globalisation is good for india as well as the MNC's

Consider the numbers. Walmart the world largest retailer sales $375 billion worth of stuff from its format retail stores world wide . This astounding figure is put in perspective when you consider that it is much bigger than the GDP's of Pakistan which in 2007 was a comparative meager $1.275 billion. If that is not enough, Citibank with all its troubles is a firm with a turn over of $2 trillion which is double the GDP of India.
There is no doubting the fact that globalization has spurred multinational firms to record size . The very structure of these firms with bases where the best return on investment are possible allow then to leverage global opportunities and grow. In itself this should be a good thing. For instance countries where there is a labor surplus with good infrastructure can attract MNC investment and help their own populations and economies to grow. The resultant purchasing power improvement can help create viable middle class as well. Indeed India is also as much a gainer from globalisation as these massive MNC's. With a large pool of labor and a vast market the mnc's invested as much as $16 billion in 2007 in India and are likely to invest another $25 billion in 2008
So what is the problem with the MNC's size? There are plenty of issues and surprising both the Indian left and the American right share concerns. the foremost significance is that it is perceived that the multinational of their sheer size and spread are beyond sovereign regulations of individual countries.
This is a misleading assessment. Countries where robust regulations exist or evolve can in fact use MNC's to their advantage. China is one such example which after making the MNC's invest in access of 300 billion dollars over the last fifteen years have now changed regulations and restricted MNC's investments as well as profit reparation. The Chinese have also come up with a government owned firm that will invest $200 billion some of it in these vary MNC's. This is the creativity of globalist which allows sensible countries to benefit from the MNC/s. The sovereign state of today is not yesterday's banana republic The fact is that dependence works both ways in globalisation. A win win situation should not be made into a scare story just because individual firms have leveraged the global opportunity to grow.

india's tiger crisis

The story of the vanishing tigers of India is a crisis way beyond the environment. The royal Bengal tiger, now down to a mere 1400 in number has fallen prey to a crippling crisis of governance and astounding indifference towards this magnificent big cat.
The failure shows that in India governance in tiger conservation has nothing to do with ground realities. For years, project tiger flogged the myth of 4000 plus cats when it was clear from habitat loss and rare sightings that the number was fictional. The bureaucratic stonewalling resulted in a lost decade when action should have taken place to ensure tiger numbers do not reach what many scientists consider a critical low. It is shameful that the number of tigers today is lower than at the time of the launch of project tiger. At that time, there were an estimated 1800 tigers in India.

It took the Indian express to expose the lie in Sariska. The Prime Minister's subsequent intervention hasn't done much beyond ensuring that a scientifically sound count takes place.

A combination of four factors has decimated the tiger in India.

Indian forest were opened for "development" through an amendment to the Indian conservation act in late 1990's under the regime of Narsimha Rao. India is fast realizing that economic development cannot come without costs - and in this case it costs the pelt of the tiger. The loss of habitat and prey is killing more tigers than poaching.


The second reason is that at the level of the states the tiger simply is not a priority. In Rajasthan and Madhya Pradesh, for instance there are an estimated 1200 vacancies for forests guards and it is there not surprising that the state faces the specter of empty forests. Ranthmbore and Bandhavgrah have seen the most decline in numbers. What is more, the Indian forest act is toothless and even third time offenders get quick bail in poaching cases. The law needs to be tightened up as a priority.

The third complexity in the tiger puzzle is external. China and Tibet remain the world's largest consumers of tiger parts. It is such an ingrained part of the Chinese culture that in that country tiger farms - akin to a poultry complex - tigers are raised and butchered exist as a routine. Tiger is on the menu across China - especially in prosperous coastal towns. It is estimated that 70 percent of the worldwide trade in tiger parts ends up in China and the rest in other Chinese hands in south East Asia.

The fourth less studied problem for the tiger turned out to be so called scientists and conversations who work in its name. None of them stuck close to the knitting. Instead of scientific research and conservation they branched out into the hotel and resort business. Most of the famous name you here talking tiger have their own resorts - some in brazen violence of environmental laws. Few of these were even demolished for illegal construction in Ranthmbore, Panna and elsewhere. The costs of maintaining bureaucracies like the world wildlife fund with its fat salaries far outweighs any success they may have achieved. The tiger mafia is the least explored but most immediate threat to tiger survival.


So is it too late? Maybe not. But tough calls need to be taken. It is now clear that tigers and humans cannot coexist. There is need to ensure that India spends money in relocating people out of tiger zones where possible. All success like Corbett and Nagaerhole are in places with the minimum human interference. The law needs more teeth. An urgent diplomatic effort with China in world fora is critical for the short term survival of tigers. The corrupt tiger NGO's need to be brought to book with none spared. All this will need political will and economic resources to come together. It is now time to ensure that the second rung parks such as those in Karnataka get the best protection. Tiger are big cats and they reproduce fast - if a stable environment is put in place. This can make tiger revival a possibility. Lastly African style high value tourism model should be adopted to fund sustainable tiger conservation. Today too many tourists are having a free ride in tiger parks. In 1947 we had 50,000 tigers in India if you want the next generation of Indian to see the tiger's unforgettable gait in the jungle civil society will have to force the political class to act. And in India that is a tough call especially when time is as critically short as in the case of the tiger.

indian stock market anchors need transperancy

Media needs to be more transparent
Switch on any business channel on television and you have the same picture. An anchor sits in a plush studio with two “experts” gleefully telling the viewers which stock to buy, and which to dump. By the way of exposure you have a half a second clip which tell you that the said “expert “ holds stock in the very company he is pontificating about. This has clearly irritated the country’s stock exchange watchdog the securities and exchange board of India. Its out going chairman Mr. Damodaran made this much plain in a recent interview to the Indian Express. When a regulator held in wide esteem as a sensible overseer takes notice of the media it raises several questions.
In the United States, especially post Enron, there are specific provisions that channels have to follow including a detailed discourse of number of stocks and likely investment positions in the futures markets before they come on television and speak on a particular stock. None of this alas is in existence in the Indian media.
The lack of such disclosure has the potential to create a herd mentality in bull runs. It can also hurt the retail investor given the fact that some of the large business houses hold a significant percentage as ownerships in business channels. Thus if an industrialist has a major stake in a media house that owned a television channel and comes up with an IPO it can be a case of conflict of interest for him to manipulate a stock.
The real concern is that although SEBI has made two attempts to work out a self-regulating code of conduct for the media there has been no response from the media. This arrogance may cost the media some of its dearly loved freedom. When self-regulation is absent, inevitably governments find ways to impose their will.The media needs to heed this wake up call and line up a code of conduct that makes their manner more transparent. Such a move will help them, their viewers and the retail investors. Not so doing could cost the media its credibility and some of its freedom.

anand milk town india

A city of milk and NRI honeyANAND
The tenth and concluding part in our series on the explosive economic growth of small town India.
India’s best-maintained six-lane expressway connects this city—famous for the billion-dollar Amul brand—with Ahmedabad. The average speed on the expressway is 110 km per hour, but the pace of change and action in Anand is even faster. The city boasts a rich and consuming middle-class. It’s Patel rap at play. A vast majority of the residents of this town are non-resident Patels from the motel trade in the US. The city is, by and large, clean and free of the grime associated with small town India.
Take the case of Raoji Patel, a man in his seventies, who, after being thrown out of Uganda, went to England where he owns 11 corner stores. Now retired in Anand, he has opened charitable temples and a hospital. It is this philanthropy combined with the cooperative model of Amul that ensures a broader base of prosperity. Says Mohitbhai Shah, a farmer in nearby Petlad suburb: “If you have six cows, you have an outlet that gives you a fair price. I think the farmer is happier in these parts than in the rest of India.”
The NRI income and well-off farmer are attracting the attention of corporate India. Bharti and Subhiksha are already here. Plans by Reliance, Aditya Birla group as well as Adani are also afoot. Comments Aditya Bhatt, a management consultant: “Anand has many advantages. The infrastructure is excellent, they have one of the best universities in India in the nearby Vallabh Vidya Nagar and they also have access to capital. All major banks such as HDFC and ICICI have a big presence here. When you combine local entrepreneurship with the money order NRI Economy, you have the making of a boom.”
This is reflected in the realty boom; the last three years have seen a tripling of property prices. At the Fame Adlabs theatre, ticket prices can go up to Rs 200 for the reclining seats. Several grand villas, though largely empty since NRIs come only for a couple of weeks a year, contribute to keeping land prices buoyant.
The famous Amul Dairy has a curious visitor from Seattle: Kirsten Grote of the Bill & Melinda Gates Foundation. She is here to study the Amul model so that it can be leveraged for the foundation’s agricultural initiatives. And there is plenty to learn at Anand. Says BM Vyas, MD of Gujarat Cooperative Milk Marketing Federation, the apex body that Markets the Amul brand: “People come here all the time; they want to learn and hopefully replicate the success of the Anand model. It makes us happy that the city is seen as an inspiration across India for building capacity for broad-based enterprise.
“It has also gained from access to high technology in sectors such as the machinery and electronic industry; both have a sizeable presence with a big plant by Elecon that manufactures electronic equipment and at least three new entrants planned over the next two years.
Says Vivek Bhandari, director of Indian Rural Management Institute, Anand: “This is a traditionally wealthy place that is also logging on to the globalised context. You have a cosmopolitan culture thanks to the NRIs and because it is midway between Ahmedabad and Vadodara on the Mumbai grid, there is also prosperity through connectivity.” Add to that an 80% literacy rate and you have the makings of progressive workforce.
As Indians grow richer, Anand is sure to gain. As far as Anand is concerned, it would prefer to let them drink milk; that way the city keeps on growing and returning a large income to farmers all around. It is a bottom-of-the-pyramid story that started even before CK Prahalad was born.

Singur: More Than A Nano Problem

"The word is about, there's something evolving, whatever may come, the world keeps revolving They say the next big thing is here, that the revolution's near, but to me it seems quite clear that it's all just a little bit of history repeating "
—Propellerheads
Walking down Shakespeare Sarani the irony is unmistakable. On the one hand is the obvious bustle of the city of joy. A new excitement is palpable — there is more traffic on the road then ever, pubs are busy, at the addas the bard’s old question is the topic of discussion — its all about the stark ‘to be or not to be’. West Bengal, unlike the $1-trillion Economy that is India, is still grappling with this one.
In his simple office off Park Road former SBI and Peerless chairman DN Ghosh who is a veteran watcher of the West Bengal Economy has this to say: “Look it’s quite simple — industrialisation is needed but how do the communists commutate it to the cadre? How do you change track? These things are difficult. Everywhere in West Bengal it is a Herculean U-turn.”
Cut for a minute to the trade fair in Delhi where the Tata Nano car is being showcased. A total of 3,50,000 of these little beauties will roll out of the plant that the Tatas have controversially acquired in Singur. There are a bunch of English-speaking protestors crying for blood. The reason is an old one. An agrarian Economy is industrialising and pain is likely. According to government estimates, 70% of the state’s population depends on agriculture while the all- India average is 56%. They have never seen any other way of life. Agriculture is now, industrialisation is in the future. But will a successful industrial hub change all that? Says auto analyst Murad Ali Baig, “A thriving plant will likely change the mindset. It is not rocket science. When Escorts came with their plant in the late 80’s in Faridbabd there was opposition. Soon ancillaries came in and so did property development. The same thing happened with Maruti in Gurgaon. When Maruti came, Gurgaon was drab and underdeveloped. Maruti’s success was the forebearer of the MNC boom that followed. I am totally convinced that many of the fence sitters will come around with progress. West Bengal needs the plant to show what industrialisation can do.”
In Bengal however, the difference is Politics. The Left Front’s coalition partners as well as Mamata Banerjee have served notice and even issued ultimatums against this flagship project. It is a dangerous time and there is tension in the air. The site of the factory is picketed by police and private security. Says a labour contractor on the site, “We have 3,500 unskilled labourers working here and 80% of them are from Bengal itself. However, we are afraid that things could spiral out of control. Daily the agitators are instigating people and I fear that any thing can happen.” At the site itself, work is on at a furious pace and two large factory yards have already been constructed. No official is available for comments but clearly the locals are polarised. At a nearby school a teacher says on the condition of anonymity, “When students ask me if this plant is good I am at a loss to give an answer. Some of those who have lost land will suffer but the bigger impact will certainly be positive and allow Singur to move away from the land. We have to wait and watch, I tell my students.”
A lot hangs in the balance beyond the Tata car investment. If the Singur project produces results, a lot many others could follow suit. According to the finance ministry estimates, West Bengal received 12% of total investment proposal in India in 2007. The West Bengal government figures indicate that during January-June 2007, some 127 letters of intent were issued for setting up projects in the state involving an investment of Rs 49,128 crore, and also ensuring additional employment to 77,071 persons.
This is a significant development since in Bengal as much as 80% of industry is in the small-scale sector. Big ticket investment is likely to lead to greater employment mobilisation. Over the last 10 years only 2,00,000 people were added by industry in the state.
Says Sujit Poddar, a senior Peerless official, “Singur is a litmus test but even beyond Singur, after long years there is a revival of interest. However the state needs to articulate a clear policy to sustain this interest. On the ground level too there needs to be a change in the attitude of the cadre. Till then it will be a difficult investment destination. Chief Minister Buddhadeb Bhattacharya’s assertions are a welcome step. He needs to hold on to them and guide the state through the current period.”
Besides the industrial development proposals which are obviously set for the big league, the state’s strength in information technology cannot be ignored. A visit to the Sector-5 area of Salt Lake City is an eye-opener. For one thing all majors are already here. Says Amit Data Ray, a Salt Lake City-based IT workforce consultant, “Bengal has three advantages — firstly the English-educated workforce is large and young. Secondly, they work on 20% lower salaries and the cost of doing business is also less in the state and finally the instability and turnover of jobs you see elsewhere is also comparatively less here, there is the culture of sticking to a job.” Add to that the falling dollar and cost pressures and the sector is likely to see sustained infotech investments.
Though West Bengal is finely poised, like elsewhere in India it has to sort out critical issues of governance to make its promise into a reality.
Samiran Gupta, managing director of investment advisory Access India, sums it up: “Over the last decade, the services sector has grown in West Bengal to offer more opportunities to the youth. Re-industrialisation or bringing West Bengal back to the industrial mainstream in the country got a boost when the Tatas chose Singur as their home for the Nano. So a transformation has already begun. But questions remain as to the speed of the transformation process. The answer to this lies squarely in the hands of the people of the state. The people of West Bengal need to be the change for it to happen.” Like the teacher in Singur said, it’s wait and watch time. And time is running out.