Saturday, February 27, 2010

Shall we change?

The first symptom of a not-so-great nation is its ungratefulness

For once, it was incredible to see the Indian media playing a stupendous role in reliving the memories of the Kargil War; a pyrrhic war that India should not have had in the very first place. And once again, it was vindicated as to why the Indian Army is one of the finest institutions of the country. So while the debates of the worst kind over the commemoration of the Kargil War continued – from which party’s victory it was to which party’s loss – for a change, it was great to see that for two consecutive days, i.e. July 25-26, 2009, many significant channels in the television media didn’t bother too much about other issues and allocated a reasonable amount of their energy and prime time for the martyr soldiers and their families.

Sadly for the family members of the martyrs, the Supreme Commander of the Indian Armed Forces (read: The President of India) failed to keep her date with India’s national heroes of Kargil War. Although we do believe the same was due to unavoidable circumstances, one also has to realise that the occasion means something that is significantly historic; and absence in the same is surely expected to raise hackles of critics and supporters alike. So while Pratibha Patil remained conspicuous by her absence in Drass where the commemoration was being held, the media took it to the people at large all across the nation.

Amongst all the ceremonies, what has been conveniently forgotten in between – or should we say, relegated to the bottom cabinets – is the loss of numerous lives in the summer of ’99. Those lives were not just valuable, it is a fact that many of those who died were also young officers and jawans freshly out of military academies who willingly gave up their lives for a nation and for the reason that without that victory, the strategic paradigm of India and perhaps even the map of India could have changed forever.

Certainly, the Pakistani intrusion was not an impulsive one and it was clearly aimed at cutting off NH-1 and thus Siachen. A prolonged war instead of a quick victory would have spread the war beyond Kargil to other fronts in Rajasthan and Punjab. The situation then could have gone completely out of control and with the threat of a nuclear war looming large, India would have been forced by international community to negotiate with a recalcitrant and cunning Pakistan. The quick and decisive victory was thus critical and came at a price.
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IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Outlook Magazine money editor quits
Don't trust the Indian Media!

Friday, February 26, 2010

V. M. PANDIT, former senior C.B.I. official,

“The problem comes when the CEO or his family members move out of their homes...”

B&E: Is there a security threat to CEOs and their families today?

V. M. Pandit (VMP): Definitely there is this fear today. I have worked for the CBI for 26 years, but since 1993, I have been completely involved with corporate investigations and my experience tells me that there is a big threat to CEOs and their families, as organised crime has grown and kidnapping has become a big business today. The general scenario of crime in India is that law and order is not doing enough to keep everyone protected from harm, not even the privileged class. And the fact that these criminals can boast about political connections, they get great shelter in all aspects. So they can commit such crimes, and these crimes are generally committed by organised bodies. Thee criminals keep a tab on the rich people of the community and those who are vulnerable to kidnapping, including the CEOs and their families.

B&E: When are the chances of getting kidnapped the highest?

VMP: The problem comes when the CEO or his family members move out of their homes, i.e. in transit. That is the term which makes them vulnerable - in transit. On their part, all CEOs also cannot afford escorts and bodyguards for all in their family. Moreover, their family members follow fixed routes, to school, to office, to the market. They frequent the same restaurant, the same club, and that too at fixed hours. So the criminals select a particular target after conducting a brief survey – the survey can be anything, right from who is the courier boy who most frequently delivers parcels at a particular location to who the security guards are, their shifts, etc etc. In the process of knowing more, they come to know which market and clubs they flock to and which schools or colleges their offsprings are linked to. So that is the first step of any kidnapping activity.


B&E: Do they often harm the asset?

VMP: If their ransom demands are not being met, then you definitely are calling for trouble. If the ransom demand has come over the phone, then be sure that their ‘gang members’ are always keeping a track of how you proceed with the execution of the payment. They would know if you are defying their instructions. The moment they find out that you have approached the police, their ransom demand increases. The party also shows little care for the victim, if you try to find their hideout; so in that case, they will most likely do away with the kidnapped individual.

B&E: How critical is counselling for the victim’s family?

VMP: For sure the victim’s family needs to be counselled. What answers they should give when phone calls come, how to monitor those calls, how to react to threats, and how to ensure that the right moves are taken, is what they have to be taught...

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IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Outlook Magazine money editor quits
Don't trust the Indian Media!

Wednesday, February 24, 2010

Coming back to Gladwell’s 10,000 hour rule

Then, if Gladwell’s10,000 hour rule is about practicing one specific task for a considerable amount of time, does the corollary mean that companies that are focused on core businesses (focusing on limited specialized tasks) would perform better than diversified companies? Were C.K. Prahalad and Gary Hamel right all along? In December 2006, Heuskel, Fechtel and Beckmann of the Boston Consulting Group, in a massive global study covering hundreds of global corporations from 1996 till 2005, proved that shareholder returns of diversified companies beat both the stock market average and the shareholder wealth average of the majority of the core focused corporations. BCG writes that “there is no statistical correlation between (core) ‘focus’ and shareholder value.” When we analyse the B&E Power 100 listings this year on this parameter, we were in for a shock. Giving BCG a flyby, of the 100 companies we had, only one is truly diversified. 99 other companies focus on singular or very narrow streams of businesses. Even when we consider groups/promoters (e.g. Tatas, Birlas, Reliance) who own cross holdings in various companies, we could only reach 16 companies that belonged to diversified groups.

Out of 16 listed industries, a majority of our companies (61 of the B&E Power 100) belong to only four industries – financial services (30), metals and mining (11), oil and gas (10), real estate (10). Out of the same 16 sectors, only 3 have positive profits growth year on year – financial services (30%), information technology (12.9%) and FMCG (9.75%). All others have negative growth in profits, with oil and gas (-20.8%), pharmaceuticals (-32%) and real estate (-44%), killing the profits growth of the overall B&E Power 100, which stands at a measly 3.3% year on year.
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IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Monday, February 22, 2010

How the good became the greatest

ONGC has to still find a way to beat the oil volatility cycle without the help of subsidies, says ratan bhagat

To be number one on the B&E Power 100 list brings with it a crown of thorns embedded with huge responsibilities, high expectations, unexpected challenges, and continuous scrutiny, with a generous gift on the negative, from all stakeholders. And ONGC, this year’s leader on our list – with a profit of Rs.161.26 billion for the financial year 08-09 – is gifted with all the above embellishments that come with the throne.

But how did a company, which was pretty good previously, become the greatest in India, a jump that requires more than well implemented strategic intent? R.S. Sharma, Chairman and Managing Director, ONGC doesn’t play to the gallery and points to a straightforward fact, “ONGC’s story actually reflects the success of our well thought out strategy to focus on strengthening our core activity – Exploration and Production (E&P) of oil and gas.” In that order, we should say. The fact is that ONGC, in the past few years, has gone fanatically towards exploring newer positive fields in a manner never before seen in its history. The proof of the pudding comes in the fact that the figure of 28 fields discovered in the financial year ‘09 has never ever been achieved in the past. Moreover, by securing an in-place accretion of 284.81 MTOE (million tonnes of oil equivalent), an ultimate reserve accretion of 68.90 MTOE (both being the highest in almost two decades) and with a reserve replacement ratio of more than one for five consecutive years, ONGC has gone aggressive in a benchmark fashion.

But the truth is, the growth story of this PSU has had its fair share of luck – what with the crude oil price volatility from a never before high of $147 to its lowest at $37 per barrel, the ongoing economic downturn, the inflated subsidy burden of Rs.282.25 billion for the current fiscal and persistent bureaucratic interference playing their part in pulling ONGC down.
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IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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fastest growing auto markets?

The fact that TKM has also postponed its desired aim of the double-digit market share by 2015, which was earlier slated to be attained by 2010, clearly shows how the Indian market is still a tough nut to crack for the company. Hiroshi Nakagawa, MD, TKM admits, “Toyota has been very slow in its approach when it comes to operating in the Indian market.”

However, he points out that the scenario at TKM is in a lot better state as compared to the headquarters and with the launch of its small car by end 2010, the situation is most likely to change very soon. In short, Toyota is planning to play the volume game. But will it succeed?

Toyota aims to produce around 70,000 units for this small car initially from a new plant and this will be ramped up to 1,00,000 units by 2011, 1,50,000 by 2012 and 2,00,000 by 2013. The fact that the company is very bullish on its success in the Indian market is clear. It has kept its investments intact and is investing around Rs.32 billion in setting up its second manufacturing facility in Bangalore to roll out the small car. However, recent news reports claim that the company has cut down on the proposed investments by one-fourth and now the company will invest Rs.24 billion in the second plant, near its existing factory at Bidadi on the outskirts of Bangalore, and not Rs.32 billion as announced in November. The existing plant has the capacity to produce up to 80,000 vehicles every year so one can definitely expect that capacity may not be a constraint for the company going ahead.

The company also plans to ramp up its dealership by as high as 65% by 2010 to increase its interface with its consumers. At present, Toyota has around 90 dealerships across the country and has firmed up plans to enhance the figure to 150 outlets, of which about 60% are expected to come up in semi-urban and rural locations. Keeping in mind the rising demand from semi-urban and rural areas, the company plans to expand to smaller cities, namely Allahabad, Srinagar, Shillong, Belgaum, Ambala, Tirupati, Meerut and Patna, before the launch of its small car.

"With rising rural sales and the approaching launch of the compact car, we believe that setting up dealerships in small towns is viable," asserts TKM’s General Manager (Sales), Sailesh Shetty. The company’s move of expanding its dealership network is rightfully supported by the launch of its small car as it''ll be then easily available to the consumer.

Nakagawa explains, “The aim of attaining the double-digit market share is closely related to the launch of the small car and once that happens, I believe we will be there before the target time.” It’s not Toyota alone which is going gung ho on the Indian compact car market; rivals like Ford, GM and Renault are also planning their respective small cars in the country around the same period. GM India will be launching their much-awaited Beat by early 2010 and same is the case with Ford Figo which was recently showcased in the country in the presence of Alan Mulally, President, Ford Motor Company. Time is definitely not on Toyota’s side, as the small car market has already got extremely crowded; and the company has no brand equity in this segment at all. GM has in fact strategised better than Toyota in this regard, with launches like Spark and U-VA. Moreover, the increasing competition in the SUV market may also pose a threat to the cushy position of TKM. In addition to the reloaded Endeavour from Ford’s stable, companies like Skoda, Hyundai, Volkswagen and Audi are going very bullish on the success of the Indian SUV market and have lined products to get their share of this pie. “The Indian SUV market still accounts for very low volumes as compared to passenger cars and will see a boost in the demand in the near future,” avows Pawan Goenka, President (Automotive), Mahindra & Mahindra.

Skoda is aiming to drive its Yeti into the Indian geographies by the first half of 2010. Similarly, Audi Q3, BMW X1 and Nissan Murano are expected to follow suit soon.

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IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Saturday, February 20, 2010

Who’s killin’ whom?

Breed them, feed them and then eat them – contracting animal diseases frequently might just be their way of getting back at us

Cultures across the world, for eons, have justified the slaughter of animals for the consumption of mankind, ‘because God/Nature created them for our sustenance.’ But today, sustenance has become the cornerstone of commerce and the meat industry, allegedly, has become a needlessly cruel and literally blood-thirsty enterprise. So now, is the animal farm hitting back? ‘Swine flu’ (H1N1 virus) is the latest incursion on the western world and is worrying everyone around. As the name suggests, it is the virus that often causes influenza outbreaks in pigs, especially during the late fall and winter months. While the season of the outbreaks of ‘common cold’ in pigs is similar to humans, the symptoms (running nose, coughing, sneezing, fever, laziness etc.) are surprisingly similar too. Normally, the swine flu virus does not infect humans. It is the direct exposure to pigs in either a breeding farm or fun fair that leads to infection in humans and is contagious like regular influenza. “It is a different strain. Though cold and cough are the symptoms, the body might not be immune to it. In those cases, it can take shape of a lethal pneumonia and may cause death,” says Dr. S. M. Sachdeva, Senior Consultant Cardiologist.

It is the horrifying memory of the biggest and the deadliest global endemic, Spanish Flu (a subtype of H1N1 virus and similar to swine flu) of 1918 which causes concern and panic every time such influenzas surface. It shook the world when 40 million people died. In Spanish Flu, pneumonia doesn’t even get the time to establish itself and the patient dies of the virus within hours of contracting it. The virus causes an uncontrollable hemorrhaging that fills the patient’s lungs with his own body fluids.

If one observes keenly, there are certain peculiarities about these outbreaks, about the kind of victims as well as about the recurrence of such virus attacks. While the Spanish flu presented an unusual preference in its choice of victims – young, healthy adults instead of those with weak immune systems – the origin of the ailment is considered to be in the Eastern world.


Again, an entirely new variety of human influenza, ‘Chicken Ebola,’ surfaced in the human population of Hong Kong in 1997. It was then that Hong Kong’s entire poultry population (ducks, geese and chickens) was slaughtered. SARS or bird flu also started among the Orientals and culling of several poultry animals was done to avoid it from gaining pandemic proportions. As far as the recurrence of these influenzas is concerned, influenza experts remind that aquatic birds maintain all the genes of all influenza viruses in the world and they transmit it to other species periodically. Even if these viruses are very ancient, they still have the capacity to evolve, to acquire new genes and new hosts. So, chances of such troubles hitting mankind again can’t be ignored.

While the 1918 Spanish flu took its toll in the pre-penicillin era, new types of viruses always pose a threat. It is quite clear that breeding farms for poultry and pig are the breeding grounds for such viruses. Well, the increased frequency of recurrence of such influenzas in the past one decade could be nature’s way of telling us that culling humans too isn’t as difficult!
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IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Friday, February 19, 2010

Why governance is not taught...

Have you ever heard of a school of governance and politics in India?

03 Apr-16 Apr ‘09 issue

Yes and no! Perish the forsaken curiosity. The yes, is for the affirmation that without doubt our political arena has witnessed the entry of many young politicians. And the no, is the answer to the question whether they’ve been able to make any sensible difference to the scenario. One reason is that the number of young politicians in India is still miniscule given the fact that the average age of the 13th Lok Sabha has been around 55 years! But learned that we are, allow us to introduce a proxy reason for this problem. Young and talented individuals today do not understand the nitty-gritty of politico-economic debates and simply perceive politics as a criminal’s exercise in drudgery because, ironically, there exist no known institutions in India that teach politics and governance. Even the young MPs who were there in the Parliament participated only in 7% of the debates. And the less talked about their overall attendance, the better. We ergo question the experience and exposure that our young politicians undergo before entering politics. Clearly, what we require are structured and respected institutions teaching politics and governance on a specialised basis to the literate youth.

Think about it. To match top global examples like the John F. Kennedy School of Government (Harvard University), Bulgarian School of Politics, Matsushita Seikei Juku institute in Japan and Colombo School of Politics, what have we? Hilariously named institutions like Netagiri in Ranchi. Without being deprecating, the fact is that if this school, which has more than 200 students, has produced several state, district and community-level politicians, then imagine what we could end up achieving by setting up well financed and supported institutions across the country that teach politics and governance to our empowered youth. Well, if even a thoroughly non democratic and autocratic country like Kuwait can have a National Democratic Institute, why can’t the world’s largest democracy?
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IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Wednesday, February 17, 2010

First impressions of the bhel bhopal township are anything but encouraging

By the time I reached Bhopal, I was naturally more impatient than ever to get to my destination. But the 11 hour long journey had compelled me to call it a day. So I had to wait for a whole night before I could get to the bottom of things.

The next day, I started early for the township as it was 7 km. away from the hotel where I was staying. And this time, my guide was Aslam, an auto-rickshaw driver who have been faring passengers from the Bhopal city to the BHEL township for the last 20 years. He affirmed Bora’s observations as we entered the township. I could clearly see houses of employees, who had retired over the last few years, left abandoned or being demolished; particularly in areas like Kalibari, Govindpura, Security Line, Vijay Nagar, et al. Even in other parts of the township, the management doesn’t seems to be paying heed to the regular repair and maintenance work – whether it’s the roads or the employee quarters. Aslam told me that quite a few employees had made their own houses outside. Satellite colonies like Indrapuri, Bharat Nagar, Sonagiri and Saket were mushrooming around the township over the last few years (earlier, there were about 22,000 employees staying in 12,500 quarters inside this township, today the number has drastically reduced by almost 25-30%). “Everyone wants to own a house when he or she retires. And with easy availability of loan along with HRA facility from the company, if we are getting that chance, then what’s the harm,” reasoned an employee of BHEL Bhopal who had just moved into his own house at Sonagiri, a satellite colony near the township.

A senior employee, who had been with BHEL Bhopal for the last 34 years, cleared the air. “TRT quarters, as we call them, are being demolished because BHEL, in association with Nuclear Power Corporation of India (NPCIL) and Alstom (the global leader in equipment and services for power generation), is contemplating another plant at its Bhopal unit, which will fabricate nuclear turbines.” The plan is to manufacture high rating (starting from 660 MW to 1,000 MW) turbine-generator sets. In fact, the unit has already received its first ever order for providing steam generators for 700 MW nuclear sets. The company has also tied-up with GE-Hitachi for making nuclear reactors and is said to be in talks with other foreign players such as Westinghouse, Areva and Toshiba for supply.
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IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Tuesday, February 16, 2010

Breaking news: Ramu is back!

After suffering through “Agyaat” and “Phoonk”, it is with some trepidation that I ventured into “Rann”. I was wondering if Ram Gopal Varma would find his form again. Well, even though it was not exactly a fluent innings, it was good to see RGV at least batting decently on his home pitch this time. “Rann” takes the media-politician nexus and the ‘breaking news’ vs. ‘faking news’ controversies and spins them together to deliver a thriller that is neither novel nor perfect. But, it is unmistakably enjoyable. To be sure, it is not a film that is definitive commentary on the media’s state of affairs as, say, “Company” was for the underworld. The story here is loose yet gripping and Varma’s quirky shot set ups – meetings are shot from under glass tables, and there is a grey hue to almost every shot – make it engaging. The background music is a little overdone, though, and reminds you of “Phoonk” and the over use of so-called ‘suspense’ and ‘power’ music.

Vijay Harshvardhan Malik (Amitabh Bachchan) heads India 24X7, an idealistic channel struggling to keep up its TRPs as the more gossipy rival Headlines 24, run by Amrish Kakkar, an ex employee at India 24X7 (Monish Behl) grabs the eyeballs. Vijay’s son Jai Malik (Sudeep) is desperate to see his channel back on top and strikes a devil’s deal with politician Mohan Pandey (Paresh Rawal) agreeing to manufacture a conspiracy that would see Mohan Pandey rise to become the Prime Minister of the country.

Sudeep’s performance is the standout one, playing a conflicted character and superbly communicating his urgency and frantic state of mind through his eyes and expressions. Ritesh Deshmukh is solid as the young and righteous reporter and the others fill in well, but the revelation is Monish Behl, who is suave and sinister. “Rann” doesn’t break new ground or shift perceptions, but at least Ramu is back to entertain.

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IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Monday, February 15, 2010

Policemen and lawyers were involved in a clash in the Madras high court premises

On October 29, a special bench, comprising justice FM Ibrahim Kallifulla and justice R Bhanumathi, passed an order holding the then city police commissioner K Radhakrishnan, then ACP (Law and Order) AK Viswanathan, then joint commissioner of police (North) Ramasubramani and then DCP, Flower Bazaar police station, Prem Anand Sinha, responsible for the violence. The bench suggested suspension of the four officers. But the Tamil Nadu government challenged the order in the Supreme Court. The SLP (special leave petition) is still pending.

Meanwhile, CBI, which constituted a Special Investigative Team (SIT) to probe the incident, has filed six chargesheets in the court of additional chief metropolitan magistrate, Chennai. Chargesheets were filed on 31 advocates, one law college student and 27 police personnel. But the advocates' demand for action against the four top cops was not fulfilled.

CBI did not comment on the matter because it was still pending in the Supreme Court. So agitated advocates filed petitions in the court asking it to reject the chargesheets as they did not include the names of the four senior police officers. But the magistrate accepted the chargesheets and asked the CBI to probe the issue further. Not satisfied with this order, the advocates’ associations called for a single-day token strike which went peacefully.
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IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Friday, February 12, 2010

Human influence on global temperature

Something similar had happened during the lead-up to the publication of the Second Assessment Report of the IPCC in 1995. On that occasion, the final draft submitted by the scientists had stated plainly, in five different places, that no human influence on global temperature at all could be detected, and it was not known when it ever would be detected.

Once again, the bureaucrats had panicked. They had realised that if, after all the millions of dollars they had spent over the years, there was still no evidence that humankind was making the slightest difference to the climate, taxpayers might not continue to subsidise their lavish quarterly junkets to exotic locations all round the world.

So they had called in a single scientist and told him to change the central conclusion of the 1995 report. He had carefully crossed out all five of the embarrassing (but true) references to the total absence of any anthropogenic signal in the global temperature record, and had replaced them with a single, more congenial (but mendacious) statement that human influence on global temperature was now discernible. He also made some 200 consequential amendments, not one of which – as far as I can discover – was sent to the thousands of scientists who had contributed to the report whose central conclusion he had now reversed.

Last year, I wanted to attend the “scoping meeting” at which scientists were going to draw up plans for the Fifth Assessment Report. I duly registered, and was peremptorily told by the convener of the meeting that I would not be welcome because – it seemed plain to me – my opinions did not accord with those of the IPCC. So much for the “open, transparent” process that Dr Pachauri used to be so fond of.

Whatever this carry-on is, it is not science.

There is no longer any credible basis for taking the IPCC seriously. It is a joke, and a failed joke. Its massive cost cannot be justified. It must be disbanded at once, and its leading bureaucrats investigated for what looks to me like scientific fraud.

In fact, it is now time to shut down the entire climate-change industry, prosecute all environmental groups, scientists, bureaucrats and bankers who have been profiting at the people’s expense by the Great Lie that was “global warming”, and to abolish the IPCC forever. It should never have been established in the first place. Now it must be put out of its misery. Enough is enough.
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IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Thursday, February 11, 2010

Probable fallouts of the sri lankan polls from Colombo

On the day of polls, large lines were seen outside booths in Southern districts where as polling in Colombo, UNP’s bastion, was moderate. “He has won the war for us. It will be a betrayal if we don’t vote him,” said M. Udayange, 30, after casting his vote for Rajapaksa in the Wellawetta area of Colombo. JVP’s dedicated cadres tried to make inroads for Fonseka in the interiors but failed miserably. In fact, several of the old-time cadres of both JVP and UNP were seen voting for Rajapaksa. “I was with UNP but I’ll vote for Rajapaksa. Fonseka is trying to divide the nation,” said 60-year-old H. G. Chaturanga outside a polling booth in Ratnapura district. There is definitely a question mark on the future of both the parties as they are losing their cadre and mass base to Rajapaksa. Ranil Wickramasinghe runs the risk of becoming irrelevant.

Political critic Jehan Perera says, “The results have been surprising and unexpected. However, this asymmetrical result has much to do with the asymmetrical campaign that was launched by both the candidates. The incumbent had the entire government machinery at his disposal and he used it to maximum effect as far as spread of propaganda is concerned.”

There is a need to understand the verdict in terms of the dynamics of Lankan politics. The most stunning imagery of the approach in which Northern Tamils analyse polls was given to me by a voter who was born, brought up and worked in the peninsula. He contrasted the jubilation and revelry in the south, following the announcement, with the sense of trepidation and insecurity in the north. While down south, there was a sense of “our government” being voted in, in Jaffna, it was more of a sense of a “Sinhalese government” over which the Tamil people would have limited or no sway at all.

In fact, it was the limited participation of Tamils in their provinces of dominance that sunk Fonseka. Tamil National Alliance (TNA), unarguably the sole representatives of Jaffna Tamils, joined ranks with Fonseka, prior to the elections. The decision did not convince majority of the Tamils who had suffered from the war. Also, limited availability of transportation and sporadic grenade blasts stopped many voters to venture out. “It was more a rational decision than an emotional response. Since Fonseka represented a rainbow coalition, he was more of a national candidate than the president. UNP had the largest block base where JVP has the most politicised and committed cadres,” defends political analyst K Sarveswaran.

But why were Tamils confused? Well, one of its leaders, Douglas Devananda, defected to Rajapaksa. Douglas will gain the most from the spoils. He once drew parallel between Tamil nationalism and cholesterol, saying just as there is good and bad cholesterol, there is good and bad Tamil nationalism and that you need good Tamil nationalism just like the body needs good cholesterol.

“Devananda remains close to the grassroots. He is the right mix of moderate-reformist Tamil nationalism with productive developmental attitude and populist progressivism,” says Dayan Jayatilleka, a pro-Rajapaksa political analyst.

But what changes can his fresh election bring for the Tamil people are pretty unclear. Rajapaksa won’t do much on political front as far as ethnic issues are concerned. In fact he has said that Tamils are not looking for any political package. Also, he is not likely to jeopardise the Sinhalese support he has got.

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IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Wednesday, February 10, 2010

Benchmark Development

Hitesh Ankleshwaria reports on the public representatives’ obsession to fill every corner of Ahmedabad with benches

Long walks in Ahmedabad have become a comfortable proposition, courtesy parliamen-tarians, legislators and municipal councillors. Benches have filled nearly every nook and corner of Gujarat’s economic nerve centre – symbols of development in a city which was once known as the Manchester of India.

As per information obtained under the “Right to Information Act”, con-struction of benches has emerged as the frontrunner among development activities undertaken by public repres-entatives in Ahmedabad. As per the factsheet, each of them sanctioned benches worth at least one lakh rupees every year. That means every year Ahmedabad city gets benches worth Rs one crore. One can make out the new benches. It is not the new paint or the design that sets them apart but rather the “Vande Mataram” carved on them. Every ward has at least 8 to 10 benches. Elders say unanimously, “15 years back, there used to be hardly one or two. Now our area is swamped by benches.”

Bharatsinh is an RTI activist. He lives in Naroda Muthiya in the suburbs. He had asked for information under RTI about the development projects sanctioned by MPs, MLAs and municipal councillors from 2005 to 2009. The factsheet prov-ided by the Ahmedabad Municipal Corporation (AMC) was lengthy. It said an asphalt road was built in Madhuvan Society, where Bharatsinh lives. However, no work ever took place in the society. There is no road. It further said that in one year alone (2008-09), benches worth Rs 4,66,140 were set up in his ward by councillors including the Deputy Mayor of AMC. Bharatsinh started to search for benches in his area. He found the benches but they were not put where the factsheet claimed they were. A shocked Bharatsinh asked for information on development projects carried out in the whole city by people representatives. AMC provided him a list of development works done in only nine wards out of 43. The list claimed that during 2005-2009, benches worth Rs 1,08,00,000 were set up in these wards. One can only imagine what was the amount spent on setting up benches throughout the city.

Bharatsinh says, “As citizens, we pay our taxes every year but nothing is done to develop our area. So on October 26, 2009, I used RTI and asked for information on works done and budget of corporators. After 25 days, I got the information. The list contained projects which were never implemented. I felt that this business of setting up benches in the name of development was a matter of huge fraud. I complained to our local councillor only to be told that since this held true for the entire city, I was only wasting my time trying to investigate it.”

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Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Tuesday, February 09, 2010

Rooting out untouchability

Dalits are still barred from entering some temples

Untouchability is a crime. Article 17 of the Indian Constitution abolished untouchability and its practice in any form is forbidden. Besides, the Protection of Civil Rights Act, 1955 punishes the preaching and practice of untouchability. But it still thrives in many parts of the country.

“In Tamil Nadu untouchability exists in about forty-one forms,” says P Sampath, convenor for state Untouchability Abolition Front, formed by the Communist Party of India (Marxist) in 2007. Since then the front has unleashed a campaign to end this social evil. They are concentrating on Hindu temples where dalits are not allowed to worship.

“More than 926 temples are controlled by the Tamil Nadu government in the state. Out of these, about 100 temples do not allow dalits. In our state, more than 7,000 villages practice untouchability as a social norm,” says Sampath. But regular anti-untouchability campaigns and protests have yielded some positive results.

Now, administrations of some eight temples allow dalits to enter their premises and offer prayer. This is a big leap from old days when they were barred from entering the temples in Tamil Nadu. Buoyed by their success, the CPI (M) recently organised a temple entry campaign in Chettipulam village in Nagappattinam district. Initially, the upper caste resisted the move, triggering a clash. But the explosive situation was brought under control by the cops. Then the administration stepped in. The temple was opened for the impoverished dalits. However, dalits are not allowed to work in the farmlands of upper caste here.

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Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Monday, February 08, 2010

Mayank Singh goes beyond the Sukna scam

Once an officer picks up the rank of a brigadier, he is deemed above the regiment. Thus, an officer of an artillery regiment may be assigned to command an infantry brigade or an armoured brigade. This keeps growing to the level of division, corps and command as the officer gets further promoted to the rank of major general and lieutenant general. There is a prerequisite that the Indian Army Chief must be from either infantry, armoured or artillery arms. So if an armoured corp officer promotes juniors from his arm to higher ranks, it is bound to create a block for officers from other arms. Mudslinging and manipulation hurts many competent officers.

Even in the face of such rifts and rivalries, the Indian Army has earned respect for its rich experience in combat. The young officers prove this every day in Jammu and Kashmir and the country’s northeast. And it has been in full display during Kargil. General V. P. Malik, who was at the helm of affairs during the Kargil War, cautioned the media about verifying the facts which are reported and added that they should be reported in the light of the Army laws which are different than civilian laws. He further added, “We must remain strict on discipline. Any incident of indiscipline should be dealt in two ways. First and foremost, take prompt, transparent and exemplary action. It should not matter whether the person is a general or a jawan. And secondly, we should educate soldiers as to what is correct and what is not.”

Correctness of a soldier is judged by the common man’s yardstick of honesty. Incidents of corruption and motivated rivalries and rifts present a possible shift in this regard. Lt Gen. Raj Kadyan explains honesty to be of two kinds.

He says, “Honesty is of two kinds, individual and institutional. An individual may be corrupt but as far as the institution of Army is concerned, even the Army Chief will not be spared if anything wrong comes to light. The noting on the file on inquiries can lead to action against any officer even three years after his retirement.”

His words appear correct when TSI spoke to an officer who is about to shift to field duty after completing his tenure of staff posting in Army Head Quarters. He said, “Once I join the unit in the field, issues of rifts and corruption barely affect us. In any case, when a bullet brushes past my forehead, what will make the difference between life and death will be courage and my team.”

Major General G. D. Bakshi proposes the criteria of combat experience as the remedy for the malice. He says, “We should select senior officers who are combat-qualified because he will have the requisite judgement on every soldierly issue.” It is likely that such a person will appreciate the need to have high morale and is least likely to engage in corruption or factionalism which is bound to affect the forces’ morale.
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Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Friday, February 05, 2010

Pigs, hens, cows... who next?

Humans have fallen prey to deadly diseases much easier than expected. With the advancement of science, we’ve won some battles but clearly not the war; and as experience shows, we’re waiting for the next animal...

Perhaps the most lethal but less talked about weapon of mass destruction is emergence and re-emergence of deadly epidemics and endemics. History clearly proves that epidemics have wreaked more havoc in this world than wars; and not just in terms of the death count.

To begin with, who can forget the Spanish flu? Well, we all can! In fact, our guess is nobody even remembers the fact that this influenza strain brought disaster to Europe in 1918, and wiped out 5.5% of the global population – a 100 million people across the globe died at a time when the population of the world was merely 1,800 million. More than 900 million caught the flu. The flu had a far greater impact than World War I, where total deaths were estimated to be 15 million. In just 18 months if the flu’s existence, it killed about 650,000 Americans, 450,000 Russians, 375,000 Italians, 228,000 British, 500,000 Mexicans, 44,000 Canadians and many millions more in the Asian subcontinent. Considering its severity, it has been named as the most lethal recorded epidemic in human history. And a majority of civilians today have no idea about it.

Many other epidemics have occurred in history. The major plague ran during 1855-1896 worldwide, but mostly in China and India, wherein more than 12 million died. Likewise, endemics like cholera took millions of lives and reemerged on a global scale eight times: during 1817-1823, 1829-1851, 1852-1859, 1863-1879, 1881-1896, 1899-1923, 1961-1970, and from 1991 to the present. And it kills more efficiently than flu. For example, over 20,500 of 30,000 people affected died in Egypt during 1947.

The Asian flu too took 2 million lives worldwide in 1957. Although most Americans had lived through the typhoid and small pox epidemics of 1876 and 1890, its debilitating effects, and those of yellow fever and diphtheria, are still well within living memory across the world.

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Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Tuesday, February 02, 2010

My MBA education complements my marketing responsibilities...

Jitin Prasada, CMD, PI Indisutries Ltd. & Union Minister of State for Petroleum & Natural Gas

B&E: Lawyers have dominated Indian national politics since the days of India’s struggle for independence. However, today, the new council of ministers has many MBA-qualified leaders. Is there a cultural shift occuring?

Jitin Prasada (JP): I would like to see this in a different way. For those entrusted with responsibility through electoral politics, a good educational background always helps, whether it is a law degree, a management degree or some other qualification. You would recall that not too long ago, most government heads in Latin America were alumni of Ivy League Institutes of the United States. But at the same time, in a democratic set-up of governance like ours, the real education comes from working amidst the people by seeking to understand their concerns and trying to provide solutions acceptable to them.

B&E: The MBA degree is thought to be one of the most prestigious and coveted in the world. Does it add value to your political career as well?

JP: I have already mentioned that a good education always helps. To take conscious and judicious decisions, an admixture of proper education and a sense of ground-reality is always helpful...

B&E: An instance from your life which proves the same...

JP: During my stint as Minister of State for Steel, a conscious decision was taken to launch projects of Steel Processing Units in the backward rural areas of the country, where the raw material linkages were unavailable. The idea was to invigorate the rural economy, so that such projects act as multipliers to catalyse economic activities in these areas. Also, recently we launched the ‘Rajiv Gandhi Gramin LPG Vitrak Yojana’ again, with the objective of taking the cleaner fuel to the rural areas. Furtheron, my MBA education complements my marketing responsibilities for the OMCs that I have today. We have been striving hard to attain maximum customer satisfaction through new initiatives like SMS LPG booking, Smart Card project for kerosene oil etc. We propose to increase LPG coverage from the present 50% of the population to 75%, mainly targeted at rural dwellers...
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Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Monday, February 01, 2010

Book business hits a Wal!

As price wars between booksellers heat up, the customers rejoice and the publishers watch out...

In the monopolistic e-world of books, created and run by amazon.com, a new entrant has not only stirred the market but has also slashed prices to pittance, bringing to the fore several debatable questions for the publishing industry and authors. Walmart.com, the new entrant is offering upcoming, highly-anticipated, hard cover books such as Sarah Palin’s Going Rogue and John Grisham’s Ford County for as low as $10 – a 60% cut from the cover prices! The competitor, amazon.com, in return has brought down the prices to the same - $10. In fact, 200 current best-sellers have been identified, including Dan Brown’s The Lost Symbol, to be sold at the same price along with free home delivery.

While this new offer is customer-friendly and gets ardent readers to grin, it will fetch very little to the sellers who acquire books at the wholesale price, which is close to a 47% discount over the cover price. In simple terms, a book at a cover price of $25 would’ve cost any seller around $12 and some cents. Now, online stores such as Wal-Mart can make up for losses on individual items (books, in this case) from other products, but what about the corner book stores that can’t afford such cuts? In the long run, if such price wars continue for popular books and best-sellers, there might be a scenario where purchasing books would have to be done without spending time in the warmth of a book store, flipping through a few pages and enjoying that familiar friendly fragrance of brand new books. Well, that’s just about one repercussion...

The publishing industry doesn’t approve of Wal-mart using the prices of books to better its position in the online space, that too, at ‘unrealistically low prices.’ But, if the publisher has to re-adjust the rates to keep the regular bookstores as well as the online stores alive, the authors will have to bear the brunt (which seems inescapable).

If there has ever been a time when investing one’s time and effort in the fine arts has paid off, it is now. In literature, becoming the best-seller is every author’s dream, whether or not the awards pay attention. Popular author Chitra Banerjee Divakaruni counters, “An award is surely more important than a book becoming a best-seller, as it is an endorsement from critics, peers and the literary milieu of the fine quality of the writing. But, writers who are interested in creating popular fiction rather than literary fiction may not agree. In fact, winning a major prize often lands a book on best-seller lists.” Given that the vicarious pleasures of distant experiences painstakingly conjured and articulated by the author and conveniently folded into (the pages of) a book are priceless, the move to foist them off at dirt-cheap prices may sound brutal. And authors may have a lot to lose since the overall price at which their tales are sold would reduce, in turn affecting the margins they share for their books. The benefit, many feel, would be reduction in piracy, since cheaper original copies would be available. But, thankfully, books, unlike music, have a relatively lesser number of takers, and plagiarism happens to plague the literary world more than piracy.

Whatever said and done, ‘Customer is King’ is that clichéd privilege that we all love to cherish, but all we hope is that first element of this value chain, the author, earns his due and not lose to the middlemen who delude us by calling us kings!
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Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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