My cousin MBA!

“My son has already done his MBA” said my aunt with a sense of pride that was evident from the glow on her face. My aunt felt that she had ample reasons to be vocal about her son’s achievement. The son in question has always been an average student (just about), was never known for any academic achievement, and yet has successfully completed his MBA at a very young age of 23 years from a ‘Top 20 B-School’. As a MBA from a similar background, the statement resonated with me for all the wrong reasons. My aunt did not seek my imprimatur but I felt her statement reflected parochial biases. I wanted to forewarn my aunt about the possible upcoming challenges for her son, but at that point it was not prudent to burst her bubble and risk her opprobrium.

So why was I reticent? No, it was not because I doubted my cousin’s ability! Neither did I wish to be irreverent towards my aunt’s family. However, one must be aware of my background to be privy to my thought process.

My professional qualification is a MBA (PGDBA) from a top notch business school of India. As far as my academics is concerned, I was always an average student (unlike my cousin, I always bordered on above average). However, a striking similarity was that just like me; my cousin is also an MBA from a family of Doctors and Engineers. Even with the best of intentions, his family will not be able to guide their son towards the right professional path. In my opinion, it is sacrosanct for a professional to be aware of and well prepared for the challenges of his/her profession. Perhaps it would have been prudent for my cousin to match his area of interest and skill sets with the subjects that he chose for post graduation. (Believe you me; he would have been an excellent fashion designer)

In the Indian system, every parent would want their son (in some cases even daughters) to join the professional ranks at the earliest possible. The obvious choice for my cousin would have been to become a doctor or an engineer. However, as he was never an erudite, MBA was the next best option. It was perhaps the safest bet as an aspiring MBA would have a plethora of options. (Just like it was for me, the IIM B-Schools were never an option) The rule of economics that perfect competition will inevitably churn out quality products and services at a price dictated by the buyer should probably augur well for his ambitions. Unfortunately, the surfeit of Business Schools does not guarantee quality professional training! In fact quality does not even figure in the priority list of most of these colleges.

The most galling aspect of these Business Schools is the number of unemployable professionals that they churn out. If UGC and AICTE were to recognize these institutes on the basis of the quality of output, more than 3/4th of them should have been de-recognized. However, similar to the manner in which questionable credit ratings of some of the financial instruments contributed to a crisis across the global markets, the questionable recognitions has adversely affected the most important resource of India; its manpower. My cousin joined a B-School that figured amongst the questionable 3/4th majority after vacillating for a long time. It was also with my acquiescence!

As my cousin continued to balk at the prospect of making a career choice that his parents wished for him, I had more reasons to be concerned. At this point, I will elaborate my concerns with an excerpt from the interview of Mr. Kris Gopalakrishnan (Cofounder and CEO, Infosys Technologies) published in Harvard Business Review (South Asia – March 2008). In his interview he highlighted the vagaries of the Indian system that almost ruined his career. The term ‘Indian System’ refers to the Indian middle class that is full of parochial biases and the Indian education system that is characterized by its inflexibility. Mr. Gopalakrishnan’s parents were the paradigmatic Indian parents who could envision their son either as a doctor or as an engineer. They discouraged him from joining a subject of his choice and the result was that he landed up in a professional field that was not linear to his aspirations. His parents were keen to see him join the professional ranks (as a doctor) at the earliest possible and his love of science (not biology) was not linear to their aspirations. Just like other children belonging to the India middle class, he too sacrificed his aspirations and pursued his parent’s dreams. The result could have been catastrophic as not only he failed to secure a seat to fulfill his parent’s dream, but also in the process lost two valuable years. Also, what added to his woes was the Indian education system that makes it very difficult to change subjects midstream. He finally started an undergrad course in Physics and if it were not for an inspirational Physics professor, his career would have drifted away to obscurity.

In my opinion, today Mr. Gopalakrishnan is the much admired leader because the universe conspired to script his success story. (In a lay man’s term, “He got lucky!”) He did not have the conviction to follow his dreams and maybe even believed that his parents knew what was best for him. Maybe he lacked the maturity and the experience to decide his career path. After all a man/woman becomes an eligible bachelor at the age of 21/18, but has to make a career choice at the age of 18. Both decisions have a long lasting impact on our life and I often wonder why a man/woman needs to take a call on his/her career path at such an early age, especially when the average age at which both the sexes prefer to get married is increasing steadily. Do we not encounter n number of personalities in our social life? Yes we do, and it helps us to make better choices in life! In the same vein, should it not be sacrosanct that professionals gather some work experience before they make a long lasting career choice? At this point I would like to pose a few more questions to the readers:

Q-1: How many B-Schools in India insist on work experience?
A-1: Very few

Q-2: What is the motive of the above?
A-2: To increase the universe of choice! (There is tough competition for the aspiring MBA’s money amongst the surfeit of Business Schools)

Q-3: Are the fresh graduates capable of understanding the nuances of MBA curriculum?
A-3: For the majority; NO!

Q-4: Will the MBA course provide a positive ROI?
A-4: Yes & No. Yes in the long run as far as the monetary aspect is concerned. No in the long run as far as self-actualization is concerned.

Note: There are many exceptions to the above. If the reader is one of them, maybe he/she should stop and think if they are an exception or the rule.

My concerns for my cousin are all of the above. Maybe he will find inspiration in the same way as Mr. Gopalakrishnan did. Maybe he will be an exception. Maybe this article will be food for thought for him and others in a similar situation.

Till that time, the gregarious me will dither but still say, “My Cousin is an MBA”

Movie Review - Blood On My Hands (Director: Anandana Kapur, Surabhi Saral, and Manak Matiyani)

The movie was about how girls approaching puberty learn about their bodies. It talks about a woman’s menstrual cycle, a marker of her fertility, that renders her untouchable and subject to multiple taboos and regulations.

The popular movie was screened once again on 10th March, 2008 at Habitat World (India Habitat Centre) on the occasion of Woman’s Day.

My Opinion about the Movie: An excellent movie and an eye opener.

My opinion about the issues discussed by the short film

Firstly, as marketing professional and as someone who has followed the series advertisement of sanitary napkin (catches the eye) I was shocked to know that despite all the changes in the shape and sizes of the sanitary napkins, the product has hardly undergone any qualitative changes. The improved versions are not only expensive, but also scarcely available In India. It is the worst example of Product Driven Marketing in India. What about the popular jargon, “The customer is a King”? Maybe the Marketing Heads of the sanitary napkin manufacturers got quite literal and assumed that since ‘The King’ (a man) does not complain, all must be well. Maybe somebody needs to point out that in this case the consumer is a Queen! (A Woman)

Juxtapose the above with an issue that men face in their daily life. Yes, I am talking about shaving and how much of an onerous task it would have been but for the technological improvements. (e.g.: the Gillette series of razors) One might argue that basic necessities (undergarments) for women have seen similar advancement in style and design. My opinion is that the improvement has been spurred by the need of a man’s pleasure rather than a woman’s need. This same logic would also apply to the cosmetic range for women.

Therefore I strongly believe that if women become less of a fatalist consumer, they will help themselves in more ways than one.

Secondly, it is the woman who would demand the packet of sanitary napkin to be covered by a translucent paper as she feels embarrassed. My question is that what will happen if a man notices the packet? Will he cringe? Maybe he will. Will he object? Yes, maybe initially he will object. But is it not natural? Do we (men and women alike) not fear or take time to accept the unknown? In my opinion, men will gradually become comfortable with it. If not, why should it matter?

Finally, the movie also briefly mentioned an egregious incident from India. It referred to an incident where five government-run mental institutions sought hysterectomy for 330 mentally retarded girls and women (In 1994, hysterectomies were performed on 17 girls at a Shirur home). The government justified its backing of the hysterectomies as it felt that inmates would not have been able to maintain hygiene as they were uncooperative with the care-givers. Irrespective of the IQ levels of the mentally challenged women, this was a gross violation of human rights. Imagine the public outcry if a similar proposal is made to castrate men who are mentally challenged. It would simply never pass!

P.S: I did not share my opinion on the core issue of how women’s menstrual cycle, a marker of her fertility, that renders her untouchable and subject to multiple taboos and regulations. However, I have experienced situations where women are not allowed inside a temple without bathing as they are considered ‘ashudh’, whereas men are allowed even without a bath. That is something that women should find hard to swallow. If women can be Goddess in Hinduism, I am sure we should be broad minded enough not to follow these man-made infantile restrictions.

This entry was posted on Friday, March 21st, 2008 (I migrated from blog.co.in)

Do women feel equal?

Okay, now that I have grabbed your attention, let me state my position; Women are equal to men in many aspects of daily life. Hold on! You ask why ‘many’ and not ‘every aspect of life’? Thought so! Let me present ‘my opinion’ succinctly. Women are equal to men in many aspects (not all) because in some aspects they (women) are better. It is just a question of whether the reader views a glass as ‘half full’ or ‘half empty’.

Phew! Now that I have stated my position, let me forewarn the readers that this article is entirely based on my opinion and I have taken the stand after ruminating about it for a long time. The limitations of this article will be the fact that as a male writer, neither will I be able to empathize with women and nor am I privy to their thought process. However, in my opinion, fatalism is the root cause of many issues that women face in their daily life. To add to that, women themselves have contributed to their sufferings because of their non-confrontational attitude that has allowed issues to ferment over ages. Finally, this non-confrontational attitude is a direct off-shoot of the Stockholm syndrome.

Stockholm syndrome is a psychological response that is oftend discussed in reference to a situation in which an abducted hostage shows signs of loyalty to the hostage-taker, regardless of the virulent reprucussions. The hostage-takers are the men who have in the past and unfortunately still continue to impose themselves and their stand on what is right or wrong on the women (the hostages). Although there has been a veritable rise in the number of hostages that have been freed, women continue to dither in claiming their rights. This segues nicely to my next point.

What stops a woman from claiming their rightful status of equality? It has been a man’s world for ages and it has been a repressive regime as far as the women are concerned. Therefore, if women have wrongly assumed that “The Man’s World” would suddenly become quiescent, they are grossly mistaken. Men will always balk when faced with the prospect of granting equal status to women. But why do women need a man’s imprimatur on the basis for equality of status? It is perhaps that women are still adapting to the new found status of equality. Just like a tigress (chose not to give the example of a bird as I feel that would have enervated a woman’s status) that is raised in captive struggles initially, maybe women are going through a similar phase. Unfortunately, typical to Stockholm syndrome, many women continue to remain loyal to their abuser (the man) even when the world has opened up to them.

In India, no one demeans the status of women than Ms. Ekta Kapoor does. (Purely my opinion) Her serials would depict the paradigmatic image of a woman as a ‘Home Maker’ or a ‘Home Breaker’. While the former augurs well for the image of a woman, the latter suggests that a man hardly ever is a ‘Home Breaker’. There would be more vamps than villains. Then there is the surfeit of advertisements of Fairness creams and the like for women that promulgate all the wrong messages. Swarthy (dark skinned) complexion has been portrayed as a disadvantage for women in their professional and social life. The paradigmatic woman of today is someone who rubs shoulder with the men (also in the sun) professionally, manages all the household chores, and still manages to look pretty (mostly with fair complexion). Surely in a man’s world, it is the man who promulgates all these wrong messages with impunity! Or should women share the blame? I leave the judgment up to the reader as I will not be able to substantiate a stand with facts.

One can quote many examples from daily life about women suffering from Stockholm syndrome. For example, between the husband and wife, it is the wife who is always be expected to compromise her ambitions. I may still find that acceptable as in any society (Indian/Western) the status of the family is more often than not determined by the status of the man. It would be egregious for a man to be in a position where he has to be a ‘Stay at home’ father, even if such a situation was temporary. However, what I find extremely galling is a scenario where women seek comfort in this system and even demean other women who attempt to achieve their professional goals. How dare a woman expect to have the freedom of choice? This is the hostage-taker’s (a man) restriction echoed by the hostage (a woman).

Even today women are bound by the strictest norms of society. A woman must remain within the social boundaries, failing which they must go through an ‘Agni Pariksha’. The term (Agni Pariksha) is associated with Sita, daughter of the Earth and wife of Lord Rama. As is well known, Lord Rama banished his pregnant wife (Sita) to the forests on the banks of the Ganga, based on the suspicions of his subjects about Sita’s purity. (This is after she was rescued from Ravana who had kidnapped her) The most refreshingly modern aspect of the Hindu Mythology is that in a situation where she was to finally re-unite with her husband (Lord Rama), she chose rather to return to her mother (the Earth) than go back to her husband. Unfortunately this defiant gesture failed to percolate the right message through as Indian men are quick to say, “How dare she cross the Lakshmanrekha!” She was deemed punishable by fate for overstepping the authority of the men. Today, despite women’s liberation and existing laws that support equality, women continue to observe this line of control. Why cant today’s women who are no longer hostages to the men, have the courage and the conviction to follow their heart?

To conclude I will say that women need to break the mental barriers and get over the Stockholm syndrome. Women need to believe that they are equal as by doing so, they will command and not demand equality.

This entry was posted on Friday, March 21st, 2008 (I migrated from blog.co.in)

Media at War!

English Professor to a Sardarji: And what is your name?
Sardarji to the Professor: Ranjit Singh
English Professor to a Sardarji: Which Country?
Sardarji to the Professor: Punjab!

The above is an excerpt from the hit show (Mind your Language) of early 1990s that got imbibed in my memory for all the wrong reasons. I assumed Punjab is a country and as a teenager with limited exposure to the outside world (unlike the teenagers of today) I may have been excused for the infantile assumption. After all the concept of the show was to depict the comic situations that arises when a motley bunch of student from diverse backgrounds attempt to learn a foreign language.

It was after I watched recent re-run of the episode that I realized the egregious abuse of freedom by the foreign media that pandered to the difference of race and sect. In a lay man’s terms, I did not find it funny! However, it is not a one off incident that can be ignored. Despite the growing economic and political importance of India, some of the leading news channels continue to focus on the squalid sites of our country. It is perhaps consistent with their image of India as a Nation of lackeys that was once ruled by the British. This kind of positioning for India by the foreign media has been going on with the acquiescence of Indians all over the world.

One might say that true journalism knows no boundaries and a journalist is essentially neutral. This is one concept that will require some hard selling to convince Indians who followed the recently concluded Cricket series in Australia. The difference in the reporting of Indian and Australian media and the methods employed that bordered on tabloid journalism would have thrown the theory of journalists as ‘neutral’ out of the window. The Australian media worked hand in hand with their cricketers to target certain Indian players who were viewed as a threat and had gotten under their skin. Luckily the young Indian cricketers were impervious to the criticisms by the Australian media and came back as victors. A loss for India would have been a victory for the Australian media. The Indian media supported the Indian cricketers throughout the series and effectively ensured that BCCI could not ignore National interest and had to stand by its players. In effect, the Indian media helped to level the playing field.

A strong nation needs a strong media as much as it needs the Army, Navy, and the Air Force as not every battle can be won by force. The pen (or keyboard in today’s context) is mightier than the sword and it has never been more relevant than as witnessed during the cold war. The US has won the Cold War and is able to assert itself not only because of its might, but also because of the reach of its media that imposes the ‘America Way’ across diverse cultures. A journalist faces as many challenges as a soldier does when at war. The name that immediately comes to mind is that of Daniel Pearl (American Journalist) who was kidnapped and brutally murdered. It was also reported that Pearl may have been killed because he uncovered a nexus between ISI (Pakistani Inter Service Intelligence) and Al Qaeda. Since then there have been many more Pearls fighting the war for Media in Iraq, Afghanistan, Kargill, amongst many others.

Reporting has become increasingly onerous and ideally the journalists work should be free of parochial biases. Yes, on occasions the media crosses the line and obfuscates the facts for various reasons. The media can be forgiven for that as it is always at war and as they say, “All is fair in love and war”. As long as the war is for a just cause and in the National interest.

This entry was posted on Monday, March 17th, 2008 (I migrated from blog.co.in)

Chak De India - Chucked out of Olympics Hockey

The euphoria of an Indian win in Women’s World Cup Final of Hockey had not even died down when India has been brought back to earth with a major jolt! While the former maybe ‘Reel Life’ as orchestrated in the hit movie ‘Chak De India’, the latter is the bitter truth of ‘Real Life’.

Yes, India has been chucked out of the Olympic sport that is its National Game. It is for the first time in eight decades (since 1928) that India has failed to qualify for the Olympics in hockey. My attempt is not to make a snide remark on a moribund sport in India, but is to delve into the possible reasons for this heartbreaking failure by asking a few questions that is on the mind of every Indian.

Are we sentimental about the past and not abreast with the future that has already happened? India has won 8 Gold, 2 Bronze, and 1 Silver in Olympics hockey since 1928. As much as it is an impressive record, the fact remains that we have won nothing in the last 27 years. So what has changed in the sport that has contributed to this debacle? The answer is that just about everything has changed.

Long passes, emphasis on penalty corner conversion, fitness levels required of every player, no off side rule, and the pitch itself on which the game is played has changed. India is still living in the past and still believes in dribbling and other skills atypical of the traditional method of playing the sport. Yes, Indians should capitalize on the Asian style of Hockey and burnish their skills to have an advantage over their Non – Asian opponents, but to ignore the change that has happened and to not master the European style has been a major blunder.

It is one thing not predicting a change; it is completely another thing not to adapt to it. We must stop living in the past, live in the present, and be proactive in predicting the future.
Is IHF operating as a professional body?

NO, IHF has failed to operate as a professional body and a business entity driven by market forces. Business Organizations that are driven by market forces slough off the unproductive and the unsuccessful to stay competitive. However, IHF has operated like a typical government organization and therefore economics and common sense has been viewed as constrain. The IHF has been headed by the same regime for nearly 15 years now under the leadership of K P S Gill. Unfortunately the Olympic debacle is not going to effect a change in the paradigm.

Is IHF a corrupt body?

The IHF has purported to have put a process in place that will take time to produce the desired results. As I am not privy to the functioning of IHF, I will not be in a position to make a definite comment on the level of corruption prevalent at IHF.

However, if certain questionable decisions were to be the basis for an answer, then I still fail to understand how six members of the 1998 Asian Games winning side was sacked by K P S Gill. If the grapevine is to be believed, Gill also interferes in every aspect of the sport; be it administration, team selection, and marketing. Gill is also believed to have drained Federation resources on FIH and AHF elections. In case of any unsuccessful endeavor, IHF has been irreverent of players, coach, and support staff and sacked them with impunity as they are well aware that The Ministry of Sports and youth affairs who funds IHF will never question them. Also, the tirade of how K P S Gill has eviscerated the sport of all its glory has been a common aspect amongst all sports pundits.

The IHF, despite all its failures has not seen any change at the Top Management level and this is indicative of the fact that all is not fair at IHF. Therefore, I can only conclude that corruption is as prevalent at IHF as in any other government organization.

Are youngsters encouraged to play the sport? One look at the state of the past Olympic heroes of hockey in India and more recently the way Dhanraj Pillay was dealt with by the IHF, does not augur well for the image of the sport. One may argue that similar treatment has been meted out to some of the most respected players in Cricket (e.g.: Sourav Ganuly & Rahul Dravid) and yet the game continues to flourish. However, one must also note the significant difference in the monetary incentives between the two sports. In the last Asian games where Hockey figures as a prominent sport, each Indian player got approximately INR 1000 for every goal scored by them. Contrast that with the riches of the Indian cricketers and the hockey players will seem to be in a state of penury.

Unfortunately Hockey has ended up as a means for the aspiring players (from poor background) to land high paying jobs.

Are the Indian Hockey Players slothful? Hockey is perhaps closest to soccer in terms of the skills and professionalism required to be successful. Most definitely one will not see an Inzamam ul Haq (the not so athletic cricketer from Pakistan) playing hockey at any level of the sport. This essentially means that modern hockey requires high level of fitness, professionalism, and a scientific approach.

The Indian team is more often than not on the back foot because of its slow starts that allows their opponents to have their noses ahead very early in the game. If not that, then unfailingly it will throw away its advantage towards the end of the game because the players do not have the fitness levels required to sustain the energy levels. The criminal offence in Hockey of missing penalty corners is resultant of the primitive methods adopted to coach the players. Despite the fact that the Indian players are highly skilled, they are unable to play unencumbered by the internal politics of the management. Imagine doing the rope trick in a circus without the safety net.
The Olympic debacle will mark watershed for our National Game. The question is whether the sport will bounce back as Indian Cricket did after the World Cup debacle last year or will we be writing an obituary for the sport in the upcoming World Cup? What a shame that will be!

This entry was posted on Tuesday, March 11th, 2008 (I migrated from blog.co.in)

NGOs in the danger of becoming a Passé - Social Entrepreneurship

I have often wondered about those working in the NGOs with the sole intention of doing good. Wonder what drives them? NGOs have often purported their objective to be the catalyst for solving the social, economic and environmental problems of a Nation. Admittedly there are success stories that give reasons to critics like me to introspect. At the same time, there are many NGOs that are viewed with a degree of suspicion that is more often than not justified. How many of us are willing to pursue public service for peanuts? Do the NGOs have the ability to scale and get the best talent to work for them? If like me, the reader feels that the answer is a firm ‘NO’, then will it not adversely affect the ability of the NGOs to raise and allocate resources for the betterment of the society? This segues nicely to the central idea of this article.

The answer lies in Social Entrepreneurship! No, the term is not my brain child! It is the ‘in thing’ in the conversations of the business leaders of the world. Muhammad Yunus (Noble Peace Prize winner) is amongst the prominent business leaders who strongly advocate ‘Market Based Social Entrepreneurship’ as a powerful alternative to the orthodoxy of Capitalism. Social consciousness driven private sector that is driven by social entrepreneurs is the new mantra that does not seek to obviate NGOs, but surely is looked upon as a viable, sustainable and more importantly an affective alternative. What has added weight to the concept is Bill Gate’s Davos speech where he emphasized on ‘Creative Capitalism’ as the way forward for Social Entrepreneurs. Perhaps the fact that the base of the Pyramid market in Asia alone is valued at $3.4 trillion would have caused the veritable rise in call for Social Entrepreneurship.

Who is a social entrepreneur? The world defines the social entrepreneur as a professional who is unconventional, innovative and resourceful. A social entrepreneur can feel the pulse of those at the base of the pyramid market. The essence of the Social Entrepreneur is that he/she is idealistic and at the same time should be an opportunist. Essentially he/she wants to do well professionally by doing good.

What are the essential ingredients for the success of social entrepreneurship? Yes, the philanthropy is most welcome but for the concept to be effective the social entrepreneurs will need to work in sync with the government and the non-profit making organizations. Social entrepreneurship will change the paradigm of business in the world. It will also require system innovation to devise business models that will churn out goods and services for the benefit of the world’s four billion low income consumers. ‘Social Entrepreneurship’ is not an analogy for ‘corporate social responsibility’. I reiterate that it will not obviate NGOs. However, for the majority like me who are not ready to work for peanuts but still want to do good, maybe Social Entrepreneurship is the right career move. It will provide us with lot more than tangible (monetary) incentives. It will make our work seem less mundane. We will be looked upon as a good doctor who revives moribund patients.

We will be looked upon as well intentioned professionals and not saints!

This entry was posted on Thursday, March 6th, 2008 (I migrated from blog.co.in)

Budget 2008 – Eyewash for the farmers

Thousand of farmer suicides and more importantly an election year finally resulted in a so-called farmer friendly budget or as the Congress put it, an ‘Aam aadmi’ Budget. Let me at this point forewarn you that a farmer friendly budget does not necessarily mean a ‘Poor Friendly’ budget! (Something that I will delve into in my upcoming article) The loan waiver of INR 60,000 crores (taxpayer’s money) that has been allocated for the cause is an eyewash and the most unfortunate part is that the farmers in actual need will not even realize that till the time they are educated about the glaring GAPs. The following are the questions that the farmers should ask of the government before they get their hopes up:

1- Will waive off be applicable to the loans taken from the non-institutional sources? The government has proposed waive off for farmers with small and marginal holdings. However, waive off is only applicable to the loans taken from institutional sources. This is perhaps the biggest GAP that the government should not have ignored. National Sample Survey Organization has highlighted in its findings that less than 60% of the indebted farmers have availed the loan from institutional sources such as Scheduled Commercial Bank, Regional Rural Bank, and Cooperatives. The 40% plus who are mostly small and marginal farmers for whom waive off is intended, have availed such loans from money lenders and therefore are not even eligible for the benefit. Therefore, who is the government actually benefiting? The answer is majority those farmers who are capable of paying off the loans.

The worst part is that such waive off will not only fail to benefit majority of those who are in actual need, but also that it will become counter productive. Waive off will breed inefficiency amongst the farmers who can pay as they will no longer have the incentive to increase productivity as they will now believe that every fourth year before election, the party in power will replicate, if not better the offer for the farmers. Consequently, agriculture sector that currently contribute only a dismal 2.3% of the GDP, will keep growing at the sluggish rate. (If not fall)

It is basic economics, marketing (failure to reach out to the target segment) and common sense that the incentive lacks!

2- Will waive off be implemented and benefit the ‘lucky few’ in need? The government spend INR 4/- for every INR 1/- of subsidy intended for the farmer. Therefore, is the government spending INR 60,000 crores or is it actually spending INR 15,000 crores? Further, the institutional sources are not exactly farmer friendly and would derive pleasure (if not tangible monetary benefit) from harassing those in need. The proposed implementation of smart card or vouchers would be a step in the right direction.

3- Why was the Price Risk Mitigation Fund as proposed by the Radhakrishna committee ignored? The fund that was proposed to compensate the farmers in case of a price collapse was required to provide a support to the small and marginal farmers and thereby provide them a cover against their propensity to fall into the clutches of the money lenders was conveniently ignored. This is the root cause of the farmer suicides and required special attention of the government.

4- What has the government done to increase the public investment in agriculture? Mr. P Chidmabram may pat himself on the back for increasing the rate of capital formation to 12.5% (FY-08) from 10.2% (FY 03-04), but one needs to ask him the performance in the agriculture sector. The rate of capital formation in the agricultural sector has in fact dipped from 8% (performance of previous NDA government) to 6% under the UPA government.

5- What has the government done for the long run benefit of the farmers? The INR 60,000 crores, as lucrative as it sounds is only intended to address the short run problems of the farmers. The fund could have been better utilized if a part of it was also diverted in providing better inputs (seeds) and irrigation facilities to the farmers. The problem of farmer debt will only resurface after 3-4 years if the root cause was not addressed. Consolidation of land holdings is another important step that should not have been ignored so blatantly. To conclude, let me reiterate that I am not pro/anti UPA. I believe every government in power would have done the same thing. Every government will unfortunately indulge freely in its predilections. This is the kind of inertia that has burdened the economy over the last 60 plus years of Independence.

Will India see some change leaders to address these issues?

This entry was posted on Monday, March 3rd, 2008 (I migrated from blog.co.in)

No More Mr. Nice Guy!!!

Why we should thank the 4 Ms of India?Media, Middle Class, Movies, Money

The war, oops the series in Australia is coming to a close and the entire country is awaiting the denouement of the Harbhajan Singh vs. Andrew Symonds saga. Just when we thought that news channels were running out of controversies to help increase their TRP ratings, Symonds again obliged by taking on a teenager (Ishant Sharma). Hayden was not to be left behind and he too jumped in by calling Harbhajan Singh an ‘Obnoxious weed’. For those who do not follow cricket (I am sure you are not an Indian), I am not talking about WWF wrestlers engaging in one-upmanship. All this is happening in a sport that used to be called ‘The Gentleman’s Game’. The sport in question is cricket and the participants are Australia, where cricket is the National Sport, and India, where cricket is more than a religion.

Long after the series is over and the contretemps over Harbhajan Singh, Andrew Symonds and the use of the word ‘Monkey’ on the cricket field is resolved in the minds of the players involved (it has already been resolved by the ICC), Indians will look back with pride that the incident marked a change in the way the world looks at us. As Indians we have unfortunately been suffering from inferiority complex, low self-esteem and worst, slave mentality. In past tours the Indian Team members would act as ‘Mr. Nice Guy’ when confronted with verbal abuse/sledging, it affected a billion viewers. A non response to an abuse/sledge would affect the spirit of the entire country as it almost felt like the Asian countries were a part of the repressive regime of ICC. Indians will continue to exalt its heroes but there has been a veritable rise in dissent against the non-Asian cricketing nations as there was no platform to vent. The media was not as strong around 10 years back as it is now. The Indian commentators of the stature of Harsha Bhogle and even the legend and voice of Indian cricket, Sunil Gavaskar, were subservient to the west as they determined their employability. As a result the country had to swallow its pride and that left scars on the spirit of every Indian.

Today, the tirade of how the Australians have tarnished the sport is flashed on every news channel in India. The young Indian cricketers have taken the Australians head on and have not been shy to give it back to them in kind. So what has brought about this refreshing change of attitude? Is it the growing importance of India in the Global scenario? Maybe because BCCI brings in the maximum amount of revenue for the ICC and therefore has the muscle to dictate terms? Or is it that finally our pride has been hurt enough that any self respecting human being will react? Or did Bollywood (with movies such as ‘Chak De India’) knowingly/unknowingly infuse a killer instinct that was so lacking amongst the Indians? The fact is that it is a combination of all of these.

They say that Indians are over doing it and are becoming ‘an arrogant lot’ as a result of the money muscle of the BCCI. They do not shy from pointing to the records of Indian players who have been booked the maximum number of times by the match referee. The fact about records or for that matter any report that gets generated is that the output is solely based on the input. The match referees have ignored incidents where Australian cricketers have sledged, indulged in excessive appealing, and shown dissent with impunity. It is extremely galling to watch incidents such as the one involving Glenn McGrath and Sarwan where McGrath almost physically abused the West Indian batsman, and get away without even getting reprimanded. The cacophony caused when Shane Warne (for that matter Damien Fleming, Glen McGrath, and the list goes on and on) used to appeal and audacity of the manner in which they showed their disgust with impunity and actually get away with it is a clear indicator of the fact that it is not a level playing field when an Asian side squares up against the Australian side and to a lesser extent the South African side. Contrast that with the Indians where Sehwag and Ganguly get booked for excessive appealing that was no where close to the pitch of the likes of Shane Warne and you will get the picture. The Symonds vs. Sharma incident where Symonds clearly provoked Sharma to which Sharma reacted only resulted in a fine for Sharma. Symond not only went unpunished but also feigned innocence.

If one would have the time and the resources to review every match that has been recorded till date, one will find that the number of offenses for which the Australians were not booked far exceeds any other team to have played competitive cricket over the same period of time. Maybe the cash rich BCCI or for that matter one of the media houses will finance a study that will highlight this claim. I am sure that the media channels will look upon this as an opportunity to gain credibility amongst the Indian viewers and voice their sentiments backed by tangible numbers. I am equally confident that the BCCI will never support such a study as that may affect their relationship with CA (Cricket Australia) and they need the Australians for the IPL. For those who read between the lines, it was evident that the BCCI never intended to be as aggressive in supporting the Indian players over the Bhajji vs. Symonds issue and but for the media and the poise and class of Anil Kumble, BCCI would have ignored this and Indians would have once again swallowed their pride.

To conclude, we should thank the Indian media, the Indian Middle class (mostly responsible for the growth of Indian Economy to its current status), Indian Movies, and BCCI’s Money for relieving us of the agony of swallowing our pride each time WWC (White World of Cricket) attempts to put us down.

We are a proud nation and should refuse to be treated as lackeys!

This entry was posted on Friday, February 29th, 2008 (I migrated from blog.co.in)

Budget 2008 - The Politics and Economics

The Finance Minister Mr. P Chidambaram would have prepared the final draft of Budget 2008 that he will be presenting on February 29, 2008. With an eye on the elections, what remains to be seen is that whether this will be an UPA budget aimed at appeasing the masses or the front has the confidence of proposing a budget for the long term sustainable growth of India. The INR 30,000 crores of debt waivers for the small and marginal farmers (refer to my previous article for the ills of such a policy) would indicate that getting re-elected is a top priority and not what is best for India.

The major issues that need to be immediately addressed by the budget are as under:

1- Inclusive Growth: It is the need of the hour that the benefits of a high growth rate generate more jobs. The current growth rate of jobs is 2.25% as against the desired level of 3.5% that is essential to reduce the unemployment backlog and for that to happen the Farm Labor needs to migrate to labor intensive sectors such as textile, food processing, retail, manufacturing, etc. The government needs to encourage FDIs in these sectors. Also, the government needs to give tax breaks to industries that employ labor intensive techniques rather than capital intensive techniques.

2- Agricultural Reforms: The largest employer of India contributes only 2.3% of the total GDP. This does not augur well for the sustainable growth of the economy at the rate of 8% - 10% in the long run. There has been negligible improvement in the irrigation facilities and the current state of infrastructure is appalling. The Finance Ministry needs to treat agriculture as an industry and pass on all the fiscal benefits that will act as a catalyst in increasing productivity. The marginal land holding needs to be consolidated and leased to farmer cooperatives. The acceleration of the creation of cold chain infrastructure will also be a shot in the arm for the agriculture sector. Perhaps Mr. Sharad Pawar needs to exhibit some dynamic leadership in the agricultural ministry that has been associated with him as far as the BCCI is concerned.

3- Fiscal Deficit: The government has been impounding on the public sector bank funds to finance its budget deficit. Nearly 46% of the Public Sector Bank funds are utilized for the said purpose. This hurts the interests of other sectors of the economy such as the manufacturing sector that depend on the Public Sector Bank for its resources. To discourage this, the Finance Ministry must look at privatizing the banks.

4- Tax Rebates: The debt accumulated by the centre is almost 86% of the GDP. This does not augur well for the economy and has potential of leading the country into a crisis situation. The Finance ministry may look westwards, especially at the US and imitate some of the fiscal policies adopted by it. Maybe tax rebates will act as an injection to the economy and will encourage the all important middle class of India to save more. Also, this will encourage them to use the extra money to increase expenditure that will be good for the economy in the long run.

5- Universalize the Integrated Child Development Scheme (ICDS) with quality: Children are the future of a country. A cliché that makes a lot of economic sense. The economy suffers a 2% - 3% loss to GDP due to the presence of malnourished children. Therefore the government should make it a top priority to universalize the ICSD. To universalize the ICSD means setting up of more than 1.4 million Anganwadi centres, amongst other measures that would ensure that 80 million children gets benefited. The Supreme Court order on December 13, 2006 to set up 1.4 million Anganwadi centre by December 2008 and the fact that the current UPA government had committed to the same in its National Common Minimum Program should ensure that it finds a place in the budget. This will require an investment approximately INR 33000 crores or 0.5% of the GDP. One can only assume that despite the political compulsions that takes away almost 98% of the Budget for Defense, subsidies, etc, the Finance Ministry has segregated 0.5% of the budget for ICDS keeping the Supreme Court directive in mind.

6- Not to succumb to self serving industrial agenda: When the Finance Ministry succumbed to Ratan Tata’s agenda of stopping the iron ore exports ‘at all costs’ and imposed an export tax on iron ore, it set a dangerous precedent that could push the economy backwards. Such a gullible tendency of the ministry will encourage other industries to lobby for similar steps that will serve their own interest. The fact is that currently the iron ore manufactured in India is far more that the demand for it. The export tax will burden the mining industry and will result in lower revenues and loss of jobs. Also, it will act as a disincentive to others who plan to invest in the natural resources. The fact is that such a policy may come back to haunt the Tatas (who make steel using the iron ore) as what stops industries such as automobile industries, consumer durables and construction industries from asking for a similar restrictions on the steel industry?

It is time for the Finance ministry to maintain a balance between political and economic compulsions. The Bollywood Badshah - Shahrukh Khan said in an NDTV wards function, “The politicians should be as honest as practically possible” in Mr. P Chidambram’s presence. Maybe that meassage would have sunk in!

This entry was posted on Wednesday, February 27th, 2008 (I migrated from blog.co.in)

Farmer Suicides – Is loan waiver a solution?

Quick fix solutions have always been the mantra of various governments whether it was the NDA or now the UPA. Years of lethargy and inaction has lead to crisis situations that the government at the centre tries to sweep under the carpet by taking desperate decisions. The decision of reservation for SC/ST was a political decision keeping in mind the huge vote bank. That was followed by the sealing/de-sealing drama. Now the government is chalking out plans to appease the largest vote bank of all; the farmers.

Farmer suicide cannot and should not be ignored. Ignore it at your peril as Mr. Chandrababu Naidu found out in Hyderabad. The present government has recognized that and as always has proposed a quick fix solution. It proposes to announce the waiving off the farmer loans on February 29, 2008 when the Budget will be presented by Mr. P Chidambram.

In case such a decision is taken, will it be an economic decision or will it be a political decision? Certainly neither BJP, nor the left will oppose this in parliament as nobody will want to be on the wrong side of the largest vote bank of India. Before we analyze this further, let us delve on a few nummers:

1- The agriculture segment employs the largest number of Indians.
2- It still contributes only 2.3% of the total GDP
3- Over 55% of the farmers produce only 17% of the total output
4- The proposed waive off can be anywhere between 32,000 crores to 90,000 crores.
5- The proposed waive off will be equivalent to almost 2% of the GDP.

Point 1 is perhaps the sole reason why any ruling party will want to take a populist decision and not an economically viable one. However, the teething problems that government will face are as under:

A- How to differentiate between large farmers who can pay off the loan and the small farmers who actually need the benefit? Will such a loan waiver reach the target beneficiaries? Going by the track record of the government whereby out of every rupee 1 of subsidy offered, only 27 paise reaches the target beneficiary (as per the Planning Commission report), it is going to be an arduous task. Improper implementation will mean huge burden on the economy with minimum benefit.

B- The loan waive off will be a short term solution. Most of the farmers have marginal land holdings that are not economically viable. Such bad debt will emerge again and again and therefore a loan waiver cannot be a permanent solution.

C- In light of Point B above, would it not be prudent to rather invest the amount in providing better irrigation facilities, better seeds, and better marketing support? This will be a long term solution.

Then again, with the elections round the corner, we all know that short term political interests will rule over long term National interest that is economically viable and sustainable.

This entry was posted on Sunday, February 24th, 2008 (I migrated from blog.co.in)

Jodha-Akbar: Lessons for the US

The period film Jodha-Akbar has been much criticized for its historical incorrectness. Historians have correctly pointed out that there is little (if any) accuracy in the way the relationship between Akbar (real) and Jodha (maybe ficticious) has been portrayed. The fact is that Akbar had many wives and many love interests. Therefore, for historians and intellectuals alike there is not much to take away. To be fair, Ashutosh Gowariker has also been honest with the audience as he has claimed that his movie is 30% history and 70% imagination.

At this point, would you (the reader) laugh at me if I were to say that the movie has much more to offer to the politicians and the bureaucrats of US than to the average movie goers?

The movie claims that it was under the leadership of Akbar that for the first time Hindustan was viewed as a secular country. (Do not know the historical correctness of the same-would like to believe it) Also, Akbar’s stand on granting equal status to Hindus was a political stand, something that was necessitated by the fact that his predecessor had failed to rule Hindustan. A lesson in management perhaps that a true leader has to often take a populist decision and yet always do the right things and communicate the importance of his/her action. Perhaps the US needs to take a few lessons from this movie for it has been their mismanagement that has resulted in all the political and economic chaos in Iraq. The US has always tried to assert itself as the superpower that has won the cold war and believes that the rest of the world needs to fall in line with its definition of right/wrong. The US missions, whether it was Vietnam or Iraq, has always been the same as that of the Afghans and the Uzbeks that Akbar mentions in this movie; conquer, loot, and run! Akbar was magnanimous to let off the head of the state that was conquered irrespective of whether it was a political/humane decision. The US was barbaric to have hanged Saddam Hussain after they captured him and therefore has earned the wrath of the Islamic world.

History repeats itself! I wonder how the historians would depict US; like the Akbar’s Mughals or the Afghans and the Uzbeks?

P.S: I am not anti-US! My endeavor is to highlight the few political blunders that the US has made that has scarred the rest of the world. (Islamic and non-Islamic) The wounds inflicted may take ages to heal. The US needs to do a re-think and atone for its past misadventures in its best interest and in the best interest of World Peace.

This entry was posted on Thursday, February 21st, 2008 (I migrated from blog.co.in)

Delhi-Gurgaon Expressway - Taking a toll on the commuters

Delhi-Gurgaon expressway that promised the moon to the commuters, has failed to deliver! A closer examination will reflect on the fact that everything that could have gone wrong with a project, has gone wrong.

Some details about the expressway:

1- It is a 28 km long expressway.

2- The average traffic is 1,40,000 vehicles/day. (approx) {This figure as per the estimates of Rites limited in its DPR was to reach only in 2013} The expected number was 80000 vehicles/day for 2008.

3- Expected growth of traffic is about 9%/annum

4- The current unofficial estimated revenue/day is approximately INR 70,00,000/annum

What is the modus-operandi of toll collection?

A- Multiple cash collection lanes and single tag only and card only lane.

B- The toll is INR 16/trip; an odd figure that adds to the delay as commuters more often than not struggle for change.

C- The tag lane does not have and toll gate and there is an automatic debit as the car passes through the reader. However, the major drawbacks are as under:

a. The tag machines are often faulty.
b. Recharging the tag is a cumbersome process.
c. There is no additional monetary benefit of the tag. {The toll is still INR 16/- despite the fixed charge of INR 500}
d. There is not customer service. The tag customers do not get the statements of usage (though there is a digital display that flashes the current balance} and customer complaints (example tag machine not working) are rarely followed up.

D- The card would have similar issues as the tag.

What are the drawbacks of the current system?

A- The commuter’s nightmare as the average waiting time is 30 minutes (in some cases even 45 minutes) as against the promised 30 seconds.

B- On occasions the Tag machines are faulty and commuters willingly/unwillingly end up taking advantage of the same. The result is lost revenue for Jaypee DSC Ventures Ltd

C- The Tag/Card has lot of administrative hassles such as card/tag not working, lost card reporting, balance determination (currently there is a momentary display of available balance that a commuter can easily miss), recharging, etc, that involves revenue lost and additional costs for Jaypee DSC Ventures Ltd.

To summarize, the following would be the major constrains in the current system:

1- High average waiting time for which NHAI (the road regulator in India) has sought an explanation from Jaypee DSC Ventures Ltd. They are desperate to reduce the waiting time from 30 minutes to at least 5 minutes.

2- Management of transaction is not the core expertise of Jaypee DSC Ventures Ltd. The inefficiencies of their current system is resulting in administrative hassles that are adding to the cost and also affecting the revenue.

This entry was posted on Thursday, February 21st, 2008 (I migrated from blog.co.in)

Revolution of Indian Service Sector

The suggestion of portable mobile numbers will go a long way in improving the level of service of the telecom operators. The logical next step would be to implement the concept of portable bank accounts that will increase the efficiency levels of the banking industry. The current situation imposes exit barriers on the customers as their account numbers would be linked to important investments and other financial aspects. The existing customers get taken for granted and portable account numbers would make sure that they are valued as much as a new customer. In the current scenario, more often than not customers who are deemed “not profitable” would have the option of switching to service providers who would value their association.

This entry was posted on Saturday, February 16th, 2008 (I migrated from blog.co.in)

Will India and China go to war?

“Two nation trading with each other don’t go to war” says Thomas Friedman (author of the book-The World is Flat). India-China trade touches nearly US $ 40 billion and that has made sure that the territory dispute between the two economic powerhouses is swept under the carpet. {India claims that China illegally occupies 38000 sq km of territory in Ladhak, China claims India illegally claims 90000 km of territory in Arunachal Pradesh}

This entry was posted on Saturday, February 16th, 2008 (I migrated from blog.co.in)

Inflation of food Prices - Cause and Solution

Faulty Monetary Policy of US The rapid increase in food prices {11% in large developing countries as against 4.5% in 2006} has been a direct result of faulty monetary policy of US and it’s counterparts in the other major economies. The rapid cut in interest rate has resulted in increased liquidity. The only exception has been the European Central Bank and their sanity has made the Euro stronger and has replaced the dollar in many international transactions. The policy of price control seems to have more political merit than economic merit. The increase in price encourages the producer to produce more and the consumer to consume less and thereby bring the prices down. Price controls will only encourage people to hoard resulting in artificial shortages and causing social and political unrest. The best way of stabilizing food prices is to waive off all the import taxes on food items.

This entry was posted on Saturday, February 16th, 2008 (I migrated from blog.co.in)

Is the worst over for the US Housing Market?

The answer is a firm ‘NO’! The root cause of the situation was that the entire premise on which the fragile house of securities was built by The Wall Street is faulty. The premise that the home prices will never fall is wrong and that resulted in a loss of billions of dollars. The Wall Street is unable to fix a value on the mortgage-linked securities until the worth of the houses underlying those securities is determined. Till the time a proper value is assigned to the mortgage linked securities, the credit crunch will spread and intensify. The Housing Industry in US is an important industry and employer. Houses are also American families’ single biggest financial asset. A persistent decline in their value will depress both their wealth and their spirits. Home builders have been cutting down on the new home construction rapidly to match the demand and supply. Yet the backlog of unsold houses seems to be increasing. It is indicative that the home prices needs to fall further and/or the home construction needs to be cut down even further. The key interest rate that has already fallen to 3% from 5.25% in September 2007 needs to be cut further. The Fed may even have to push the rate to as low as 2%. At this rate soon the US economy will be feeling short of the adrenalin from rate cuts and tax rebates. Once the worst is averted, Bernake needs to immediately make sure that he boosts the rates up as fast as he has cut them to avoid inflation.

This entry was posted on Saturday, February 16th, 2008 (I migrated from blog.co.in)

The Recession in US Economy

The Federal Reserve (US) chairman Ben Bernake has often resorted to monetary policy to combat recession or slowdown in the US Economy. The 75 basis point cut in interest rate is aimed at reviving the world’s largest economy and therefore to also make sure that the rest of the world’s economy stays on track. The equity investors in US have a blind faith in the ability of the Central Bank to bail out an economy in trouble. The cut in interest rate and therefore an increase in the money supply are aimed at reviving the credit market and the housing sector in the US. The assumption is that the individuals and companies will use the cheaper money to buy and invest. However, the US is still faced with a deflating asset bubble (mainly housing). The Banks are nursing billions of dollars worth of problem loans. The situation seems to be much worst than 2001 when the US economy reacted quickly to interest rate. The interest rate cuts do not augur well for the US economy if the existing examples are anything to go by. For example, the asset bubble of Japan in 1990 triggered off interest rate cuts by the Bank of Japan all the way down to zero but to no avail. Japan struggled with debt-deflation for more than a decade and there were no signs of economic growth. The 75 basis points reduction in the interest rates seems to be decision taken in panic; a panic that was caused by a market meltdown in US.

This entry was posted on Saturday, February 16th, 2008 (I migrated from blog.co.in)