Friday, November 30, 2012

Common Wealth of Nations

From Wealth of Nations to Common Wealth of Nations

In Common Wealth, the author Jeffrey D. Sachs, Professor of Sustainable Development at Columbia University and special advisor to United Nations Secretary-General Ban Ki-moon on the Millennium Development Goals, has elaborated upon some actions that are necessary to fulfil the hopes of generation in building a world of peace, sustainable development and Common Wealth.

These include learning about this generation’s challenges to become acquainted with the underlying science of sustainable development, travelling to see other places and cultures to understand the common interests and aspirations that unite all of us, starting or joining organisations committed to sustainable development i.e., Muhammad Yunus began Grameen Bank and gave life to the world-wide microfinance revolution, Paul Farmer started Partners In Health, Norman Borlaug helped to establish the wheat research institute CIMMYT and thereby helped feed the world, promoting sustainable development through social networking sites, getting politically engaged, demanding our politicians to honour government’s promises and donating time, dollars, and the energy to social networks.

Global survival in the long run will be achieved by recognising that the vast majority of people in the Middle East, China, India, and the rest of the world, just as in the United States, long for their own prosperity and security, not for domination over others. Our fears can easily get the best of us. We must therefore train ourselves and orient our policies to understand the world not only as we would see it but how others see it as well. That is the key to appreciating our common fate, and Common Wealth, on the planet.


Source : IIPM Editorial, 2012.

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Thursday, November 29, 2012

The State of the World: Hunger, Conflict & Death

Ban Ki-moon, Secy. General, UN on how member states must work together. A B&E exclusive...

We all recognize today’s perils. A global financial crisis. A global energy crisis. A global food crisis. Trade talks have collapsed, yet again. There are new outbreaks of war and violence. Climate change ever more clearly threatens our planet. We say that global problems demand global solutions.

And yet, do we act? In truth, today, we also face a crisis of a different sort – the challenge of global leadership. New centers of power and leadership are emerging – in Asia, Latin America and across the newly developed world. In this new world, the challenges are increasingly those of collaboration, not confrontation. Nations can no longer protect their interests, or advance the well-being of their people, without the partnership of the rest.

Yet I see a danger of nations looking inward rather than toward a shared future. I see a danger of retreating from the progress we have made, particularly in the realm of economic development and fairness in sharing the fruits of global growth. Yes, global growth has raised billions of people out of poverty. Yet if you are among the world’s poor, you have never felt poverty so sharply. Yes, international law and justice have never been so widely embraced. Yet those living in nations where human rights are abused have never been so vulnerable.

Yes, most of us live in peace and security. Yet violence is deepening in many nations: Afghanistan, Somalia, the Democratic Republic of Congo, Iraq, and Sudan. Their problems are part of the development emergency we face. Over the past year, the price of fuel, food, and commodities rose alarmingly. Wealthy countries worry about recession, while the poor can no longer afford to eat.


Source : IIPM Editorial, 2012.

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Wednesday, November 28, 2012

BOLIVIA

Does the crisis in Bolivia predicate a downfall of the so called Left bastion? A B&E inference...

Named after Simón Bolívar, the revolutionary who contributed the most for the independence of many South American countries, Bolivia – the land where Che was executed allegedly by CIA in 1967 – has stood as a bulwark of the Leftist ideology. But the recent spate of bloody anti-government violence seems to question that very ideology. Is the Axis of Left finally crumbling?

The last eight years have seen changes in South America that had never been seen in the history of this continent. To succintly underscore the point, in these years, as Mark Becker wrote in The Monitor a few years back, “while North America turned right, South America turned left.” If the Leftist Tabaré Vásquez came to power in Uruguay, then Brazil’s Lula da Silva’s, Venezuela’s Hugo Chavez, and of course, Bolivia’s Evo Morales symbolise the power with which the Left has grown in South America where now, more than 75% of its 350 million people are ruled by left-leaning presidents, with the Cuban Castro totem pole intact since ages.

Cut to September 9, 2008. In bloodied clashes with the military, anti-government protesters take over many buildings and public offices in eastern Bolivia ranting against the Leftist fav Evo Morales, [leader of the Movement for Socialism party, elected President of Bolivia since 2006 with a majority seen rarely in Bolivian history]. In Chaco, one of the richest in natural gas, protesters take over a natural gas pipeline control station that supplies gas to Brazil [Bolivia is Brazil’s largest gas supplier] and try to destroy the same. If Santa Cruz and Chaco are symbolic, anti-Morales protests rip across now in five of the nine Bolivian regions ruled by the rightist opposition. The demands are simple, yet critical. Protestors wanted Morales to roll back nationalisation reforms particularly of gas companies, wanted more autonomy and clearly a bigger share of State revenues.

Cut to Cuba. Various reports comment that Fidel Castro is on his last leg, suffering ailments that’ll see him passing away sooner than later; and with Fidel gone, his brother Raúl Modesto Castro Ruz – Cuban President since Fidel’s 2006 illness, and himself 76 years old – would not be able to hold the Left fort much longer. Cut to Venezuela, 2007! Chavez’s historic Constitutional referendum proposing unlimited Presidential powers is defeated by a majority. Nationwide protests occur against Chavez before and after the referendum. Similar, though smaller protests have been going across many of the Leftist South American countries, with Spain, Mexico and Colombia already ‘fallen’ to the right a long time back. Bolivia, despite being second richest in gas resources, is the poorest South American country. Is that proof enough that Leftist rule has not given what it was supposed to provide, namely, social security? Deafeningly, is the Left seeing its last leg? Is the way the US has dealt with South America since allegedly knocking off Che – namely, targeting individuals instead of nations – finally succeeding?


Source : IIPM Editorial, 2012.

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It pays to love George Bush!

Sans Bush, the nuclear pact would not have happened; it marks a paradigm shift in US's India policy

I will not term what has transpired as a Nuclear deal between India and US as a mere pact. It is, in fact, a process that has led to the end of international sanctions against nuclear commerce with India. These sanctions came into force when the US passed the Nuclear Non-Proliferation Act in 1978 and thereafter norms were set up for the 45-member Nuclear Supplier Group (NSG). Apart from ending India’s nuclear isolation and clearing the way for easier exchanges of technology pertaining to nuclear energy and other dual use technology items; the NSG clearance has now given us the opportunity to cooperate with countries like France and Russia so that we can expedite our moves towards energy security and self–reliance in the development of our indigenous fast breeder reactors.

Now, it is not just something that moves us into close cooperation with the US. Readers should remember that the Americans have not built any new reactor since 1982. Secondly, US firms like Westinghouse are not all American. The other prominent firm General Electric is there, and has shown a readiness on part of the US to treat India and deal with India as a serious partner.

I would say that the shift is extremely significant, having negotiated with the US on nuclear issues for four years, both in Delhi and Washington, between 1976-1980, at the time when US sanctions were coming into place. I never thought I would see such a paradigm shift in our relationship with the US during my lifetime.

The deal went ahead despite the efforts of China to equate India with Pakistan with regard to the nuclear sanctions. It was part of the greater Chinese policy to contain India. Transfer not just of conventional weapons but also nuclear weapons designs and technology to Pakistan is a part of this policy.


Source : IIPM Editorial, 2012.

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Monday, November 26, 2012

GEORGIA: SCO COMMUNIQUÉ

Post SCO's move on Georgia, it is a mere cakewalk for Russia to build support in other regional groups

The agenda to isolate Russia has fallen flat on its face. Russia has reclaimed its sphere of influence,” told Fyodor Lukyanov, an international affairs analyst based in St. Petersburg, while talking to B&E. According to the guidelines of SCO; decisions can only be taken by consensus, and each of the member nations can exercise their right of veto. Therefore, it can be safely said that all the member nations have toed the Russian line here.

The organisation has a strong geographical point of reference to Central Asia. China and Russia have taken its membership because the region holds key importance to them.

After conquering SCO, Russia is all set to convene the meeting of another Kremlin dominated regional grouping, the Collective Security Treaty Organisation (CSTO), to make a joint communiqué on the issue. Its member nations include all of the four Central Asian nations and Belarus and Armenia. A victory there will be a cakewalk. Belarus, currently heading the presidency of the group, is the staunchest ally that Russia has, and Armenia has been won over through tactical and moral support by Russians in their conflict against Azerbaijan. One only wonders, what will be Russia’s next stop. Iran?


Source : IIPM Editorial, 2012.

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Sunday, November 25, 2012

Where, Mrs. Robinson, lies the problem?

If you thought oil would run out, take a walk (no pun!). Oil isn’t running out, but your money would, given the fact that despite current oil price falls (!!!), rising demand would ensure future oil price rise! And worse, alternative fuel also sucks! virat bahri of B&E confounds [us too!]...

“We are very sorry, Sir, no more is left, not a single drop :(”
“C’mon, mate, you must be joking; this can’t be happening.”
“Believe us Sir, the world has seen the last of black gold! It’s the end of ‘automobil’ity...”

Uhh, alright, it sounded more childish than I should have wanted; but how does one put across the fact that oil may one day run out when, er, it perhaps would never! OPEC’s latest report estimates that between the years 1995-2003, new discoveries improved recoveries by 138 billion barrels. Production has already increased by 26% as compared to the 1960s. By 2020, oil production is likely to cross 1600 billion barrels annually. If such is the case, as Dustin Hoffman asks lovely Mrs. Robinson, where lies the problem? Demand honey, demand. Demand for oil would [should?] far outstrip supply in the coming years. Oil has become a necessary evil for us; it is guzzling down our, and my, bank balances like nobody’s business, yet you can’t imagine life without it. Goddammit, I can’t! And there lies the need to cut across to alternative or quasi-alternative fuel. This dire need to make black gold less ‘necessary’ so that it can become a much subdued ‘evil’ has given rise to numerous technological breakthroughs in alternative fuel technology, giving cars that can run on electricity, hydrogen, E 85 (85% ethanol and 15% gasoline), nuclear, solar, et al. Hybrids have shown some promise too. India has seen its first hybrid in the form of Hero Honda Civic. But considering that these alternatives are yet to convert into truly marketable solutions, aren’t we moving a bit too slow? Moreover we seem to have many technologies posing as possible solutions, but do we have ‘the’ solution in sight?


Source : IIPM Editorial, 2012.

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Saturday, November 24, 2012

STEEL: PRICE RISE

The sector needs more regulation

Till now, the government has tried to control the activities in the sector through imposition of export tax and export bans. But such short-term measures send wrong signals to new entrants and big players like Mittal Steel and Posco. In absence of new entrants, the sector would continue to see lobbying and a demand supply gap, which would have direct impact on prices. To be able to regulate prices, long-term planning is required. Agrees Ashok Jainani, VP Research, KSL Securities Ltd. As per him, “The government should focus on controlling the root-cause i.e. iron-ore prices catapulted by 150% from $60 to $150, which have high margins of around 80% and considerably high costing raw materials like coking coal and power prices.”

But the first step in the right direction would be to set up a Steel Regulatory Body. The work of the body would be to keep an eye on the sector. This would stop lobbying and would also make sure that even the government gets to negotiate. The government has to come up with best option to gets itself out of the steel muddle and protect the ultimate sufferers, the common man.


Source : IIPM Editorial, 2012.

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Thursday, November 22, 2012

Run, it s the global textile beast! burp!

When our Editor called us to his office a few months back and told us that us two ‘lucky’ one’s had been chosen to ‘recon’ the Indian textile sector and to compare its progress globally, we realised that finally, us two upstarts had arrived; and our calibre recognised. Visions of the fashion capitals of the world started floating all around us. Which one should be the first one we should hit to really understand the effects of India’s textile sector on global players? Should we travel to New York? Or perhaps Paris & Milan? Maybe London would be a better bet? Or closer home, Tokyo?

The truth hit us hard, too hard. When our cab stopped at the city centre, the searing heat got to us faster than the bill we had run up from New Delhi! We were in Ludhiana! The fact is that if one has to understand which places really drive the Indian textile sector, the names are as unfashionable as they could be. There are basically three belts that drive Indian textiles – the Ludhiana belt, the Tripur belt and the Ahmedabad belt! Punjab, Gujrat and Karnataka in fact contribute a smashing 40% to India’s total textile exports! And this story is about our experiences through these belts with people who can change industry dynamics with just a phone call. And about the fact that 3 years after the textile quotas were abolished, the Indian textile industry is surely dying; waiting for that last bone crushing hit from the sharks of the global textile world, led by the ruthless beast of an animal called China!

How better could you describe it? Walk through any street of Ludhiana, and you’ll see at least one dying textile unit. Ahmedabad – once called the Manchester of India – has seen 65 mills close down in the past two years. The irony is that it wasn’t too long ago that the contagious energy of the blued eyed boys of the Indian textile industry was propelling analysts from all over the world to think big about India.


Source : IIPM Editorial, 2012.

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SEZ: LOSS MAKERS

They’re the biggest loss makers

Even the duty freedom was not given once but twice – once on the inputs used and again on the finished products from the SEZs. The duty foregone on the inputs are irrecoverable as there is no provision of paying back.

It’s quite cleat that SEZs [that are framed on half-backed logic and parameters] will do more harm than good. The latest report by CAG makes it important to re-think on the modus operandi of SEZ. It’s important to think on SEZ with respect to revenue losses and tax holidays. The current discussion of impact of SEZ on agriculture has actually overshadowed the matter of revenue loss by SEZ. The CAG’s report has again proved the apprehension true and also has added a new dimension that SEZ are economic disasters as well.


Source : IIPM Editorial, 2012.

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Click and you get what you want!

With e-marriages you now get to choose your guy or gal just as you’d choose some gadget... list out the specifications you need, click and you get what you want!

These portals guarantee privacy both in terms of pictures posted, as well as information provided, thus ensuring that only people serious about marriage get listed. Parents can now take a backseat while their sons or daughters make their selection. Once they are sure about their decision, parents intervene to take the matter ahead and solemnise the affair.

“My parents were scandalised when I told them that I was going to meet a guy I had come across on Orkut, but today they have no issues with me meeting random men I find suitable on matrimonial sites, that too when most of the time I reject them after meeting them once. I guess the word matrimony works wonders on their mind!” says Rhea Mohan, Fashion Photographer, who has met plenty of potential suitors through matrimonial sites. So, the junction at which our society stands is that if children date through marriage portals, it is respectable, but if they meet via social networking sites then it is against our moral values. “If Facebook can be used for networking, why can’t Shaadi.com be used for similar purposes, considering that it is a platform to bring people with marriage on their agenda together at one place. Also, I might land up marrying someone I meet on Facebook and might not marry anyone I meet through Shaadi.com. It’s about the zing and that can be found at any place. I am game for it but I do realise that it might not work the same way for everyone,” says Rishi Chandna, Assistant Manager at Colliers International, and a frequent social networking site surfer.

Thus people’s priorities are altering and the changing times command that to build a connection with that special someone, get a high speed Internet connection!


Source : IIPM Editorial, 2012.

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Tuesday, November 20, 2012

Pamper your child today

Pamper your child today and it could possibly ruin his tomorrow

In 2007, Mattel, of Barbie, Hot Wheels and Fisher-Price fame, had recalled 24 million units of toys from the market after being accused of crossing the lead content’s permissible limit. Defending the enterprise, Julia Jensen, Vice President, International Communications, Mattel says, “The majority of our recalled products were due to the magnet issue. In fact, the products recalled for lead represent less than half of a percent of Mattel’s total annual production.” On being asked why Mattel allows lead in their toys, Julia answers, “Mattel’s specifications match the worldwide requirements and the laws allow those minute quantities of lead because lead is ubiquitous.”

Although health officials have not been able to lay down a legal limit of lead in the body , there have been discussions on getting the limit lowered to 10 ug/dl. Usually a toy manufactured with lead content of 25 ug/dl, could cause difficulty in learning, language and speech problems and slower reflexes but that’s nothing in comparison to the toys manufactured with 100 ug/dl, which can lead to a swollen brain and eventually death. Usually a child under the age of five is at a greater risk of lead consumption because he tends to put objects into his mouth, and it is here that efforts to reduce lead exposure gains priority. “You should not only wash your kid’s hands frequently but the toys should also be regularly washed. Also, before any purchase, one must check if the toy is a recalled one,” adds Deivyani.

Other ways to keep your child from consuming lead are re-painting your house frequently so that your child doesn’t get peeled-off wall paint in his mouth. Though titanium dioxide happens to be a replacement for lead in paint, lead is still used as a stabilising agent, thereby making it inevitably risky when there are kids at home. Also, a child suffering from deficiencies in iron, calcium, and vitamin C is said to be more susceptible to harm from lead exposure. So, next time you know what to feed your child to strengthen his immune system from this toxin called ‘lead’.


Source : IIPM Editorial, 2012.

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Rhinoceros Unicornis population

Even as five animals are felled by poachers in a span of a few weeks, forest officials in Assam are positive that the Rhinoceros Unicornis population can be saved!

And that, as expected, has people worried. “There are no rhinos in the Manas and Laokhowa sanctuaries,” says Saumyadeep Dutta, who heads Nature’s Beacon, which first sounded the alarm regarding the killing of rhinos in Kaziranga in 2007. “Then, of course, there are some NGOs,” says Dutta “that have interests with the forest department and thus keep supporting them.”

Malakar, though, refutes such allegations. “We are reintroducing rhinos in Manas after making sure there is adequate public involvement so that there are no security issues,” says Malakar. “As you know, the entire rhino population there was wiped out during the Bodo agitation of the ‘80s and ‘90s.” As for the Indian Rhino Vision (IRV), things are so far going as planned, he says: four female rhinos from Kaziranga and two males from the Pobitora sanctuary near Guwahati (both of which are now overpopulated with rhinos) have been released at Manas over the past few months. “I don’t think there is a problem of inbreeding among rhinos; however, this should help save the gene pool at the two sanctuaries,” says Malakar. Once Manas gets back its population of rhinos (the target for the relocation exercise is 30 to 40 animals), the plan would be to target the Laokhowa sanctuary near Nagaon which too is considered an original rhino habitat which was emptied of its animals. And the officials are banking on the fact that they have a surplus in both Kaziranga and Pobitora: apart from the 2,000 at the world heritage site, Pobitora has more than 90 individuals in a space of 16 sq km. As for the principle, it’s simple: spread them out to their original habitats and make it more difficult for poachers to get to them. Despite the poaching, the officials insist, poachers haven’t been able to keep pace. One only hopes the vision is a success. For the rhino, and us.


Source : IIPM Editorial, 2012.

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Sunday, November 18, 2012

Body gets world attention…

After the basic sensory functions, the action performed most by the body gets world attention…

May be a similar thought had dawned upon the Swiss engineer, Karl Müller too who solved the problem to some extent for many by simply developing shoes that allow one to walk in a gait similar to that of the Masais. Calling it the Masai Barefoot Technology (MBT), he made such shoes to relieve one of the joints’ pain. The shoes that don’t look like the others (many call it ‘hideous’) is around two inches thick at the centre of the heel and gets thinner gradually towards the toe and swoops upward at the rear. So as one steps down, it is on the comfortable cushiony part of the heel (also called the ‘sweet spot’) and that is when a springy sensor bounces back, making the foot roll forward towards the toe.

For reasons pertaining either to right posture or other ailments, MBT is inspiring many other forms of shoes across the world. Fortunately, better-looking Alegria shoes that have a thick cushiony comfortable sole, along with the rocker aspect of the MBT shoes and the lightweight slip-on quality of the flip-flops is becoming a rage in the US within only a week of its introduction this April.

The MBT shoe may make you conspicuous (being of no beauty) but then, that’s the gait of the Masais who apparently have no cellulite! Yes, it was health writer, Harriet Griffey (The Times of London) who popularised this footwear technology as anti-cellulite. Bouncing and rolling in the shoes does need some acclimating, and that’s why training classes exist only to teach how to walk in the MBT shoes. Whether the cellulite disappears or not, several around the world have reported relief in backache due to lesser burden on the knees and hips.

While all MBT-inspired shoes emphasise on toning the muscles and improving the posture, for a perfect body, the Masai do more than just walking in these tyre shoes. This includes drinking loads of milk, eating cattle and goat meat, having some bitter soup made from acacia tree (containing cholesterol reducing agents) and drinking cattle blood. So, if you want it the Masai way in entirety, then the author can only wish you luck!


Source : IIPM Editorial, 2012.

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Wednesday, November 14, 2012

King’s democracy not 100%

Only graduates were permitted to cast their votes in polls

Last week when voting for the 47-member National Assembly took place, the results took everyone by surprise, candidates and the public included. The Bhutan Peace and Prosperity Party (dpt) won a whopping 45 of the 47 seats, while its rival Peoples’ Democratic Party (pdp) floundered in the polls, winning only two seats. For a state holding its first ever election, the results could not have been more dramatic or lopsided.

"These elections are a farce. They were staged when a movement of true democracy confronted the monarch of Bhutan,” says Deki Yangzom, a pro-democracy activist, working from exile in Nepal, adding: “The king admitted that but for this movement for democracy, he would have continued as monarch.”


Source : IIPM Editorial, 2012.

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Saturday, November 10, 2012

BARCLAYS: ACQUISITION

Barclays must tread carefully

Expobank has assets of $1.24 billions with 32 branches in western Russia, and one of the largest networks of ATMs in Moscow. Moreover, Russia’s economic growth at 8.1% last year is much more promising than UK, with a meagre 2.9% growth, not to mention the collapse of the market for credit-related securities.

But the haunting ghost of 1998 may return, when Barclays had to withdraw functioning from Russia, licking huge losses of over $325 million following a national debt default crisis. “The move is rightly timed with global scenario being favorable, but Barclays has to be careful in operational implementations to prevent such mis-happenings again,” comments a renowned international financial analyst, not wishing to be quoted. Add to that HSBC’s plans to partake of the Russian salad, which signals that achieving a medley of success will not be so easy, even on Russian soil.


Source : IIPM Editorial, 2012.

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Thursday, November 8, 2012

Time to (re)reorganise

Unilever continues to restructure its operations, but to truly revive, it must focus on market shares

It has some of the world’s best managers and some of the most prolific brand portfolios. Yet, Unilever seems to be way past its prime, the days when the mere mention of its name commanded tremendous respect and admiration. Thanks to inability to cope with market trends, the company is desperately seeking a route back to good ol’ days.

Although 2007 has been a better year, there still remains a lot to achieve. While announcing results for the nine months ending September (turnover increased by 4% to €30.3 billion & net profit by 20% to €3.3 billion), CEO Patrick Cescau had enthusiastically commented, “Focus on our growth priorities, together with stronger innovation, improved speed to market & better in-market execution, is delivering consistent & sustainable organic growth.” 2007 results, to be announced as this magazine goes to print, are expected to be in line with company expectations of 3-5% organic growth.

Yet, as always, there are some devils in the details. As per Credit Suisse analyst Charlie Mills, a large part of the increase is due to rise in prices, i.e. value growth (around 2.5% in price growth estimated in Q4, 2007). The company underperforms peers like Reckitt Benckiser, Nestle & Cadbury in organic growth for 2007. Market shares are lower in 2007 compared to 2006 in most categories across Europe & US; deodorants being the only clear saving grace. Morgan Stanley analyst Michel Steib also maintains an underweight rating. He adds, “Unilever’s headwind from commodity costs will double from around 200 bps in 2007 to over 400 bps in 2008 estimate for the full year.”


Source : IIPM Editorial, 2012.

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