorable; but this is not a new thing rather it’s the investment cycle which remains in every developing economy all around the world. That [investment cycle] is what drives the course of any economy. At the same time, the problems in Europe and US have hampered the growth of many countries and we are not alone. China too is going through this phase. The last time we had that cycle was in the year 2008. Export markets are growing very badly. We also need a logistics revolution so that growth can been accelerated. Despite having poor infrastructure, we have been able to grow at such a high rate; but now we need a major infrastructure revolution so that we can again reach to the erstwhile levels. Ours is a large landlocked country, which is much like a continent; so we need to connect all the corridors to achieve better growth. But we don’t have that kind of a system right now in our country. We have a young population which will help us to grow in the long run. We need more public private partnerships in India to make things better. There is a huge skills gap between public and private firms – which makes it imperative for the PPP model to flourish in India. We are in a marathon race and not in a 100 metres race; so we need long term plans which will enhance our economy. 

Power failures, time overruns, cost overruns, are the indicators of structural flaws in the economy. How do you think India can overcome these hurdles?
DD:
Power generation is growing at 8.8 % in India. In fact, contrary to the general perception, there are huge power plants coming up in India; this shows the level of development that we are going through. Yes, here we have a system where some states are producing huge amount of power and some are not and the demand is also not equal in each state. There is no problem at the production end; rather, we have a problem at the distribution end and in the channels. We have built a state of the art facility in the field of power generation so there is no problem at the generation part.

But the slowdown did not happen overnight. Do you think the government’s policy paralysis added on to this situation?
DD:
We need to do things every day because doing things once in a year won’t do well for any economy. We need to bring in reforms every now and then so that the growth story is kept on going. In the government sector, incentives are less and performance parameter are also not standardized. Politicians respond to what the electorate wants. How to make the public sector work better is the challenge. A strong leadership is the need of the hour.


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

Tuesday, April 30, 2013

Busting the India vs China myth!

Comparing India with China, and looking to grab a few brownie points here and there, is a popular obsession with Indians in the past few years. But after Visiting China several times in the past and looking at how the Chinese have developed their economy and built world class brands, the entire debate only appears an exercise in futility

My visit to the Middle Kingdom over a decade back convinced me that New Delhi would not evolve into a Beijing if we worked round the clock for 25 years. When I revisited the capital city last year, I could see the accomplishment of 25 additional years of progress in ten years!

The reality of the unending Chinese miracle hit me harder when I looked at how Guangzhou has developed in just over the past decade. It seems we won’t even reach that level if we work round the clock for another 50 years. When I see how China developed Guangzhou as its industrial hub and how India developed Bangalore at its IT hub (both commenced their ascent at around the same time in the early 1990s) it appears to be a tale of two attitudes, rather than cities. By sheer numbers, the PricewaterhouseCoopers’ Global City Ranking Index for 2010 shows Guangzhou ranked at 44 with a GDP of $143 billion, while Bangalore is ranked much lower at 84 with a GDP of $69 billion.

For over much of the past decade and counting, the ‘India vs China’ debate has persisted across several levels. Both western and Indian media (for their individual reasons) have been particularly boisterous and over-the-top with this comparison on several grounds; and have picked up every possible opportunity to take it up. This was visible, for instance, when US Secretary of State Hillary Clinton came over for a visit and commented on how India should aspire for a parallel role in the region, or when it was being predicted by some economic reports that India’s GDP growth rate would outpace China by 2013-15. From my perspective, all that this debate can realistically provide is a generous daily dose of rollicking entertainment! India may have merited a comparison with China a decade and a half back, but we have crossed that bridge long ago. You may call this assertion unpatriotic, and it is quite obviously unpopular with Indian readers; but this is the plain truth.

Coming back to the two cities I talked about, there are many more surprises in store when you look further into the intricacies of Guangzhou’s numbers. Around 2.5 million women are working in the city, and the employment rate for women has surged three-folds to 70.84% in a decade. Life expectancy for women has risen by 4.5 years to 81.33 years and 49% of graduates are women, who are actively playing their role in sectors like science, technology and education. At around $17.8 billion (2010 figures), the city’s FDI figures are over six times that of Karnataka at around $2 billion (2008-09 data, of which Bangalore would presumably have a major share). The visionary Chinese specifically chose a port city to take advantage of sea trade. Also, the government strategically divided the city into multiple special economic zones to further attract foreign investment. For instance, The Guangzhou Economic & Technological Development Zone caters to technological manufacturing and also serves chemical, electric machinery, food, electronic equipment, metal fabrication and beverage industries. The Guangzhou Nansha Export Processing Zone is meant for automobiles, biotechnology and heavy industries. Easy access has been provided to Shenzhen Port and Baiyun airport to ensure fast movement of goods. The four auto companies in Guangzhou, who are in JVs with 50 major global auto companies, were on target for producing 1000000 cars by 2011. Bangalore, meanwhile, has insensibly avoided division of the city into special manufacturing hubs. Some areas like Inner Ring Road (where we have offices of major multinationals like IBM, Microsoft, Dell and Yahoo!) have become clustered zones for specific industries, but not by design. Also, there are no specialised trade zones in Bangalore, so synergy is hard to achieve.


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

Thursday, April 25, 2013

“They must establish consensus before a law is made”

N. A. Ansari, Whole time Director and Executive Director, JSPL Raigarh. talks about JSPL’s R&D and environment initiatives as well as policy issues

B&E: What have the most important outcomes of JSPL’s R&D initiatives so far?
N. A. Ansari (NAA):
We use our in-house R&D facility as well as licensed technologies. We ensure that the combination of these two brings out quality products for us. For example, we have manufactured the world’s longest rail, which is 121 meters long and can be coupled to form 484 meters in all. But we are still waiting for the orders to come, because the most important consumer of this technology could only be Indian Railways. We have been trying to convince them for the last 4-5 years that our rail can be laid down quickly, is easy to maintain, lighter in weight, et al, but they have stuck to their MOUs, which they have signed with the other companies. Apart from this, we regularly do research to find out ways to improve our quality, reduce wastage, cut down coke consumption in the blast furnace, increase yield, et al.

B&E: What is your perspective on the logistics and transportation related issues that JSPL faces in particular?
NA:
Infrastructure is really in a very bad shape. We receive our imported raw material at Paradip port in Orissa, from where it gets to our Raigarh plant by train. This is very time consuming as our ports are not in a position to handle the cargo quickly and efficiently. We have purchased a 60% stake in an SPV to develop Gopalpur port near Berhampur city in Orissa’s Ganjam district. This will help us immensely once our six million tonne steel plant in Angul starts production.

B&E: Policy issues like land acquisition, environmental clearance, et al are gaining a lot of ground these days. How can they be made more business friendly?
NA:
I am not against any regulation. All I want to say is that there needs to be a practical approach to law making. Some of the laws regarding environment conservation are very good, but they are difficult to implement due to lack of technology or some other constraints. So, the attempt should be to establish a consensus before a law is made. Also, the mechanism to resolve the issues & attain clearances should not be so slow and time consuming. If you need to give a red signal to a project, say it in one go and then stick to it. Otherwise, let the work go on. By the time the final decision comes about a project, it may not remain feasible for the producer anymore. So, if we really want to see the sector booming, we need to address these issues on a high priority basis.

B&E: How are you meeting various environment-related norms?
NA:
Through our R&D, We are able to manage our fly-ash emission in a very systematic manner, which has brought down the risk to the environment significantly. We are using a lot of our fly ash waste to manufacture bricks. This way, we are not just disposing our waste, but also creating value out of it. We have also planted over 3 million trees in and around our Raigarh plant. This is our way to use natural resources sustainably.


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

Wednesday, April 24, 2013

How Volkswagen is leveraging its India plans to become the global #1!

Last September, Volkswagen edged past Toyota to become the second largest auto selling company in the world. It’s next target – grab the gold by 2018. It is already the largest in the #1 automarket, China. To further propel the company’s growth globally, Martin Winterkorn, the global CEO of VW Group, has set his eyes on the fastest growing automart amongst the BRIC nations. India. The work has begun. But Indian conditions won’t allow Winterkorn to have his way easily. And then of course, there is competition.

Digital media networks covering the Frankfurt Motorshow, a few months back, were abuzz about Martin Winterkorn, CEO, Volkswagen AG, visiting the Hyundai Motor Company pavilion. It was a pleasant surprise for the Korean giant as the CEO of the world’s second-largest automobile company started examining the new i30, which was meant to give serious competition to VW’s Golf. Winterkorn started by measuring the thickness of paint used on the lift-gate, then walked around the i30 grazing his knuckles across the hood-to-bumper shut lines to check for evenness. He then took a careful note of the interiors of the car. Hard to imagine what was going on in his mind, but his expressions indicated that he had some gaps in his thought-process which needed closing. Someone ought to give him answers. Winterkorn called for VW’s design head Klaus Bischoff, and demanded, “The lever for the steering wheel release makes no sound while moving. BMW can’t do it. We can’t do it. Why can they?” The chief wanted to know how Hyundai managed to make an adjustment mechanism to the steering that didn’t make any noise. Bischoff had no answer.



Winterkorn’s visit to the Hyundai camp clearly indicated the regard he held for the fifth-largest automaker in the world – a worthy opponent. The company wouldn’t want to give up its silver crown which it snatched from Toyota last September, not to even a respected, fast-growing automaker like Hyundai.

Volkswagen’s march-without-stumble in the global market has wowed onlookers. From being a lesser-known European brand to becoming the second-largest car-seller in the world (market share of 12.2% in terms of sales volume), the past four years – with increased focus on the BRIC markets – for the group have been least to say, career-defining! Five years back, new launches from VW were unheard of in most parts of the world. Today, every move of the company is discussed upon. Winterkorn knows that.

Two years back, VW’s claim of reaching an annual production mark of 10 million units by 2018 sounded like wishful thinking, Today, it appears that the milestone will be surpassed well before the set deadline. The automaker sold 8.16 million cars worldwide in 2011, a 14.3% increase y-o-y. Experts do claim that the company may fail to mirror its previous year’s performance in 2012. However, growing its annual sales by 1.84 million over a period of 9 years means growing sales at a CAGR of 2.29% starting FY2012. Selling 186,864 cars more every year – not difficult for VW. Not if we go by the work VW has been doing in the BRIC markets post-2009.

Winterkorn is serious about the BRICs. During the previous Christmas holidays, he summoned the bosses of the company’s operations in BRIC markets to the global headquarters at Wolfsburg, Germany. With its sight set on the #1 spot in the global automotive circuit by 2018, the CEO of the $162 billion-worth VW Group wanted to reiterate on and announce his gameplan of reaching the #1 position by digging gold in the BRIC nations. Needless to mention therefore, its performance in the bloc’s second largest (after China) and the fastest growing auto market – India – is crucial.

Read more.....

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

Monday, April 1, 2013

The Truth behind America’s Population Growth Agenda

Started by The US Administration and Promoted by Economists The World over, Population growth Programs became one of The Most Vital aspects of Developments in The 21st Century. Much to The Dismay of Governments, The Plans have actually backfired...

I have spent more than forty years of my professional life telling economists, business people, academics, politicians, government officials and the public at large that population growth can be one of the most positive factor in the attainment of long-term sustainable human development. My advocacy of a culture of life was actually prompted by the scientific studies of one of my professors in the doctoral program in economics at Harvard in the early 1960s, the famous Nobel laureate Simon Kuznets. As the father of national income accounting and a notable economic historian, he showed through empirical research that population growth was a major stimulus in the industrial revolution and economic growth that happened in the more advanced economies during the 19th century and the first half of the 20th century. With data pertaining to almost a century of economic development, he convinced us (his students) and many of his colleagues in the economics department of Harvard that there was no truth to the Malthusian theory of development and that population growth was a very positive contributor to long-term economic growth.

This experience at Harvard greatly influenced the way I taught my first course on Economic Development in the LIA-COM program of De Salle University. During the second half of the 1960s, I had some of the most brilliant undergraduate students at DLSU then. I presented the empirical evidences of Simon Kuznets and other economists and economic historians about the positive dimensions of population growth. I think I was able to convince a good number of them that birth control – an issue already being discussed in countries like India and China then was not a solution to the problem of mass poverty. I presented the same case in favor of population growth to my students in the Economics 11 course at the University of the Philippines in the late 1960s and early 1970s.

Not too long after that, the debate on population control started to heat up. First, there was the best-seller of Paul Ehrlich and his wife who were both resource economists in the US, entitled “The Population Bomb”. It resuscitated the much-discredited Malthusian theory that the world will run out of resources if the population continues to grow and that there could be widespread famine. A good number of leaders in the developing world believed the Ehrlichs. In India and China, there were government-sponsored programs of population control, many of them extremely coercive. Forced sterilizations were common in India. In fact, such programs were responsible for the eventual downfall of Indira Gandhi and her clan. Under the communist regime of Mao Zedong, the Chinese citizens had no alternative but to kowtow to the one-child policy. In the first years of his Presidency, Ferdinand Marcos had a very pro-life attitude. After reading the Humanae Vitae, he used to quote in public speeches a phrase lifted from the Encyclical, “we will not limit the number of participants in the banquet of life.”


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist). For More IIPM Info, Visit below mentioned IIPM articles

Thursday, March 28, 2013

B&E Indicators

Indian IT/ITeS on the fast lane With a CAGR of 24% in the last decade, the Indian IT/ITeS industry has emerged as a key growth engine for the economy, contributing around 5.6% to India’s GDP in FY2009-10 and also providing direct employment to about 2.3 million people (from just about half a million in 2001). In fact, as per NASSCOM, the sector is estimated to provide direct and indirect employment to over 30 million people by 2020.

Overseas markets driving the growth
Even the export revenues touched $50.1 billion in FY2009-10, accounting for over 68% of the total industry revenues. The IT services segment was the biggest contributor (54%) to the export revenues (the export revenues from IT services have grown from $10 billion in FY2004-05 to $27.3 billion in FY2009-10) followed by the ITeS/BPO segment, which contributed $14.7 billion to the total industry revenues.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

Monday, March 25, 2013

Nothing less than Adam’s Dilemma

Dhamra Port on the coasts of Orissa may well Open The Gates of fortune for The State, but at The Same time it may also Prove fatal for The rare Olive Ridley Turtles. This is now writing The Newest Chapter of Tussles between Environmentalists and Industrialists in The State.

Ever since the Naveen Patnaik government stepped ahead to bring in an industrial revolution in Orissa, the state has been witnessing increasing number of agitations and activism cases. Owing to the same while India’s biggest FDI backed (Rs.520 billion) POSCO steel plant project is stuck with land acquisition issues, global steel major Arcelor Mittal, who signed a MoU with Orissa government in 2006 to set-up a Rs.400 billion steel plant, finally gave up hope and moved on to sign a MoU with the Karnataka government. Vedanta Group suffered a double blow with it’s aluminium plant in Lanjigarh (Western Orissa) and Rs.150 billion Vedanta University in the eastern part of the state. Most of the mega industrial ventures in Orissa are now at halt or fighting hard to salvage a situation out of nothing. They are facing road blocks created by either pro-environment activists or anti-displacement agitators. The latest addition to this struggling bunch of projects is the Port of Dhamra, though with a little twist. While most of the above mentioned projects are struggling to start off, Dhamra port is facing the heat when it is just about to be completed.

Before getting into a discussion of development vs environment, which is the real issue haunting the project at the moment, one must know that on completion Dhamra port – developed by Dhamra Port Company Ltd. (a 50:50 joint venture between L&T and Tata Steel at an estimated cost of Rs.24.6 billion) – will become the first ever fully mechanised port on the eastern shore of the country. In addition, the port, which is strategically located between Haldia (West Bengal) and Paradip port (Orissa) on the Bay of Bengal, will be one of the largest deep water ports in India adding impetus not only to the trades of the state but also of the country in a serious way. The important fact about this port is that when the project work started in 2006 (agitation against POSCO for land issues were at their peak), there were no such issues against DPCL though government acquired around 3,000 acres of land in 74 villages for the port and rail corridor. Displacement was never a hurdle for the project. Recollects K. C. Patra, District Collector, Bhadrak, “Issues relating land acquisition were handled in an exemplary manner. The process was accomplished in a way that no one was left landless at the end. Thus district administration did not face any problem during acquisition of lands.”

However, the real pain for DPCL at the moment is the protest of environmentalists, which has gained a lot of momentum with international NGOs jumping into the bandwagon in a big way. And the issue raised by the environmental NGOs is the ports closeness to Gahirmatha Marine Sanctuary, where 200,000 to 500,000 Olive Ridley turtles nest every year. Though the port site is not a nesting area, environmentalists are concerned about the fact that dredging and industrial pollution will disrupt the environment and the natural food chain in the whole region.

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles