Showing posts with label US. Show all posts
Showing posts with label US. Show all posts

Friday, May 31, 2013

Modi dilemma

As the party rank and file clamour for the Gujarat strongman as BJP's poll mascot, its leaders are not so sure. Anil Pandey reports.

At the capital's Talkatora Stadium, an iconic and imposing structure in the heart of Lutyen's Delhi, Narendra Modi was king. The BJP's top brass was there: five party chief ministers, a deputy Chief Minister, MPs, MLAs, state and district presidents, representatives of unions and cooperatives headed by the BJP and just about everyone who mattered in the saffron brotherhood.


Yet it was the Gujarat Chief Minister who held centre stage, making it mandatory for all present to mention him in glowing terms – every mention, in turn, becoming an occasion for another round of crescendo and chest thumping. In the process, Modi became the first second generation leader of the BJP to get the kind of applause once reserved for the likes of Atal Behari Vajpayee.

The BJP's two-day Rashtriya Parishad or National Council meeting may be a relatively low key event in the party's calendar, but its significance cannot be underrated. It is a council which guides important party workers and leaders from across the land. According to one insider, resolutions adopted there should be treated as the prevailing line for party functionaries, an unofficial central party directive. Close to 5,000 workers attended and they included virtually the entire gamut of BJP's elected members.

While the BJP leadership and its parent body RSS may be on the horns of the biggest dilemma of their lives – whether or not to formally nominate Narendra Modi as the party candidate for the 2014 General Elections - there was little doubt that among the rank and file, Modi is the man who they look to revive the sagging fortunes of the party which was ousted in the 2004 General Elections.

A sombre occasion like this wore a remarkably festive air, thanks to the bearded visage of BJP's most famous face. Youth activists present sang in a single file: `What is the country's energy? Narendra Modi, Narendra Modi.' As far as the BJP workers were concerned, he had already been anointed Prime Minister of India.

Says Pavan Agrawal, member of the party's Yuva Morcha:“the party worker are vociferously demanding that Modi be declared the official candidate of the BJP for 2014. His development agenda has electrified the nation and for us workers, it is a shot in the arm like nothing else.”

But behind all the hunky dory, the saffron family is in the midst of one of its biggest debates; while workers and the common party worker may favour Modi strongly, can the same be said about BJP's top ranking leaders? Insiders say the party leadership believes that the 2014 election campaign should be a team effort instead of focusing too sharply on the controversial Gujarat strongman. The RSS too believes that while Modi will be a prominent face during the campaign, he must not be projected as the PM candidate.

When asked by reporters whether Modi would be the poll mascot, national spokesman Ravi Shankar Prasad told reporters that the “National Council does not decide on the PM candidate, the party's parliamentary board does.”

There are many reasons for BJP's dilemma. Modi may be the darling of hero worshiping party workers but senior leaders have other compulsions – some fairly personal. It is an open secret in political circles that at the party's central headquarters on Delhi's Ashoka Road, Modi has more enemies than friends. The RSS too is not unaware that Modi's rivals in Ashoka Road far outnumber those at the Congress headquarters on neighbouring Akbar Road.

The biggest stumbling block to Modi – ironically - is senior BJP statesman LK Advani. Back in the 1990s, Modi was handpicked by the former as one of the party's bright young sparks, a job which Advani did with great finesse then. But today things are different. At the council, the former deputy Prime Minister of India picked out Sushma Swaraj and Shiv Raj Singh Chauhan as solid performers. For Sushma, Advani went the extra mile: “Vajpayee's speech used to give me a complex, now Sushma is doing the same,” he said. In the process, he was just clarifying that the party has more than Modi as the sole option for 2014.

There are other contenders as well. Arun Jaitley, Rajnath Singh, Venkiah Naidu and even Ananth Kumar fancy their chances once the numbers are out in the open and coalitions are put into place.

Insiders say that the moment Modi's name is made public, other contenders in the party will either go into the sabotage mode or stop working all together. Plus, the Gujarat Chief Minister's independence and strong will is another sore point for the Sangh and others in the saffron family; they know first hand what it is to get shafted by Modi in Gujarat.

Modi's anti-minority image, however, remains his biggest stumbling block. The RSS and BJP leadership remains uncertain just how the Muslim vote bank will react if Modi is declared the official candidate. The country's significant 15 per cent Muslim vote will be crucial in forming the new government at the centre and a number of regional parties may then avoid tying up with the NDA with Modi as figure head.

Some statistics are telling. Figures available with the All India Council for Muslim Economic Upliftment suggest that there are 60 districts in India where Muslims constitute 20 percent or more of the voters; there are 20 districts where the Muslim population exceeds 40 percent. While politically crucial UP has 19 percent Muslim voters, Bihar is perched at 17. Between UP, Bihar, Andhra Pradesh, Assam and Kashmir, there are close to 200 Lok Sabha seats and it is more than clear that anyone who forms a government at Delhi cannot do so antagonising such a powerful vote bank.

Says analyst Subrokamal Datta: “polarisation of Hindu-Muslim vote is certain if Modi is declared the official BJP candidate. In the end, it may actually help the Congress who will get block Muslim votes as it is only they who are capable of keeping Modi out.” That is a chance no one in the BJP is willing to take.

Says one senior BJP leader, “earlier the US was the Muslim's main enemy. Today it is Modi. The Muslims will pull out all stops to keep him at bay. A large portion of votes may also go in favour of powerful regional parties who command a strong Muslim following, leading, perhaps even to a Third Front.”

But Modi's supporters point that in Gujarat during the 2012 assembly elections, Muslims too backed the BJP. According to them, there were 66 assembly seats in Gujarat which have a Muslim population of 10 percent or more. Here the BJP won 40 seats. In assembly seats where the Muslim population exceeds 15 percent, the BJP took 21 out of 34 seats. On seats where Muslims constituted up to half of the population, saffronites nagged nine. Great statistics, but can Gujarat be replicated in India? His rivals say it is not possible because the Congress is non-existent in the state and the Muslims have no options.


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

Wednesday, February 6, 2013

Has Barack Obama shot himself?

When Obama took office in 2009, the projected US 10-year deficits stood at $8 trillion. In one year, the figure’s jumped to $16.2 trillion. Is Obama on a fatal track?

Is Uncle Sam attempting a fiscal suicide? Or is US pushing itself to redefine the very levels of sanity that a budget can present? Far-fetched thoughts, but quite possible too! These are precisely the questions that several economists are asking today, keeping in mind the federal budget for FY2011 announced on February 1, 2010, by the US President Barack Obama. So what makes this budgetary document read more like a financial exotica menu? One element, and one only – it foresees colossal budgetary deficits till 2020! What more? The pandemic starts this very fiscal, with budgetary estimates pegging the federal deficit for FY2010 at a mind boggling $1.6 trillion, adding to Uncle Sam’s already gigantic heap of debts. This figure of $1.6 trillion is way above the ‘combined’ budgets of advanced European countries like Switzerland, Belgium & Norway put together. And as far as US is concerned, the danger is that this shortfall represents almost 10.6% of its total annual output – the highest levels the nation has reached since World War II.

In a communiquĂ© to B&E, sources at the US Department of the Treasury accept that, “Deficit trends of this level are not sustainable. Beginning to correct them will require cutting deficits enough to stabilise the debt-to-GDP ratio at a manageable level so it is no longer rising.” Several economists have already raised the danger flag of unsustainable deficits. They feel that US can only sustain a deficit of 3% of total output if it is to remain healthy. However, considering the proposed budgetary allocations made by Obama, the projected deficits don’t seem to fall any lower than 3.6% over the next 10 years! This grim forecast certainly adds to the challenges faced by Obama, who is not only emphasising a message of fiscal discipline, but is also seeking stimulus measures to boost the struggling economy in the short term. In fact, on the day President Obama took charge, the budget deficit (for 2009) stood at $1.3 trillion (9.2% of GDP) and the projected deficits for the following 10 years were $8 trillion. Today, the total deficit for the next decade (till 2020) stands at $16.2 trillion – 100% more than the figure forecasted last year. Can one man achieve so much in so short a time? As per experts, the Bush Administration’s decision to enact large tax cuts and a prescription drug bill will add up to $5.8 trillion to the total deficit over the next 10 years. Then there is the administration’s spending on safety net programmes, including the controversial TARP, which will increase deficit figures by about $2.4 trillion by 2020.


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

For More IIPM Info, Visit below mentioned IIPM articles.

Monday, February 4, 2013

Let’s test your endurance...

The intention is good, but with their own policy differences, can the Euro zone countries successfully execute the stress test?

What works for one might not work for another! Policy makers at the European Union seem to have simply ignored this age-old saying. They have not only instructed the Committee of European Bank Supervisors to organise a stress test on the European banking system, but are also planning to keep the exercise similar to the ones recently completed in the US and UK. And, no wonder, the decision seems to be in a hurry!

Raison d’ĂȘtre: European banks are under immense pressure. As per the European Central Bank (ECB), lenders in the Euro zone will have to write off $283 billion in the next two years as loans to corporations and households go bad. In fact, Moody’s has just slashed the credit ratings of 25 Spanish banks, arguing that the speed and severity of Spain’s recession will inevitably hit their balance sheets. And that’s the case with almost all member states. “Policy-makers and market participants will have to be alert in the period ahead. The credit cycle has not yet reached a trough,” says the latest Financial Stability Report from ECB.

Moreover, there has been no clear policy initiative till now to force European banks to raise their capital cushions, despite the fact that the region has the biggest problem with toxic assets. According to the International Monetary Fund (IMF), the global banking system holds $2.8 trillion in toxic assets, with a little over half – $1.426 trillion – on the books of Western European banks, while US banks account for only $1.05 trillion. In fact, IMF estimates that it would take a fresh $975 billion to recapitalise Western European banks to levels that prevailed in the mid-1990s, compared to $500 billion for the US banks.


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

For More IIPM Info, Visit below mentioned IIPM articles.

Saturday, January 19, 2013

REVIVAL: JAPAN

Japan is distancing itself from the US and affirming its own foreign policy. Is this the start of a new political order?

It has been like that for long and this base has been playing a crucial role in furthering the American foreign policy in Asia since the Vietnam War. And thus, an otherwise subservient Japan has all along been a major helping hand. Even now, while the American assault in Afghanistan and Iraq has been going on for years, the Japanese Maritime Self Defence Force plays a very critical role in refuelling the US warships over the Indian Ocean. In fact, for long, Japan didn’t have a foreign policy truly of its own – the US, since the end of World War II, playing a major role, with critics even blaming the Japanese government for literally outsourcing foreign policy to US. In all, Boston Celtics were #1 in Japan, as was Toyota in the US.

Then what exactly has gone wrong in the American behaviour towards Japan? The answer is, the Japanese behaviour towards America – vindicated, rather flamed further by the current lateral shifts in the Japanese political formations with the meteoric ascent of the Democratic Party of Japan (DPJ), led by Yukio Hatoyama, into the helm of affairs. DPJ gave a body blow to the Liberal Democratic Party which had almost become synonymous with Japanese government in the last half a century. The victory of the DPJ should not be seen as a mere vote against incumbency but more as a sort of referendum against the US dominance in Japan’s foreign policy and military affairs. In fact, there is much pressure on the newly elected Hatoyama government to scrap several deals with US, the foremost among them being the Guam Treaty under which US expects Japan to spend nearly $6 billion for relocation of some of the US bases in Futenma in Okinawa to the American island of Guam. This, in itself, is part of a $26 billion defence package for the base realignment plan which also includes an estimated expenditure by Japan to the tune of $11 billion for the construction of a new US Marines base in Okinawa and an expenditure of $9 billion for the creation of a ballistic missile defence system.

Gavan McCormack writes in DMZ Hawai, “As the Japanese economy reeled under the shock of its greatest crisis in 60 years, these were staggering sums. It was once said, of George W. Bush, that he was inclined to think of Japan as ‘just some ATM machine’ for which a pin number was not needed. Under Obama, too, that relationship seemed not to change.” 


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

For More IIPM Info, Visit below mentioned IIPM articles.


 

Monday, January 14, 2013

“Our work will speak...”

B&E: The credit crisis is creating a lot of problems for business. How are you managing it?

KG:
The world was very different place before September 15. The September 30 quarter in 2008 was one of the best quarters for us. We had almost 7% sequential quarter on quarter growth. The last 2 quarters were very bad. The world has changed. Did we see it? Not really. But we reacted very fast. In the short term, it was all about expense control.

B&E: Why have you maintained a flat outlook for 2009?

KG:
What we see in the market is that with some confidence, we are saying that the market is about to revive. The bottom has been reached for the client as well as the industry. Just a question of recovery, there the consensus is that it will happen probably by the first half of 2010.

B&E: You are planning to look more towards home ground for business opportunities. What opportunities have you identified?

KG:
We are seeing wins in the private and government sector; and we expect to see revenues accruing to the company over time, as many of these wins are based on new models of engagement, where pricing is based on transactions.

B&E: Is doing business on home ground easier or harder than doing business in developed markets like EU and US? Please explain. How are expectations of Indian customers different from global customers?

KG:
The Indian market is very small compared to markets outside the country, with US and EU contributing to almost 90% of the total revenues. Infosys has been in these markets for a long time and as established itself as a strong and efficient service provider. In India, we still have a long task ahead, in establishing ourselves as a key player.


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

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Wednesday, November 21, 2012

Talking is dumb

Talking is dumb

It’s hilarious! While the NATO and US keep on accusing Pakistan for not being proactive and strong enough for anti-terrorism activities in Afghanistan and even in Pakistan; Pakistan blames Afghans for the same.

Despite their being many well-staged ‘peace’ talks between Pakistani and Taliban militants, and agreements being signed by Pakistan and the North Western Swat Valley, and even talks with pro-Taliban rebels in tribal groups around Afghanistan, there has been a sizeable death of NATO members and soldiers in Afghanistan. There have been numerous examples when the US led coalition and Afghan policemen have been killed during attacks. Militant attacks have only risen over the past few years at the Afghanistan-Pakistan border.


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.

Friday, November 9, 2012

BUDGET: INCREMENTAL BUDGETING

The budgeting process is planned as per changes forecast last year

The achievement of the economy will fall short of credibility if we do not address the endemic hunger, lack of education and low standard of public healthcare. Our per capita spending on education is $26 (annually), as against $8,900 in the US! Our health expenditure (per capita) is $24, while the US spends $6,096 per person per year! The rural housing programmes have not been successful either. The insurance cover is far lower than that in the West.

Despite its limitations, most rich nations follow Incremental Budgeting, whereas developing countries follow Repetitive Budgeting. India, with one-sixth of the world’s population, needs to urgently and massively increase its allocation in the social sector in order to rid itself of poverty, disease and illiteracy. Should not then this system of budgeting be taken into account?


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM : The B-School with a Human Face

Thursday, October 11, 2012

North by west... to the killing fields

A billion dollar firm with a billion reasons to be called inglorious

The last one among the world’s largest defence contractors that deserves to be in our inglorious list is Northrop Grumman. It is more famous for its designing, system integrating, and manufacturing of defence electronics and many other military and commercial weapons. Among various kinds of military products that the company produces are aircraft, aircraft carriers, military vessels, missile satellite systems, electronic censors and information systems. Northrop is one more truant company witnessing growth in employment and sales revenue. During 2007, there were about 122,600 people employed in the firm globally; by the end of 2008, the figure reached 1,33,570 – an 8.9% increase in employment in 2008 during the current global economic mess. And one doesn’t need to wonder about the reasons. Similarly, its sales revenue has also gone up from $30.11 billion in 2006 to $32 billion in 2007 and finally to $33.9 billion in 2008. Northrop is one of the firms filing the highest number of patents – in 2007 alone, the company filed over 8,511 patents. Northrop acquired companies like Integic Corporation in 2005, Essex Corporation in 2007 and 3001 International in 2008.

Expectably, Northrop Grumman has equal contributions in war crimes. Although 90% of its products go to the US government, most of its weapons go to US aided undemocratic countries who are accused time and again of breaking international laws. Its sophisticated deadly weaponry also goes to countries like Korea, Taiwan, Bulgaria, Slovakia, Saudi Arabia and UAE apart from Australia, India, Japan, UK, US, NATO, Italy, Germany etc. An example to their reach is that Israel’s reserved A-4 attack aircraft, TA-4 training aircraft and even the AH-64 attack helicopter are made by Northrop Grumman.

Read more.....

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

For More IIPM Info, Visit below mentioned IIPM articles.

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….

IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global

Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links IIPM : The B-School with a Human Face