Tuesday, August 31, 2010
Emerging global markets-BRIC to ABICI?
There has been something very interesting at the global forum in Cape Town recently. The focus was mostly on the developing world which was viewed as a new opportunity in the merging global markets. The world, in the words of Bill Clinton was too unequal and unsustainable to be really stable. The bottom line is of course always on the sustainable and renewable natural resources for the future generations. With China, India, Brazil and surprisingly parts of Africa doing pretty well, the notable omission happens to be Russia from the popular expression of BRIC. Indonesia has certainly attracted the best nations as a prospective investment opportunity and leaders opined at this forum that that the new acronym ought to be ABICI-Africa,Brazil,India,China and Indonesia! Mckinsey's global managing director Dominic Barton's view that the story of recession was the trend toward an accelerated growth in the developing world which was set in motion even before the recession commenced is worth paying some attention. Low cost innovation in the poor world which can sell goods and services to all is perhaps a phenomenal skill from which the future of the world's economy rests today. So we are actually talking about 84% of the world's population which is outside the prominent axis which clearly defines the task cut out for the global corporate business. Thus leads us to the infrastructure scenario in several countries including the African Continent. Exporting raw materials and allowing the world to make rich use of them while having value added processes within the country has been the African experiment. Managing natural resources is quite rightly at the centre of the discussion.Is it true that there is an extraordinary relation between China's and Africa's dynamics of growth? Yes of course, for one simple reason that China has moved in a more pragmatic manner into these regions than India has even contemplated. Business and global business is an exercise in the requisite mindset and a clear readiness to think out of the box rather than sticking to some ridiculous processes rooted deep in Bureauracy and red-tapism. So we have the Tanzanians despising Indians and stretching their arms for the Chinese...The second pointer has been management of talent. China owes a lot to the private sector in this regard and no wonder the nation generated tremendous employment in the private sector. Participation of women is a glaring aspect just as the Indian scenario loses out heavily on this ground.Well. The forum points out and rightly so, the development of infrastructure. If you draw an inference from the previous parameter of knowledge management, you will see that the Chinese profited from their skills acquired abroad and utilised them in building infrastructure in the relatively poor western provinces. Take India where there is hardly any interface between the skills of one State and another. Of course, China has not been totally embraced by the African nations. There have been some resentments but the truth always stays there-It succeeded where India failed!Fourthly, we have the option of cleaning up the Administrative processes and make governance deliver the goods-Singapore stands empirical in this regard and we in India could be learning for another century...Irrespective of the GDP growth and the policies being followed in India in the wake of recession, India does appear to have overlooked the leverage it could have gained in establishing itself at least as an alternative to China in African nations where it could have definitely left a mark. The World Bank desires to partner with India for developing infrastructure in Rail transport in the developing world and it remains to be seen if the Indian Government views it with a clear holistic vision.
Monday, August 30, 2010
Saturday, August 28, 2010
China builds troops in occupied Kashmir
The New York Times reports that China has deployed 11000 troops in the strategic Gilgit-Balistan region of occupied Kashmir. Interestingly, a rebellion is reportedly on the rise against Pakistani rule in this region.
Well. The secretly operating troops are now in the process of building permanent residential complexes and this is quite a strategy. A high speed rail and road link for transport from Gulf via Pakistan is on the agenda.Chinese built Pakistani Naval base at Gawadar will now be linked to Beijing with Pasni and Ormara in Baluchistan which would facilitate movement of oil tankers etc.
Central to the entire issue would be the oil pipe line from Iran to China through Gilgit crossing the Karakoram. What makes it central is that this can also facilitate storage for missile storage sites.
This comes close on the heels with India linking up with Bangladesh for its linking up on transit, transhipment, power and water resources. According to the World Bank, this was crucial since South Asia is the least integrated region today and extended full support for the cause.
The red letter is on the wall nevertheless. There have also been some Defense analytical studies which have expressed the view that China was in the process of a planned attack on India in 2012. There is enough food for thought just as there is tremendous unrest in the region of Jammu and Kashmir at the time of writing.
Thursday, August 26, 2010
Nuclear Bill
Well. Finally, the Nuclear Bill has finished its homework in lower House and will now be a matter of time before the baby would finally be delivered from the upper House of the Indian Parliament.
During 2008, when the Agreement came up with the U.S, the firms in the U.S involved in construction of Nuclear Reactors registered a sharp growth in NASDAQ and this would now be an interesting feature to watch yet again since the market now opens for them. This is not going to be an ordinary trade. It's worth almost $150 billion.
If you considered the Indian energy sector and the present 3% contribution from Nuclear reactors, this is quite a giant leap and in a way, India's Power scenario has always been a sad story of so many ifs and buts. Nevertheless, the tripling of the compensation element in case of an accident has been the subject for discussion. There are some more issues. India's infrastructure management, procedural hassles, and handling of Industrial disputes do not have much to be written home about.
The Indian media reported about heavy bargaining with the opposition. Certain quarters also reported that the B.J.P which is the main opposition party has compromised a deal with the ruling U.P.A for a possible clean chit by the CBI for their popular leader, Narendra Modi. An official of the CBI has laso been reported as saying that there has been no evidence against him in the case involving the murder of Sohrabuddin in the State of Gujarat.
These are en passe in this country. How quickly the reactors will be placed and how efficiently they would be maintained are not easy questions to be answered. Indians are fresh in their memories of Bhopal and the 'deal' with Michael Anderson.
India's exposure to the global developments in this dimension can certainly be a positive element. Indian counterparts in dealing with the big players need more professionalism and ought to be literally on their toes.
Wednesday, August 25, 2010
sriviews: Steaming News
sriviews: Steaming News: "Wiki Leaks has come up with CIA's Red Cell story which states that the U.S is likely to be viewed as an exporter of terrorism and this would..."
Are Indians Lab Rats?
An article in the Economic Times reports that clinical trials in India and other third world countries for drugs under process of development in the U.S have raised some ethical questions.
The other question is whether these drugs would be really made available in these countries.
Dr. Marcia Angell states that it's all about dollars and cents. Drugs against infectious diseases were most likely to be tested in the developing world followed by heart,allergy and arthritis medications. Vulnerable people in vulnerable countries are being used as drug laboratories.
The bottom line is what has been stated by M. Nabeel Ghayur who worked in drug development in Pakistan. According to him, people actually have blind trust in their doctor in South Asia. There is absolutely no awareness about what drug development was and how clinical trials are carried out!
This is a sad story!
The other question is whether these drugs would be really made available in these countries.
Dr. Marcia Angell states that it's all about dollars and cents. Drugs against infectious diseases were most likely to be tested in the developing world followed by heart,allergy and arthritis medications. Vulnerable people in vulnerable countries are being used as drug laboratories.
The bottom line is what has been stated by M. Nabeel Ghayur who worked in drug development in Pakistan. According to him, people actually have blind trust in their doctor in South Asia. There is absolutely no awareness about what drug development was and how clinical trials are carried out!
This is a sad story!
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