Friday, November 30, 2012

GEORGE W. BUSH: LEGACY

Bush during his tenure has made many mistakes, but that doesn’t give us a chance to write him off

It was followed by the tragic day of 9/11, which no American can ever forget in his life. Bush at first came out as a hero, with support and in full confidence, showing that he was in full command of things. But his later actions were said to be the outcome of how dumb and undecided he had been.

His war on terror and his actions in Afghanistan at first bore fruits, as Afghanistan shifted from an anti-American to pro-American government. But his forces have still not been able to nab Osama bin Laden – the mastermind behind the 9/11 attack. He tried to redeem himself by attacking Iraq, but unfortunately the entire episode fell flat on his face and instead of becoming a hero, he was vehemently criticised for what is called the worst decision of his tenure. Blaming Saddam Hussein for storing ‘weapons of mass destruction’ and then forging a war on Iraq, even though the UN was against it, showed his arrogance and stubborn attitude. It costed America heavily – both in terms of money as well as people. But the biggest harm of the war on Iraq was it tagged America as the greedy superpower of the new world, with no aim other than to put its stamp on everything and then force the world to go its way.

Uncannily, even nature played its part to show how bad Bush’s administration has been. Hurricane Katrina destroyed the Gulf Coast, which has not been built yet. Bush’s second tenure was worse than his first one. People were unhappy and his approval ratings hovered around 30%. Meanwhile, two-thirds of the American people disapproved of the job he was doing in Washington. Americans were feeling the heat of the upcoming crisis. Oil was costlier, housing prices were constantly going down; healthcare had became costlier as the Bush administration had turned the control of healthcare in the hands of greedy pharmaceutical companies. He turned his back to the obvious – ignored climate changes, obstructed efforts to clean air and water so that corporations could earn higher profits. It was during Bush''s tenure that American workers faced their rights being assaulted and were stopped from forming unions – all this to ensure that corporations could see their profits rising. Then the sub-prime crisis happened and America lost its capitalist model.


Source : IIPM Editorial, 2012.

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Thursday, November 29, 2012

122? Worse...

The report’s incomplete; rejoice!

The World Bank’s recent study on the overall ease of doing business shows that India dropped two places to 122 in the latest edition of the World Bank’s ‘Doing Business’ report, after rising 12 notches last year.

The factors responsible for India’s low ranking, among others, include inefficient enforcement of contracts, outdated insolvency laws, delays in construction permits and under developed payment facilities; besides India’s contentious polity, with some regional leaders at odds with industrialisation. Despite its low position, India has been ranked as the top reformer worldwide for trading across the borders, one reason for the previously mentioned jump of 12 ranks over last year. India, creditably, made the reform of business regulation a policy objective. India improved significantly when it comes to areas such as getting credit, trading across the world, but its position has weakened in areas such as starting a business, employing workers, registering property, paying taxes and closing taxes.

It is worthwhile to mention that the rankings do not reflect such areas as macroeconomic policy, quality of infrastructure, currency volatility, investor perceptions, or crime rates.


Source : IIPM Editorial, 2012.

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Wednesday, November 28, 2012

PUNJAB: RAHUL GANDHI'S VISIT

The MP from Amethi needs to stand up to his Punjabi promises

Rahul’s road shows attracted crowds and the of course omnipresent media. The Congress in Punjab has been in shambles due to infighting between two former Chief Ministers – Amarinder Singh & Rajinder Kaur Bhathal. Amarider’s recent expulsion from the Punjab Assembly on grounds of corruption has further tarnished the party’s image.

Rahul during the trip also visited Congress supporters who were allegedly tortured by the Akalis. "He assured us that we will get justice," said Harbans Singh, the brother of a Congress worker who was recently attacked by the Akalis. Rahul needs to meet these expectations to yield results from his sojourn with Punjab.


Source : IIPM Editorial, 2012.

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Pakistan's cups of terror woes

Explosives laden truck rips apart Pakistan's security machinery

At least 53 persons, including Czech Ambassador to Pakistan, Ivo Zdarek, two US marines, and a Vietnamese woman were killed and more than 250 injured in a suicide bombing at Marriot Hotel in Islamabad on September 20. The blast made a mockery of President Asif Ali Zardari's speech the very same evening at the joint session of the Parliament, where he vowed to root out terrorism and extremism. The bombing took place in a high security area of the capital city, not far from the Parliament, the Presidential Palace and the Prime Minister’s residence.

Though no terrorist group has claimed responsibility of the blast – one of the deadliest in Pakistan's history – Prime Minister's advisor on Interior Affairs, Rehman Malik has gone on record to state that the blast has links with Waziristan, indicating that Al Qaeda and Taliban could be involved in it.


Source : IIPM Editorial, 2012.

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Monday, November 26, 2012

Think Again: Bush’s Legacy

He may be the most unpopular president in modern times: a reckless, unilateralist cowboy. But history will be kinder to George W. Bush than contemporary caricatures. After eight years, he leaves behind much more than a defeated dictator in Iraq. Closer ties to India, a pragmatic relationship with China, and the pressure he applied to Iran will pay dividends for years to come. By David Frum

(Ed note: His detractors may far outnumber the population of the great country he has presided over for a lengthy period of eight years, but the Bush regime in retrospect may prove to be far more productive than it seems on the surface. The author identifies some common ‘perceptions’ regarding the Bush era and attempts to look at the larger picture.)

“iraq is bush’s only foreign-policy legacy”
Hardly. There’s no denying that the war in Iraq has defined the presidency of George W. Bush in important ways. But history is unlikely to remember the war as negatively as most assume.
It’s now likely that the war will stagger to an inconclusive ending. The insurgency will shrink but not disappear. The government will function but will be divided. US military presence will be reduced but not entirely withdrawn. And Iraq’s neighbours will be bruised but their geopolitical policies will stay intact. Yet, by overthrowing Saddam Hussein and replacing him with a non-aggressive, albeit weak, elected regime, the US will have achieved a real improvement in the region. It will have come at a high cost. But it will also falsify the worst predictions of the war’s opponents. As the war recedes into history, it’ll be seen more like the frustrating Korean conflict, or the Philippine insurrection, rather than the debacle of Vietnam. An important part of Bush’s legacy, but hardly all-defining.

As time passes, other crucial decisions of the Bush years will come into sharper focus. Among the most important will be the formation of a US-India military alliance. Under Bush, US and India (along with Australia, Japan, and Singapore) have begun joint naval exercises. The duo signed a treaty to share nuclear materials in 2007. US is offering India fighter planes, warships, and other equipment sales that could total as much as $100 billion during the next 10 years. Otto von Bismarck once famously predicted that the most important geopolitical fact of the 20th century would be that the US and Britain spoke the same language.


Source : IIPM Editorial, 2012.

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Sunday, November 25, 2012

Indian auto components sector is all set for a glorious future

Led by huge demand, the Indian auto components sector is all set for a glorious future

No doubt, India enjoys a cost advantage with respect to casting and forging as production costs in India are 25-30% lower than their western counterparts. However, with increase in input costs and rising steel prices, the industry now seems to lose this price advantage to their Asian peers including China, Thailand, et al as these players offer a cost advantage of about 12% over their Indian counterparts. Moreover, “the auto components industry in India today is highly fragmented.

However, this presents a simultaneous opportunity as well as a challenge for the players,” avers Yezdi Nagporewalla, Auto analyst with KPMG. These factors, coupled with an unfavourable tariff regime, are now pushing India towards becoming a net importer of auto components. Moreover, “concerns about quality also remain. We still lack original R&D activities. But I am sure that these issues will get resolved soon,” adds Minda. However, “the challenge is to manage the rising cost of raw material and at the same time stay competitive,” avers N. K. Dhand, Chairman and MD, MGT.

Certainly the industry is transforming, and the boost in demand will see the emergence of several new players in the industry. But, to improve upon the domestic auto component industry, the players surely need to adhere to global standards, be quality conscious, inculcate some original R&D activities while maintaining globally acceptable innovative standards.


Source : IIPM Editorial, 2012.

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Saturday, November 24, 2012

The true test of survival starts now...

Nirula’s acquisition has brought in welcome change. But the true test of survival starts now...

ENAM Securities in 2007 demonstrated that Indian consumers spend 51% of private final consumption expenditure on eating out. Malaysia-based Navis Capital, which manages funds worth $1.6 billion, wanted to bet big in the fiercely growing Indian QSR market and Nirula’s was the route they chose. “Navis supported with the necessary funds and we started totally revamping the organisation,” says Samir Kuchreja, CEO & MD, Nirula’s Group. While the logic was not questionable, have the acquirers been able to achieve the intended?

The biggest challenge for such an acquisition has been on the cultural front. Admits Samir, “It was difficult to convert a family-run business into a professionally run one, but we knew we had to implement such changes to survive in the competition.” From management model to food menu, there was an elephantine transformation post the acquisition that reverberated throughout the organisation. Products that didn’t contribute much to the company’s turnover were hived off. Bucked up by the financial expertise of Navis and the deft leadership of Samir, Nirula’s started aggressively spreading its reach. And what it couldn’t achieve in seven decades, was achieved in seven months. Till 2006, the company has grown at 10% and last year it has recorded a growth of more than 40%. There’s more! In seventy years, they opened just 4 to 5 outlets, but in seven months they rolled out 12 to 15 outlets. And the current number of outlets is 60. Now the company has resorted to the time-honoured franchisee route for a pan-India presence. “We tied up with South Asian Hospitality to open stores in Rajasthan and in Gujarat; Goa we are looking for franchisees,” affirms Samir. With an exorbitant investment of Rs.1.5 billion, the company plans to roll out 200 stores globally by 2011. Samir announces that he’s all set for UAE to hunt for a franchisee partner. Truly this acquisition has brought fresh energy to the company, but now that it faces the thick of global and local competition, its true sustainability will be tested.


Source : IIPM Editorial, 2012.

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Thursday, November 22, 2012

Guns & Roses; Smith & Wesson

The other view on the US Supreme Court ruling rejecting gun control

There were shots of elation fired after the US Federal Court acknowledged an individual’s gun ownership right in the Second Amendment of the US Constitution. The Federal Court observed that the 2nd Amendment’s text guards an individual’s right, not just a group right that applies merely to affiliates of state militias.

Though many blocks have criticised this court ruling (including this publication’s Scrutiny section), the fact is that this in no way proves the establishment is anti gun control. The verdict of the Federal Court was clearly fractured where the bench of 9 judges gave a 5:4 split ruling, clearly along ideological lines. Moreover, the court also observed that all constitutional rights including the most fundamental rights are open to limitations of sorts and have to yield to restrictions in order to keep up a methodical and secure society. The ruling in no way means that one would now see a trigger-happy population shooting their mouths and guns off! Residents would still have to keep their firearms disabled and unloaded at almost all times – a move that hasn’t been received well by the pro gun lobby.

Even Steven Shapiro of the American Civil Liberties Union, that played an important role in facilitating the suit, confirmed to B&E, “We are still trying to figure out the characteristic of this court. Last fall, it initiated an antagonistic assault on nucleus doctrine affecting race and abortion issues.


Source : IIPM Editorial, 2012.

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Who says charity begins at home?

More and more people are tripping on philanthropic travel!

When asked if one had all the time and money, what would one do; most would say, ‘travel’. And why not? It’s exciting to laze by the beach, trek in the hills, anticipate the movements of an animal in the wild and drown oneself in the bustle of a big city. But how many travellers delve into the soul of the destination, by really understanding its culture and people? Not many. However, there are a growing number of people travelling to the lesser-privileged parts of the world, attempting to blend in with the natives and lend a helping hand wherever possible.

Philanthropic travel as a concept is still at a nascent stage, although it has gained popularity in the US. There are NGOs that sponsor and arrange such jaunts, the most traversed destinations being Burma, Cambodia, Botswana, Tanzania and India.

Marc Gold is a philanthropic traveller, and in 1989 he had visited Darjeeling for a vacation. Here, he met a girl who was suffering from a life-threatening disease. The girl’s folks were incapable of affording the treatment and so Marc donated funds for her medication and treatment. This kind gesture of Marc’s saved a life and brought back happiness to a family that had almost lost hope. Marc now visits various places with the objective of not just absorbing their beauty and interacting with the people, but with the intention of reaching out to those in need.


Source : IIPM Editorial, 2012.

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Tuesday, November 20, 2012

Second attempt. Same result??

People must standup if they want democracy in Zimbabwe

Despite having world’s largest inflation and shattered economic system, Zimbabwe goes to election on June 27. Why? Because there was no clear winner in the March Presidential elections. And how could there be when dictator Robert Mugabe continues to exercise his uncontrolled power. When asked if the country is prepared to face these elections, HE Jonathan Wutawunashe, Ambassador of Zimbabwe said to B&E, “The Constitution requires that, in the event of a failure by the electorate to elect any candidate to become their President, a runoff election should be conducted.”

But the last elections were a total mess up. Even with 49.4% votes, Morgan Tsvangirai was not able to dethrone Mugabe, who still sits on the chair with 42.3% votes. There are doubts that the counting was done fairly. Possible, because Mugabe’s loyalists are placed strategically everywhere. With such a network it is very much possible for him to twist and turn the results as per his requirements. This time too, there is no guarantee that elections will be held freely and fairly.


Source : IIPM Editorial, 2012.

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Britain is Home to terror

UK is fast turning into a hub of international terrorism
This is one uncomfortable legacy that former Prime Minister Tony Blair will find difficult to shrug off. Ever since he publicly championed the cause of invading Iraq and supported George Bush and his policies, Islamic terrorism has become a clear and present danger to London and England as a whole. The EU Terrorism Situation and Trend Report has revealed that British foreign policy presented critical dangers for all Europe: “The conflicts in Afghanistan and Iraq have a large impact on the security environment of the EU,” the report stated.

An analysis of the terrorist threat by Europol, (the European Police Office), has given clear signals and warnings that Britain is rapidly emerging as the European hub of al-Qaeda that is actively seeking to recruit “young, radicalised British citizens.” The notorious 2005 bomb attacks in London that killed close to 60 people is just one example of the threat that looms over the country. Every week, police and intelligence agencies are busting 'sleeper cells' and preventing more terror attacks in the nick of time.


Source : IIPM Editorial, 2012.

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Sunday, November 18, 2012

GODREJ GROUP: FMCG

Godrej’s success in FMCG will depend a lot on its push strategy

Adi has also formed a Strategic Marketing Group for all three FMCG companies under its banner. The strategy is to gain brand equity and benefit from cross-divisional synergies. But there are many others in still FMCG waters like Reckitt Benckiser, HUL et al which are all planning unique product launches in 2008. So winning the battle with ‘me too’ products would be difficult for Godrej.

Therefore, apart from aggressive promotions, Godrej has to be immensely careful of distribution tie ups. As retailers get more powerful by the day, Godrej’s approach towards symbiotic relationships with channel partners could make or break its ambitious FMCG plans.
 

Source : IIPM Editorial, 2012.

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Wednesday, November 14, 2012

Survival of the fittest, for what?

Stop elephant poaching – the state will be doing it anyway in South Africa

South Africa is doing a China. While the latter, even as the whole world looks on, has not shied of a frantic and fierce crackdown on unarmed freedom hopefuls, South Africa is proposing to sentence a perfectly healthy population to its death, merely for having survived long enough to add up to a sizeable count. South Africa is possibly doing worse thus, for elephants don’t protest.

In the last week of February this year, the Environment Ministry of South Africa issued Norms and Standards towards Elephant Management in the country to be effective from 1 May 2008, which includes among other things culling, none the better quoted as “the option of last resort”. Currently a strength of 20,000, the last time jumbo populations were discussed was in 1995 in a contrasting scenario – instating a ban on elephant killings after their numbers had whittled drastically owing to poaching and habitat encroachment. Eliciting a furious backlash from animal welfare groups, the debate has been particularly jacked up with renowned conservationist Richard Leakey voicing his no-objection to the cull in his very own WildlifeDirect blog, warning against “serious problem unless some key populations are reduced and maintained at appropriate levels.” Michele Pickover of Animal Rights Africa however argues that “…neither the Minister nor any of the pro-culling lobby has been able to produce one shred of evidence to show that there is an ethically or ecologically defensible reason to kill even one elephant in South Africa.”

Both scientifically and ethically, says Raman Sukumar, consummate authority on the Asian elephant and director of the Asian Elephant Research and Conservation Centre, the cull is hardly a remedy. “Next to the primates and cetaceans, the elephants are highly intelligent animals that are sensitive and capable of emotion.


Source : IIPM Editorial, 2012.

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Beyond valour

Rahul Bose talks to Prasidha Menon about the making of Shaurya and the trials and challenges of life behind the grease paint

You started with experimental cinema and have now stepped into more commercial films. Is this a conscious move? How has the journey been so far?

It hasn’t really been a journey of art to commercial, that’s absolutely incorrect. Out of the nine films that will be ready for release in June this year, five will be art house films like The Japanese Wife by Aparna Sen, Santosh Sivan’s Before The Rains, Santosh’s Dahan, Rajeev Virani’s The Whisperer and Tony Roy Choudhury’s yet-to-be-titled next Bengali film. Bubble Gum by Anil Sharma with Konkona, Irrfan and Soha, is also just about relationships between men and women and is not at all commercial. Maan Gaye Mughal-e-Azam is an over-the-top black comedy and I am doing this because I have never done something like this before. The other one that I am doing, which can be construed as commercial, would be Shaurya, though there is no singing and dancing in Shaurya. It is a court-room drama. This is a genre that I haven’t really tried. Also, I haven’t really tried action films, which I want to by the end of 2009. I agree that two or three of these choices are commercial, but there is no movement from art to commercial, it is about doing world cinema most of the times and sometimes branching out and going for mainstream commercial cinema.

Your next release would be Shaurya, tell us a bit about your role.

It’s straight-up court-room drama; it is not an army film. It is not about war or killing. It follows the dramaturgy, the arc and the narrative of a court-room drama with the backdrop of the army. It is around a court marshall. That being the case, this is a film that has me playing a lawyer defending an impossible-to-defend case! There is an officer in the army who has shot down his senior officer at point blank range and has confessed that he is guilty, is court marshalled, and so it is an open and shut case.
My dear friend, Javed Jaffrey, plays the prosecutor and I am defending the case where I have nothing to defend until a journalist (played by Minissha Lamba) walks up to me and tells me to have a second look. When I take a second look, nothing seems like what it was. The movie is then all about my journey to get justice and how I take on the system.


Source : IIPM Editorial, 2012.

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Friday, November 9, 2012

Women-friendly nikahnama unveiled

However, not all Muslim clerics are happy; some have already slammed it

The controversial new nikahnama (marital agreement) unveiled by All-India Muslim Women’s Personal Law Board (AIMWPLB) had some All-India Muslim Personal Law Board (AIMPLB) members rubbishing it as “redundant”.

“It’s utterly useless, irrelevant. We have one already from the AIMPLB and there is no room for another,” said AIMPLB member Maulana Khalid Rasheed Firangimahali. A woman member, Moonisa Bushra, also saw no reason for the drafting of the new nikahnama. However, Khalid and Bushra have few takers. “This is just male chauvinism,” said Fazul Haque, a senior journalist & expert on women’s issues. This is the third nikahnama that has promised to give women some power. The AIMPLB and the All-India Shia Muslim Personal Law Board had released their own “model nikahnamas” in 2005.


Source : IIPM Editorial, 2012.

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Thursday, November 8, 2012

Involve people

Introduce basic norms of corporate governance into the entire process of budget making and then see the difference it can make

It is quite easy to throw the baby out with the bathwaterwhen it comes to taking radical policy decisions. Sure, banning the budget is an attractive idea and will once and for all stop the pernicious practice of governments using the budgets as crude instruments of politics to buy their way into votebanks. For sure, banning the budget will stop finance ministers from acting like feudal overlords doling out favours to the favoured and denying privileges to those out of favour. Yet, the fact of the matter is that the government needs to spend money on defence, internal security, physical and social infrastructure and sundry other things that make up a modern nation state. The question is: if we do away with the budget, how then does the government spend the hundreds of thousands of crores that need to be spent each year? Is there a better way of spending government money that will minimise leak, wastage, corruption, inefficient allocation of resources and downright loot by politicians & bureaucrats?

There is a very simple, attractive, practical & workable solution available to policy makers if they are really serious about making every rupee spent on government programmes worth its while. Till the early 20th century, the robber barons of the United States did pretty much what they pleased – killing competition, making monopoly profits, swindling retail investors with impunity and bribing officials to change policies to suit their own corporate interests. In many ways, as the 2001 Enron scandal and many subsequent scandals have shown, corporate greed is a monster that is tough to tame. Yet, over the years, activist investors, an alert media and regulatory bodies like US Securities & Exchange Commission (SEC) have ensured that unethical corporate barons find it increasingly hard to fleece the investors and milk the markets. More importantly, as the examples of Kenneth Lay & Martha Stewart show, corporate democracy has ensured that greedy corporate hucksters are sent well and truly behind bars when they are caught with their hand in the till.


Source : IIPM Editorial, 2012.

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IIPM : The B-School with a Human Face