http://www.livemint.com/ Livemint.com | © CopyRight HT Media Ltd. 2012 en-Us Sun, 27 May 2012 03:39:13 GMT 60 http://www.livemint.com/ http://www.livemint.com/Images/livemintbeta_rss.gif 144 33 http://www.livemint.com/2012/05/25213723/Tweeting-to-Havana.html In the end, I don’t really know how to interpret what I saw Esther Dyson Fri, 25 May 2012 16:07:00 GMT bbf96fd2-a683-11e1-99bc-000b5dabf613 http://www.livemint.com/bbf96fd2-a683-11e1-99bc-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/bbf96fd2-a683-11e1-99bc-000b5dabf613_300_200E09Vpf.gif <div>I was taking my usual morning swim, but this time on the roof of the Prague Central hotel in Havana, where the sun does not rise until 6.30 am even in May. In the dim light, I saw a man poolside. He told me that the pool opened at nine. I apologized. He shrugged and let me stay.</div><div><div class="dvbxImg"><img src="D47F0ADF-3FCE-42F0-8D93-4A57EA5DCBD0" alt="Shyamal Banerjee/Mint" title="Shyamal Banerjee/Mint" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Shyamal Banerjee/Mint</div></div>But he did not leave. The day before, I had met with two, well, not quite activists, but people who are unhappy with conditions in the country. Our conversation had taken place in the hotel’s lobby; at the table next to us, two men seemed more interested in our business than their own. Could this man at the pool have something to do with that meeting?</div><div>It was not inconceivable, though it was unlikely. I would not have been a good target, and the conversation had been frustratingly mild. I kept swimming as paranoid fantasies formed in my head.</div><div>In fact, the two passive dissidents had said little. What did they want? Well, more freedom; the ability to be published and heard in Cuba. Orlando Luis Pardo (@OLPL), a blogger, had published four books, but now no publisher in Cuba will talk to him.</div><div>In theory, Pardo and his friend Antonio Rodiles want lots of things, such as regime change, a free economy, and other things too disruptive to mention. But they are careful not to do anything that smacks of protest or action. That discretion keeps them safe, more or less.</div><div>As in most countries classified as “unfree” by human-rights organizations, enforcement of the law can be arbitrary. The authorities know who the dissidents are and “remind” them of that from time to time. For example, in a widely noted—and disputed—incident, Pardo was grabbed by police on the street, along with Cuban blogger Yoani Sanchez, and roughed up.</div><div>The obvious route to change for Cuban dissidents would be to leave—as so many have done, often at the government’s invitation. But Pardo and Rodiles don’t want to leave. In fact, Rodiles returned after getting a graduate degree (in theoretical physics) abroad; Pardo is a biochemist trained in Havana. They want to stay, hoping—not agitating—for change.</div><div>I thought hard—and checked with Pardo and Rodiles—before publishing this column. Pardo wrote back: “I am not an undercover actor at all. Transparency is my best protection under totalitarianism. I do not need any kind of secret software to blog, or rules to talk safely from a Cuban mobile phone, etc. In fact, I prefer the political police (State Security) to be aware of all of my writings. They are my privileged readers. I talk freely almost as a provocative performance. I hope that the result is contagious for the rest of our somehow zombie citizens.”</div><div>Rodiles added, “We are always breaking the ‘law,’ because, according to the present constitution, nothing can be attempted against the development of socialism. However, we keep moving with our project, and I have been straight with the secret police: if they want to stop me,?they?need to arrest me.”</div><div>Pardo and Rodiles are probably better known outside Cuba than they are at home, thanks to the Internet, which allows them to publish worldwide, but which is barely available in Cuba. (I met them via Twitter, by posting a request to meet some “entrepreneurs” in Havana.)</div><div>Indeed, I have not seen such a lack of connectivity since I first went to Russia 23 years ago. Local phone calls—let alone international ones—frequently fail to connect. The Internet is accessible in hotels (limited bandwidth for $8 an hour) and some government offices, but not to regular people. Those who want to use it rely on foreign embassies, government friends with access, and people like me, who can purchase Internet cards in their hotels. (I observed the rules: the only thing I gave to Pardo and Rodiles was my used WiFi card.)</div><div>Local government-employed academics I talked to bemoaned the lack of Internet access, which they attributed to the US’ embargo, technical problems, or complications with the local infrastructure. Everyone agreed that Internet access could dramatically help the economy, but seemed unwilling to concede that it was regarded as a political threat and thus was being delayed intentionally.</div><div>A flood of money coming into Cuba would not necessarily help. While it would certainly make the country as a whole richer, it would most likely increase not just legitimate inequality—the kind of “winning” that motivates entrepreneurs—but most likely corruption as well. In a country as regulated as Cuba is, there are certainly people in positions of power who would be willing to bend those regulations for a share of the benefits accruing to a foreign investor.</div><div>In short, Cuba is frustrating and contradictory. Havana’s buildings are stunningly beautiful, but most are crumbling. The racial inequality that the government had mostly eradicated seems to be increasing again, especially since private-sector tourism jobs, the main source of private income, seem to go disproportionately to white people. The government has done many things well, most notably its support of the arts and of economic equality.</div><div>But the price! You must work for the state unless you pick one of 200-odd specified self-employment occupations, such as restaurant owner/worker, actress, tour guide, and carpenter. You can employ a few other people in your restaurant, for example, but not too many. Pardo’s girlfriend, a dentist, cannot go into practice for herself; she works for a government clinic.</div><div>In the end, I don’t really know how to interpret what I saw. These two men spoke relatively freely; is their ability to do that (so far) a sign that the government knows that few people are listening? What looks like a peaceful rooftop in the morning could in fact be a scene of intimidation. It all depends on how you interpret it—and on how they interpret you.</div><div><b>©2012/Project Syndicate</b></div><div><i>Esther Dyson, CEO of EDventure Holdings, is an active investor in a variety of start-ups around the world. Comment at theirview@livemint.com</i></div> http://www.livemint.com/2012/05/24200620/The-only-way-is-Essex.html Essex County is a fictional rural setting, based on the Ontario community where Lemire grew up, and it at once reminded me of Thomas Hardy’s Wessex, a fictional part of south England he once referred to as a “realistic dream country” Cult Fiction | R. Sukumar Fri, 25 May 2012 16:04:00 GMT da70948a-a5ad-11e1-b454-000b5dabf613 http://www.livemint.com/da70948a-a5ad-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/da70948a-a5ad-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>He’s now making his name writing the rebooted version of Animal Man, but there is more to young Canadian writer-artist Jeff Lemire than superhero comics. Although, as the work of Lemire and another young artist—this one, Scott Snyder, working on reboots of Batman and Swamp Thing—proves, there’s nothing quite as satisfying as a good superhero comic.</div><div>Lemire has previously made an appearance in this column, courtesy <i>Lost Dogs</i>, and I have also mentioned in passing, his take on H.G. Wells’ <i>The Invisible Man</i>, <i>The Nobody, </i>but the graphic novel that really established his credentials was <i>Essex County</i>.</div><div>Essex County is a fictional rural setting, based on the Ontario community where Lemire grew up, and it at once reminded me of Thomas Hardy’s Wessex, a fictional part of south England he once referred to as a “realistic dream country”.</div><div><div class="dvbxImg"><img src="2230095F-BBCF-423E-9C32-2B5276E4453D" alt="Realistic dream country: Lemire’s Essex." title="Realistic dream country: Lemire’s Essex." height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Realistic dream country: Lemire’s Essex.</div></div>The similarity goes beyond the names. Hardy’s stories are about the powerlessness of man in the face of the elements. Most of his books portray the contrast between nature and civilization; sometimes the contrast becomes a clash, usually to the detriment of the lead characters. <i>Essex County</i> has the same feel about it, and Lemire uses three intersecting graphic novellas and two short graphic stories to tell the story.</div><div>The first novella, <i>Tales From the Farm</i>, tells the story of a young boy, Lester, coming to terms with reality after his mother dies and he is taken in by his uncle. Lester constantly sports a cape and a mask, doesn’t get along with his uncle, but builds an unlikely friendship with a former hockey player, Jimmy Lebeuf, who now operates a gas station after a crippling injury put paid to his career.</div><div>The novella ends with Lester discovering (although he doesn’t accept it or realize it till later) that Jimmy is his father.</div><div>The second novella, <i>Ghost Stories, </i>is about the estranged Lebeuf brothers, Jimmy’s grandfather Vince and grand uncle Lou (although Lou is really his grandfather and Vince, his grand uncle). The third, <i>The Country Nurse, </i>is about Anne, who takes care of a senile Lou and the other assorted crippled and injured of Essex County. One of her patients is Eddie, who appears in the short story <i>The Sad and Lonely Life of Eddie Elephant-Ears</i>, about a young man who has spent 10 years in coma after an accident killed his entire family, yet has only four memories of his past. Anne is the thread that binds the stories and novellas together, although I quite liked Lemire’s use of a crow to present a literal bird’s-eye view of the characters.</div><div>Together with another story, <i>The Essex County Boxing Club</i>, that adds up to a meaty 500-page graphic novel that spans generations and relationships. The stories are sentimental, even melancholic sometimes, an impact only magnified by Lemire’s stark black and white illustrations. Yet, unlike Hardy’s characters who surrender to nature, Lemire’s persevere, even in their death.</div><div></div><div>R. Sukumar is editor, Mint.</div><div></div><div>Write to Sukumar at cultfiction@livemint.com</div> http://www.livemint.com/2012/05/24205221/Your-health-is-in-your-hands.html It is up to us to find the rare doctor who is proficient in both allopathy and alternative medicine. Failing that, we could look into gentle options like meditation, yoga, su jok and acupressure The Good Life | Shoba Narayan Fri, 25 May 2012 16:04:00 GMT 12b85d7c-a5b4-11e1-b454-000b5dabf613 http://www.livemint.com/12b85d7c-a5b4-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/12b85d7c-a5b4-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>A year ago, I took a routine blood test and discovered that I have hypothyroidism; a condition in which the butterfly-shaped thyroid gland produces lower levels of the thyroid hormone. An estimated 42 million people in India suffer from thyroid disorders, according to a 2011 article in the <i>Indian Journal of Endocrinology and Metabolism</i>. Typically, with hypothyroidism, you have to take medication (Eltroxin) for life to substitute for the hormone depletion. I do that, but I also decided to explore the holistic options that I am naturally drawn to.</div><div>Even the most conservative allopathic physician will admit that endocrine disorders—more than other pathologies—respond to mind-body medicine. It makes sense. Anything that has to do with hormones, depression, memory and balance has a mind-body component to it. Any time a doctor tells you that you have to reduce your “stress” in order to get better, you might as well explore alternative remedies. Stress is a nebulous thing—you can’t see it; and often times, you cannot even feel it till it gets the better of you and leads to a breakdown. Stilling the mind through yoga or meditation has been proven to help.</div><div>With this in mind, I returned to one holistic field that I have been studying for years: Traditional Chinese Medicine or TCM.</div><div>Let me begin with the caveats: Although I am deeply interested in holistic medicine and have practised various forms on myself, I am not a trained practitioner. The suggestions below are just that—suggestions; and do not substitute for a visit to a qualified physician. My goal in writing this piece is a simple takeaway: Ultimately, people have to take charge of their health. You consider all options, consult experts, and decide what works for you. For all their good intentions, allopathy and alternative medicine, in general, operate within silos. They don’t talk to each other. It is up to us to find the rare doctor who is proficient in both practices. Failing that, we could look into gentle options like meditation, yoga, su jok and acupressure.</div><div><div class="dvbxImg"><img src="391F2220-EACA-4809-B075-C9E3721D79D3" alt="Holistic: Alternative remedies look at the mind-body component of the problem. Photo by Thinkstock." title="Holistic: Alternative remedies look at the mind-body component of the problem. Photo by Thinkstock." height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Holistic: Alternative remedies look at the mind-body component of the problem. Photo by Thinkstock.</div></div>One option I am considering is acupuncture, mostly because I am familiar with it. For about three years, I interned with an acupuncturist. Eileen Karn had a thriving practice in Stamford, Connecticut, US. Every day, I assisted her in the office and learnt treatment protocols from her.</div><div>Chinese medicine, perhaps more than any other system, connects the mind and body, inside and outside, in a way that is both pragmatic and profoundly philosophical. As Ted Kaptchuk, author of <i>The Web That Has No Weaver: Understanding Chinese Medicine</i>, a seminal book on acupuncture, said in a December <i>New Yorker</i> profile, “an important component of medicine...involves suggestion, ritual, and belief”. Acupuncture considers these mental and emotional components to be as important as the physical, both in terms of disease and healing. Kaptchuk, a trained TCM practitioner, is testing the mind-body balance as director of Harvard Medical School’s Program in Placebo Studies and the Therapeutic Encounter, a remarkable programme that every physician would do well to get acquainted with.</div><div>Chinese medicine takes a composite approach that views organs as having a mental component as well. The “kidney”, for example, in Chinese medicine is thought to be the seat of willpower. If you want to strengthen your willpower to get a task done—run a marathon, for example—Chinese acupuncturists will work on the kidney meridian. Similarly, one reason for sadness or depression could be “stagnation” of liver <i>qi</i> (<i>chi</i>). An oft-recommend herbal powder for depression is <i>xiao yao san</i>, which means “free and easy rambler or wanderer” in Chinese. The Chinese word for deep sadness—<i>yu</i>—is also used for stagnation. In TCM forums and mailing lists, a protocol often recommended for depression goes something like this: regulate liver <i>qi</i>, tonify spleen, nourish blood. </div><div>A site I visit frequently, <a href="http://www.acupuncturetoday.com" target="_blank">www.acupuncturetoday.com</a>, has a few protocols for hypothyroidism. Interestingly, there is a correspondence with <i>chakra</i> healing. The crown of the head, for instance, is important both in Indian and Chinese healing. In TCM, this location is called “<i>baihui</i>”. Ta’i chi and other martial arts masters will ask you to “lift your <i>baihui</i>” by gently lowering your neck and tucking your chin in, both to combat stress and in real-life combat. </div><div>Seed therapy or su jok is based on two interesting concepts. One, it believes that the whole body can be condensed into hands, feet or ears. There are specific locations in our hands and feet that correspond to different organs. The thyroid point, for instance, is at the crease where the big toe meets the foot. Second, su jok uses the notion of “Like cures like”, or “<i>Similia similibus</i><i>curantur</i>”, as they say in Latin. Kidney beans, for example, are supposed to help the kidney, so presumably, if you have a kidney stone, you could bandage a few kidney beans over the area in your feet or hands which relate to the kidneys. I sleep overnight with these seeds strapped on my thyroid points, but others take them off after 20 minutes.</div><div>Meditation has a great impact on the mind. Everyone from the late icon Steve Jobs to author Matthieu Ricard, often called the happiest man on earth, has practised meditation in a fairly intense way. There are many methods to still the mind—through breathing techniques, sound and light meditation, or using guided meditation tapes. It depends on your personality. Those of us who are of a restless predisposition need all the help we can get. Guided meditation tapes will help. Others who are naturally calm and able to concentrate might be quickly able to follow the main injunction of meditation: be here now. </div><div><i>Shoba Narayan is not here now. She would like to be, though. Write to her at thegoodlife@livemint.com</i></div> http://www.livemint.com/2012/05/24205208/Why-only-Indians-watch-Bollywo.html Because it is overly emotional and obvious, Indian cinema holds no appeal for the outside Reply To All | Aakar Patel Fri, 25 May 2012 16:00:00 GMT be885b60-a5b0-11e1-b454-000b5dabf613 http://www.livemint.com/be885b60-a5b0-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/be885b60-a5b0-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>Why can’t we export Bollywood?</div><div>We should ponder this as the great Jackie Chan retires from action movies. His announcement made international news, and rightly. The retirement, when it comes, of Amitabh Bachchan and the Khan triumvirate, will pass unnoticed in the journals of Europe and the US. They don’t know who these men are and haven’t watched any of their hundreds of movies. </div><div>On the other hand, Bruce Lee starred in only seven films, but is remembered and watched today 39 years after his death. </div><div><div class="dvbxImg"><img src="E9D94A4B-7465-472D-B7D7-D47E31554685" alt="The last action hero: Jackie Chan, 58, was at Cannes last week to launch his latest film,Chinese Zodiac. Photo by Loic Venance/AFP." title="The last action hero: Jackie Chan, 58, was at Cannes last week to launch his latest film,Chinese Zodiac. Photo by Loic Venance/AFP." height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">The last action hero: Jackie Chan, 58, was at Cannes last week to launch his latest film,Chinese Zodiac. Photo by Loic Venance/AFP.</div></div>Globally, only three film industries have produced a star system: Hollywood, Bollywood and Hong Kong. All three are successful but only two are exporters. Hong Kong and Hollywood movies are universal and watched around the world, not Bollywood movies. The Indian is present in sufficient numbers abroad for Bollywood to now receive dollar collections, but I’m not talking about that.</div><div>Indian cinema is watched only by Indians, and their neighbours. Especially those in states incapable of producing their own popular entertainment.</div><div>Is the audience limited for Bollywood because our cinema is bad?</div><div>Author C.S. Lewis said that to know if something was of good or bad design, whether a cathedral or a corkscrew, we must first know what it is intended to do. What is its function?</div><div>At the core of the Hong Kong movie is action. The choreographed athleticism and gymnastic style of fighting makes it export quality. Dubbing the movie into English does not alter the appeal, which is physical.</div><div>At the core of the Bollywood movie, even the action movie, is sentimentalism. </div><div>The sentimentalism of the dialogue and acting is reinforced with an obvious soundtrack (“<i>dhan te daan!</i>”). It is punctuated with songs charged with emotion that carry sentiment even more purely.</div><div>This cloying sentimentalism is not of universal nature, cannot be communicated in translation, and is highly culture-specific. Its characters—brother, neighbour, boss, uncle, <i>tawaif</i> (courtesan), Parsi, priest, servant, God—are invested with peculiar behavioural attributes that are not explained because the audience already knows them. The foreign movie that uses the Indian setting—<i>Slumdog Millionaire</i>—does not work here because the actors are off-character. A raped heroine is unacceptable to the audience.</div><div>Because it is overly emotional and obvious, Indian cinema holds no appeal for the outsider. Unless you buy the story about how Rajinikanth is a great star in Japan, something that Indians visiting Japan see absolutely no sign of.</div><div>Raj Kapoor was famous in Russia, but only as a character he plagiarized, the Communist hero Charlie Chaplin.</div><div>In his finest book, <i>From Heaven Lake</i>, Vikram Seth writes of Chinese musicians in Nanjing being familiar with “<i>Awara hoon</i>”, also from Kapoor’s Chaplin phase.</div><div>Indians will be surprised at the number of Israelis who know a song from yet another Kapoor-Chaplin movie, <i>Shree 420</i>. Strangers in Tel Aviv too shy to talk to me would quickly mutter “<i>Ichak dana bichak dana</i>” as they walked past, informing me they identified me as Indian and were familiar with our cinema.</div><div>This is not the same familiarity as they would have with Jackie Chan or Bruce Lee.</div><div>Lata Mangeshkar has sung a thousand truly great songs, but is unknown outside our culture. Why? Not because she’s not been heard but because she expresses a sentiment that is Indian, not universal. Only we receive it.</div><div>We can see our cultural isolation elsewhere. Let’s turn from cinema to music.</div><div>The primary function of Hindustani music is to communicate melancholy.</div><div>It is so beautifully efficient at doing this that it does not even need words to carry the emotion. With two opening notes, the quality singer can fling out a shroud, into which his audience can slip, entering this melancholic space, eyes shut. This is highly unusual and is specific to us alone. Others are unable to penetrate the sentiment because melancholy as entertainment is abnormal. But mainly because the sounds that make us melancholic are not the sounds of melancholy for other cultures.</div><div>Linguists are uncomfortable with my conflation of sound, language and cultural behaviour. They prefer a more universal explanation, but I cannot let go of it.</div><div>Let’s see a demonstration of what I mean. The great Hindustani musicians who settled in the US are: Ravi Shankar, Zakir Hussain, Ali Akbar Khan, Vilayat Khan, Shujaat Khan, Shahid Parvez and Swapan Chaudhuri.</div><div>They live there because that’s where most of their students are and many, if not most, of their students are white.</div><div>One thing is common to them: They’re all instrumentalists. Locating a fret, plucking a string and bending through the fifth are motor skills, easily taught to one willing to learn technique. No cultural barrier is present, and some of these students are musicians of the highest quality.</div><div>The great <i>khayal</i>vocalists—Bhimsen Joshi, Pandit Jasraj, Mallikarjun Mansur, Kumar Gandharva, Gangubai Hangal, Kesarbai Kerkar, Kishori Amonkar, the various <i>ustads—</i>all remained in India. They couldn’t settle in the US because there are no crowds of foreign vocalists for them to train. Jasraj runs schools for vocals and tabla in the US but I’m not aware of a single foreign singer of quality they have produced.</div><div>Reproducing the <i>khayal</i> emotion, even without the words, which are unimportant in our vocal tradition, is only possible for Indian singers.</div><div>We can make our films exportable not by making them better (because they’re already quite good at doing what they’re supposed to do), but by making them less Indian. </div><div>But this cannot happen, because their primary audience will still be Indian.</div><div>This is why it is so difficult to export Indian culture.</div><div><i>Aakar Patel is a writer and columnist</i>. </div><div><i>Send your feedback to replytoall@livemint.com</i></div><div><b>Also Read</b> | <a href="http://www.livemint.com/aakar-patel" target="_blank">Aakar’s previous Lounge columns</a></div> http://www.livemint.com/2012/05/25212351/Blame-it-on-the-system.html Graduates must take Chandra’s message to heart. But so must parents, teachers and the recruiters themselves Cubiclenama | Sidin Vadukut Fri, 25 May 2012 15:53:00 GMT a3f3fbb6-a681-11e1-99bc-000b5dabf613 http://www.livemint.com/a3f3fbb6-a681-11e1-99bc-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/a3f3fbb6-a681-11e1-99bc-000b5dabf613_300_200E09Vpf.gif <div>Earlier this week, many of the Tweet-sending, blog-reading, link-sharing and overall nation-building masses went into a tizzy over a post on <i>The New York Times</i> India Ink blog.</div><div><div class="dvbxImg"><img src="F75755A0-D432-4C08-9106-D374E3124E10" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>Titled ‘An Open Letter to India’s Graduating Classes’, the piece by a partner with professional services firm KPMG pointed out a number of shortcomings in the legions of fresh graduates that India produces each year.</div><div>“There are five key attributes employers typically seek and, in fact, will value more and more in the future. Unfortunately, these are often lacking in you and your colleagues,” says Mohit Chandra.</div><div>The substance of Chandra’s blog post is hard to disagree with. A number of times in the past, this column has talked about the ‘unemployability’ of the vast majority of our fresh graduates. Many of them, including most of those from our top-flight elite institutions, graduate with little more than the ability to pass examinations. (Which ability, I cannot emphasise strongly enough, has no correlation whatsoever with actually possessing knowledge or understanding the subject of evaluation.)</div><div>Chandra broadly points out five key shortcomings: poor communication skills, poor problem solving, low engagement, a lack of interest in continuous learning, and a lack of professionalism.</div><div>All these are, no doubt, crippling problems for any individual in any walk of life, leave alone fresh graduates. And yes many, many Indian graduates suffer from them.</div><div>The post ends with a call to action: “Be aware of these five attributes, don’t expect the gravy train to run forever, and don’t assume your education will take care of you. Rather, invest in yourself—in language skills, in thirst for knowledge, in true professionalism and, finally, in thinking creatively and non-hierarchically.”</div><div>But if Chandra is talking to fresh graduates, he is perhaps talking to precisely the wrong constituency. Because, while I agree that our graduates are hardly manna from heaven, I also believe that they don’t choose to be that way. They don’t transform into shallow, hierarchical, unethical, non-professionals 15 minutes before they graduate.</div><div>They don’t sit up and think one day: “You know what? The Indian economy is booming. I am entitled to awesome things. I think I will become a complete tool now.”</div><div>I am sure there are some genuine, wilful jerks in our colleges. But the vast majority? Merely products of a system that crushes them repeatedly, year after year, for exhibiting precisely the skills Chandra wants to see more of.</div><div>Let us start with hierarchies. A culture that puts elders on a high pedestal, demands unquestioning obedience from children, and shoots non-conformity at first sight, even in companies themselves, has no right to expect its young people to magically blossom into non-hierarchical whiz kids come graduation time. And no business school or graduate college can undo in six years the conditioning that society has done for the first 18.</div><div>‘Thirst for knowledge’ must be seen likewise. This thirst cannot evolve independent of schools or homes that encourage inquiry, experimentation and scepticism. While a brief glance at CBSE textbooks indicates that this is changing, we have an educational system that still obsesses with method rather than meaning, and theory rather than practice. And because we are petrified of any subjective evaluation at any level, we equip our young people to deal with a barrage of objective evaluations. This means answering standard questions with standard answers. Where does the issue of non-standard answers, creativity and originality even arise?</div><div>Similar observations about professionalism and communication skills can be made. But here colleges and business schools have a greater role to play: skills can be taught and ethics can be imparted.</div><div>(I am not even going to get into the issue of what locus corporate India—or corporates anywhere—has to lecture about ethics. That would be too easy, lazy and beside the point. Recently Ernst and Young asked executives all over the world if they would pay a bribe to retain business. Globally, 15% of surveyed executives said they would. But in India, 28% said they were ready to bribe for business. India performed worst.)</div><div>But even if you account for social conditioning, poor schooling and inadequate training in college, there is still one step in the graduate employment process that should push back and help unsettle the entire chain: the hiring process.</div><div>Simply look at the process of campus placements, where companies can hire in a highly controlled environment. They have access to all the students they want, all the resumes they need and often don’t have to negotiate salaries at all: campus jobs usually come with standard pay packets.</div><div>Unless things have changed drastically in the last decade, I recall companies picked resumes and prepared short-lists primarily on the basis of academic performance. The toppers always get picked. Indeed the factors that Chandra mentions—communication, professionalism, ethics—figure, if at all, only at some later stage.</div><div>In other words, where are the incentives for graduates to turn away from books and try other things?</div><div>Graduates must take Chandra’s message to heart. But so must parents, teachers and the recruiters themselves.</div><div><i>Cubiclenama takes a weekly look at the pleasures and perils of corporate life. Your comments are welcome at cubiclenama@livemint.com</i></div><div><b>Also Read |</b><a href="http://www.livemint.com/cubiclenama" target="_blank"> Sidin Vadukut’s earlier columns</a></div> http://www.livemint.com/2012/05/25211618/Why-they-hate-us.html Our columnist looks back on a tradition of evil foreigners in Western fiction, and the lure of the Orient Criminal Mind | Zac O’Yeah Fri, 25 May 2012 15:46:00 GMT c0d5f6a6-a66f-11e1-99bc-000b5dabf613 http://www.livemint.com/c0d5f6a6-a66f-11e1-99bc-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/c0d5f6a6-a66f-11e1-99bc-000b5dabf613_300_200E09Vpf.gif <div>I address these lines—written in India—to my relatives in England.” So goes the first line of the first, and some say best, detective novel published in Queen’s English.</div><div><div class="dvbxImg"><img src="75526B9A-84AC-4714-AC1B-9043BFC5C14A" alt="Orient express: Films like The Deceivers, starring Pierce Brosnan, have long exoticized India. Photo: Merchant Ivory/Michael White/The Kobal CollectionZ" title="Orient express: Films like The Deceivers, starring Pierce Brosnan, have long exoticized India. Photo: Merchant Ivory/Michael White/The Kobal CollectionZ" height="467" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Orient express: Films like The Deceivers, starring Pierce Brosnan, have long exoticized India. Photo: Merchant Ivory/Michael White/The Kobal CollectionZ</div></div><i>The Moonstone</i> (1868) by Wilkie Collins was hailed by T.S. Eliot, G.K. Chesterton and Dorothy Sayers. Although essentially belonging to the now unfashionable genre of Epistolary Gothic Horror Pulp Detective Fiction (EGHPDF), it was advanced for its day and age. It featured red herrings and thefts committed under trance, it introduced a professional detective of the Scotland Yard (other early mystery stories tended to favour brainy amateurs), and threw in a locked room murder.</div><div>What struck me when reading it are its Indian elements. The eponymous Moonstone, belonging to an idol and stolen by a corrupt British soldier in the aftermath of the battle of Srirangapatna, gives three Brahmins reason to travel all the way to inauspiciously foggy and spooky Yorkshire, masquerading as a band of juggling gypsy <i>fakirs</i>. The mysterious priests are, in a way, the real heroes and they eventually return the sacred jewel to its home.</div><div>Collins never visited India but started a fashion in popular pulp: The sacred but cursed jewel as well as the secret Oriental society would both feature in innumerable thrillers. It is probably no coincidence that such exotic ingredients were used to spice up mysteries when the British empire was at its mightiest.</div><div>Consider <i>The Adventure of the Speckled Band</i> (1892)—Arthur Conan Doyle’s favourite Sherlock Holmes story. It had suspicious gypsies and weird wildlife (a cheetah and a baboon) frolicking outside a British mansion. The murder weapon is an extremely deadly Bengali swamp adder trained to kill. Although quite unscientific (Bengal never exported swamp adders to be used by Western murderers, simply because there are no swamp adders in India), the corrupting influences of colonialism loom large and the culprit, if you recall, turns out to be a brutish British Calcutta-returned self-taught snake charmer.</div><div><div class="dvbxImg"><img src="1F09FB1B-D236-4599-A1A4-03CABECB7DE9" alt="An action scene from the film Gunga Din." title="An action scene from the film Gunga Din." height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">An action scene from the film Gunga Din.</div></div>In the 20th century, the motif of purloined Indian jewels featured in two Agatha Christie plots (<i>The Secret of Chimneys</i> and <i>The Rajah’s Emerald</i>) and she furthermore tried out an innovative murder weapon in <i>The Big Four</i>: a toxic chicken curry, presumably because the spiciness hides the taste of poison (poisoning was Christie’s preferred murder method).</div><div>Chesterton wrote several detective stories in which a Catholic priest battles the superstitions of the Orient. In <i>The Salad of Colonel Cray</i>, a British officer appears to have been cursed by monkey-worshippers while looking for strong Trichinopoli cigars in India; <i>The Wrong Shape</i> features an enigmatic Indian conjuror; the title of <i>The Red Moon of Meru</i> refers to a sacred, and perhaps cursed, ruby, and so on.</div><div><div class="dvbxImg"><img src="552E6380-A8C9-496D-B40E-2754A868EAF2" alt="" title="" height="304" width="200" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>Simultaneously, an avalanche of “thugs” and other exotic sects lavished their thuggery in numerous superficial flicks. A sampling: <i>Gunga Din</i> (1939), starring Cary Grant; <i>Sabaka, The Hindu</i> (1953), starring Boris Karloff (better known for his portrayal of Frankenstein’s monster); <i>The Black Devils of Kali</i> (1955), starring Lex Barker (who also played Tarzan in five jungle flicks); <i>Zarak</i> (1957), starring Anita Ekberg; <i>The Stranglers of Bombay</i> (1960), directed by Hammer heavyweight Terence Fisher; <i>The Mystery of Thug Island</i> (1964), starring nobody you’d ever heard of; <i>Help! </i>(1965), starring The Beatles; the James Bond movie <i>Octopussy </i>(1983), starring Roger Moore; <i>Indiana Jones And the Temple of Doom</i> (1984), directed by Steven Spielberg; and <i>The Deceivers</i> (1988), starring Pierce Brosnan.</div><div>Entertainment epics that sustained popular prejudice are as endless as they are mindless. This “Eastern influence” wasn’t limited to India. There was, for example, Fu Manchu waging jihad against the West with ray guns and poisoned prostitutes, nastier and far more long-lived than any other megalomaniac. Fu Manchu debuted in a story by Sax Rohmer in 1913 and survived the author’s death in 1959 by becoming the inspiration for several 1960s cult movies starring Christopher Lee. Lee is best known for playing Dracula in B-film shockers produced by the ultra-low-budget Hammer Studios whose success formula is summarized in two Bs: Boobies and Blood.</div><div>Gradually, with the Western pulp writer maturing intellectually, the idea of evil Orientals fell out of fashion. Recent Hollywood attempts to produce Fu Manchu sequels have failed because of the character’s political incorrectness—after all, such films might harm US trade with China, now that relations are thawing. I can’t for the life of me recall any major motion picture with Kali-worshipping Thugs over the two last decades while (coincidentally?) post-liberalization India’s importance has grown as an export market for the West. Of course, in the latter half of the 20th century the bogeyman from the East was usually typified by KGB agents from the far side of the Iron Curtain, and thriller heroes (be it “007” by Ian Fleming or Smiley by John le Carré) all fought the Cold War. However, that genre died abruptly with perestroika and is now but nostalgia.</div><div><div class="dvbxImg"><img src="27106E1F-8A43-4A6E-96FE-552943E0AFB1" alt="" title="" height="318" width="200" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>This bogeyman syndrome appears to be a fundamental element of Western culture, and the examples listed above may, in fact, be precursors to what we see today. In the last decades, we’ve been bombarded with blockbuster action featuring Muslim groups plotting against the US, like <i>The Peacemaker </i>starring George Clooney or <i>True Lies</i> with Arnold Schwarzenegger.</div><div>As usual, I have a theory. At the root of such (mis)representations is perhaps a fear of anything that cannot be explained in rational market-economy terms, a dread of everything mysterious and idealistic that inspires a dedicated following. In many of these examples, the antagonist is (if at all characterized in a multifaceted way) a criminal mastermind who could have been a Mensa top-scorer if circumstances were different, but for inexplicable reasons now wants to destroy the Western way of life.</div><div>This makes him quite superior to the archetypal Western natural-born killer who has an IQ barely touching 70 and who commits crimes for short-term gain—typically clobbering somebody to death in an unsophisticated way to steal a six-pack from an off-licence or, at best, a cursed diamond. Such criminal acts are quite logical and do not baffle the Western mind at all.</div><div>It’s just a theory, but if you have another I’d love to hear from you.</div><div><i>Zac O’ Yeah is most recently the author of </i>Once Upon a Time in Scandinavistan.</div><div><i>Write to Zac at criminalmind@livemint.com</i></div> http://www.livemint.com/2012/05/25211525/A-weighty-issue.html The tendency of actresses to wear gowns over saris, perhaps in an attempt to appear more sophisticated and Westernized, only means much more effort in trimming and tucking in the tummy Stall Order | Nandini Ramnath Fri, 25 May 2012 15:45:00 GMT 38d633f6-a665-11e1-99bc-000b5dabf613 http://www.livemint.com/38d633f6-a665-11e1-99bc-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/38d633f6-a665-11e1-99bc-000b5dabf613_300_200E09Vpf.gif <div>Aishwarya Rai Bachchan’s post-delivery weight gain has caused a storm too large to contain within any kind of teacup. Even the British newspaper <i>Guardian</i> weighed in on the issue, using the Twitter-fuelled brouhaha that followed the publication of photographs of a rather large but content-looking Rai Bachchan, to explore “Bollywood’s attitude towards women and motherhood”. </div><div>Meanwhile, newspapers ran editorials and stories exhorting their learned readers to leave the actress alone even as they devoted several pages to tracking the fashion trends of the day and unleashing their in-house fashion police on the fashion sense of stars and starlets. Television channels, which look forward to wardrobe malfunctions the way some drought-struck Indians wait for water tankers, also invited the usual suspects to yank their heads off. In short, the more things change, the more they stay the same.</div><div><div class="dvbxImg"><img src="462C9C72-3B54-4426-BA35-9840A4600B67" alt="Not size zero: Sonakshi Sinha. Photo: AFP" title="Not size zero: Sonakshi Sinha. Photo: AFP" height="653" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Not size zero: Sonakshi Sinha. Photo: AFP</div></div>It will never be known whether Rai Bachchan’s act of letting go, in a sense, of her famed slimness is an act of defiance. Rebellion is tantamount to suicide in a business in which your body is never your own, and where physical beauty is measured from the hair on the head down to the toenails. Vidya Balan is the flavour of the season, but she paid a price in the pre-<i>Dirty Picture</i> days for having a body that didn’t resemble a fashion magazine model as much as your colleague in the next-door cubicle. Surely that’s what made Balan likeable despite her often indifferent performances—and that’s what endeared her to male fans whose wife-and-whore divide is engraved into their brains. The tendency of actresses to wear gowns over saris, perhaps in an attempt to appear more sophisticated and Westernized, only means much more effort in trimming and tucking in the tummy. Balan has smartly elected to wear Sabyasachi saris over Cavalli gowns, recognizing her limits as well as the source of her appeal in one stroke.</div><div>Looking set to follow in Balan’s footsteps is Sonakshi Sinha, who has a face that wouldn’t be out of place in a 1950s movie and a Mala Sinha-like body. Sonakshi may look too mature for some of her co-stars, but at least she doesn’t look strange romancing men old enough to be her uncles. Akshay Kumar and Salman Khan, by sheer dint of having brought the gym into their homes, have managed to maintain the youthful appearance necessary to carry off the roles that they continue to be offered at their advanced age (usually youngish men embarking on their first proper romance or their first real job). Put them in the same room as Deepika Padukone or Anushka Sharma and it’s hard not to notice the gap in age and vigour.</div><div>Male and female stars haven’t made it easier on themselves by trying to squeeze as much money as possible out of their increasingly short-lived careers by electing to endorse all kinds of products, perform at big-budget weddings and cut ribbons for sundry businesses. Page 3 didn’t create the anorexic, always-ready- to-party star, but paid news and a spike in entertainment reportage have certainly resulted in a population cluster of photogenic clothes horses. Even Kajol, who eschewed designer wear and would turn up at film functions in delightfully mismatched clothes, is now paying attention to her wardrobe. Her unibrow remains largely untrimmed, so perhaps there is some hope.</div><div><i>Nandini Ramnath is the film critic of </i><a href="http://www.timeoutmumbai.net" target="_blank">Time Out</a><i>Mumbai .</i></div><div><i>Write to Nandini at stallorder@livemint.com</i></div> http://www.livemint.com/2012/05/25211422/A-mother8217s-big-passport.html My trained Indian brain scans my memory for “contacts” My Daughters’ Mum | Natasha Badhwar Fri, 25 May 2012 15:44:00 GMT b109cc2a-a65b-11e1-99bc-000b5dabf613 http://www.livemint.com/b109cc2a-a65b-11e1-99bc-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/b109cc2a-a65b-11e1-99bc-000b5dabf613_300_200E09Vpf.gif <div>“<i>Maine shaadi naheen ki hai</i>. <i>Maine yeh bachcha gode liya hai.</i>”</div><div>Geet Oberoi stepped back from the counter and raised her voice.</div><div>“I have never been married. I have adopted this child.”</div><div><div class="dvbxImg"><img src="1AD6BD9E-249A-433C-A29D-E89CF973436A" alt="Photo: Thinkstock" title="Photo: Thinkstock" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Photo: Thinkstock</div></div>This is the passport office in Bhikaji Cama Place in New Delhi. It is nearly time for the counters to close. Geet has been here since 9 in the morning, her fifth visit since August. Nine months later, there is still no clarity. This time, she refuses to leave till she gets a commitment that the government will issue a passport for her seven-year-old daughter, Indya.</div><div>“But, madam, the application form is not complete. What is the father’s name?” </div><div>“There is no father,” she repeats. “I have never been married. I have adopted this child. The adoption deed is attached with the application.”</div><div>“Adoption deed. Ha! Anyone can get an affidavit made,” says the officer. How do we know you didn’t just pick up the child from anywhere and get a false affidavit made? I want the court order.”</div><div>“The court order is also attached with the application,” Geet says. “Here is the original.” The order from the Tis Hazari court clearly states that she is a single parent adopting a child.</div><div>“Oh, this is a legal adoption?” the officer says, looking at the papers, as if for the first time.</div><div>He sends her to another desk, then to another room. She is told to wait till they call her name. Then asked to return another day. Everywhere, the same line: “But the father’s name is necessary. He is the guardian.”</div><div>I was in my car on the long drive home from work earlier this week when Geet called me. She has two little children, I have three. Sometimes months go by before we connect with each other.</div><div>I first saw Geet on our first day in college. She was sitting on the teacher’s table in our classroom. Tall, attractive girl. Permed hair. Talking to many people at the same time.</div><div>Bossy, attention seeker, I thought in my head. Fortunately for me, she didn’t rule me out. I was right about her being bossy. She made sure we became friends.</div><div>She made me do ludicrous roles in college skits, playing Michael to her Teja. When I said library, she wanted canteen. I would go for debates, she’d drag me to fashion shows.</div><div>I spent pocket money on second-hand books. She would splurge on the moment. In Geet’s company, I learnt to eat bread <i>pakodas</i> and <i>sev puri</i>. We took lifts in the hot afternoons on Delhi roads.</div><div>I asked Geet about her father. He had died when she was five years old. Her two younger sisters, who are twins, were two years old. Their mother is an international-level athlete, who had held the India record for shot put and discus throw. She became a sports professor in Delhi University. That there is no father is a matter of fact in this family. Nothing more, nothing less. Their youthful father’s photographs are part of every living room they move to.</div><div>We finished college and moved on. Higher studies, careers, love lives, homes and travels.</div><div>Six years ago, I was in my office when Geet called.</div><div>“I have brought Indya home,” she said to me.</div><div>She was on her way back from the Welfare Home for Children in Delhi. Geet, her mother and her 10-month-old daughter had come to a temple nearby. I went to meet them.</div><div>All these years later, Geet was in a <i>khadi kurta</i> and <i>salwar</i>. I was wearing a business suit. Geet was holding Indya on her hip. Tears streamed down my eyes. Someone has to do the crying bit too, I consoled myself. I took photos.</div><div>“It was as if they could not hear me,” Geet is saying to me after her day at the passport office. “I kept thinking that these guys just don’t understand what I am saying.”</div><div>“Oh God, I know what is going on here,” I say. “They are just harassing you unnecessarily. We’ll have to find someone who can influence them from above.”</div><div>My trained Indian brain scans my memory for “contacts”. Who can we call? Getting a passport made for one’s child is a perfectly legal, simple procedure. All we need is some “influence” to get it done.</div><div>“Help me find the word for what I am feeling,” she says to me. “It’s not outrage, not even humiliation. It was as if I was being pushed into a corner and made to apologize for my choices. As if I have done something wrong by adopting my daughters. I just feel very sad.”</div><div>Soon she will reach home to her children, Indya and Maya. I didn’t realize it till I started writing this, but in all these years together, Geet has never called me for help before.</div><div><i>Natasha Badhwar is a film-maker, media trainer and mother of three. Write to Natasha at mydaughtersmum@ livemint.com</i></div><div><b>Also Read |</b><a href="http://www.livemint.com/natasha-badhwar" target="_blank">Natasha Badhwar’s earlier columns</a></div> http://www.livemint.com/2012/05/25210434/Where-the-cream-horn-still-l.html In India, cream horns are ubiquitous, sold in every local bakery alongside pineapple pastries Piece Of Cake | Pamela Timms Fri, 25 May 2012 15:34:00 GMT 5c320cfa-a654-11e1-99bc-000b5dabf613 http://www.livemint.com/5c320cfa-a654-11e1-99bc-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/5c320cfa-a654-11e1-99bc-000b5dabf613_300_200E09Vpf.gif <div>Tucked behind a cart dishing out <i>khichdi</i> to rickshaw-<i>wallahs</i> in Lal Kuan, Old Delhi, is a tiny little bakers’ paradise. Unlikely though it might seem, Matchless Machine Tools sells everything you could possibly want, and quite a bit that you would need a diplôme from Lenôtre to find a use for. Over the years I’ve acquired cutters in every possible shape, including mango; heart-shaped sponge tins and a gadget for piping biscuits in a hundred different forms. Last week, I found something I’d never seen before: conical metal moulds for making cream horns, an old-fashioned British pastry in which a puff pastry cone is filled with jam and cream.</div><div><div class="dvbxImg"><img src="631AEA0D-B1FC-45B2-AF65-501E7CB17C84" alt="Sweet escape: Cream horns can be found everywhere, even with street vendors. Photo courtesy: Pamela Timms" title="Sweet escape: Cream horns can be found everywhere, even with street vendors. Photo courtesy: Pamela Timms" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Sweet escape: Cream horns can be found everywhere, even with street vendors. Photo courtesy: Pamela Timms</div></div>In India, cream horns are ubiquitous, sold in every local bakery alongside pineapple pastries. In Old Delhi, the sight of vendors wandering through the lanes with trays piled high with cream horns always stirs dim memories from my childhood. Dim, because in Britain the cream horn has almost completely disappeared; in fact, I had to refer to blogs with names like Wartime Housewife and my mother’s ancient cookbooks—the sort that offer recipes for Prawn Cocktail and Vol-au-Vents—to find any mention at all.</div><div>Since India has been such a loyal friend to the cream horn, I decided to give them a bit of a <i>desi</i> makeover. So out goes the awful fake gloop and in comes real fresh cream spruced up with seeds from a Keralan vanilla pod. Instead of the usual fluorescent fruit jam, and because I’ve been longing to use them in my baking, I’ve made a syrup from the beautiful <i>falsa</i> berries which are in season at the moment.</div><div>With the addition of good-quality cream and fruit, they turned out to be utterly delicious, and quite a sophisticated little mouthful too. They wouldn’t be out of place as a dinner party finale or an afternoon tea.</div><div>What are we waiting for—it’s definitely time for a cream horn revival.</div><div><b>Falsa and Vanilla Cream Horns</b></div><div>Makes 12</div><div><b>Ingredients</b></div><div>300g readymade puff pastry—keep it in the fridge until you’re ready to use it (this will make it easier to handle)</div><div>A little milk for brushing</div><div>Caster sugar for sprinkling</div><div>300ml whipping cream</div><div>1 vanilla pod</div><div>2/3 tbsp sifted icing sugar</div><div><b>For falsa syrup</b></div><div>(if <i>falsa</i> are not available, use a good-quality raspberry or strawberry jam)</div><div>150g <i>falsa</i> berries, washed</div><div>100g apricot jam</div><div>50ml water</div><div><b>Method</b></div><div><div class="dvbxImg"><img src="C5DF1370-7E7B-4393-B061-930E8F43578E" alt="Photo courtesy: Pamela Timms" title="Photo courtesy: Pamela Timms" height="500" width="400" align="left" /><div class="dvbxImgCapt" style="width:300px">Photo courtesy: Pamela Timms</div></div>You will need 12 5-inch metal cream horn moulds and a large baking sheet.</div><div>Preheat the oven to 200 degrees Celsius. Lightly butter the baking sheet, then cover it with a sheet of baking parchment paper. Grease the metal moulds with melted butter.</div><div>Take the pastry out of the fridge and on a clean, lightly floured surface, roll it out very thinly. Cut the pastry into 2cm-wide strips. A strip about 40cm long will be enough to cover one mould.</div><div>Slightly dampen one side of the strip with a few drops of water. Starting at the pointed end of the mould, and with the moistened side of the pastry next to the mould, wind the pastry around the mould, overlapping the layers slightly. Don’t roll the pastry all the way to the rim of the mould as the pastry will puff over the edge and make it difficult to remove the mould after baking. Press the pastry gently to seal all the edges.</div><div>Place the covered cream horn moulds on to the baking sheet and bake for 10 minutes. Remove from the oven and brush all over with a little milk and sprinkle with caster sugar. Put back in the oven for 5-10 minutes until the horns are golden brown. Take the tray out of the oven and leave the horns to cool completely before removing the moulds.</div><div>For the <i>falsa</i> syrup, place the berries, jam and water in a pan and bring to the boil. Lower the heat and let it simmer for 10 minutes. Pour the mixture through a sieve to remove the <i>falsa</i> pips. The mixture should be fairly thick, not runny. Leave to cool.</div><div><a href="http://dl.dropbox.com/u/5973996/webslideshow/creamhorn_story/soundslider.swf" target="">Slideshow</a></div><div>Split the vanilla pod in half lengthways, scrape out the seeds and add to the whipping cream along with the icing sugar. Whisk until thick, then refrigerate until needed.</div><div>When the pastry horns are cool, take them off the metal moulds. Into each horn, pipe or spoon about a dessertspoon of the <i>falsa </i>mixture, then pipe or spoon in the vanilla cream. Eat immediately.</div><div><i>Pamela Timms is a Delhi-based journalist and food writer. She blogs at Eatanddust.com </i></div><div><i>Write to Pamela at pieceofcake@livemint.com </i></div> http://www.livemint.com/2012/05/25144313/Views--The-Aamir-Khan-approac.html In happily spinning one grand scheme after the other without thinking through how they will work, the National Advisory Council is betraying the poor whom it claims to speak for Pramit Bhattacharya Fri, 25 May 2012 09:47:00 GMT 0511d6bc-a64a-11e1-99bc-000b5dabf613 http://www.livemint.com/0511d6bc-a64a-11e1-99bc-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/0511d6bc-a64a-11e1-99bc-000b5dabf613_300_200E09Vpf.gif <div>Maybe we can call it the Aamir Khan effect. The Sonia Gandhi-led National Advisory Council (NAC) on Wednesday cleared proposals to improve the declining child sex ratio in the country. The proposals fell into the usual pattern: stricter laws on sex-determination tests, conditional cash incentives --- this time for both poor and non-poor --- and awareness programs, possibly led by Prasar Bharti. It’s the same old wine poured into a new bottle.</div><div><div class="dvbxImg"><img src="F0C7C21D-0674-420C-A782-2C527B7AB557" alt="A file photo of Sonia Gandhi." title="A file photo of Sonia Gandhi." height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">A file photo of Sonia Gandhi.</div></div>Perhaps such moves should cease to surprise us by now. The ideas emanating from the council have increasingly begun to look like rehashed versions of the tried, tested and failed strategies of yore.</div><div>Consider another recent state initiative that is being proposed with the blessings of the NAC: a new legislation for domestic help that will provide them with entitlements similar to workers in the organized sector, such as paid leave and the right to form a union.</div><div>Great idea. But what is the probability that domestic servants will actually be covered by the eight existing laws for the organized sector? Close to zero, in a country where posts of labour inspectors routinely lie vacant and existing laws are not implemented.</div><div>The poor wages and working conditions of domestic workers are because of a simple textbook case of excess supply. Domestic help earns less in real terms in small towns than in cities such as Mumbai because of the same principle, not because of welfare schemes or the average Mumbaikars’ benevolence.</div><div>Such Smithian logic is lost on the NAC. Its stale ideas seem to stem from a belief that an ever growing list of schemes, entitlements and legislations will automatically usher a new era of welfare.</div><div>If enacting legislation alone is the path to social equity and prosperity, we would have actually ended dowry in 1961 and child labour in 1986. Every citizen would have been paid minimum wages since 1948. The list can go on. Indian history is replete with well-meaning legislations that did not work either because they involved social mores that could not be changed through legislation, or because the laws of economics outweighed the laws of our legislatures.</div><div>To its credit, the NAC has tasted success in legislation such as the Right to Information Act that has become a potent weapon in the hands of information-hungry citizens. But, for the most part, the legislation raj of the NAC seems to be creating unenforceable entitlements.</div><div>Just as a growing economy needs to ease supply bottlenecks to avoid hitting a wall of inflation, a bigger role of the state that the NAC envisages requires additional state capacities and delivery reforms to avoid leakages and enormous social waste. But that will involve hard work. It requires greater attention to detail, to incentives, and to the lessons history and economics have to offer.</div><div>One doubts whether NAC is up to the challenge. After all, the NAC chooses not to reflect on why one of its grandest ideas --- the Mahatma Gandhi National Rural Employment Guarantee Scheme --- works well only in 2 of the 29 Indian states, going by the central rural development ministry’s analysis.</div><div>In happily spinning one grand scheme after the other without thinking through how they will work, the NAC is betraying the poor whom it claims to speak for. A similar centralized strategy filled with pro-poor rhetoric, adopted in the seventies and eighties had to be discontinued in the nineties when the liberalizers found the costs of that approach outweighing the benefits. There is no reason why the current entitlement regime will not meet a similar fate if the growth slowdown of the Indian economy turns out to be structural.</div><div>It will be both ironic and sad if the lasting contribution of the council is the notoriety it has lent to the very idea of welfare schemes in India.</div> http://www.livemint.com/2012/05/25151405/Views--When-no-one-means-anyt.html News television debate is today an elaborate drama with everyone involved colluding, except that the gains of collusion accrue only to the channels Sandipan Deb Fri, 25 May 2012 09:44:00 GMT 65301eaa-a64f-11e1-99bc-000b5dabf613 http://www.livemint.com/65301eaa-a64f-11e1-99bc-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/65301eaa-a64f-11e1-99bc-000b5dabf613_300_200E09Vpf.gif <div>In my life, I’ve exercised my right as a voter only a few times. Changes of residence (including cities), misprinting of name on voter card, the sheer hassle of finding out where my polling booth is and reaching there, and suchlike, have been the perfect excuses that my general political apathy has always looked for and found. </div><div><div class="dvbxImg"><img src="7704B92D-99FA-4A85-840A-B32ADC782947" alt="Senior BJP leader L. K. Advani with Nitin Gadkari, Sushma Swaraj and Arun Jaitley lighting the lamp during the inauguration of the party’s National Executive Meeting in Mumbai on Thursday. PTI photo " title="Senior BJP leader L. K. Advani with Nitin Gadkari, Sushma Swaraj and Arun Jaitley lighting the lamp during the inauguration of the party’s National Executive Meeting in Mumbai on Thursday. PTI photo " height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Senior BJP leader L. K. Advani with Nitin Gadkari, Sushma Swaraj and Arun Jaitley lighting the lamp during the inauguration of the party’s National Executive Meeting in Mumbai on Thursday. PTI photo </div></div>But the last few years…they have done enough to turn saplings of apathy into an Amazon forest. Let’s not even go into the astonishing non-performance of the United Progressive Alliance government at the Centre, everyone and his uncle (including several of mine) have shouted themselves hoarse and spend their days gurgling warm water and salt. But look at the alternative: the Bharatiya Janata Party (BJP), the only “national party” other than the Congress. Houston, (or should I say Sriharikota?), we have a problem. BIG problem.</div><div>Both the Congress and the BJP seem to be devoid of any leader with any mass appeal that cuts across regions and interests. All those Dalit villagers who Rahul Gandhi isn’t visiting any more…I weep for them. There is of course Narendra Modi. He will never have enough political support to head a coalition at the Centre. This has made him increasingly petulant—he didn’t attend the party’s national executive meeting last year, and this time he made sure that someone he didn’t like was shunted out. Modi sees himself to be larger than the party, and the party has surrendered. Meanwhile, disgraced former Karnataka Chief Minister Yeddyurappa, after making some noises about Sonia Gandhi being a great leader and getting nowhere, is trying to claw back into favour. Lal Krishna Advani has announced that he will not attend the public rally at the end of the national executive meeting; apparently he is distressed about the goings-on.</div><div>While the Congress leaders are jumping at sudden noises made from their allies, and are lying awake scared of things that go bump in the night, the BJP leaders are in the same state, except that it’s not even allies they’re jumpy about, it’s the dynamics within their own party!</div><div>At no point in these three years of misrule has the BJP looked like a party in waiting to take over (think of Gordon Brown’s years as Prime Minister and David Cameron’s Conservative Party), in fact it hasn’t even looked like it believes it can ever take over.</div><div>Can anyone remember any statement made by any BJP leader as this government floundered like the blind men with their elephant taken away, other than homilies about “misrule”, and that this minister or that minister should resign. Have they been able to take up even one cause, get identified with it, and cause the slightest ripple in the voter consciousness? The RSS which covertly and expertly backed the Anna Hazare movement has now quietly washed off its hands of the Jan Lokpal business, and the BJP is left with nothing.</div><div>Nothing except their TV debaters. News television debate is today an elaborate drama with everyone involved colluding, except that the gains of collusion accrue only to the channels (till such time as enough number of viewers figure out that Comedy Channel offers more entertaining fare). All those talking heads in the boxes strewn around the screens—even a fool can see that half the time, they are trying to maintain straight faces and not laugh out loud, as they debate “topics of national interest”. All you lack in these game shows are some prize hampers sponsored by companies peddling cheap consumer electronics. </div><div>And the deadly-serious guys—yes, those grim men (and at least one woman with exquisite style sense) are going through their own little self-destruction drama in Kerala, waiting for their street muscle to return to their folds in West Bengal, and trying to match Marx’s theory of the withering away of the State with what’s going on around them.</div><div>The state of Indian politics does not even lend itself to humour. Anyway, humour is now officially a highly suspicious commodity. I wish those talking heads on TV would sometimes let go and just laugh. That’ll at least be honest communication to all those suckers who are still watching them.</div> http://www.livemint.com/2012/05/25162655/Views--Rahul-Gandhi-the-man.html In private conversations, most Congress leaders criticize Rahul and his style of functioning Liz Mathew Fri, 25 May 2012 05:35:00 GMT 6eb35a78-a659-11e1-99bc-000b5dabf613 http://www.livemint.com/6eb35a78-a659-11e1-99bc-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/6eb35a78-a659-11e1-99bc-000b5dabf613_300_200E09Vpf.gif <div>With a reshuffle in the Union Cabinet and the Congress party organization imminent, the speculation over whether party general secretary Rahul Gandhi will be given a ministerial responsibility is rife again. While some Congressmen swear that he will replace Prime Minister Manmohan Singh to give a fresh lease of life to the UPA government, another section says that he could be given portfolios such as rural development or human resource development. Such rumours do the rounds every time there is talk of a cabinet reshuffle. However, Gandhi has so far been able to shrug off any such responsibilities. </div><div>The 41-year-old leader has been insisting that he is not interested in any ministerial jobs but wants to build the party. Rahul has addressed campus rallies, student gatherings, conducted membership campaigns and tried to bring back democratic practices in organizational elections at the youth and student level. The old vigour with which the party’s youth and student wings used to defend the party-led governments’ policies at the state and central levels has been missing for a while. </div><div><div class="dvbxImg"><img src="E10D0927-4433-4383-B01D-951C5197F22D" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>But the fact remains that Gandhi, who was always tipped as the ruling party’s future prime ministerial candidate, has not shown much interest in parliamentary work. Unlike many of his peers, Gandhi seldom makes use of the Question Hour. His interventions have been short and very few – the only impressive one was his Zero Hour speech on the Lokpal Bill during Anna Hazare’s intense campaign that had embarrassed the UPA government. </div><div>Rahul is an avid reader and has a clear view on most issues. However, he has not articulated them at all. He rarely interacts with the media nor does he have regular meetings with Congress parliamentarians. During his rare meetings with Congress leaders and ministers, he does not appear to them as someone who is keen to listen to them. Gandhi has not been able to build a team that could be with him in his attempts to rejuvenate the party. In the party, no one is a known ‘Rahul loyalist.’ In private conversations, most Congress leaders criticize Rahul and his style of functioning. He had exhibited signs of determination and a fighting spirit during his campaign in Uttar Pradesh in the recent election. He had given an impression that he was a politician with a difference and someone who choose to take the road less travelled. But, it didn’t yield the desired results. After the debacle, it seems he has shelved his UP agenda. </div><div>Unlike his mother, who has faced many challenges in her political life, Rahul had everything in his hand. When Sonia Gandhi decided to enter politics, it was a test of fire for her. Her nationality and patriotism were questioned. She had to learn everything from scratch. She proved her detractors wrong and did something even her husband, Rajiv Gandhi, could not do: keep the Congress flock together. The party retained power with a higher seat count in 2009.</div><div>Rahul Gandhi has the luxury of political opportunities which none of his contemporaries have. But, on a daily basis, he is proving to be a man of lost opportunities.</div> http://www.livemint.com/2012/05/24215853/Plastic-to-cotton-make-that-s.html To truly participate in eliminating plastic bag usage, the retailer ought to supply bags made of fabric and charge the customer more. That would not only be a deterrent for the customer, but also promote the objective of banning plastic Tough Customer | Vandana Vasudevan Thu, 24 May 2012 18:35:00 GMT 67c7e78e-a5bd-11e1-b454-000b5dabf613 http://www.livemint.com/67c7e78e-a5bd-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/67c7e78e-a5bd-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>A vacant construction site in Greater Noida has suddenly become a dumping ground, the main component of the garbage being plastic bags that are carried away by the breeze and hit the windscreens of cars that drive by. Cattle chew on the bags, ingesting the poisonous polythene. Complaints on the Greater Noida authority’s website and to the various officers listed on it have, expectedly, been ignored. Frustration over government inaction in completely banning plastic bags is understandably increasing in the cities. In April, Brihanmumbai Municipal Corporation’s civic standing committee hotly debated a ban on the manufacturing of these plastic bags, saying finally that it is difficult to change end-user behaviour and if we are serious about banning plastic, we have to cut the malaise off at the source. Earlier this month, the Supreme Court issued a directive to the Centre and all state governments to completely ban plastic bags in response to a petition filed by a group of activists alleging government failure to dispose of plastic waste properly.</div><div>We know that plastic bags should be banned because they are made of petroleum, a non-renewable resource, their burning releases toxic gases, animals eat them and die and they choke drains and cause floods like in Mumbai in July 2005. Most importantly, they will stay forever on the planet. But can they be completely banned?</div><div><div class="dvbxImg"><img src="45AA1F5D-C530-497E-94AD-F724F9F5AD9B" alt="Shyamal Banerjee/Mint" title="Shyamal Banerjee/Mint" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Shyamal Banerjee/Mint</div></div>Yes they can. Several countries, including China, have done it. The seller merely has to switch to cloth bags, which will affect his margins but that is a small private cost to pay for larger social good. After the Supreme Court banned plastic bags a couple of years ago, something strange happened. Some smaller retailers complied and switched to cloth bags while hawkers completely ignored the diktat. But the larger chain stores started charging customers a couple of rupees for a bag in case you needed it. As in Western stores, this is meant to push the customer to remember to carry his own bag when he goes shopping. But the kind of customer who visits Lifestyle or Westside or Shopper’s Stop doesn’t care about Rs 2 or Rs 5. So, the plastic consumption continues and earns some small change for the store! To truly participate in eliminating plastic bag usage, the retailer ought to supply bags made of fabric and charge the customer more. That would not only be a deterrent for the customer, but also promote the objective of banning plastic. </div><div>Deepa Motiani, owner of Pearl Exports in Rajkot, who has been exporting cloth bags worldwide since 1996, says that she hasn’t found a domestic market for them because no chain store is interested in spending a little more on cloth bags. They would rather buy the cheaper plastic bag and recover the cost from the customer. </div><div>British retailer Tesco Plc. buys about 100,000 reusable cloth bags from Motiani. And a Tesco customer gets green Clubcard points if they bring their own cloth bag or if they reuse a Tesco carrier bag—anything that prevents the use of a new plastic bag. </div><div>It’s not as if Indians are not familiar with the concept of the cloth carrier bag. If we time-travel a bit to when our grandparents were householders, there were no plastic bags then. There was either the <i>jhola</i> bag with the long strap, more popular in the north, or the humble cloth bag with the name and address of the shop printed on it, like a permanent mobile advertisement. This cloth bag used to be given in weddings with the return gift packed inside. </div><div>Manisha Gutman, who runs a social enterprise in Pune called eCoexist, which sells natural and recycled products, makes an interesting observation. When her organization did a campaign two years ago called “Use Me Again” in Pune, to urge people to reuse plastic bags or better still switch to a cloth bag, she found that in the more traditional areas of Pune, the “Peth” areas as they are called, it was like preaching to the converted. “Traditionally, Maharashtrians are conservative and use their resources very carefully, so many of them anyway were used to cloth bags. It is only in the newer areas, the IT (information technology) and outsourcing company hubs of Koregaon Park and Kalyani Nagar, that we had to push the campaign.”</div><div>Somewhere along the line we got carried away by plastic and began stuffing our homes with it. Now, with a generous nudge from the West which has made environment consciousness trendy, we are back to realizing the wisdom of our forefathers. Which is great, albeit amusing and ironical. So, we have campaigns in various parts of the country pushing customers to use cloth bags. The Earth Organisation in Hyderabad, the Indian chapter of an international environmental NGO, is run by a bunch of earnest students who began a campaign called Green Bag Movement in the city. At the southern tip of the country, in Kanyakumari, a dynamic district collector galvanized vegetable vendors, shop owners, <i>panchayats</i> and the administration to make Kanyakumari completely plastic bag-free and script a heartening case study in public-private partnership.</div><div>There is enough reason to buy a couple of smart, reusable cloth bags and keep them in the car to be used for shopping and never ask for a plastic bag from the store. If you need more reason to do this, it is that you can get some really beautiful bags that you can find online.</div><div><i>Vandana Vasudevan is a graduate from the Indian Institute of Management, Ahmedabad, and writes on mass urban consumer issues. Your comments are welcome at toughcustomer@livemint.com</i></div><div><b>Also Read</b> | <a href="http://www.livemint.com/toughcustomer" target="_blank">Vandana Vasudevan’s earlier columns</a></div> http://www.livemint.com/2012/05/24234912/The-business-of-threat-percept.html The complex ethnic and religious mix of Assam, deep-rooted poverty, and patchy governance ensure that the state is often a hair’s breadth away from resentment, eruption and rebellion Root Cause | Sudeep Chakravarti Thu, 24 May 2012 18:19:00 GMT 7a087b54-a5ca-11e1-b454-000b5dabf613 http://www.livemint.com/7a087b54-a5ca-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/7a087b54-a5ca-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>United Progressive Alliance chairperson Sonia Gandhi’s visit to Assam on 26 May may be marred by what often rules this part of India: a <i>bandh, </i> or shutdown. The call for closure to protest Gandhi’s visit—a symbol of “imperialist India”—has been given by a faction of the United Liberation Front of Asom (Ulfa) led by Paresh Barua, military chief of the formerly unified outfit before a major “pro-talks” faction led by Ulfa chairman Arabinda Rajkhowa declared an “indefinite” ceasefire in 2011.</div><div><div class="dvbxImg"><img src="1A8AA15B-3ACF-402C-9EA9-90B20BD9320E" alt="Sonia Gandhi’s visit to Assam on 26 May may be marred by a bandh or shutdown. (File Photo)" title="Sonia Gandhi’s visit to Assam on 26 May may be marred by a bandh or shutdown. (File Photo)" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Sonia Gandhi’s visit to Assam on 26 May may be marred by a bandh or shutdown. (File Photo)</div></div>The threat perception of Barua and his faction remains high. Commercial hub Guwahati and adjacent state capital, Dispur, will witness a security clampdown to force normality—to save face for the Congress government led by chief minister Tarun Gogoi who, with Gandhi’s visit, plans to mark the first anniversary of his third term in office. But vast areas, especially “upper” Assam areas east of Guwahati, Ulfa’s traditional stronghold, will shut down. Vehicles and trains won’t ply in this tea, timber and hydrocarbon zone that also marks vast pockets of poverty and seething resentment against immigrants—both illegal, from Bangladesh; and legal, from elsewhere in India.</div><div>Nobody wants to take a chance. Ulfa still carries firepower and a trigger-happy reputation. Some security officials and political observers see Barua as being protected by Chinese interests, now that his position in Bangladesh, a long-time sanctuary, has been weakened on account of the Sheikh Hasina-led government’s India tilt. Barua is also seen by some as a conduit of weapons in the region, a pipeline via parts of Myanmar and Bangladesh for a range of active and relatively dormant insurgencies from Bodo rebels in western Assam to Koch-Rajbongshi splinters in West Bengal. There is also the matter of Ulfa’s participation in what finances several rebel economies in north-eastern India: the drug trade that involves vested interests in India, Myanmar and even Bangladesh.</div><div>But it is difficult to shake off the feeling that local governments as well as elements of the national security establishment that emphatically girdle this sprawling region benefit from lingering conflict. I have heard police and military officers speak frankly of how conflicts are deliberately kept unresolved to milk these by way of budgetary support and special grants. For example, there’s a spat between the ministry of home affairs (MHA) and the government of Assam over the latter’s declaring seven districts of the state as Maoist-affected; and the ministry, in turn, urging the state to desist—correctly citing the minimal level of Maoist penetration—and instead, get its law and order and governance act together to stall Maoist rebels. The pie in Assam’s eye: MHA-guided “security related expenditure,” or SRE, that each year allocates several billion rupees to Maoist-affected districts in states across India to spur development and modernize police forces; and the Integrated Action Plan of the Planning Commission that provides sanctity to such disbursement.</div><div>I have heard from security officials and bureaucrats that the government knows the score. As a senior bureaucrat from northeastern India eloquently added for me: “Where (rebel) leaders live, what they do, what they eat, when they sleep, who they meet, what they own, and a fair idea of where they have their money. They can roll it up, shut it down.” This past week in Guwahati, I heard senior officials reiterate pretty much the same thing. The other, equally disturbing spectre: Trade in weapons and drugs cannot continue without active collusion of corrupted elements in political and security establishments.</div><div>While this cynical compact exists, an equal truth is that the complex ethnic and religious mix of Assam, deep-rooted poverty, and patchy governance away from the commerce and construction blitz in the Guwahati-Dispur strip (the tea town of Jorhat, too, is picking up pace) ensure that the state is often a hair’s breadth away from resentment, eruption and rebellion in some form or another. There was real apprehension a week ago when locals stormed Bhomoraguri-chapori on the Brahmaputra near Tezpur—a few hours’ drive north-east from Guwahati, situated on the southern bank—to evict squatters. As with such developments, the ghost of the Nellie massacre in 1983, abetted by political power play, has never really rested.</div><div>And I heard too about Naga rebel factions stepping up their ingress for “donations” across the long border Nagaland shares with Assam. This is prime tea country. Three years back, it was largely in the business plans of the National Socialist Council of Nagaland (Isak-Muivah), usurping Ulfa’s patch. Now, NSCN’s Khaplang faction has also stepped up.</div><div>Then again, there’s an electoral victory to celebrate.</div><div><i>Sudeep Chakravarti writes on issues of conflict in South Asia. He is the author of</i> Red Sun: Travels in Naxalite Country <i>and the just-published </i>Highway 39: Journeys through a Fractured Land. <i>This column, which focuses on conflict situations that directly affect business, runs on Fridays.</i></div><div><b>Also Read | </b><a href="http://www.livemint.com/articles/keywords.aspx?kw=Root%20Cause" target="_blank">Sudeep Chakravarti’s earlier columns</a></div> http://www.livemint.com/2012/05/24222957/Can-Trai-keep-a-tab-on-TV-ads.html The move is likely to upset the economic viability of programming and create gated communities of audiences since most channels will be forced to go the pay TV way The Briefing | Nikhil Kanekal Thu, 24 May 2012 16:59:00 GMT c63fee9c-a5c2-11e1-b454-000b5dabf613 http://www.livemint.com/c63fee9c-a5c2-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/c63fee9c-a5c2-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>The powers of the Telecom Regulatory Authority of India (Trai) to regulate content and advertising on television channels had been unknown to most people until a regulation landed on the regulator’s website on 14 May. But can Trai really tell TV channels how much advertising they can allow on air?</div><div><div class="dvbxImg"><img src="055C6817-8631-436C-B79A-F9161665645B" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>First, here’s what the regulation says: channels cannot have more than 12 minutes of advertising per hour of airtime. Other measures include stipulations that there should be at least 15 minutes of programming between commercial breaks, 30 minutes in the case of movie channels and no interfering with the screen (drop-down boxes, graphics, among others) in the case of live sports broadcast; all of which sound like a TV viewer’s delight.</div><div>The regulation was notified by J.S. Sarma, Trai’s former chairman and a career bureaucrat, on his last day in office, after two months of consultation, raising some eyebrows over the alacrity with which the regulator moved. It would have been easy to predict that such a regulation would be challenged, given the commercial interests riding on it. Could Trai have prevented a potentially costly, lengthy litigation that is certain at some juncture?</div><div>At the outset, the regulation seems to be appropriate given the erratic and unruly manner of advertising that TV viewers frequently encounter although the Indian advertising industry does create some engaging commercials. A deeper examination of the regulation belies this view—it will likely upset the economic viability of programming and create gated communities of audiences since most channels will be forced to go the pay TV way.</div><div>But before looking at the market forces that will come into play, what drew attention was the fact that Trai’s decision may not be enforceable. According to the sanction granted to it by the ministry of communications and information technology in 2004, Trai’s powers are only “recommendatory” in this regard.</div><div>And this is notwithstanding the robust fortress of constitutional law carefully constructed by the Supreme Court that guards the freedom and interests of the media to express and disseminate news, views and pretty much anything else. Inherent here is the freedom to advertise, especially if this advertising is intrinsic to the economic sustenance of the media entity in question. Although the court’s rulings are in the realm of the print medium, by logical extension, they can be applied to television, radio and the Internet. In effect, they are medium-agnostic.</div><div>The programming and broadcasting industry isn’t quite sure what to make of Trai’s regulation, which at first appeared to be populist, but in the long term is detrimental to the larger television viewing audience. Channels that are restricted from taking on advertising that is proportional to their cost of production will eventually have no choice, but to take the pay TV route. </div><div>Currently, of the 670 channels operating in India, 507 are free-to-air and the rest are pay channels that require a periodic subscription fee. But even paid-for channels rely on advertising for a proportion of their revenue. There’s only one way this is going: the cost of TV viewing will increase and poorer consumers will not be able to afford more channels, if any, should the regulation take effect. Free channels will be fewer and paid-for channels will get costlier.</div><div>Prima facie, the Trai regulation appears to ride roughshod over precedent on the freedom to advertise. And this is despite broadcasters bringing to the regulator’s notice several objections to the new rules, before they were formalized. Internationally, there are norms for advertising on television and these include the volume of advertising, too. But the Indian market is quite different from foreign ones. Television viewing in advanced economies is expensive, especially if it is live sports or commercial-free movie screenings. The difference between more mature markets and India is that the norms have come into place abroad in a largely voluntary fashion and the revenues of broadcasters are not so skewed in favour of advertising. </div><div>Unsurprisingly, conversations with broadcast networks and their counsel revealed that they’re preparing for a legal battle. They’re likely to move ahead as a group, they said. For now, the discussions are on which forum they should approach—the Delhi high court or the Telecom Disputes Settlement Appellate Tribunal—depending on the line of attack the channels will choose.</div><div>The questions on the merits of the challenge are, in fact, an advanced proposition, in the opinion of some broadcasters—whether Article 19(1)(a) (freedom of speech and expression) and 19(1)(g) (right to livelihood) can be limited by a regulation of this nature? They first want to test whether Trai even has the jurisdiction and powers under the Cable Networks Act to impose such a regime.</div><div>My money is on the broadcasters prevailing. However, certainty in legal battles, even if bolstered by substantial case law, is elusive. Much rides on the judges who will hear the challenge to the regulation—whether they can be convinced that restricting advertising to just 12 minutes per hour is unreasonable, is the Rs 12,000 crore question. That’s the estimated size of television advertising at the end of 2011.</div><div><b>Also Read | </b><a href="http://www.livemint.com/articles/keywords.aspx?kw=The%20Briefing" target="">Nikhil Kanekal’s earlier columns </a></div> http://www.livemint.com/2012/05/24145107/Ourview--Don8217t-try-to-d.html It is the rate at which the rupee has fallen that is the problem, rather than its direction Thu, 24 May 2012 16:40:00 GMT 2937a9e4-a583-11e1-b454-000b5dabf613 http://www.livemint.com/2937a9e4-a583-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/2937a9e4-a583-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>As the rupee has tumbled against the dollar, there is growing chatter about how the Reserve Bank of India should intervene to support the Indian currency. Its intervention in the foreign exchange market so far has been modest and ineffective as far as preventing a further fall in the rupee goes.</div><div>But defending a fixed exchange rate is easier said than done.</div><div>One of the key lessons policymakers have learnt over the past two decades is that countries should not target a particular exchange rate in a world where capital moves with freedom across borders. Countries that have tried to protect their exchange rate—be in Britain in 1992 or Thailand in 1997—have had to push up interest rates to levels that sent their economies spinning into recession. Thailand burnt up its foreign exchange reserves during its crisis.</div><div><div class="dvbxImg"><img src="CC7CD5B3-D617-4E48-A3F9-E9971532471A" alt="Shyamal Banerjee/Mint" title="Shyamal Banerjee/Mint" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Shyamal Banerjee/Mint</div></div>Greece provides a more contemporary example of a troubled economy that cannot regain competitiveness through devaluation because it uses the common European currency. Defending a particular exchange rate will be akin to the central bank writing a put option; it will always be a losing trade in the long run.</div><div>The rupee is falling because of global risk aversion, but also because the trade gap is dangerously high. A cheaper rupee will help rebalance the economy, making Indian exports more competitive while making imports more expensive. The Indian rupee may not be undervalued in real terms right now, after taking inflation into account. So it is the rate at which the rupee has fallen that is the problem, rather than its direction.</div><div>The adjustment will not be easy, however. Many economic agents have taken decisions assuming a far stronger rupee. The recent devaluation will hurt them, especially the bravehearts who neither have natural hedges nor have bothered to buy insurance in the forward market. For example, one obvious point of stress will be in the balance sheets of companies that have piles of foreign debt, including convertible bonds. The dollar returns of foreign portfolio investors have also been sliced.</div><div>There is a nuclear option, to be sure. Malaysia tried capital controls in an attempt to manage both exchange rates and interest rates at the same time, and even the International Monetary Fund these days is prepared to accept that closing the capital account is acceptable in times of great stress. India is not in such dire straits right now.</div><div>Let the rupee find its own level. The policy authorities would be better occupied making India a more attractive investment destination in a faltering world economy.</div><div><i>Can the rupee be defended? Tell us at views@livemint.com</i></div><div><b>• • •</b></div><div><b>Also Read | </b><a href="http://www.livemint.com/2012/05/24112750/Rupee-recovers-on-petrol-price.html?h=A1" target="_blank">Rupee recovers on petrol price hike, Subbarao comments</a></div><div><b>The rupee saga </b> ( <a href="http://www.livemint.com/2012/05/10173101/Rupee-freefall-continues.html" target="_blank">Full Coverage</a> )</div> http://www.livemint.com/2012/05/24220937/India-and-the-best-of-all-the.html Reviving India’s sagging economic fortunes will require a lot more than petrol price increases, however massive these may be Siddharth Singh Thu, 24 May 2012 16:39:00 GMT fc7fd65e-a5bb-11e1-b454-000b5dabf613 http://www.livemint.com/fc7fd65e-a5bb-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/fc7fd65e-a5bb-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>When oil marketing companies announced a hike in petrol prices by Rs7.5 per litre, two reactions were apparent: “ah, at last” and “oh no.” Optimists will say the government is moving in the right direction and that finally it has stepped in to revive a shattered economy. It may be too early to say that. From the same starting point—an increase in petrol prices—two dramatically different outcomes are possible. </div><div><b>Scenario 1</b>: The date is 1 June. The fourth quarter (Q4) figures for gross domestic product (GDP) growth in 2011-12 have just been announced. Instead of the market expectation of 6.5-7% growth, the number has tumbled to 6%. The economy is in dire straits and a crisis of confidence has engulfed the country. Foreign investors have not returned to Indian shores. But, finally, the government has woken up to a difficult economic reality. It has realized that slow growth now poses political dangers. Concerns about “jobless growth” have now given way to worries about the erosion of existing jobs. Slow growth won’t win it the 2014 general election. A week earlier, it raised petrol prices by a massive Rs7.5 per litre—the highest in a decade—and a day later followed them up with the politically far more challenging increases in LPG, diesel and kerosene prices. In spite of vociferous protests by Mamata Banerjee and other populists, it has moved on undeterred. It is now contemplating the really “hard” reforms.</div><div><div class="dvbxImg"><img src="F03B0C6D-8533-46F6-A15A-03C394B83490" alt="Photo: Bloomberg" title="Photo: Bloomberg" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Photo: Bloomberg</div></div><b>Scenario 2</b>: The government is smart. There is realization that unless the markets are “massaged”, the rupee will continue to be battered. With a rising trade deficit and dwindling capital inflows, the prospect of a balance of payments (BoP) crisis is very real. A sudden, unexpected, increase in the price of petrol by Rs7.5 per litre has enthused markets. Pessimistic analysts are already issuing positive notes. Politically, it has managed the politics of the price hike very well. Oil marketing companies had asked for an increase of Rs5 per litre. By raising prices by Rs7.5 and then effecting a “roll-back” of Rs2.5, it has given its new-found friends (and in-house opposition) a face-saving formula. The meeting of the empowered group of ministers that was to consider increases in the price of diesel and kerosene, the real stuff—the stuff consumed by people who vote and not the disaffected urban crowd—has been quietly deferred in the din around the petrol price increase. Three birds—markets, oil companies and supporting parties—have been knocked off with one stone. Hopefully, the finance minister’s austerity and some good luck (Greece goes belly up and the Federal Reserve unleashes QE3) will see the moneybags flock back to India. The year 2014 will, finally, be won by a shrewd mix of subsidies, massaged markets and, of course, old-fashioned political manipulation.</div><div>Which of the two will pan out will be known only in the weeks and months ahead. Much of what will happen is, at the moment, in a realm that is turbid: the political deals between the government and its new-found friends (and perhaps old ones as well) and the debate within the Congress party. Economically astute members of the Union cabinet by now, no doubt, realize that winning an election during a period of slowing growth is a difficult task. That, however, is not the key calculation. What matters is the political trade-off between revival of growth (more jobs, higher disposable income) and the beneficial effects of “spreading the wealth around”. For the political business cycle to work in a ruling party’s favour, its crest (higher disposable income) has to coincide with the electoral calendar. There is very little time left (less than 24 months) for that to happen. Freeing up fuel prices now—all of them—may improve market sentiment and lead to a revival of investment and growth with a lag. But by the time that happens, the United Progressive Alliance may have missed the bus. On the balance, if it takes the economically right steps now, it may end up harming itself politically. Chances are that scenario 2 will be the likely script.</div><div>Thus, at the moment, a good old-fashioned BoP crisis won’t harm India. There is simply no other way that a consumption-addicted and vote-driven country can be brought to its senses. It is a perverse thought. But in the end, a bruised rupee, depleted foreign exchange reserves and a dollop of help from the International Monetary Fund—with some strings (or stings, shall we) attached—will induce some policy rationality. At the moment, export markets are depressed but the rupee is moving in the right direction and promises to correct the imbalances in the external account over time. That and a healthy balance between consumption and investment alone can take India back on the road to sustainable, non-inflationary, growth path. Seen from this perspective, if the government does not free fuel prices effectively, it won’t be a bad idea. </div><div>You see—crisis or normalcy—India will have the best of all the worlds.</div><div><i>Siddharth Singh is Editor (Views) at Mint.</i></div><div><i>Comments are welcome at views@livemint.com</i></div> http://www.livemint.com/2012/05/24220813/Ourview--Yahoo-not-giving-up.html Yahoo, once arguably the most important Internet company but now reduced to profitable irrelevance, has just announced a somewhat surprising new product Thu, 24 May 2012 16:38:00 GMT 49efa6f0-a5b0-11e1-b454-000b5dabf613 http://www.livemint.com/49efa6f0-a5b0-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/49efa6f0-a5b0-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>Yahoo, once arguably the most important Internet company but now reduced to profitable irrelevance, has just announced a somewhat surprising new product. Called Axis, the product is a browser for iOS devices and a browser-plugin for desktop computers.</div><div>While the promotional videos that accompanied the launch won’t impress anybody used to previous accomplished efforts from Google or Apple, Axis has a promising premise. It seeks, essentially, to integrate the search and browsing experience. In other words, Axis users will be able to transition from a search query to a website seamlessly without an intermediate step: browsing through pages upon pages of search results. Axis achieves this through an innovative, touch-optimized user interface.</div><div><div class="dvbxImg"><img src="25593ED0-F09D-477A-BB0F-0CEB65D732C3" alt="Photo: Bloomberg" title="Photo: Bloomberg" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Photo: Bloomberg</div></div>Initial feedback suggests that Axis delivers on performance what it does not in marketing panache. (The launch seemed rushed. The final product shipped without complete terms and conditions. And there was a minor privacy hole that would have exposed user passwords and data. But the product works.)</div><div>Axis is something of a double-edged sword. On the one hand Yahoo does make a lot of money from the intermediate step that Axis seeks to bypass: search results pages. About a quarter of all Yahoo revenue, in fact.</div><div>But then Yahoo has struggled for years to deliver a mobile product of any note whatsoever. It missed the bus on Flickr, yielding the initiative to apps such as Instagram. So, the fact that Axis launches simultaneously, and with greater focus, on iOS devices is significant.</div><div>Yahoo continues to have a dedicated customer base all over the world. Maintaining that relationship across all platforms makes sense. Some might say that the company’s core clientele are unsophisticated users with high loyalty but low tendency to experiment. Axis seems designed to work very well for them, needing hardly any configuration and with intuitive controls.</div><div>Also in bypassing search results pages Yahoo is hoping to wean users off Google. Why waste time on a search engine when the search process is built into your browser?</div><div>Yahoo has lurched from crisis to crisis and CEO to CEO. It still makes money, but is no longer a contender like Google or Facebook. Axis is a step in the right direction. More than anything else it tells Yahoo customers that the company is not giving up yet. </div><div><i>Will Yahoo’s Axis redefine Internet search? Tell us views@livemint.com</i></div> http://www.livemint.com/2012/05/24220739/Policy-paralysis-of-another-ki.html The United Progressive Alliance is gripped by inaction but not of the kind described by votaries of the market Farm Truths | Himanshu Thu, 24 May 2012 16:37:00 GMT d5724102-a5b9-11e1-b454-000b5dabf613 http://www.livemint.com/d5724102-a5b9-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/d5724102-a5b9-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>The United Progressive Alliance (UPA) in its second avatar has just celebrated its third anniversary. Unlike its first incarnation, it has virtually nothing to show today. While the UPA continues to tom-tom programmes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme, among others, these are, to put it mildly, past glories. Today, progressive efforts—the National Food Security Bill (NFSB) being one example—are in limbo. NFSB is yet to be approved by the standing committee of Parliament. And given the nature of opposition from various state governments there is a good chance that it will be derailed in Parliament. If there is one good example of “policy paralysis”—the neo-liberal, free-the-markets variety apart—then surely it has to be the slow death of NFSB. </div><div>NFSB was a simple case of providing adequate nutritional supplement to nearly 40% of malnourished citizens of the country through subsidized food grains. Various permutations and combinations were worked out on the quantum of foodgrains required and financial implications of a quasi-universal food security legislation that excludes only the rich. As recent as the start of this year, more than 40 prominent economists asked the Prime Minister to rework NFSB into a quasi-universal food entitlement scheme. Notwithstanding these and many other recommendations, the government went ahead with trying out the leakage-prone targeted public distribution system (PDS) as the cornerstone of the proposed NFSB. </div><div><div class="dvbxImg"><img src="D7A4E361-3EC6-40CD-AEEA-C51489FC0333" alt="Photo: AFP" title="Photo: AFP" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Photo: AFP</div></div>At the core of the debate lies the issue of whether we can procure the amount of foodgrain required to implement the programme. The estimates vary from a watered-down proposal that pegs what is needed at 64 million tonnes. The Prime Minister’s economic advisory council (PMEAC) pegged it at a maximum of 74 million tonnes. The extent of fiscal support required also varies a great deal with a high of Rs2 trillion every year. More reasonable estimates stand at around an additional Rs5,000 crore every year. </div><div>Are the higher estimates—of food and money needed—real or just inflated figures to scare policymakers and citizens alike? The reality can be judged with available facts. The foodgrain stocks on 1 May stood at 72 million tonnes. This figure is expected to swell to a minimum of 75 million tonnes since the rabi harvest and procurement is not yet complete. The government has been quick to claim the increase in production to record levels with rice production exceeding 100 million tonnes this agricultural year. But what it has not claimed is that we also have hit a record as far as stocks are concerned. </div><div>The fact that we already have 75 million tonnes in stocks also flies in the face of several claims made by officials. This bumper output is in spite of farmers being denied the minimum support price (MSP). The Commission for Agricultural Costs and Prices has reported that in many states the actual prices which the farmers are getting are lower than MSP. This not only means that the rather high requirement of foodgrains projected by PMEAC can be met, but the record also shows that this has been achieved even before NFSB has been rolled out. Nor have we spent a sum anywhere close to the Rs2 trillion to achieve this target. Foodgrain prices too have not touched the high levels it was claimed they would in case of an NFSB roll-out. Foodgrain inflation is still below the tolerance level of 5% and, in the case of wheat, it is actually negative. Clearly, not only were these claims unrealistic, misinformed and not based on facts, they were also meant to side-track the consensus on NFSB for a quasi-universal entitlement.</div><div>But herein lies the problem of how to manage these stocks. Instead of celebrating the achievement of this nearly impossible target and, therefore, taking the next step forward—that of implementing NFSB—the issue that is being raised is one of storage. So much so that the same policymakers who were saying that we do not have enough to implement NFSB have allowed more than 6 million tonnes of rice to be exported out of the country. </div><div>The issue is not of stocks. The problem is twofold. First, the problem is not of a single year alone but of the last four years. For the last four years, food stock has been in excess of the PDS or buffer stock requirements. It then begs the question of why did the government go out and procure when it was already burdened with excess stocks. Second, even if it did, why can’t it offload the stocks through a quasi-universal PDS, instead of exporting them at subsidized price? The issue of stocks arises only because the government has continued to procure while being clueless on how to distribute them through PDS or otherwise. The government has no convincing answers to any of these questions. Nor does it mean that we will not be in the same situation again. NFSB will not be rolled out due to lack of foodgrain or financial constraints but due to lack of political will.</div><div><i>Himanshu is assistant professor at Jawaharlal Nehru University and visiting fellow at the Centre de Sciences Humaines, New Delhi.</i></div><div> <i>Comments are welcome at theirview@livemint.com</i></div> http://www.livemint.com/2012/05/24220554/Why-oil-prices-will-keep-falli.html The trend derives as much from the fundamentals of supply and demand as it does from the psycho-speculative forces that generate risk premiums ranging from $20-30 extra per barrel Thu, 24 May 2012 16:35:00 GMT 4bf98304-a5be-11e1-b454-000b5dabf613 http://www.livemint.com/4bf98304-a5be-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/4bf98304-a5be-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>The recent retreat in crude prices has surprised many experts, who were predicting steeply higher levels. The sanctions choking off Iranian exports and the ever-present elephant in the room—a possible shutdown of the Strait of Hormuz, where 20% of global crude traffic occurs—were pushing prices up.</div><div><div class="dvbxImg"><img src="25778289-1136-414E-8FE0-C2D5CAD7DFD8" alt="Photo: Hasan Jamali/AP" title="Photo: Hasan Jamali/AP" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Photo: Hasan Jamali/AP</div></div>Recently, however, an ensemble of unrelated factors—the Greek economic bailout, shale-oil fracking in the US, and the resurgence of exports from Iraq and Libya—have combined to push prices down. Is this a temporary relief that will falter with the first stress test? The answer is no.</div><div>The trend derives as much from the fundamentals of supply and demand as it does from the psycho-speculative forces that generate risk premiums ranging from $20-30 extra per barrel. A case in point is the Greek bailout, which offsets the anxiety premium raised by Iranian war games in the Persian Gulf by suppressing demand projections.</div><div><a href="http://online.wsj.com/article/SB10001424052702303610504577420203695017594.html?mod=googlenews_wsj" target="_blank">Click here</a><b>to read full article.</b></div><div><b>—THE WALL STREET JOURNAL</b></div><div><i>Nansen G. Saleri, president and CEO of Quantum Reservoir Impact in Houston, was formerly head of reservoir management for Saudi Aramco.</i></div><div><i>Comments are welcome at otherviews@livemint.com</i></div> http://www.livemint.com/2012/05/24214239/Hotels-in-India-going-green.html Many, if not all, are seeking to redesign their lifestyles and get into the green mode. India is also part of this transformation Ashok K. Verma Thu, 24 May 2012 16:12:00 GMT 5fd169ea-a5ba-11e1-b454-000b5dabf613 http://www.livemint.com/5fd169ea-a5ba-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/5fd169ea-a5ba-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>While it took a few thousand years for man to pass from Paleolithic to Neolithic tools, it has taken less than a century to shift from conventional weaponry to nuclear devices. Development has been so rapid that nature has not had time to adapt to these changes, and to human requirement and greed.</div><div>Our growing consumer economy and industrialization have led to the creation of huge megalopolises and human activities are causing an irreversible damage to the global environment due to extensive emission of greenhouse gases. Rising concern about the environment in response to global warming is driving thinkers to seek some sustainable solutions and are forcing people to reconsider and amend their ways of living to become more eco-friendly. </div><div>Many, if not all, are seeking to redesign their lifestyles and get into the green mode. India is also part of this transformation.</div><div><div class="dvbxImg"><img src="78F3C75C-B3C9-4625-996C-958EDBB62323" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>The green building concept broadly integrates many interests and aspects of sustainability, emphasizing reduction of environmental impacts through a holistic approach to land and building uses and construction strategies. Unlike a conventional structure, green buildings incorporate several sustainable features such as efficient use of water, energy efficiency, eco-friendly environment, use of renewable energy, use of recycled/recyclable materials, effective use of landscape, effective control and building management systems, and improved indoor quality for health and comfort. </div><div>Green buildings create value for occupants, increase property values and may be eligible for incentive programmes. Substantial savings are realized on a per square foot basis when energy consumption is reduced. Green buildings offer easier maintenance and lower operating costs, which translate to a higher market valuation. </div><div>The Indian Green Building Council (IGBC) was formed in 2001 by the Confederation of Indian Industry and the Godrej Green Business Centre, and is continuously striving towards the wide adoption of green building concepts in the Indian industry. In the last 10 years, more than 687 projects have been registered or certified under IGBC’s green building guidelines developed in India. About 450 million sq. ft of built-up area is coming up as green buildings. This includes hotels, hospitals, and commercial, institutional and factory buildings.</div><div>Let us look at the hospitality sector. Hotel construction in India ranked second in Asia in 2011, with around 500 projects and approximately 90,000 rooms. Nearly 60% of the country’s high-end hotels are located in Bangalore, Pune, Mumbai, Chennai and New Delhi. </div><div>Key companies include the InterContinental Hotels Group, Starwood Hotels and Resorts Worldwide, Hyatt, Hilton, Accor, Tata, Oberoi and ITC group with 300 branded hotels to be launched by 2015.</div><div>It’s interesting that much of the pressure to go green is coming from environmentally sensitive guests who are growing in number and favour eco-friendly hotels to energy guzzlers. The hospitality industry is acknowledging the long-term benefits to be reaped in terms of reduced maintenance and energy saving, especially when energy costs are escalating. With technology constantly improving and becoming cost-effective, initiatives that seemed too expensive just a short while earlier are now within reach of most hotels going for green certification.</div><div>In India, the ITC Gardenia, a luxury hotel in Bangalore, was awarded the US Green Building Council LEED (Leadership in Energy and Environmental Design) platinum rating, making it the first hotel in India to achieve the highest rating for green buildings. </div><div>Understanding the green advantage, ITC now has a platinum rating for all its luxury hotels—the ITC Windsor in Bangalore, the ITC Mughal in Agra, the ITC Sonar in Kolkata, the ITC Kakatiya in Hyderabad, the ITC Grand Central and the ITC Maratha in Mumbai, and the ITC Maurya in New Delhi. The Leela Palace Hotel in New Delhi has also been certified platinum.</div><div>The Pune Marriott Hotel and Convention Centre has been awarded gold certification as has the Heritage Madurai Hotel and Resort, while the Fortune Select at Lavasa has a silver rating. Many hotels are registered for LEED certification such as Piccadilly Hotels for its forthcoming Hyatt Regency properties at Gurgaon and Ludhiana for a gold rating. </div><div>A few of the salient green features incorporated in these buildings are zero water discharge, 25-40% energy savings over conventional buildings, 40% reduction in potable water use, use of treated greywater for flushing, air conditioning and landscaping, use of fly ash in bricks and concrete, high efficiency equipment, and eco-friendly housekeeping practices.</div><div>The three R’s have an important role to play in the construction of a green building—recycling (of old material), reduction (of wastage) and re-use (of material). </div><div>With the number of green buildings expected to multiply, the energy requirements of Indian cities may change, transforming traditional urban culture. We hope for the best.</div><div><i>Ashok K. Verma has been managing hospitality projects and engineering for the last three decades. He is associated with the development of green hotels and is currently working on two such projects.</i></div> http://www.livemint.com/2012/05/24213833/Opening-ourselves-to-our-fulle.html Stephen Levine in his book A Year to Live posed a simple question: If you had only a year to live what would you do differently K. Srikrishna Thu, 24 May 2012 16:08:00 GMT 3129ff2c-a5b9-11e1-b454-000b5dabf613 http://www.livemint.com/3129ff2c-a5b9-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/3129ff2c-a5b9-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>Even if we knew nothing of Einstein or his work, almost all of us know, nay, have experienced, the relative nature of the passage of time. When you are standing in a queue outside a consulate, waiting for it to open, time seems to stretch like a bungee cord, only without ever bouncing back. Similarly, when we have to take a test or quiz, time seems to practically whiz by, particularly when we are unsure of our answers.</div><div>I recall one specific afternoon, driving back from a customer meeting—where I had lost a big order —on which our entire company had bet everything on. What I recall was not having any recollection of the drive back home. I left the customer office in a daze. I might have been on the phone telling our sales guy how the deal was dead and the next thing I recall was walking into the front door of my house. Only when my wife asked, “What’s wrong?” did I realize that I was home. Where did that time go?</div><div><div class="dvbxImg"><img src="2FD16F29-A4F4-4A10-8B82-61E597E73B86" alt="A Year to Live: Stephen Levine; Harper Collins Publishers, 1997." title="A Year to Live: Stephen Levine; Harper Collins Publishers, 1997." height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">A Year to Live: Stephen Levine; Harper Collins Publishers, 1997.</div></div>And then again there are times when time actually freezes. For me these usually coincide with whenever I manage to put my reasonably large-sized foot in my mouth, in front of customers. However, most of us, both professionals and entrepreneurs, are so caught up with the often urgent and sometimes important tasks and demands that our business makes, that we rarely stop to ask ourselves whether we are spending our time in the best possible manner.</div><div>A year ago (on 24 May) my father passed away. What struck me then was how much he had accomplished in his first 50 years—and how much he had given to others. Yes, he’d lived a full life and while I’d have preferred that he was still here today, it made me reflect on my own. So here poised a little beyond the half-way mark of his living years, I wonder: Can I and others like me do just as well, giving our best and making a difference, however small or big, to the world at large?</div><div>Each day, we hurry through our lunch breaks, skipping breakfast many times, sit through late evening overseas conference calls and yet rarely we seem to catch up. Only when our back gives out, a child is unwell or our spouses threaten to walk out on us, do we stop to take stock. A colleague under 50 passes away, another has a heart attack, friends you’ve known a long time are going through a divorce—suddenly we don’t seem to have it all together. And certainly that deal or proposal we’ve been chasing doesn’t seem quite as important.</div><div>Stephen Levine, poet and teacher, posed a simple question: “If you had only a year to live what would you do differently?” Unlike HR professionals this wasn’t merely a life goal-planning exercise but a year-long experiment in conscious living that he set out on, living each day as if it were his last. His book <i>A Year to Live</i> sets out to capture his insights, learnings and practical exercises. As a reader eloquently put it, <i>“A Year to Live</i> is the book to read if you don’t want to reach the end of your life with feelings of regret, failure, shame, or loneliness.”</div><div>This is a book about living, not dying. It is essentially a self-paced year-long programme to examine and understand your life. <i>A Year to Live</i> is not an easy book to read, but two things make it well worth the effort. One is the fact that it comes with numerous exercises, such as guided medications that allow us to examine our lives and are useful whether we live for another day, year or many decades. The other is that it is not intended to be read linearly but can be dipped in at will, snacked at and interspersed with practice. As a poem in the book points out, “When they tell you you’ve only got a few months to live, it seems like there’s an awful lot to do.” So better read this before time gets away from you.</div><div><i>K. Srikrishna is the executive director of the National Entrepreneurship Network. He writes about issues that business leaders and managers face and books that could help.</i></div><div><i>Comments are welcome at views@livemint.com</i></div> http://www.livemint.com/2012/05/24213851/A-realistic-growth-number-for.html Evidence shows that India can grow, at best, close to 7% annually without fuelling inflationary fires Vidya Mahambare Thu, 24 May 2012 16:08:00 GMT 1cbf5eb2-a5bc-11e1-b454-000b5dabf613 http://www.livemint.com/1cbf5eb2-a5bc-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/1cbf5eb2-a5bc-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>The Reserve Bank of India (RBI) indicated last month that India’s potential growth has declined to around 7.5%. The central bank believes this is the real gross domestic product (GDP) growth India can achieve without fuelling inflation above 4-4.5%. RBI’s assessment raises a pertinent question: Did India ever have a potential growth rate as high as 8.5-9%? </div><div>An economy’s potential growth refers to the rate at which it can expand per year without putting undue pressure on inflation. If demand in the economy exceeds its potential to supply, then the economy starts facing capacity constraints, restraining further growth and contributing to inflation. In contrast, if demand grows at a slower rate, it reduces pressure on prices. </div><div><div class="dvbxImg"><img src="80DCF3AB-3C17-464F-BB80-E81BA3F5E161" alt="Shyamal Banerjee/Mint" title="Shyamal Banerjee/Mint" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Shyamal Banerjee/Mint</div></div>Why is it critical for policymakers to know an economy’s potential growth rate? </div><div>Since the gap between actual and potential growth influences the extent of price changes, the central bank’s policy decisions, in part, depend on its judgement of potential growth. For example, if actual growth is expected to be lower than the potential, it can lower interest rates to raise the growth towards the potential, without fuelling inflation.</div><div>To estimate potential growth, we need to eliminate short-term fluctuations in GDP to reflect changes in the economy’s productive capacity. The most commonly used statistical smoothing methods, however, are heavily influenced by data at the end of the sample period. A smoothening method called the Hodrick-Prescott filter used on GDP data from June 2000 to December 2012 estimates the potential growth towards the end of the period closer to 7% from nearly 8.8% at the end of 2008. </div><div>Instead, if we look at India’s decadal growth, the average growth rose to 7.2% in the 2000s from 5.8% in the 1990s. It appears that while the economy’s potential growth during the 2000s did rise as compared with 1990s, it had perhaps increased to only around 7.5% and not 8.5-9%. It is possible that GDP growth rates of over 9% between 2005-06 and 2007-08 were the result of a cyclical upturn, driven largely by stronger exports of software services, which by raising disposable incomes, in turn had a positive effect on sectors such as automobiles. </div><div>Another way of understanding economy’s potential to grow is to look at inflation in non-traded sectors which tend to have a strong relationship with potential growth. Non-traded sectors consist goods and services wherein international trade—exports and imports—plays a relatively minor role, therefore, their prices are influenced more by domestic capacity and productivity. Non-traded sectors in the Indian economy include agriculture, construction and services (excluding communication). In 2006-07, the second consecutive year when GDP growth crossed 9%, non-traded inflation also crossed 6% and then surged to nearly double-digit levels for the next two years. Such high inflation suggests that demand in the non-traded sectors was consistently surging ahead of the supply capacity. </div><div>This was in stark contrast with inflation in traded sectors, namely, manufacturing and communication, where imports could add to domestic capacity and also raise the efficiency of domestic producers. In these sectors, inflation stood at 4.4% in 2006-07 and declined to an average of 3.6% in the following two years.</div><div>An economy’s potential to grow is determined by the quantity of capital and labour and their productivity. This is influenced by provision of quality infrastructure, education and good governance, among other factors. The reforms undertaken in the 1990s raised India’s corporate investment and increased capital and labour productivity in subsequent years. In the second half of 2000s, however, just as growth picked up above 9%, skilled labour began to become scarce. The extended working hours for skilled people who were already employed, are likely to have adversely affected productivity growth subsequently, while salaries rose sharply to reflect skill shortage. </div><div>At the other end, a large section of labour remained trapped in agriculture as manufacturing, saddled with rigid labour laws and insufficient physical infrastructure, failed to create enough jobs. In the absence of sustainable job creation, resorting to income transfer schemes in rural India raised demand, especially for food products. With agriculture productivity remaining stagnant, higher food inflation in turn became a norm. </div><div>This evidence suggests that earlier projections which had pegged India’s potential growth around 8.5% were an overestimation, inconsistent with inflation of 4-4.5%. In fact, it is nearly impossible to raise India’s potential growth rate above 7.5% without raising average agriculture growth. </div><div>While RBI recently lowered the repo rate with an aim to stimulate investment, the central bank is well aware that changes in interest rates have only a temporary impact on fixed investment and little impact on availability and quality of labour. A sustainable increase in the quantity and quality of capital and labour, especially in the non-traded sectors of the economy, requires government policy support; in its absence, India’s potential growth rate is unlikely to improve. </div><div><i>Vidya Mahambare, is director and senior economist, Crisil.</i></div><div><i>Comments are welcome at theirview@livemint.com</i></div> http://www.livemint.com/2012/05/24200904/Disobey-this-command.html Self-referential sentences are intriguing and maybe you’ll make up your own. But aside from that, what’s special about them? A Matter of Numbers | Dilip D’Souza Thu, 24 May 2012 14:39:00 GMT c8bae3b8-a5ac-11e1-b454-000b5dabf613 http://www.livemint.com/c8bae3b8-a5ac-11e1-b454-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/c8bae3b8-a5ac-11e1-b454-000b5dabf613_300_200E09Vpf.gif <div>This sentence has 13 words, one comma and a fullstop at the end.</div><div>Go ahead, check it, I’ll wait.</div><div>All correct, I trust? Statements like that are called “self-referential”, meaning they speak about themselves. Like this sentence you are reading right now. In fact, this is a self-referential sentence too. </div><div>They are a novelty for a while, but self-referential sentences that say something straightforward about themselves quickly lose their charm. I mean, isn’t this one dull? So try something that’s not quite so straightforward.</div><div>Like this: This sentence contains exactly thiree mistooks.</div><div>What’s the third mistake? How will you correct it?</div><div>Or try this: This sentence is false.</div><div>What do you make of that? If it’s true, it’s false. But if it’s false, it’s true. An innocent sentence, and it’s diabolical!</div><div>The ancient Greeks, those constant philosophers, grappled with this dilemma. It came to them via a man from Crete named Epimenedes, who once said: All Cretans are liars.</div><div>Not very different from things many of us say without thought. Except that this is really a variant of “This sentence is false.” For remember, Epimenedes was himself a Cretan. If he’s telling the truth, his pronouncement is false, because at least one Cretan—Epimenedes himself—tells the truth. But if his pronouncement is false, he’s a liar, and voila, the pronouncement is true again.</div><div>In its very statement, Epimenedes’s pronouncement contradicts itself.</div><div>So they’re intriguing and maybe you’ll make up your own. But aside from that, what’s so special about self-referential sentences?</div><div>One answer to that involves Kurt Gödel, arguably the most influential mathematician of the 20th century. In 1931, Gödel published a paper called <i>On Formally Undecidable Propositions of Principia Mathematica and Related Systems</i>. What’s now called his “incompleteness theorems” challenged basic assumptions of logic and mathematics and greatly shaped modern scientific thought. Awarding Gödel an honorary degree in 1952, Harvard University called his 1931 work one of the most important modern advances in logic.</div><div>The fascinating thing about the incompleteness theorems is that it is in effect a mathematical translation of what Epimenedes said.</div><div>A little background here. In a science like astronomy, we observe celestial phenomena (like the Doppler shift of galaxies) and use them to build theories (the Doppler shift tells us the age of the universe, see my earlier column <i>Night Shift</i>). This is different from geometry, which is founded on certain fundamental axioms. Like: any two points can be joined by a straight line. Or like: all right angles are equal.</div><div>From these axioms, we derive logically, step by step, the whole edifice of geometry. The ancient Greek mathematician Euclid pioneered this “axiomatic method”, using it to develop the complex and evolving science we know as geometry today. And this idea—that a few axioms underpin the logical structure of a system like geometry—is one that thinkers throughout history have found seductive, alluring. Here was scientific knowledge and method at its best, they thought: a spare base of axioms, married to elegant, inexorable logic. Naturally, they wondered if other branches of mathematics were similarly constructed. By the early 20th century, there was a general belief that each branch had a set of basic axioms that were enough to deduce all theorems in that branch. Just as the Greeks had done so ingeniously for geometry.</div><div>Unfortunately, Gödel came along. His 1931 paper showed this belief up as the pleasant pipe dream it was. There are limits to the axiomatic method, he said. For even as “simple” a mathematical system as arithmetic and numbers, it is impossible to find a sufficient set of fundamental axioms. But going further, Gödel also showed that axiomatic systems that use logic eventually cannot be logically consistent. Eventually the logic itself runs into logical contradictions.</div><div>By their very definition, such systems will have contradictions. Are you beginning to see a connection to Epimenedes?</div><div>Of course, I will need extensive mathematical training to even begin to understand Gödel’s reasoning. But the essence of his incompleteness theorems is this: in any axiomatic system, it is logically possible to construct a statement that says “This statement cannot be proved” (compare to “This sentence is false”). Such a statement can be proved if, and only if, its opposite can also be proved.</div><div>You see the paradoxes. “All Cretans are liars” is true only if at least one Cretan, Epimenedes himself, tells the truth. But that makes it false. By obeying “disobey this command”, you disobey it. If “this statement cannot be proved” can be proved, it cannot be proved.</div><div>Gödel arrived at the only possible conclusion: the axioms of logical systems are forever incomplete. Mathematics is essentially incomplete.</div><div>The computer scientist Douglas Hofstadter explained: “Somehow the full power of human mathematical reasoning eludes capture in the cage of rigour.”</div><div>Now Epimenedes could never have imagined his link through the centuries to Gödel. I know that last sentence is true. </div><div>But I also know this one says nothing at all.</div><div><i>Once a computer scientist, Dilip D’Souza now lives in Mumbai and writes for his dinners. A Matter of Numbers will explore the joy of mathematics, with occasional forays into other sciences. Comments are welcome at dilip@livemint.com</i></div><div><b>Also Read | </b><a href="http://www.livemint.com/dilipdsouza" target="_blank">Dilip D’Souza’s previous columns</a></div> http://www.livemint.com/2012/05/23164203/OECD-mediumterm-outlook-point.html Planning Commission deputy chairman Montek Singh Ahluwalia believes India’s potential growth rate is around 8-9% Capital Account | Manas Chakravarty Wed, 23 May 2012 17:00:00 GMT 586b629c-a4bf-11e1-9a22-000b5dabf613 http://www.livemint.com/586b629c-a4bf-11e1-9a22-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/586b629c-a4bf-11e1-9a22-000b5dabf613_300_200E09Vpf.gif <div>When will we get back to the 9% plus growth rates notched up a few years back? The government believes we’ll be able to do it soon. Planning Commission deputy chairman Montek Singh Ahluwalia believes India’s potential growth rate is around 8-9%. Others peg it lower, but believe that, given economic reforms and the right policies, we’ll be able to get back to a high rate of growth.</div><div><div class="dvbxImg"><img src="C45C138C-987D-423E-B0CF-FD7222BA2572" alt="A file photo of Planning Commission deputy chairman Montek Singh Ahluwalia." title="A file photo of Planning Commission deputy chairman Montek Singh Ahluwalia." height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">A file photo of Planning Commission deputy chairman Montek Singh Ahluwalia.</div></div>Given these varied opinions, it’s interesting to see what the Organisation for Economic Co-operation and Development (OECD), the rich countries’ club, has to say of India’s economic growth in its recently published Economic Outlook. It estimates real GDP growth this fiscal at 7.3% and projects higher growth next fiscal at 7.8%. That might look very good in view of the current climate of pessimism, but it’s worth remembering that only last November, the OECD’s Economic Outlook was projecting growth at 7.5% for FY12 and 8.4% for FY13. </div><div>The OECD has become gloomier about the country’s growth prospects. It’s also interesting that the growth prediction is being toned down at a time when its projections for global growth are more or less the same as they were last November. Global GDP growth is now estimated by the OECD at 3.4% this year and 4.2% in the next. Last November, the projections were 3.4% for this year and 4.3% the next. That suggests the OECD believes the reason for slower growth in India is due to its own policy bungling rather than the global turmoil.</div><div><b>Also See | </b>Potential real GDP growth (<a href="http://dl.dropbox.com/u/5973996/Users/Pooja/G-Gdp%20growth.pdf" target="">PDF</a>)</div><div>It isn’t just India whose growth prospects have been scaled down. The outlook for Europe, of course, has been revised downwards, but that’s hardly a surprise. China’s GDP growth projections too have been pared. In contrast, the US economy is expected to manage a growth rate of 2.4% this year, up from last November’s forecast of 2%. These projections are far from being sacrosanct and will very likely change as the year goes on, but what’s interesting is what they imply. There seem to be several underlying assumptions. The most important one seems to be that the current crisis in Europe will fade away, just as it did last year or the year before that. The attitude is we have seen it all before: the problem in Greece comes to a boil, contagion affects the region’s bond markets, risk aversion rises across the world, Europe’s political leaders cobble together a leaky rescue package, the European central bank loosens its purse strings, the temperature comes down and the markets soar on a surge of relief. The crisis is defused for the moment, although it continues to simmer. The second assumption is that the US recovery is sustainable, which means that the so-called “fiscal cliff”—spending cuts and tax hikes due next January in the US—does not happen and the politicians there find ways and means to extend the fiscal stimulus. To be fair, the OECD has warned that these cutbacks could derail the recovery. And the third assumption, a big one, is that the Chinese economy recovers from its slowdown next year.</div><div>But while the OECD is optimistic about an early recovery in the short term, consider what it has to say about the medium-term prospects for the world economy. It forecasts that potential world GDP growth will increase from 2.7% during 2001-07 to 3.4% between 2012 and 2017. However, here’s the bad news—the OECD says India’s potential growth, which averaged 7.4% per annum during 2001-07, will be lower at 7.2% during 2012-17 and will fall further to 6.5% per year between 2018 and 2030. China’s slowdown will be even more drastic, as the table shows. The rationale is simple—as rapidly growing countries like China and India catch up with the advanced economies in technology and productivity, their growth rates slow. The OECD projections imply that the rates of growth of 9% plus that India had for a few years may not be possible in future. </div><div>But then, China had a long period in which it managed to notch up double-digit rates of growth. Why then won’t India be able to achieve the same high growth rates during the process of catching up? The assumption seems to be that the old paradigm of leveraged consumption growth in the advanced countries leading to high rates of growth in exports from the developing countries may no longer be as powerful a force as it used to be.</div><div>Moreover, many of the assumptions being made by the OECD are extremely optimistic. Experience has shown that any accord in Europe will be a mere band-aid, which will in no way solve the underlying problem. Indeed, things are now taking a dangerous turn in Europe with the revival of ultra-nationalist groups. </div><div>Chinese growth too is likely to stay subdued as its economy makes the difficult transition from relying on government investment for growth to banking on domestic consumption. Consider the historical example of Japan, another economy that relied on investment to drive growth. </div><div>And although there are some indications that bank credit is once again flowing to households in the US and the deleveraging process is almost over, it’s very unlikely that leverage will go back to earlier levels. All these trends point to a long period of lower growth for the world economy. The heady growth of 2004-07 may be relegated to the realms of nostalgia.</div><div><i>Manas Chakravarty looks at trends and issues in the financial markets. Comment at capitalaccount@livemint.com</i></div><div><i>Graphics by Yogesh Kumar/Mint</i></div><div><b>Also Read | </b><a href="http://www.livemint.com/articles/keywords.aspx?kw=Capital+Account" target="">Manas Chakravarty’s earlier articles</a></div> http://www.livemint.com/2012/05/23215415/UPA8217s-third-anniversary.html A poker faced, mostly silent Prime Minister is not great for conveying that the government is in a dynamic mode Talking Media | Sevanti Ninan Wed, 23 May 2012 16:24:00 GMT 497d0daa-a4f4-11e1-9a22-000b5dabf613 http://www.livemint.com/497d0daa-a4f4-11e1-9a22-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/497d0daa-a4f4-11e1-9a22-000b5dabf613_300_200E09Vpf.gif <div>Don’t let the indignation over curtailed free speech fool you: journalists and commentators in this country still have the best jobs. The government has to actually deliver, the media only has to sit in judgement, with or without some homework done. And it is free to be rude. On Tuesday morning, a paper was suggesting that the Prime Minister and his colleagues were too old to deliver effectively and should call it a day. On Tuesday night a TV channel was suggesting that the Prime Minister was too silent (“anyone can take snipes at him and he will not respond”) and that he was not “getting enough support from his political masters”. Note the sneering plural, presumably that includes by implication Rahul Gandhi. After which the news anchor suggested that UPA II had at the end of its third year a media management problem.</div><div><div class="dvbxImg"><img src="514827EB-90D9-4039-8DD1-B7BE5ABF3313" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>Poor government performance and continuing corruption are always good news for our business, particularly when there is lots of competition. You sell more when you holler more. Wednesday morning brought another scam headline derived from a Comptroller and Auditor General report, this time on airport modernization. When the media is doing its job—checking out government implementation, using the Right to Information Act enthusiastically, digging around for discomfiting scoops—it is making life more difficult for the government of the day. If the government were doing better, it would make life harder for the media!</div><div>So, does the United Progressive Alliance (UPA) have a governance problem or a poor communication and negative image problem as those dissecting the Prime Minister’s celebratory dinner seemed to suggest? Communication shapes image. A poker faced, mostly silent Prime Minister is not great for conveying that the government is in a dynamic mode. If this PM is silent it is a problem, if he speaks it is a problem, according to his critics.</div><div>And when he and his cabinet are not speaking they are substituted by Renuka Chowdhury and Manish Tewari in TV studios. The UPA displays a special genius in its choice of spokespersons. If you are politically on the back foot, at least on an occasion like the government’s third anniversary, shouldn’t you field your more articulate ministers on television and not treat it as business as usual?</div><div>But the flip side of the communication-is-important argument is this. Do Arun Jaitley’s frequent displays of terrific oratory in the Rajya Sabha suggest that the Bharatiya Janata Party would be able to govern better than the UPA? Barack Obama has not lost his oratory but will it ensure his re-election? And given the sheer incoherence of what Mamata Banerjee said before she disentangled herself from her mike and walked off a TV show, is communication by itself a virtue?</div><div>More likely, acts of governance or non-governance shape the government’s communication, or the images of itself that it generates. Lets just take some recent free speech-related examples.</div><div>The Central Bureau of Investigation’s actions against <i>Sakshi</i> newspaper in Andhra Pradesh created a storm of negative publicity and turned a substantial section of the media community against it. Was attaching the media properties for an investigation related to Jagan Mohan Reddy’s non-media businesses an act of wise governance in the run-up to by-elections in June? On Wednesday, the Andhra Pradesh high court ordered the freeing up of the accounts, putting the government on the back foot.</div><div>Then there is the handling of the cartoon in a National Council of Educational Research and Training textbook by hastening to knock it off. The “60 years of Parliament debate” in the Rajya Sabha began with Bahujan Samaj Party supremo Mayawati professing Dalit hurt and Kapil Sibal hastening to assure removal of the offending cartoon. No stirring oration quoting Jawaharlal Nehru, B.R. Ambedkar and others on free expression, suggesting a more nuanced reading of the cartoon, describing other cartoons in the same chapter lampooning Nehru and suggesting a wider debate on the subject. The decision to ban was bad and the communication on it was bad. A newspaper report which said that Sonia Gandhi was heard saying to her partymen in Parliament that the whole textbook should be dropped does not help the UPA’s image either.</div><div>Would communication alone have saved the day in the above cases? The third instance had to do with Meenakshi Natarajan introducing legislation that had the media pouncing upon the Congress again. There, better flock management would have helped.</div><div>Meanwhile, others are seizing the media initiative to make it look like somebody cares about this benighted land. Gritty problems of human rights (surely “social problems” is too mild a word for life-threatening bestiality) are being revived in the public sphere with a rousing call to SMS activism courtesy a Bollywood star, a Rupert Murdoch-owned channel and Nita Ambani currently doing a Melinda Gates turn.</div><div>The television tear jerker has an otherwise inactive government scrambling to respond. The Congress government in Rajasthan has just announced the setting up of a number of fast-track courts to try suspicious cases of pregnancy termination. As Aamir Khan would have said, <i>Wah! Kya baat hai</i>!</div><div><i>Sevanti Ninan is a media critic, author and editor of the media watch website </i><a href="http://thehoot.org/web/home/index.php" target="_blank">thehoot.org</a>. <i>She examines the larger issues related to the media in a fortnightly column.</i></div><div>Respond to this column at <i>feedback@livemint.com</i></div> http://www.livemint.com/2012/05/23210309/Drawbridge.html Drawbridge Drawbridge Wed, 23 May 2012 15:33:00 GMT 9aef82dc-a4ed-11e1-9a22-000b5dabf613 http://www.livemint.com/9aef82dc-a4ed-11e1-9a22-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/9aef82dc-a4ed-11e1-9a22-000b5dabf613_300_200E09Vpf.gif <div><div class="dvbxImg"><img src="2A09EB78-6B5C-4A11-A445-8DDA416DEF39" alt="Jayachandran/Mint" title="Jayachandran/Mint" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Jayachandran/Mint</div></div>Drawbridge</div> http://www.livemint.com/2012/05/23205605/UPA-II-waiting-for-a-crisis.html Intervention to protect the rupee will be meaningful only if accompanied by macroeconomic, regulatory measures The Other Side | A.V. Rajwade Wed, 23 May 2012 15:26:00 GMT 485f6a9c-a4ec-11e1-9a22-000b5dabf613 http://www.livemint.com/485f6a9c-a4ec-11e1-9a22-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/485f6a9c-a4ec-11e1-9a22-000b5dabf613_300_200E09Vpf.gif <div>The Prime Minister hosted a dinner earlier this week and released a report lauding the achievements of UPA II to mark its anniversary. The other side is an out-of-control fiscal deficit, slowing growth, stubbornly high and rising inflation, a lack of job creation and growing external imbalance. In fact, as the rupee keeps falling despite some central bank measures, I have started wondering whether we are heading for a balance of payments crisis and what, if anything, can be done to avoid it. It was amusing in this context to read a report (<i>Business Standard</i>, 18 May) to the effect that the finance ministry is “pitching” for higher ratings from Fitch. Clearly, the way policymakers look at the situation and other analysts do is as wide as it can be.</div><div><div class="dvbxImg"><img src="3F3E9D7D-B86E-41AB-A2CB-EF49DC12E478" alt="Photo: PTI" title="Photo: PTI" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Photo: PTI</div></div>There are those who argue that the problem of capital inflows not adequate enough to balance the demand and supply in the market is a cyclical one, not a structural one, caused by the crisis in the euro zone. Official spokesmen also blame the global scenario and there seems to be considerable complacency on the issue. The thinking seems to be that we still have sufficient stocks of reserves to ride out any cyclical problem and, therefore, can continue to live beyond our means, incurring fiscal/current account deficits.</div><div>In reality, the problem seems to be structural, not cyclical, and the root cause domestic. Given the floating exchange rate policy we seem to have followed for the last few years, the rupee had appreciated significantly in nominal and, much more so, in real terms between March 2009 and mid-2011 on top of a sharp earlier appreciation in 2007-08. An overvalued currency not only diminishes the competitiveness of the tradables sector of the economy, but also increases consumption thus reducing savings, both leading to higher deficits on the current account. (The external deficit also reduces the gross domestic product, or GDP, compared with its potential at a reasonably competitive exchange rate.) No wonder the current account deficit has widened from less than $10 billion in 2006-07 to perhaps $70 billion-plus in 2011-12 and led to a sharp rise in the net external liabilities of the economy. (We will have to wait for five weeks for the official data). While part of the reason could well be the rise in the price of both crude oil and gold, there has also been a huge growth in manufacturing imports, another manifestation of the uncompetitiveness of the exchange rate.</div><div>Is putting restrictions on gold imports a solution? To my mind, the answer is in the negative given our hunger for gold, this would merely drive gold imports and inward remittances into the illegal smuggling/hawala market, leaving the current account unaffected as we experienced for 40 years.</div><div>Is larger and more determined Reserve Bank of India intervention a possible solution to the continued slide on the assumption that at the present exchange rate, the tradable sector is now more competitive in the global market and the deficit will correct itself in 2012-13? But exchange rate changes affect trade numbers with a lag. Again, lower gold and oil prices now prevailing may help, but services export growth is falling. Shutting of mines (coal and ore) would reduce exports and increase imports. Flip-flops on agricultural exports (cotton and sugar) only damage our reputation as a reliable trading partner. Overall, it is difficult to be optimistic about an improvement in the current account in 2012-13.</div><div>In any case, some stability in the exchange rate would be needed if discretionary capital inflows are to resume. However, if the problem is structural, as I believe it to be, then intervention to hold a level would merely waste reserves which are already less than the external borrowings. It would be meaningful only if it is accompanied by various macroeconomic and regulatory measures, including the following:</div><div><b>•</b> A mid-year budget cutting the various subsidies and deficit sharply, not just cosmetic austerity measures announced by the finance minister, increasing domestic prices of petro products may also help reduce consumption, waste, smuggling and imports;</div><div><b>•</b> Acceptance of a higher inflation for 2012-13;</div><div><b>•</b> Giving up the policy of a floating exchange rate and manage the real external value of the rupee in a manner suited for an economy producing non-differentiated goods and services with the objective of bringing down the deficit to say 1% of GDP in three years. This would also need a more rational index model than the bilateral trade-weighted real effective exchange rate;</div><div>Much is also needed to be done on our foreign direct investment policy, goods and services tax, environmental regulation, tax laws and infrastructure. Can we not do these things voluntarily instead of waiting for a crisis? We obviously can, but one is not very hopeful in the absence of a political/governmental leadership capable of “leading”, i.e., articulating, arguing, convincing their partners and opponents of the logic of the proposals. Policymaking has been reduced to the lowest common denominator—it is so comfortable to withdraw, to backtrack, to blame things on the coalition dharma, on global economy, etc.</div><div><i>A.V. Rajwade is a risk management consultant, columnist and author.</i></div><div><i>Comments are welcome at theirview@livemint.com</i></div> http://www.livemint.com/2012/05/23201956/Ourview--India-needs-an-empow.html A voluntary compact of the kind the committee imagines is only possible in a system where political parties are willing to recognize the limits of what can and cannot be done in the name of political competition Wed, 23 May 2012 14:49:00 GMT 865f64f0-a4e7-11e1-9a22-000b5dabf613 http://www.livemint.com/865f64f0-a4e7-11e1-9a22-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/865f64f0-a4e7-11e1-9a22-000b5dabf613_300_200E09Vpf.gif <div>In most “newly democratized” countries in the world, democracy often gets derailed after some time. One reason for this regression is the absence of an independent election regulator that can enforce its writ on political parties. In this respect, India has been lucky for long: the Election Commission of India (EC), backed by empowering constitutional provisions, has provided a level playing field for all parties.</div><div><div class="dvbxImg"><img src="6122DEE9-DF52-42C9-84B9-315E7D712AE7" alt="Shyamal Banerjee/Mint" title="Shyamal Banerjee/Mint" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Shyamal Banerjee/Mint</div></div>The model code of conduct (MCC)—which restricts existing governments in the states that are close to polls from using state machinery to their advantage and also has other provisions—is an important tool in letting EC do a good job. It is also well known that political parties and governments feel “constricted” by this key legal instrument. On Monday, the parliamentary standing committee on personnel, public grievances, law and justice tabled a report that argues for a legal “relook” at MCC.</div><div>The committee’s case is simple: MCC is “voluntary” in nature and its incorporation in the Election Symbols (Reservation and Allotment) Order, 1968, dilutes this “voluntariness”. Under these provisions, EC has the power to suspend or withdraw recognition to political parties in case the code is violated. This lies at the heart of the dispute.</div><div>The committee is, of course, wrong. The rough and tumble of Indian politics is well known. Not only is there keen competition between political parties but very often there are instances of malfeasance in efforts to win elections. There are a number of examples of this problem and they need not detain us. At the end of the day, it is the whip that EC wields that keeps parties in line. Now it is a truism that what is good for the whole may not be good for the parts and so it is with our political system. Incumbents in office certainly always desire an edge over their rivals; those trying to get in are apt to use whatever resources they can muster. If, in these conditions, MCC is diluted in any manner, it will not affect one party or two, it could endanger the fairness of the electoral system.</div><div>A voluntary compact of the kind the committee imagines is only possible in a system where political parties are willing to recognize the limits of what can and cannot be done in the name of political competition. This is not the case in India. And one does not require detailed proof for this: everyday occurrences in the political arena are sufficient illustrations as to why EC needs to remain empowered.</div><div></div><div><i>Should the model code of conduct be amended? Tell us at views@livemint.com</i></div> http://www.livemint.com/2012/05/23201241/Ourview--A-pipeline-for-prosp.html The government’s resistance to eliminating GUP is born of its attempt to keep the fertilizer and power subsidy bills in check Wed, 23 May 2012 14:42:00 GMT 91b9c9cc-a4e6-11e1-9a22-000b5dabf613 http://www.livemint.com/91b9c9cc-a4e6-11e1-9a22-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/91b9c9cc-a4e6-11e1-9a22-000b5dabf613_300_200E09Vpf.gif <div>The Turkmenistan-Afghanistan-Pakistan-India, or TAPI, gas pipeline deal that holds the promise of supplying natural gas to India in 2016 can potentially help eliminate the flaws in the domestic gas pricing policy. If only for that reason, it is a goal worth pursuing.</div><div><div class="dvbxImg"><img src="875D76C7-A193-4496-9D26-D05C7F119E4E" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>Currently, there are two “flavours” of gas supplies in the country; not only are their origins different, but also their pricing regimes. Domestically produced gas, which accounts for around 72% of total supplies, is sold, for the most part, through two government-controlled price regimes while the imported variety through the liquefied natural gas (LNG) route is free of any such shackles. As a result, LNG is priced at $11-14 per mmBtu of gas while domestic gas hardly reflects the global pattern, selling on an average between half and one-third of it.</div><div>A closer look at the domestic production reveals that close to 60% of it is sold at government-administered rates forced down the throat of state-owned producers ONGC Ltd and Oil India Ltd. Another 17% is sold through contracts that were arrived at through price negotiations in the 1990s. The remaining 23% is sold through a recent exploration policy.</div><div>It is this 23% basket that needs to grow and is key to the future. For it nets domestic exploration efforts that can enhance energy security both in terms of price and availability. However, the gas utilization policy (GUP) is a retardant that needs to be done away with. After all, imported LNG is not subject to this restriction. Private investors need to be assured that they can earn market prices for their efforts in scouring the earth’s surface to find oil and gas.</div><div>So, how can TAPI supplies make a difference?</div><div>The government’s resistance to eliminating GUP is born of its attempt to keep the fertilizer and power subsidy bills in check. With domestic production estimates pared, the proportion of “cheap gas” in the supply pool will sharply reduce in the coming years. The TAPI supply is expected to be priced at $10-11 per mmBtu. This will significantly augment the gas supply available to India. This serves two purposes. First, it acts as a check against LNG deals that are struck at runaway prices. Second, by diluting the cheap gas pool, it makes it “easier” for the government to usher in open market price discovery for gas that is domestically discovered.</div><div></div><div><i>What should India pursue: the TAPI pipeline or gas supplies from Iran? Tell us at views@livemint.com</i></div> http://www.livemint.com/2012/05/23200525/The-european-onion.html The democratic deficit is what rankles most Europeans and it is perhaps apt that Greece is shouting the loudest Here, There, Everywhere | Salil Tripathi Wed, 23 May 2012 14:35:00 GMT 438b7f58-a4e5-11e1-9a22-000b5dabf613 http://www.livemint.com/438b7f58-a4e5-11e1-9a22-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/438b7f58-a4e5-11e1-9a22-000b5dabf613_300_200E09Vpf.gif <div>The slow-motion destruction of the Greek economy, as if foretold in a Delphic oracle, looks like a scene from a Greek tragedy, with the chorus warning repeatedly: “O Wise Kings and Queens, you can’t have a currency without commitment, a currency only for convenience, a currency without an army.” For the euro, a bold experiment in creating a monetary union without a political union is a unit for transaction; nobody feels passionate about it.</div><div><div class="dvbxImg"><img src="7D49B290-94AD-415E-9CFF-1B349526533B" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>That lack of passion is the consequence of its origins: Europe had too much nationalist passion, the outcome of which was a global conflict, twice, in the last century. To eliminate its recurrence, the European Union became an elite-driven project, with sophisticated urban and urbane intellectuals who, unwilling to repeat the blood-splattered history of the continent, sought inspiration from the continent’s trading instincts, assuming that nations that trade with one another, with interlinked economies, are less likely to go to war with one another. But deeply suspicious of creating a superstate, the continent diffused power among a range of actors —the commission, the parliament, the presidency, the court of justice, the central bank, the union itself—with no controlling authority. While Henry Kissinger, the former US secretary of state, may not have really asked, “If I want to call Europe what number do I dial?” that pithy question made the telling point: who’s in charge?</div><div>The Greek collapse bears this out. Are the tax-avoiding, beach-loving Greeks responsible for their plight? Is it their politicians? Are European bureaucrats in Brussels responsible? Is it the European Central Bank? Or is it all German Chancellor Angela Merkel’s fault?</div><div>When investors lose confidence in an economy, its currency collapses. Its central bank can raise interest rates or cut money supply to tame inflation. When investors trust an economy, the currency appreciates as people abroad buy assets denominated in that currency and importers rejoice. Like other nations, Greece surrendered that flexibility when it traded the drachma for the euro.</div><div>And that was the problem: Being an elite-driven project, Europe’s politicians never really asked their people, collectively, how much power they’d like to cede to Brussels. The few times they did, the voters usually rejected them and so they changed the rules and went to the voters one more time, the second time, often getting grumbling approval.</div><div>That democratic deficit is what rankles most Europeans and it is perhaps appropriate that Greece, which often gets credited for giving the gift of democracy to the world, is shouting the loudest. The well-heeled, well-travelled and sophisticated multilingual elite wants a closer union. They cross the borders often and don’t like waiting in immigration queues; they like cheaper roaming charges for their cellphones because they are roaming the continent all the time; they want high-speed trains and road links subsidized by taxpayers to transport them from one capital to another; they glide by the countryside, where voters view the continent’s unification very differently. This is the elite that skis in the Alps, spends summers in St Tropez, is familiar with the wines of the Po Valley, the cuts of German meat, and the 246 varieties of cheese which infuriated Charles de Gaulle so much that he thought it made his France ungovernable. Dig deeper and a different Europe emerges where people have old memories, remembering conflicts long consigned to the past. (A Dutch cab driver, when asked how come his English was so good, told my son once: “Because we dislike the Germans more.” Thomas Mann understood that; he once wrote: “We do not want a German Europe, but a European Germany.”)</div><div>For countries rally round their flags and fight wars. Their resounding anthems rouse their peoples’ spirits. Their passports provide their citizens with a sense of belonging in an increasingly globalized world. And the money their mints print asserts their identity and power in the global economy. By giving up their currencies, the countries wanted to acknowledge that their interests were intertwined and enmeshed, making it easier for accountants, but they also gave up the right to spend and save the way they want.</div><div>But despite unification, atavistic longings survive. Belgium and Spain struggle with separatist tendencies; to Britain’s cup of Irish woes add Scotland, whose politicians appear to think being part of Europe is better than being part of the UK. European utopianists have viewed the new European identity as one based on Kantian “pacific federation”. So long as that dream is elite-led and lacks people’s consent, euro sceptics will point out the underlying Hegelian disdain for the masses.</div><div>The concern over German exceptionalism, or Sonderweg, is real, given the history—think of the Greek cartoons showing Merkel as a Nazi officer. But then reflect on the post-war fact, that the Bundesbank and the Deutsche Mark were two spectacular successes of that period. Writing about Indonesia, Benedict Anderson termed nations “imagined communities”. At times like these, the European Union often looks like one.</div><div><i>Salil Tripathi is a writer based in London. Your comments are welcome at salil@livemint.com</i></div><div><b>Also Read |</b><a href="http://www.livemint.com/saliltripathi" target="_blank">Salil Tripathi’s earlier columns</a></div> http://www.livemint.com/2012/05/23163413/Views--Beyond-Harry-Potter.html J.K. Rowling’s new novel will almost certainly be the biggest selling fiction title of the year. All this, of course, will not have anything really to do with its quality Sandipan Deb Wed, 23 May 2012 11:04:00 GMT 94ff4028-a4c6-11e1-9a22-000b5dabf613 http://www.livemint.com/94ff4028-a4c6-11e1-9a22-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/94ff4028-a4c6-11e1-9a22-000b5dabf613_300_200E09Vpf.gif <div>The amazon.com page on J.K. Rowling’s first adult novel, The Casual Vacancy, carries the following plot synopsis: “When Barry Fairweather dies unexpectedly in his early forties, the little town of Pagford is left in shock. Pagford is, seemingly, an English idyll, with a cobbled market square and an ancient abbey, but what lies behind the pretty façade is a town at war. Rich at war with poor, teenagers at war with their parents, wives at war with their husbands, teachers at war with their pupils … Pagford is not what it first seems. And the empty seat left by Barry on the town’s council soon becomes the catalyst for the biggest war the town has yet seen. Who will triumph in an election fraught with passion, duplicity and unexpected revelations?”</div><div><div class="dvbxImg"><img src="ABE88F12-B740-4440-A3A3-C395F3E178BE" alt="A file photo of J.K. Rowling." title="A file photo of J.K. Rowling." height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">A file photo of J.K. Rowling.</div></div>That is all that is known about Rowling’s first non-Harry Potter creation, other than the fact that it will be available in print, e-book and audiobook format on 27 September, and that her publisher has referred to the tale as “blackly comic”. Obviously, all details will be guarded more fiercely than a nuclear arsenal till the date of release, and millions of copies will be bought. For all I know, millions of copies have already been pre-ordered. It will almost certainly be the biggest selling fiction title of the year. All this, of course, will not have anything really to do with the quality of the novel.</div><div>The Harry Potter books, which have—at last count—sold more than 450 million copies in 75 languages, are essentially cleverly put-together puzzles, and the first three ones in the series are certainly as gripping as any children’s book ever written (The later ones got unnecessarily gargantuan in size as Rowling became more and more obsessed with the arcana and details of the world she had created). Literary value? Well, as one British commentator recently pointed out, many of us can still quote a few phrases or lines from Alice in Wonderland which we read in our childhood, but can anyone recall one sentence from the several thousand pages Rowling devoted to Harry? The Casual Vacancy, I don’t think, will turn out to be a serious contender for the next Man Booker Prize.</div><div>But what I guess it will have in abundance will be intrigue, selfish and petty-minded characters (all uniformly two-dimensional), and a lot of sadism. As a parent, I was alarmed at the amount of sheer cruelty—both physical and mental—that child readers were exposed to in the later Harry Potter books. Rowling is unlikely to moderate her impulses for adults. As I mentioned, the book has been called “blackly comic”. The “black” part I can understand all right, but I do not recall being aware of any sense of humour in the writer of the Harry Potter novels. Was there even a tinge of comic relief in the books? If so, I either missed it, or can’t remember. </div><div>Black comedies are tough to carry off. Even Evelyn Waugh, a master of the genre (Scoop, Decline and Fall, the Basil Seal novels), often ended up leaving the reader enraged rather than entertained by the unadulterated nastiness of his cynicism. Among more recent novelists, perhaps only Tom Sharpe managed to carry it off—horrendous deaths that are also hilarious, mishaps so grotesque that they are rip-roaringly funny. Will Self scales the peaks with some of his works, but some others are just plain disturbing. So I think it’s quite all right if I feel mildly scared of what Ms Rowling will find “comic”, given the sadistic streak that I seem to spy in her as a writer.</div><div>Of course, I shall read The Casual Vacancy, like everyone else will. I shall try to borrow it from some friend who’s bought it, though I fear I will end up buying it and reading it. I may not be able to escape the Incredible Marketing Hulk that is straining at its leashes, and whose rasping hot breath will become audible to us in another couple of months’ time. Agatha Christie spent a lifetime telling us what horrible secrets could lie at the heart of idyllic English villages. Now Rowling is having a go at that. The horrors she has shown herself capable of thinking up would possibly have frightened Christie, if she was alive. And all that was in an imaginary world. Rowling’s depiction of the real world can only be darker.</div> http://www.livemint.com/2012/05/23153617/Views--Are-Indian-companies-s.html Data from the so-called non-deliverable forwards (NDF) market suggests that it is not foreign speculation that has pulled down the rupee Sunil B.S. Wed, 23 May 2012 10:06:00 GMT 4dc33daa-a4c0-11e1-9a22-000b5dabf613 http://www.livemint.com/4dc33daa-a4c0-11e1-9a22-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/4dc33daa-a4c0-11e1-9a22-000b5dabf613_300_200E09Vpf.gif <div>Fifty six.</div><div>Wednesday saw the rupee touch that level against the US dollar, a new low. The official explanation has been that the Indian currency has been tumbling because of global risk aversion due to the continuing uncertainty in Greece. Others point to domestic problems such as the high current account deficit.</div><div><div class="dvbxImg"><img src="37358500-88F6-4745-866C-1C4863810D24" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>But is that all there is to the story? After all, neither the European crisis nor the large current account has come as a complete surprise. Even the decision by Standard and Poor’s to lower India’s outlook from stable to negative in April did not send the rupee hurtling down.</div><div>So what has happened? It is perhaps time to look at what is actually happening in the markets. A recent report by Credit Agricole, a French bank, uses data from the so-called non-deliverable forwards (NDF) market to argue that it is not foreign speculation that has pulled down the rupee, as was the case during the Lehman crisis. This is because there is very limited difference between Non Deliverable Forward (NDF) points and onshore forward points.</div><div>The NDF markets trade currencies like the Indian rupee that are not fully convertible. The NDF markets help global investors hedge their positions in currencies that do not offer forward markets for non-domestic players.</div><div>“The direct reason why the INR is where it is --- in free fall and at record lows --- is not so much due to India’s macroeconomic conditions or foreign speculation … What we found new was the sentiment on the ground, especially among corporates and FIs in Mumbai. We were struck by their degree of pessimism over the growth outlook, the quality of policymaking and the currency,” Daniel Kowalczyk, senior economist at Credit Agricole said in a recent note.</div><div>He argues that Indian companies are shorting the rupee as a result of their glum outlook. Their unhedged foreign debt “is exacerbating the situation as businesses will have to buy FX (foreign exchange) to meet their obligations, he adds.</div> http://www.livemint.com/2012/05/23135820/Views--India-and-China-a-tal.html The two giant Asian economies are slowing down, but China has more policy options than India has right now. Niranjan Rajadhyaksha Wed, 23 May 2012 09:19:00 GMT f13538ee-a4b1-11e1-9a22-000b5dabf613 http://www.livemint.com/f13538ee-a4b1-11e1-9a22-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/f13538ee-a4b1-11e1-9a22-000b5dabf613_300_200E09Vpf.gif <div>During the economic contraction that came in the wake of the North Atlantic financial crisis, both China and India successfully stimulated their economies by doing what they are best at. China used its banking system to spend on infrastructure projects. India used its budget to spur consumption.</div><div>The share of investment in Chinese gross domestic product shot up from 42% before the financial crisis to around 50% today, a level never seen in global economic history. China bears say that this massive capacity buildup has pulled down the return on capital and will eventually lead to a pileup of bad loans in the Chinese banking system.</div><div><div class="dvbxImg"><img src="A9AFF4FC-75C3-4C3E-AF33-FC9017F8BD85" alt="A shopkeeper does paper work in Beijing, China. (Reuters)" title="A shopkeeper does paper work in Beijing, China. (Reuters)" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">A shopkeeper does paper work in Beijing, China. (Reuters)</div></div>India has gone the other way. The steep increase in the revenue deficit of the government has crowded out investment spending by the private sector. The national investment rate in India has fallen by about three%age points of gross domestic product. Meanwhile, the consumption-led stimulus has fed the inflation problem.</div><div>The global economy is once again in trouble, and economic growth in both China and India is faltering. On Wednesday, the World Bank cut its forecast for Chinese economic growth this year to 8.2%. India is expected by other agencies to expand at an even slower pace, around 7% or so. Earlier this week, Morgan Stanley pegged the Indian growth rate for this year at 6.3%.</div><div>What happens now will be interesting to watch. China is already talking about a new stimulus. Wen Jiabao has called for policies to support growth. Citing a newspaper backed by the Chinese state, Reuters reported on Wednesday that China will fast-track approvals for new infrastructure projects. This could lead to a rerun on what happened in 2009, despite the fact that China needs to rebalance its economy towards more consumption.</div><div>The talk is India seems to be quite different. Finance minister Pranab Mukherjee set the cat among the pigeons in parliament last week, when he mentioned the A-word --- austerity. Spending cuts at this juncture will hurt growth even more, but the mess in public finances and high inflation could eventually force India to swallow the bitter medicine. The Manmohan Singh government is now boxed in, with a very high fiscal deficit giving it little scope to spend its way out of trouble while high inflation does not leave the Reserve Bank of India with much room for monetary stimulus.</div><div>China may falter, perhaps even end up with a hard landing, but there is little doubt that it has more options to fight the slowdown right now than India has. The mismanagement of the economy by the United Progressive Alliance government has left us with too few bullets to fire.</div> http://www.livemint.com/2012/05/22203231/Views--Rupee-on-a-slippery-sl.html In any current account deficit economy, the ability to finance the deficit by capital inflows is an important variable in determining the exchange rate Views Tue, 22 May 2012 15:02:00 GMT a6c6e672-a420-11e1-9455-000b5dabf613 http://www.livemint.com/a6c6e672-a420-11e1-9455-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/a6c6e672-a420-11e1-9455-000b5dabf613_300_200E09Vpf.gif <div>These are the days of the rupee’s slide. On Tuesday, the Indian currency plumbed another low of 55.47 against the dollar. It is unlikely that it will regain ground unless the government takes drastic measures to restore confidence in the Indian economy. The Reserve Bank of India (RBI) cannot do more than what it already has done.</div><div>There are two forces that are propelling the rupee down. At the moment, the demand for dollars is being fuelled by future/risk expectations of importers. Oil companies and domestic firms that are dependent on imports are covering their currency positions. They anticipate further erosion in the rupee’s value and, hence, an increase in their costs. Given that pricing power of these companies is limited at best, they stare at losses. Hence their rush for the greenback. </div><div>There are, however, deeper currents that are tossing the rupee around. In any current account deficit economy, the ability to finance the deficit by capital inflows is an important variable in determining the exchange rate. Currently, a mix of domestic and global factors has cast a shadow on India’s wherewithal to do so. The government clearly has taken a series of missteps and pays only lip service to the concerns of the markets. Globally, there is movement to other, more paying, markets such as those in South-East Asia and a flight of safety to the dollar. This is what happened on Tuesday after the rating agency Fitch downgraded Japan’s sovereign rating from AA to A+.</div><div><div class="dvbxImg"><img src="695BD622-03ED-4A1F-A56B-70ED31AFBCB2" alt="Shyamal Banerjee/Mint" title="Shyamal Banerjee/Mint" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Shyamal Banerjee/Mint</div></div>There are limits to what RBI can do. On the one hand, if it does not use foreign exchange reserves to stem the rupee’s decline, there is a risk that the exchange rate will spiral out of control in the face of adverse expectations. On the other hand, large-scale intervention will lead to doubt or even deterioration in the confidence that India can meet its short-term external obligations. This is RBI’s stated position and it has stuck to it. In any case, the corridor between these two positions is quite narrow. That explains the central bank’s “feeble” intervention in the currency market. Its other steps—such as asking exporters to convert 50% of their dollar holdings in the export earner’s foreign currency account and imposing limits on banks in currency futures and options—should be seen in this light.</div><div>The onus now is on the government to take corrective steps. It has to, without ado, raise fuel and fertilizer prices substantially, if not fully free these prices and let markets determine them. This, however, is only an interim solution. It needs to undertake structural reforms if India is not to head towards another crisis.</div><div></div><div><i>Has the rupee’s “floor” collapsed? Tell us at views@livemint.com</i></div> http://www.livemint.com/2012/05/22202144/Views--Google8217s-benefit.html Google seems to now argue, it is also a publisher who enjoys all the protections that US law guarantees publishers, especially under free speech norms Views Tue, 22 May 2012 14:51:00 GMT 6fbb8dc4-a41e-11e1-9455-000b5dabf613 http://www.livemint.com/6fbb8dc4-a41e-11e1-9455-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/6fbb8dc4-a41e-11e1-9455-000b5dabf613_300_200E09Vpf.gif <div>What, really, is Google’s search engine? On the one hand it could be seen as a conduit, harvesting and channelling information to users based on their search terms.</div><div>This is a position that Google has often taken when it needs to enjoy “safe harbour” protection. This protection, essentially, absolves information providers of liability for the actions of its consumers. Therefore, Google is not to blame if a user finds a recipe for a bomb through the search engine, or uses a Google service to upload material that violates copyright.</div><div>On the other hand, Google seems to now argue, it is also a publisher who enjoys all the protections that US law guarantees publishers, especially under free speech norms.</div><div><div class="dvbxImg"><img src="F0919349-EA77-44FB-A9C1-F8DA66D6C590" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>This week, <i>The New York Times</i> reported that Google had hired conservative blogger and law professor Eugene Volokh to publish a white paper that argues for Google search results to be considered as protected speech. In other words, Volokh suggests that Google has as much freedom to decide what search results to show, as <i>The New York Times </i>has to decide what news to carry on its pages.</div><div>Volokh’s fascinating paper makes Google’s position clear. The company wants it both ways: both to be seen as an objective utility and a subjective publisher. Volokh, understandably, doesn’t see a problem with this.</div><div>The lay reader will be forgiven for being slightly confused. How can Google simultaneously say that it should not be responsible for search results, but also say that it reserves the right to cherry-pick results? (This works for Google, of course. The former absolves it from prosecution for misuse and the latter from irate parties unhappy with their position in search results.)</div><div>Legal nuances of this document apart, the manner in which Google has sought to bulwark its position is interesting. A white paper by a popular blogger and legal expert occupies a middle ground between one of Google’s own company blogs and a terse legal defence to be used in courts.</div><div>But the gist of the paper seems anything but new. For long-term observers of Google’s operations and philosophical leanings Volokh’s paper seems to be yet another attempt from Google to say: “Give us the benefit of the doubt. We promise to do no evil.” The more Google seems to say that, the less believable it is beginning to sound.</div><div><i>Is Google trying to have its cake and eat it too? Tell us at view@livemint.com</i></div> http://www.livemint.com/2012/05/22200604/The-importance-of-Facebook.html Are the recent digital deals an advance sign of a Schumpeterian renewal of the global economy? Café economics | Niranjan Rajadhyaksha Tue, 22 May 2012 14:36:00 GMT 5b572e2c-a41b-11e1-9455-000b5dabf613 http://www.livemint.com/5b572e2c-a41b-11e1-9455-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/5b572e2c-a41b-11e1-9455-000b5dabf613_300_200E09Vpf.gif <div>Recent deals in the digital economy do not suggest that there is an economic crisis in many parts of the real world.</div><div>Earlier this week, Chinese online giant Alibaba paid Yahoo $7.1 billion to buy back a 20% stake that the American Internet firm had bought in 2005 for $500 million. The Facebook initial public offer closed last week, valuing the social networking firm in excess of $100 billion. A few days earlier, investors bought into social networking company Pinterest at a price that valued the company at $1.5 billion. Facebook itself had valued photo-sharing service Instagram at $1 billion, when it agreed to make the purchase in April; the start-up is now valued at over $1.2 billion because of the current market price of the 23 million Facebook shares that Instagram got in the cash-cum-stock-swap deal.</div><div>Bubble trouble? Such rich valuations will naturally bring back comparisons with the infamous dotcom mania of the late 1990s, when investors paid huge amounts of money for companies with no profits (and often with no hopes of profits), though the contemporary digital economy has many companies with proper cash flows, Google and eBay being cases in point. Concerns about a new bubble are genuine, for there are many deals that have ended badly. For example, media mogul Rupert Murdoch bought Myspace for $580 million in 2005, around the time Facebook started, but sold it for $35 million last year.</div><div><div class="dvbxImg"><img src="EAB12C7A-EAD1-40BC-9598-BBF5CC2FEAC2" alt="The Facebook logo is seen on a screen inside at the Nasdaq Marekstsite in New York. Reuters " title="The Facebook logo is seen on a screen inside at the Nasdaq Marekstsite in New York. Reuters " height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">The Facebook logo is seen on a screen inside at the Nasdaq Marekstsite in New York. Reuters </div></div>But there is another interesting possibility as well: Are these advance signs of a Schumpeterian renewal of the global economy?</div><div>In 1939, Joseph Schumpeter, the prophet of innovation, wrote a classic book on business cycles. He said in the book that economies expand and contract in long cycles that are linked to technological change. Schumpeter identified the main cycles from the Industrial Revolution till the time he was writing. The first wave of innovation was unleashed by the development of the steam engine and better textile technology. The second wave rode on the development of the railways and the growth of the iron and steel industries. The third wave was powered by electricity, the internal combustion engine and plastics. One could update this list with a fourth wave, focused on the development of semiconductors and computing, after the 1960s.</div><div>Is digital networking the fifth wave? Or could it be low-carbon technologies that will help create a new green economy? It is impossible to tell because technological forecasting is even more difficult than economic forecasting is. But the very idea that the global economy could be at the beginning of a new tech wave should spark off some discussion about the potential opportunities for India.</div><div>“Some economists have pointed out that long business cycles have coincided with these long waves of innovation. Each new innovation wave presents opportunities for upstarts to gatecrash into the big league. This is true for countries as much as it is for companies: periods of discontinuous change usually throw up new leaders. India could gain some advantage from the information technology age just as Japan could do in the age of automobiles and plastics,” this column had noted two years ago.</div><div>There is little the Indian government can do by way of explicit policy to encourage Indian companies to jump onto the next tech wave. It is a bit like what happened during the information technology wave—Indian entrepreneurs spotted the outsourcing opportunity and profited from it. A ministry was formed much later, and whether it has done much since then is a matter of debate.</div><div>The government could have a bigger role in indirectly supporting innovation—by rebuilding our universities, funding basic research, protecting intellectual property, providing good digital and physical infrastructure, and nurturing a vibrant start-up culture, for example. Much will depend on how new ideas are nurtured and how the entrepreneurs who will take these ideas to the market are not crushed by either government regulation or corporate monopolies.</div><div>Tired economies are often at technological turning points. In the 1930s, when England was trapped in the Great Depression, two perceptive writers pointed out how there was something new afoot. J.B. Priestley wrote in his book, <i>English Journey</i>, that there were now three Englands: the old rustic England, England of the Industrial Revolution that was in terminal decline and a new England that was American in inspiration. And George Orwell wrote in <i>The Lion and The Unicorn</i>: “The place to look for the germs of the future England is in light-industry areas and along the arterial roads.”</div><div>So, is Facebook a bigger story than Greece? There is no doubt that an economic implosion in Europe will lead to immense pain across the world. But do not discount the idea that people looking back 20 years later will say that the explosion of social networking helped rewire the global economy, taking it to a new growth path.</div><div><i>Niranjan Rajadhyaksha is executive editor of </i>Mint. <i>Your comments are welcome at cafeeconomics@livemint.com</i></div><div><b>Also Read</b> | <a href="http://www.livemint.com/caf%e9economics" target="_blank">Niranjan Rajadhyaksha’s previous columns</a></div> http://www.livemint.com/2012/05/22133547/Views--Rupee-fall-How-will-m.html Will corrective macroeconomic policies follow through to correct the imbalances and return growth on track? Renu Kohli Tue, 22 May 2012 12:29:00 GMT c69cdc62-a3e5-11e1-9455-000b5dabf613 http://www.livemint.com/c69cdc62-a3e5-11e1-9455-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/c69cdc62-a3e5-11e1-9455-000b5dabf613_300_200E09Vpf.gif <div><div class="dvbxImg"><img src="CE772EA7-F08A-4212-94E0-D0540F9E1DBF" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>The steep, 22% depreciation of the rupee since August 2011 has set off the inevitable comparison with the 1991 devaluation. Markets participants judge the currency correction to be near complete, although volatility around current levels is likely. Questions about macroeconomic adjustments that devaluation triggers naturally surface in this context. What is the likely pattern of correction? How long will adjustment take? And, perhaps the most important, will corrective macroeconomic policies follow through to correct the imbalances and return growth on track?</div><div>The two deficits – current account and fiscal – are at the centre of this fine-tuning. Will the rupee’s fall narrow the large trade gap? That wasn’t the case last quarter at least. Indeed, the positive association between the real effective exchange rate (REER) and the trade gap, whereby an increase in export competitiveness narrows the trade deficit, is simply not observed from mid-2010. </div><div><div class="dvbxImg"><img src="5B237035-2B2C-4CE7-A7ED-94AC2F3046EE" alt="" title="" height="400" width="483" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>Since then, the positive exchange rate-trade balance relationship reverses and a real depreciation actually corresponds to a widening trade deficit. Possibly, this is due to high inflation and oil prices; inflation has been exceptionally high (in double-digits mostly) in this period while oil prices jumped $34 per barrel (Indian basket) in the year to April 2011. Since then however, oil prices have receded, only going up in the first quarter of 2012. But the trade deficit continues to widen nonetheless, raising questions about the extent of external adjustment that will follow in the near future. If the weak performance of the trade balance in recent times is indeed due to an increase in domestic production costs (also an increase in domestic export price, which erodes competitiveness) this could offset any gains from depreciation. </div><div>Thus how effective an external sector approach can be in overhauling the current account position remains to be seen? Inflation hasn’t really come off; the halving of gold imports in Jan-March 2012 is attributed to tax uncertainty, so its inflation-hedge appeal may return; while oil import demand remains intact. </div><div>This brings fiscal policy into focus from where much of the inflation persistence originates. Low revenue buoyancy due to sub-trend growth is pushing borrowings-financed deficits even higher, leaving little space for private capital expenditure. That leaves the only scope of fiscal correction as subsidy-reduction from passing on the crude oil import prices on to consumers. The Finance Minister has braced up for ‘austerity measures’ but belt-tightening through domestic fuel price adjustments can happen only if political partners agree. Containing the fiscal deficit remains iffy, therefore. It’s also anybody’s guess as to how prolonged macroeconomic adjustment could be in this context. </div><div>Fortune may smile if global oil prices really slide or an advanced country central bank plugs for some more quantitative easing. One could ride upon such wishful thinking except that it’s no substitute for the hard job at hand.</div><div><i>Renu Kohli is a New Delhi-based macroeconomist; she is a former staff member of the International Monetary Fund and Reserve Bank of India.</i></div> http://www.livemint.com/2012/05/22141143/Views--Are-Facebook-amp-Goo.html Comparisons are also being drawn with family-owned firms in the emerging market that are dominated by the promoters Pramit Bhattacharya Tue, 22 May 2012 09:22:00 GMT 1b08b82a-a3eb-11e1-9455-000b5dabf613 http://www.livemint.com/1b08b82a-a3eb-11e1-9455-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/1b08b82a-a3eb-11e1-9455-000b5dabf613_300_200E09Vpf.gif <div>The initial public offer (IPO) of popular social networking site, Facebook seems to have stirred a debate on the future of public companies in the west. Ahead of last week’s IPO, Facebook created two classes of shares and those sold to the public have much lesser voting rights compared to those owned by its equally famous founder, Mark Zuckerberg.</div><div>Facebook joins the club of other listed tech companies such as Google and Linkedin that have used this strategy to curb the influence of investors and to allow more freedom to their promoters. The seemingly private structure of Facebook worries the <i>Economist</i>, which talks about the decline of public companies in the west, as we know them, in its latest issue.</div><div>In the upcoming May 28 issue of the New Yorker, James Surowiecki puts it quite succinctly: “Whereas the CEOs of most public companies have to spend time kowtowing to investors, Zuckerberg and his peers are insisting on the right to say, ‘Thanks for your money. Now shut up.’”</div><div>Comparisons are also being drawn with family-owned firms in the emerging market that do not have as well-diversified shareholdings as their developed market peers, and are dominated by the promoters.</div><div>So, how well are these tech companies following the lead of emerging market firms?</div><div>Facebook has a clear advantage over others in this respect. Its share price has slid below the issue price in three days, a record many firms in emerging markets may find hard to match. In India, for instance, it takes anywhere between a couple of weeks to a couple of months -- on average -- for the stock price of a firm to subside below its issue price after an initial listing pop.</div><div><div class="dvbxImg"><img src="047804F9-33E0-47CD-B65F-B60DD2D7EA46" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>But even Facebook has miles to go before it can claim that it has imbibed the best practices of emerging market companies.</div><div>To begin with, Zuckerberg needs to start appointing family and friends of Priscilla Chan to senior positions at Facebook, or on its board or what is even better, hive off subsidiaries that they can run on their own. For those who have not signed up for twitter yet (may the Lord forgive you), Chan is Zuckerberg’s newly-wed wife.</div><div>Next, it must exercise discretion while sharing its performance and plans with investors. Only the bare minimum should be revealed. </div><div>In case the earnings are unappealing, it must declare them on a holiday so that most commentators give it a miss and the initial stock market reaction at least, is respectable. Under such circumstances, it can also organize briefings with a select set of analysts on its suitably vague and impressive plans for the future so that the market gets a whiff, and only a whiff, of brighter prospects ahead.</div><div>For the record, Facebook has said in its filings that it has no specific uses for the sixteen billion dollars it raised in the IPO. That simply won’t do, Sir. One can’t be blunt in these matters.</div><div>The earnings must also be declared in a sophisticated manner. If year on year growth numbers look unfavourable, it must be hidden away somewhere in the filings in 8-sized font, while the impressive quarter-on-quarter growth figures should be displayed right at the top in font sized 16.</div><div>A big constraint for firms such as Facebook in adopting emerging market norms is the stringent rule-book for listed firms prescribed by their regulators, which mandates too many disclosures. Western companies must actively start lobbying now to bring a level playing field between them and their emerging market counterparts.</div><div>Once regulations are eased, promoters of these companies will find a brave new world of possibilities opening up --- to exert greater control over their firms and to check the activism of minority shareholders. </div><div>This new world will also require new people who are trained in taking advantage of lax regulations. Western firms will find such talent in abundance in the investor relations departments of emerging market companies. A new wave of ‘brain drain’ may not be far away.</div> http://www.livemint.com/2012/05/22140145/Views--Arbitrary-arbitration.html The fundamental problem appears to be that arbitration has been hijacked by mainly public sector undertakings that resort to “ad hoc” as opposed to “institutional” arbitration Farah Rahman Tue, 22 May 2012 08:31:00 GMT 8081cdce-a3e9-11e1-9455-000b5dabf613 http://www.livemint.com/8081cdce-a3e9-11e1-9455-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/8081cdce-a3e9-11e1-9455-000b5dabf613_300_200E09Vpf.gif <div>At a time when India is being viewed with suspicion about its desire to attract foreign investment and having also recently been placed on the US priority watch list of countries with insufficient intellectual property protection, it’s encouraging to hear about efforts to make India a lucrative venue for international transactions and business. </div><div>And so at a recently held symposium on “What ails arbitration in India?” in Hyderabad, it was heartening to find that serious efforts are being made to make India an attractive destination for international arbitration. However, that goal has some interesting obstacles. </div><div>Chief Justice of the Andhra Pradesh High Court, Madan Lokur, delivered the keynote address at the symposium to a mostly male audience. He spoke about how the Lok Adalat system is an alternate system of dispute resolution that has gained acceptance and has caught the people’s “fancy and imagination” while arbitration as an alternate dispute resolution method has failed to gain acceptance. Drawing parallels in this way though is like comparing apples and oranges. The garden variety issues that arise in the Lok Adalat system are very different from the ones that crop up in commercial disputes that contain arbitration clauses.</div><div><div class="dvbxImg"><img src="56F59875-3386-4C58-9827-C84991B7EFB2" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>It’s not surprising that the Lok Adalat system is successful. The vast majority of Indians don’t even access the Lok Adalat let alone the courts for resolving disputes. Most Indians live in rural India and are accustomed to resolving disputes via the Village Panchayat system. The Lok Adalat system could be viewed as a logical extension of the Panchayat system that has a long history of acceptance in India and one that delivers speedy justice as opposed to the courts.</div><div>The court system has collapsed observed a prominent lawyer in a recent conversation. However, Justice Lokur stated that the public has great faith in the court system as they keep coming to the courts despite the many problems that ail the courts like inordinate delays, lengthy procedures, inadequate counsel, lack of infrastructure, judges, toilets, furniture, shelter from the elements, etc. Small wonder then that the Lok Adalat system finds more takers. Many people also just let things go and I know of lawyers who dissuade parties from trying to seek legal recourse via the court system citing that it is better to just cut your losses and move on rather than to get entangled in the courts.</div><div>Arbitration is meant to be a cost-effective alternative to litigation. However it does not appear to be so in India. Justice Lokur rightly laid out some of the problems that plague arbitration in India like the expenses involved, lack of professionalism on the part of lawyers and the many problems related to arbitrators who delay proceedings, their lack of accountability, transparency and impartiality, failure to disclose interests in disputes, etc.</div><div>The fundamental problem though appears to be that arbitration has been hijacked by mainly public sector undertakings that resort to “ad hoc” as opposed to “institutional” arbitration. The Indian Council of Arbitration (ICA) appears to be comprised of highly dedicated individuals who have done their homework and seek to bring best practices to the institution of arbitration. The ICA provides the framework for institutional arbitration however only 20% of cases have availed this method while a whopping 80% have preferred ad hoc arbitration. </div><div>Parties with greater bargaining power and influence such as public sector entities prefer the ad hoc system simply because they can control the process and essentially stomp on the opposing party. Arbitrators can be bought, delays can be bought and expenses can be made to sky rocket. In other words, the many problems that make litigants miserable in the regular courts are foisted upon parties in arbitration in India via ad hoc arbitration.</div><div>Judicial interference continues to be a key problem and takes away from the spirit of alternative dispute resolution. The 1996 Arbitration and Conciliation Act had sought to do away with judicial interference in arbitration proceedings but it appears to have had the opposite effect and judicial intervention continues to be a persistent problem. </div><div>Arbitration awards are also set aside if they are found to be in “conflict with public policy” in India. This as anyone can see pretty much leaves things wide open. The definition of conflict with public policy needs to be very narrowly tailored and there should be a mechanism beforehand to evaluate if such matters are within the realm of the dispute to begin with. I fail to see how something can become a public policy issue post award unless there is some clearly illegal or fraudulent method that crept in during arbitration proceedings.</div><div>One major challenge that everyone is in agreement on though is the need for training of arbitrators. Justice Lokur rightly pointed out that this is an area that needs to be looked at seriously. Most arbitrators tend to be retired judges. Many are reluctant to take courses and bring the baggage of the court system to the arbitration proceedings. The ICA is working toward establishing a certification course to streamline these issues. Lawyers too need to be trained and parties need to be very careful when choosing their lawyers and should avail the services of the ICA to ensure that their interests are protected.</div><div>Both the courts and the arbitration systems need fixing. The court system is old and decrepit. And many things need to be done on a war footing to get it streamlined for the benefit of litigants. </div><div>The arbitration system though is very much within grasp. The ICA appears willing to do its part to facilitate the goal of making India an international arbitration venue. The ICA should be supported in its efforts and encouraged at every step. This will lend credibility to India’s image globally; it will ease the pain of litigants locally and abroad and reinstate some of the lost trust in the Indian way of doing business as usual.</div> http://www.livemint.com/2012/05/22004358/Quick-Edit--IPL-and-UPA.html Shah Rukh Khan in a brawl, match fixing, molestation, rave parties...the IPL is finding itself in controversies at a rate that would do the Manmohan Singh regime proud Mon, 21 May 2012 19:13:00 GMT ed2a579a-a379-11e1-b668-000b5dabf613 http://www.livemint.com/ed2a579a-a379-11e1-b668-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/ed2a579a-a379-11e1-b668-000b5dabf613_300_200E09Vpf.gif <div><div class="dvbxImg"><img src="1D445E92-56FD-4390-85A7-53D04A7AF875" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>Shah Rukh Khan in a brawl, match fixing, molestation, rave parties...the Indian Premier League (IPL) is finding itself in controversies at a rate that would do the Manmohan Singh regime proud.</div><div>But as the fifth season of the T20 tournament moves into its final stage, there can be no denying that the quality of cricket on offer has perhaps been better than in the previous four seasons. The flurry of sixes have obviously been a strong attraction, with Chris Gayle blazing ahead of other batsmen. But of equal importance is the sight of top-class bowling—Lasith Malinga, Dale Steyn and Sunil Narine showing that even the abbreviated form of the game needs more than trundlers.</div><div>Spectators have been happy to ignore the controversies because the league has lived up to its promises. And that is a fact the government in New Delhi should realize. There is no substitute for performance</div> http://www.livemint.com/2012/05/21233233/The-Atavist-matures-as-a-publi.html Part of the reason The Atavist works is that it meets a need that its founders had in their own lives and was not conceived in a bald effort to exploit a market Media Equation | David Carr Mon, 21 May 2012 18:02:00 GMT 2cde9720-a370-11e1-b668-000b5dabf613 http://www.livemint.com/2cde9720-a370-11e1-b668-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/2cde9720-a370-11e1-b668-000b5dabf613_300_200E09Vpf.gif <div>It sounds like the set-up for a very old, stale joke. Three guys walked into a bar in Brooklyn to complain about the state of journalism...except by the time these guys were done chatting and plotting, they had come up with an actual business.</div><div><div class="dvbxImg"><img src="D51D6F15-C2F7-4F13-9FE3-A4C8389EBF38" alt="Story tellers: (From left) Nicholas Thompson, Evan Ratliff and Jefferson Rabb, co-founders of The Atavist, at Henry Public, the bar where they first made business plans, in New York. By Brian Harkin/NYT" title="Story tellers: (From left) Nicholas Thompson, Evan Ratliff and Jefferson Rabb, co-founders of The Atavist, at Henry Public, the bar where they first made business plans, in New York. By Brian Harkin/NYT" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Story tellers: (From left) Nicholas Thompson, Evan Ratliff and Jefferson Rabb, co-founders of The Atavist, at Henry Public, the bar where they first made business plans, in New York. By Brian Harkin/NYT</div></div>That business is The Atavist, which helps produce multimedia storytelling for digital devices. Last week I found out that the idea was appealing enough to have attracted $1 million of what will eventually be $1.5 million in seed money. But the real punch line? The backers include Eric E. Schmidt (of Google Inc.), Marc Andreessen (a founder of Netscape) and the Founders Fund, which has among its leaders Peter Thiel (a founder of PayPal) and Sean Parker (Facebook Inc.’s first president).</div><div>We’re not talking about the next Facebook here, an idea that explodes into a $16 billion initial public offering in a few short years. But given the heft and the track record of the big-name investors, this is a story about journalism and digital technology that bears watching.</div><div>The Atavist’s founders— Evan Ratliff, Jefferson Rabb and Nicholas Thompson— are hardly the first three guys to pound away on keyboards and come up with something that attracted the attention of Silicon Valley luminaries. But most of the time the startups manufacture code, not journalism.</div><div>The Atavist’s brain trust may have meagre credentials as entrepreneurs, but they have deep bonafides in publishing: Ratliff, the chief executive of The Atavist, is a longtime contributor to <i>Wired</i> magazine; Thompson is the editor of <i>NewYorker.com</i>; and Rabb, the chief technology officer, spent much of his professional life designing websites for books.</div><div>Since it opened for business last year, The Atavist has published 15 works of long-form journalism—longer than most magazine articles, but shorter than a book. Last week, it published <i>The Electric Mind</i> by Jessica Benko, about a radical technology that helped one woman imprisoned by the failings of the flesh.</div><div>The small digital publishing company received good notices early on for coming up with a template for articles that seamlessly integrated video, easily toggled between print and audio versions, and let the reader control text size, scrolling rate and other features.</div><div>“My sense is that Atavist is exploiting the need we all have to tell stories in multimedia, but until recently there wasn’t the authoring tools and the bandwidth and tablet platform to actually realize it,” Schmidt, the executive chairman of Google, said in an email.</div><jump /><div>Schmidt met Thompson at a Google Zeitgeist conference in the fall, and there was a follow-up meeting in New York. (The company is headquartered in Brooklyn and currently has eight employees.) Schmidt, who has long articulated an interest in good content, decided that there was enough in The Atavist to personally invest in the company through Innovation Endeavours, an investment fund he owns.</div><div>I’ve written about The Atavist before, calling it a “tiny curio of a business,” but I might have been wrong about that, as the buy-in by Schmidt and the others suggests. Already, the content management system Rabb created has turned into a business opportunity; Atavist has licensed the software to outfits including the educational publisher Pearson Plc., the TED conferences and <i>The Paris Review.</i></div><div>The Atavist is still telling stories and licensing the software, but the founders are making a bet that those tools may have broader appeal.</div><div>It’s not the first software bundle that has allowed civilians to publish: Blogger, Tumblr and Twitter all help plain old folks tell stories. But given the complex nature of what is produced, the coming version of The Atavist also brings to mind Etsy, a platform through which people who have made finely crafted objects can market their wares on the Web.</div><div>Sometime this summer, The Atavist will release a free version of its software, and people who sign up can begin building children’s books or travelogues or whatever else they fancy, some of which will become part of its online marketplace. Using the so-called freemium model, The Atavist may charge people fees for additional features—like the ability to create an app that could be sold by Apple Inc.—and will be making money by taking a cut of sales.</div><div>The three met with more than a few venture capitalists who were knocked out by the tool for creating content but wanted The Atavist to forget about serving as a home for journalism. Their collective response? See ya.</div><div>“We decided that if that’s what it takes for us to raise money, we don’t want these people’s money,” Ratliff said. “Interestingly, Eric Schmidt later said a very similar thing to us, when I told him that we had encountered folks who said we were wasting our time doing our own publishing. Basically, he said, what you’re doing is pretty clear, and if the people you are talking to don’t understand it, you don’t want their money.”</div><div>In a phone conversation, Schmidt said he was drawn to The Atavist less by the idea than by the people who came up with it. “When you make an investment, you are betting on the team more than the idea. If the idea is wrong, but the team is right, they will figure it out.” </div><div>“Who knows where this will end up?” he added. “Startups have to get all the subtle choices right. There were five versions of what Instagram Inc. did, yet Instagram succeeded where the others did not. The same goes for YouTube Llc..”</div><div>Part of the reason The Atavist works is that it meets a need that its founders had in their own lives, much the way Facebook did for its founders, and was not conceived in a bald effort to exploit a market. They wanted a tool and a platform that would be fungible enough to allow articles to be sold for iPad, Kindle and other e-readers. Because they and others used the software, the technology has been tweaked in very practical ways.</div><jump /><div>The content building platform is plenty seductive to a word wonk like me, but there are still questions about how many people will grab onto a creative process that is worlds away from just plopping a link into Facebook or putting a pin into a piece of content that someone else made, as with Pinterest.</div><div>Ratliff has spent many years devising big, long articles for magazines such as <i>Wired</i>, and he said the structural rigour of building a narrative turned out to be fairly relevant to building a business—give or take a few key differences.</div><div>“I have been spending a lot of time with lawyers and accountants, which does feel a little weird,” he said. “But because we come from journalism and are naturally sceptical, we will not mistake investment for revenue.</div><div>“We’ve had some success with the journalism and the licensing, and while we could be wrong, we’ve heard from thousands of people that say they want to use this technology to make a wide spectrum of projects.”</div><div>After a frothy week—when the Facebook IPO consumed the news cycle and Twitter, Dropbox and Airbnb all seemed headed to the on-deck circle—it’s nice to know that something as quaint as a site that prizes journalism can benefit from all the money sloshing around. It’s unlikely that journalism will morph from digital roadkill to the next big thing in Silicon Valley, but it’s nice to know that a guy at the keyboard can dream.</div><div><i>© 2012/The New York Times</i></div><div><i>Respond to this column at feedback@livemint.com</i></div> http://www.livemint.com/2012/05/21220808/Disruptive-connectivity.html In this age of disruption, businesses are no longer in control of how they are perceived in the marketplace. Consumers now have the power to shape others’ perceptions of your brand; they can also promote those they prefer Branson Speak | Richard Branson Mon, 21 May 2012 16:38:00 GMT 0e0aef4a-a363-11e1-b668-000b5dabf613 http://www.livemint.com/0e0aef4a-a363-11e1-b668-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/0e0aef4a-a363-11e1-b668-000b5dabf613_300_200E09Vpf.gif <div>We now live in a global village, as has been demonstrated by events such as the Arab Spring—the grass-roots revolutions and protests in Tunisia, Egypt and other parts of Africa and the Middle East.</div><div>A journalist with NBC News, Ayman Mohyeldin, has described how social media, notably Twitter and Facebook, brought true democracy of information to Egyptian demonstrators, helping them to drive positive change. This made me realize that no matter where an individual, government or organization is based, it is now a lot more difficult to build power or wealth without the cooperation of the community.</div><div>So what does this mean for businesses and entrepreneurs?</div><div><div class="dvbxImg"><img src="9900B8A1-A70B-4A5D-AB10-18A984476989" alt="Eric Schmidt. Photo by Bloomberg." title="Eric Schmidt. Photo by Bloomberg." height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Eric Schmidt. Photo by Bloomberg.</div></div>Eric Schmidt and Jared Cohen, respectively the chairman and the director of ideas at Google Inc., call this era the Digital Disruption. In an article published in <i>Foreign Affairs</i> in 2010, they wrote: “The advent and power of connection technologies—tools that connect people to vast amounts of information and to one another—will make the 21st century all about surprises. Governments will be caught off-guard when large numbers of their citizens, armed with virtually nothing but cell-phones, take part in mini-rebellions that challenge their authority. In a new age of shared power, no one can make progress alone.”</div><div>Just as governments that limit people’s rights and freedoms are facing unrest or revolution in many parts of the world, business leaders who exploit their markets or who pursue profits at all costs will see their companies targeted by protesters and their competition taking market share. While business in the 20th century was all about fostering unsustainable growth through depletion of natural resources and delivering profit to your shareholders, this new era is about businesses delivering benefits to their communities and the planet, as well as to shareholders.</div><div>Because in this age of disruption, businesses are no longer in control of how they are perceived in the marketplace. Consumers now have the power to shape others’ perceptions of your brand; they can also promote those they prefer. Only businesses that embrace the Capitalism 24,902 approach—ending the pursuit of profit for profit’s sake and making the driving force of our companies that of doing social and environmental good—can thrive in the long run.</div><div>Entrepreneurs in the planning and launch phases of their businesses have the opportunity to bake this approach into the culture of their companies. Look at the costs and benefits of your business to your community, the environment and the wider world. Meet community leaders, environmental groups and your potential customers to listen to their concerns and hopes for your company. How can you help? Can you tackle the problems by altering your business plan to meet those needs?</div><div>If you are currently looking for ideas for launching a business, this is a good time to leverage connectivity to make a difference. At Virgin, we have been looking at how the mobile phone is driving change, with almost six billion mobile phone users in the world and 90% of the world’s population able to get access to a mobile service.</div><div>In Kenya, M-Pesa customers can deposit and withdraw money from a network of agents that includes airtime resellers and retail outlets acting as banking agents; they can transfer funds and also pay bills. Souktel, a company that works mainly in the Middle East, matches people looking for jobs with companies looking for people. Platforms such as Ushahidi (meaning “testimony” in Swahili) have also sprung up to support citizen journalism, helping to broadcast information reported locally in times of crisis. There is a company called txteagle that gives global brands the chance to connect with one billion emerging market customers via text messaging and in return gives free talk time to the customer. A whole new world of activism and advertising!</div><div>Whatever type of business you decide to launch, remember that we are all working in a changing environment—a technology that transforms your industry may be just around the corner. But when your employees take great pride in their work and your customers are deeply engaged with your brand, as is common at companies that take the Capitalism 24,902 approach, you will be able to depend on both groups to help you keep an eye on the competition and on developments in the field. Your business will be part of the community—and they’ll be rooting for you.</div><div><i>BY NYT SYNDICATE</i></div><div><i>©2012/RICHARD BRANSON</i></div><div><i>Richard Branson is the founder of the Virgin Group and companies such as Virgin Atlantic, Virgin America, Virgin Mobile and Virgin Active. He maintains a blog at </i>www.virgin.com/richard-branson/blog. <i>You can follow him on Twitter at</i> twitter.com/richardbranson</div><div><i>Your comments and queries on this column, which runs every week, are welcome at feedback@livemint.com.</i></div> http://www.livemint.com/2012/05/21214620/Ourview--White-lies-on-black.html On Monday, the Union finance ministry issued a white paper on the subject that highlighted various measures of black money and what needs to be done to curb its generation Mon, 21 May 2012 16:16:00 GMT dd759930-a361-11e1-b668-000b5dabf613 http://www.livemint.com/dd759930-a361-11e1-b668-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/dd759930-a361-11e1-b668-000b5dabf613_300_200E09Vpf.gif <div>Estimates of “black money” generated in the Indian economy vary: from rather minuscule amounts of a couple of billion dollars to more unbelievable numbers. On Monday, the Union finance ministry issued a white paper on the subject that highlighted various measures of black money and what needs to be done to curb its generation. The analysis carried out in it does not represent anything new; it certainly does not give a road map for handling this problem.</div><div><div class="dvbxImg"><img src="50261131-97C0-4D9F-9AAE-7D88E071E9A7" alt="Shyamal Banerjee/Mint" title="Shyamal Banerjee/Mint" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Shyamal Banerjee/Mint</div></div>In India, the easy fixes to curb tax evasion and the generation of black money have all been exhausted: there will be few, if any, taxpayers who try and evade what they owe the government. The tax administration is robust enough to detect and capture evasion by these citizens. The problem lies elsewhere.</div><div>The white paper itself illustrates these issues. Three examples can be highlighted. The issue of taxation of wealth generated in the businesses linked to exploitation of natural resources such as mining, hydrocarbons, telecom and other related sectors; the problem of income in “vulnerable” sectors such as real estate and, finally, the issue of political willpower required to make a difference. In each of these, this government has been an abject failure.</div><div>Consider the natural resources sector first. The problem lies in the vast discretionary powers enjoyed in allocating these resources. From spectrum allocation to that of issuing mining licences, there has been little or no transparency. The result is that there are inbuilt drivers to generate illicit wealth. If anything, this government is complicit in this process: it is deeply unhappy with auctions as a process to allocate these resources. In a first-come-first-served process, there is ample scope for corrupt practices. Clearly, it has to address that issue before it can even argue that natural resource allocation processes are a problem. In fact, the sector can only be dubbed as a “politically exposed sector”. </div><div>In case of “vulnerable” sectors such as real estate, the cause and effect are mixed: real estate is both a recipient and a generator of black money. Illicit gains made elsewhere can be parked in residential and commercial property without much fear of tax enforcers. But that is just one part of the problem. The high taxes—stamp duty is a prime example—levied make evasion a worthwhile chase. And high stamp duty being an important source of revenue for many states ensures that undervalued transactions are a norm and not an exception.</div><div>Finally, this government lacks the willpower to deter potential tax evaders—the big fish that is. The surest way to do so will be to disclose the names of evaders that are available with the government. Given that our politicians are sure to figure on such a list, confidentiality of agreements with other governments and, hold your breath, human rights of tax evaders (page 68 of the white paper) come in the way of public disclosures. This is difficult to believe.</div><div><i>Can the generation of black money ever be curbed in India? Tell us at views@livemint.com </i></div> http://www.livemint.com/2012/05/21213121/Ourview--A-difficult-endgame.html Pakistan does not want the US to establish political order in Afghanistan Mon, 21 May 2012 16:01:00 GMT b34774fa-a35f-11e1-b668-000b5dabf613 http://www.livemint.com/b34774fa-a35f-11e1-b668-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/b34774fa-a35f-11e1-b668-000b5dabf613_300_200E09Vpf.gif <div>By Monday it was clear that there was no deal to be had between the US and Pakistan. The North Atlantic Treaty Organization (Nato) summit in Chicago, resultantly, resembled a camp divided: the US and its European partners on one side and Pakistan on the other. The latter controls most of the chess pieces.</div><div><div class="dvbxImg"><img src="1F444DCE-98EB-4E3A-9ABE-3D2EF86B9919" alt="Afghanistan President Hamid Karzai (R) talks to Secretary General of NATO Anders Fogh Rasmussen during a meeting on Afghanistan at the NATO summit in Chicago(Reuters)" title="Afghanistan President Hamid Karzai (R) talks to Secretary General of NATO Anders Fogh Rasmussen during a meeting on Afghanistan at the NATO summit in Chicago(Reuters)" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Afghanistan President Hamid Karzai (R) talks to Secretary General of NATO Anders Fogh Rasmussen during a meeting on Afghanistan at the NATO summit in Chicago(Reuters)</div></div>BBC reported three demands by the US’ sullen partner: an apology for the death of soldiers during a Nato mission in Salala in November; a review of US policy on drone attacks in Pakistan and a 20-fold increase in the transit charge per vehicle from $250 to $5,000 that uses Pakistani territory to reach Afghanistan. These are demands that the US is unlikely to meet. An apology for the Salala incident has been ruled out. The use of drones as an instrument to weed out terrorists is too deeply embedded in the US strategy to be abandoned at this stage.</div><div>There is a simple message in the demands: Pakistan does not want the US to establish political order in Afghanistan. Any semblance of centralized authority after 2014 runs counter to Pakistan’s interests there: a strong Afghanistan is likely to look after its own interests, which are unlikely to be congruent with those of Pakistan. Instead, if a proxy such as the Taliban were to gain control there, it will serve Islamabad’s purposes admirably. That is the message behind the three demands mentioned above.</div><div>At this moment, it is difficult to presage what 2014 will bring in Afghanistan. Some things are, however, plain as a pikestaff. The Afghan National Army is unlikely to be in any shape to withstand a Pakistan-backed assault by the Taliban. In Afghanistan, a central authority is as good as the army it has even at the best of times. And these are not good times. It is likely that the chaos of the post-Soviet years will come to haunt Afghanistan of the post-American years.</div><div>India should take note of these developments and prepare. Pakistan has not, even for a moment, abandoned strategic goals on its western border in spite of severe US pressure; it is most unlikely to do so on its eastern front.</div><div></div><div><i>What are Afghanistan’s prospects after Nato forces depart in 2014? Tell us at views@livemint.com</i></div> http://www.livemint.com/2012/05/21211955/Empowering-civil-servants-in-u.html Information becomes powerful only when it evokes an emotional resonance among its stakeholders Gulzar Natarajan Mon, 21 May 2012 15:49:00 GMT fea4224c-a35d-11e1-b668-000b5dabf613 http://www.livemint.com/fea4224c-a35d-11e1-b668-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/fea4224c-a35d-11e1-b668-000b5dabf613_300_200E09Vpf.gif <div>In 2009, Hal Varian, Google’s chief economist, predicted that the process of extracting value from the massive volume of available data—by analysing, visualizing, and communicating them—will be the “sexiest job” of the next decade. </div><div><div class="dvbxImg"><img src="2C3C5D7E-A6DB-42C3-A12B-2014F6040BE4" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>It may be time to rephrase the conventional “information is power” with “appropriately rendered information is empowering”. Information becomes powerful only when it evokes an emotional resonance among its stakeholders. Data can’t substitute actionable information.</div><div>Nowhere are the low-hanging fruits from this stratagem more plentiful, more readily available, and capable of creating more value, than in public bureaucracies. If appropriately harnessed, they have the potential to dramatically increase supervisory effectiveness. It also has the potential to unsettle dormant officials and spur them into action. </div><div>Public bureaucracies in India collect huge amounts of data to help supervisors monitor implementation of government programmes. But the prevailing information reporting systems suffer from several deficiencies. Most often, the figures are outdated and the relevant information is obscured in an avalanche of statistics. Further, information is presented without any reference point leaving them mostly meaningless; the same type of information is available to functionaries at different levels; and its presentation makes it difficult for supervisors to utilize it as a user-friendly decision support. In other words, there is a last mile gap in government functionaries making effective use of the available information.</div><div>A creative integration of data analytics and data visualization techniques on a mobile phone platform can bridge this last mile gap and increase the quality of public service delivery. Unlike spreadsheets, vivid data visualization distils the essence of the massive data collected into a series of clear user-directed messages. It talks to you in a language everyone understands. It is at the same time objective without compromising on the subjectivity. It speaks to the mind as well as to the heart. It works on the widely accepted fact that human brain can more easily receive and process striking images than rows and columns of numbers.</div><div>So rendered its attractions are manifold. One, it is self-explanatory and cognitively salient. Two, it can showcase multiple dimensions of the issue being discussed within the same canvas. Three, it can generate an immediate emotional connect of the audience with the message. Four, it reveals hitherto-obscured insights. Finally, it facilitates easier comparison. </div><div>The fantastic advances in computer graphics in recent years have resulted in several strikingly intuitive data visualization techniques. A heat map—which uses colour grading to represent the full spectrum of any parameter under observation—of traffic flow on important city roads can be a powerful decision-support tool for more effective traffic management. Vivid geospatial representation of leakages and failures in water, sewerage and electricity networks can be used to effectively manage such networks and reduce maintenance expenditures.</div><div>Similarly, tree maps—which uses interlocking rectangles of different size and colours—that represent the performance of municipal tax collectors or municipal sanitation inspectors can be a hugely effective tool in improving their functional efficiency. It leverages the ease of human brain to internalize size and colour to inform the official about his or her performance in relation to colleagues and supervisors about their subordinates’ work output. Rosling bubbles—where circles of varying sizes and different colours bounce between the two axes—can enable intuitive appreciation of the changes in the learning levels of students and schools over examinations or disease incidence over time in different primary health centre (PHC) areas. </div><div>Cognitively salient data visualization techniques help compare the relative performances of officials more effectively. Subject teachers are judged more efficiently by comparing the performances of their students with those of children from neighbouring schools in the same subject. Similarly, auxiliary nurse midwives (ANMs) within a PHC can be evaluated by comparing the immunization coverage or institutional deliveries in their respective areas. </div><div>Comparison highlights the dark and bright spots. The former exposes and thereby shakes up complacent officials, while the latter creates competition and learning opportunities. It also makes supervision more efficient by increasing supervisors’ productivity and enabling focused inspections. </div><div>Even if the information were available in a cognitively striking manner, it still requires that it be disseminated. Internet and computers, leave aside physical registers, have their limitations for constantly mobile field functionaries. In this context, the spectacular proliferation of mobile instruments in recent times opens up exciting possibilities to both collect and disseminate information. </div><div>For example, real time, geospatially rendered information on a mobile device about tax defaulters, ante-natal visits and immunization doses due, and crimes and accidents, can transform the work of municipal tax collectors, ANMs and police patrols, respectively. They can prioritize their responsibilities and plan their work schedules optimally. The same mobile device can also be used to collect the data required to provide the decision support. </div><div><i>Gulzar Natarajan is a civil servant. These are his personal views.</i></div><div><i>Comment at views@livemint.com</i></div> http://www.livemint.com/2012/05/21210503/The-missing-healthcare-market.html Firms with R&D prowess are unwilling to find solutions for developing countries; this needs to be fixed soon Biswajit Dhar Mon, 21 May 2012 15:35:00 GMT 211fe056-a35c-11e1-b668-000b5dabf613 http://www.livemint.com/211fe056-a35c-11e1-b668-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/211fe056-a35c-11e1-b668-000b5dabf613_300_200E09Vpf.gif <div>This week, the annual World Health Assembly (WHA) of the World Health Organization (WHO) will be deliberating on a critical aspect of availability of medicines. This relates to establishing an effective research and development (R&D) system for ensuring access to medicines at affordable prices for the global community. The trigger for this discussion is an influential report authored by the consultative expert working group (CEWG) on R&D that was submitted last month. CEWG was established with the mandate “to examine current financing and coordination of research and development, as well as proposals for new and innovative sources of financing to stimulate research and development” related to the diseases that afflict citizens, in particular, of developing countries.</div><div><div class="dvbxImg"><img src="03A3AB67-4CD0-4CA5-B1F5-6FC522D4EC82" alt="Indranil Bhoumik/Mint" title="Indranil Bhoumik/Mint" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Indranil Bhoumik/Mint</div></div>The report marks a landmark as it sets the stage for implementing a number of innovative ideas for addressing the disease burden of the developing countries. For instance, the Commission on Macroeconomics and Health (CMH) had, in 2001, offered what it considered “a new strategy for investing in health for economic development, especially in the world’s poorest countries, based upon a new global partnership of the developing and developed countries”. Among the key recommendations of the commission was a significant scaling up of resources spent in the health sector by both poor countries and the donors alike and the removal of non-financial obstacles that limit the capacity of poor countries to deliver health services. The recommendations of CMH were seen as part of the initiatives taken for realization of the health targets that were set as a part of the millennium development goals (MDGs). While progress has been made in areas such as child and maternal health, the disease burden in developing countries arising from pandemics such as tuberculosis has not gone down. What is of considerable concern is that diseases that were typical of developing countries, kala-azar (leishmaniasis) and African river blindness (onchocerciasis) to cite two examples, were not given adequate attention by the predominantly market-determined R&D system.</div><div>CEWG reminds us that even after a decade since CMH had made its observations, no effective solution seems to be in sight. The major problem in addressing the gaps is that private enterprises dominating the R&D landscape do not find it profitable to invest in developing country diseases as the returns are too low. This is a case of market failure, which can be plugged only through proactive action by public-funded institutions. Ideally, these institutions need to find ways of involving the private sector to provide sustainable solutions to this vexed problem.</div><div>While there is an economic case to address the deficit in patient treatment, CEWG has reminded us that there is a moral case as well. The moral case arises from the commitments governments have taken to protect human rights. The International Covenant on Economic, Social and Cultural Rights recognizes “the right of everyone to the enjoyment of the highest attainable standard of physical and mental health”. This builds on the first article in WHO’s constitution that its objective “shall be the attainment by all peoples of the highest possible level of health” and its declaration that “enjoyment of the highest attainable standard of health is one of the fundamental rights of every human being without distinction of race, religion, political belief, economic or social condition.” The global community is, therefore, bound by its rights and responsibilities to ensure that the suffering get adequate treatment.</div><div>The present state of health R&D demands interventions at two levels, both of which were addressed by CEWG. The first relates to the financing of R&D and the second, institutional mechanisms that should be established for obtaining the desired results. Based on an assessment of needs, CEWG concluded that the total annual public sector R&D spending should be about $6 billion. This funding target works out to be just 0.01% of global gross domestic product (GDP). It was, therefore, suggested that all countries should commit to spend at least an equivalent of 0.01% of GDP on public-funded R&D devoted to meeting the health needs of developing countries. Besides this overall target for public funding in health-related R&D, CEWG emphasized that developing countries with potential to carry out research, should aim to commit 0.05-0.1% of their GDP to public-funded health research of all kinds and developed countries should aim to commit 0.15-0.2% of GDP to such research activities.</div><div>This funding, according to CEWG, should be provided to support public-private partnerships, and “open knowledge innovation”. The latter has been defined as the research and innovation model which generates knowledge that can be freely used without legal or contractual restrictions. It is being developed in a number of countries, including India, and stands in sharp contrast to the conventional “closed” models where R&D was essentially conducted in-house.</div><div>However important the recommendations of CEWG may be, they would be meaningful only if WHO members give effect to them through a legally binding treaty. One would hope that the first steps towards this end will be taken immediately, for later will be too late.</div><div><i>Biswajit Dhar is director general at Research and Information System for Developing Countries, New Delhi</i></div><div><i>Comments are welcome at theirview@livemint.com</i></div> http://www.livemint.com/2012/05/21205814/At-the-Olympics-British-vs-US.html The origin of the word is interesting: it comes from “pantalone”, a character in Italian comedy, a feeble-minded old man who wears pantaloons Plain Speaking | V.R. Narayanaswami Mon, 21 May 2012 15:28:00 GMT 1250412a-a35b-11e1-b668-000b5dabf613 http://www.livemint.com/1250412a-a35b-11e1-b668-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/1250412a-a35b-11e1-b668-000b5dabf613_300_200E09Vpf.gif <div>I first came across the word “commuter” when I became a lecturer in English in a college run by an American mission. “Day scholar” was the name I was used to. Commute has several meanings, one of them being reduce a penalty to a less severe one. Another meaning is to travel regularly between home and school, or home and work. For people who made this journey regularly, railroads in America issued commutation tickets, or season tickets at a commuted price. Those who used such tickets were called commuters. Today, one who drives his own car to and from work is also said to be commuting, though no price concession is involved.</div><div><div class="dvbxImg"><img src="55FB05AF-4D1F-4336-B467-31A1EA5F4D58" alt="V.R. Narayanaswami " title="V.R. Narayanaswami " height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">V.R. Narayanaswami </div></div>I was earlier a member of the staff, but now I was a member of the “faculty”. First term became first “semester”. There were “bulletin boards” in place of notice boards. When a pupil finished school, they said he “graduated”. In India, as in England, you graduate when you get a degree. </div><div>The above paragraphs contain a few of the many hundred American words used in place of British equivalents. Today, there is renewed interest in this feature of English in view of the approaching Olympic Games in London. Articles have appeared in major newspapers offering guidance to the American tourists, who may number 250,000, on how to get along in a place where British English is spoken. An article by Stephen Wilson in <i>The Globe and Mail</i> has the title, “The lift? The Tube? Language riddles face visitors to the Olympics.” The riddle can be either the same word having different meanings in the two varieties, or two different words carrying the same meaning. </div><div>Take moving around in London. “Pavement” is not a work of landscape design in London. It corresponds to what Americans call “sidewalk”. If a tourist asks a Londoner for the “subway”, the latter will point to a passage under road level that leads to the other side of the road. What the tourist is looking for is the “underground” or “the tube”. “Zebra crossing” is the British name for a pedestrian crossing. Visitors to the Games will have to “queue” up at several points and generally people don’t “jump the queue.”</div><div>Londoners live in “flats”; the corresponding American word is “apartment”. To enter a flat, you use a “lift”, not an elevator. The system of numbering the floors of a building is not the same in the two dialects. What the Londoner calls ground floor is in American English the first floor. </div><div>Indian English uses “pants”, which is also the American form for trousers. In England, pants would refer to undergarments. The origin of the word is interesting: it comes from “pantalone”, a character in Italian comedy, a feeble-minded old man who wears pantaloons. In a restaurant, you can order “chips” and you get french fries. “Biscuit” is known as cookie in the US. Some other examples to note are automobile terms such as gas, bonnet, sedan, bumper and trunk.</div><div>A major concern of language trainers is how to deal with slang, which is thriving in London. The Olympic Games will be based in East End, the heartland of Cockney rhyming slang. Philip Reeves, National Public Radio’s correspondent in London says to American visitors: “If you are planning to come, be prepared to be baffled.” The standard example of rhyming slang is “apples and pears”, for stairs. Usually, the non-rhyming word becomes the code: from “micky mouse” we get “micky” for house. “China plate”, sometimes reduced to China, is slang for mate. “Donald duck” represents luck.</div><div>To steer one’s way between the two major streams of English may be a manageable task. But, as Sebastian Coe, chairman of the London organizing committee, points out, London is home to 200 ethnic communities, who speak a total of 300 languages. That is going to be the challenge at the Olympics this year. </div><div><i>V.R. Narayanaswami is a former professor of English, and has written several books and articles on the usage of the language. He looks at the peculiarities of business and popular English usage in his fortnightly column</i></div><div><i>Comments are welcome at otherviews@livemint.com</i></div> http://www.livemint.com/2012/05/21200401/Problems-in-law-that-can-affec.html Economic prosperity has also brought about social changes, a significant one being the shrinkage in the size of Indian families Suitable Plan | Sonali Pradhan Mon, 21 May 2012 14:34:00 GMT 4a724106-a352-11e1-b668-000b5dabf613 http://www.livemint.com/4a724106-a352-11e1-b668-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/4a724106-a352-11e1-b668-000b5dabf613_300_200E09Vpf.gif <div>India has witnessed significant economic growth in the last two decades. The number of billionaires from India in <i>Forbes</i> magazine’s annual billionaires list has grown exponentially in the last decade, reaching 57 in 2012.</div><div><div class="dvbxImg"><img src="4788F5BE-E82B-40BB-AC7E-A75353FF0EFF" alt="Shyamal Banerjee/Mint" title="Shyamal Banerjee/Mint" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Shyamal Banerjee/Mint</div></div>Economic prosperity has also brought about social changes, a significant one being the shrinkage in the size of Indian families. An analysis of recently released census data highlights the rise in the number of nuclear families. A common concern for many families these days would be how to make sure that wealth is transferred to their loved ones in the absence of a dependable guardian. And this is where wealth planning comes into the picture.</div><div><b>What is wealth planning?</b></div><div>Wealth planning is the process of protecting and preserving wealth and making sure it is seamlessly inherited by one’s beneficiaries at the right time and in the desired proportion. A well-structured wealth plan with the selection of the right tools can serve to further one’s legacy by optimizing estate settlement expenses such as probate fees. It ensures adequate financial security and liquidity for oneself and later for the surviving family members, without losing control over the estate. One needs to have a formal wealth plan even if the estate is uncomplicated and there are no disputes in the family.</div><div><b>Which law governs whom?</b></div><div>If an individual passes away without having a testamentary succession plan (will), such an individual dies “intestate” and the religious personal laws applicable to such a person determine the succession of the estate.</div><div>Hindus, Jains, Buddhists and Sikhs are governed by the Hindu Succession Act, 1956. For Christians, Parsis and Jews, the provisions of Indian Succession Act, 1925, are used to define the legal successors. Muslims need to follow succession rules which are defined in accordance with the religious law of Islam, known as the Sharia law. If one has married a person from a different religion and this marriage is registered under the Special Marriage Act, 1954, then, irrespective of one’s religion, barring a few exceptions the couple will be governed by the Indian Succession Act, 1925.</div><div><b>Main problems in succession laws</b></div><div>Here are three main issues with the existing succession laws.</div><div><b>Traditional social value systems and beliefs: </b>While succession laws are formulated based on traditional value systems and beliefs, as the society continues to evolve, some provisions of these laws lose their relevance. Predefined successors and their fixed share in the estate are the main limitations of these laws. For example, the Hindu Succession Act has defined mother, widow and children as equal beneficiaries to the Hindu male’s estate. This may not have been the desired succession plan for some. In case of Muslims, many cannot freely bequeath more than one-third of their estate.</div><div><b>Problems in inheritance: </b>The legal heir may not be able to access the wealth effortlessly when one dies intestate. They would have to obtain a succession certificate from the court in order to administer the assets and debts of the deceased. Though this certificate establishes authenticity to the legal heirs, getting a succession certificate, in many cases, is a time consuming process. Further, the successors also need to pay court fees, which in certain cases, can be as high as 3-4% of the market value of the assets. Even after obtaining the succession certificate, if the legal heirs do not cooperate with each other, the inheritance can turn out to be a complicated and conflict-laden process.</div><div><b>Out of law’s ambit: </b>There are certain special situations which do not come under any law. For instance, if one is survived by the legal heir who is a minor or who needs special care. Merely ensuring the legal ownership to the assets is not sufficient in such circumstances.</div><div>Choose the right plan and secure the interests of your loved ones taking into account the problems in existing laws.</div><div><i>Sonali Pradhan is vice-president (wealth planning, India), RBS Financial Services (India) Pvt. Ltd.</i></div><div>We welcome your comments at <i>mintmoney@livemint.com</i></div> http://www.livemint.com/2012/05/21122958/Views--How-about-a-hedge-fund.html There’s some chance that a 140,000-tonne asteroid, which currently goes by the name of DA14, could interfere with our weather reports and reality shows Sandipan Deb Mon, 21 May 2012 07:01:00 GMT 99e5dcc8-a313-11e1-b668-000b5dabf613 http://www.livemint.com/99e5dcc8-a313-11e1-b668-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/99e5dcc8-a313-11e1-b668-000b5dabf613_300_200E09Vpf.gif <div>With the world plunged in uncertainty and gloom—with a few exceptions like fans of Chelsea and Manchester City—a new ominous variable has now been added from space. A 60-metre-wide 140,000-tonne asteroid will apparently be whistling past Earth next February. Of course, “whistling past” in this case is 27,000 km away from the earth, but that’s pretty close in terms of astronomical distances. To put it in perspective, we have many communications and weather satellites orbiting the planet at distances higher than 30,000 km.</div><div><div class="dvbxImg"><img src="414F0EF3-2B3E-40BF-BF94-7442182A70C7" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>So there’s some chance that this runaway piece of rock, which currently goes by the name of DA14, could interfere with our weather reports and reality shows.</div><div>NASA has said that the chances of DA14 hitting the earth are very low: about 0.031%. But then, these rogue space objects are notorious for sudden route deviations. DA14’s trajectory is going to be seriously affected by the earth’s gravitational field, and currently, some of the most powerful computers on the planet are busy spewing out all sorts of probability charts.</div><div>Maybe some hedge fund whizkid could make a killing out of what is literally a pie in the sky?</div><div>In 1908, a large meteorite or a comet fragment burst in the air 5 to 10 km above the earth’s surface (close enough to be referred to as an “impact”) at Tunguska in Siberia, fortunately an area with no human habitation. The size of that object is estimated to be close to that of DA 14. Eighty million trees over an area of 2,150 sq km (that’s Greater Mumbai plus Delhi plus Kolkata) were felled. The most credible estimate of the energy blast released by the explosion is equivalent to 15 megatons of TNT, which is a thousand times more powerful than the nuclear bomb dropped on Hiroshima.</div><div>What does one do if it looks like DA14 is going to hit earth? One interesting idea is to use paint. Blast the damn thing with paint, which will affect the asteroid’s ability to reflect sunlight, changing its temperature and alter its course. The other solution is of course to attack it with some big-time firepower, blowing it up into pieces. Trouble is, for either of these strategies to work, one will need a spaceship that can venture close enough to DA14, and that sort of spaceship is going to take at least two years to build, by which time DA14 would have come and—hopefully—gone.</div><div>The good news is that if DA14 does come close enough to enter the earth’s atmosphere, it will most likely split into pieces which will burn up, and only a small part of the debris may reach the planet’s surface.</div><div>Right now, all that scientists can do is keep a hawk eye on DA14 and work on the probabilities. There’s definitely a financial derivative instrument idea lurking here somewhere. One just has to package it right.</div> http://www.livemint.com/2012/05/21111755/Views--The-EU8217s-fiscal.html In the short term, the real challenge before governments across Europe lies in balancing the imperatives of austerity with a message of hope for the electorate Rishabh Bhandari Mon, 21 May 2012 05:47:00 GMT 02aec4ea-a30a-11e1-b668-000b5dabf613 http://www.livemint.com/02aec4ea-a30a-11e1-b668-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/02aec4ea-a30a-11e1-b668-000b5dabf613_300_200E09Vpf.gif <div>One of the broader lessons of the European Union’s (EU’s) financial crisis is that a consistent track record of fiscal responsibility is the ideal foundation for a nation’s long-term economic stability.</div><div><div class="dvbxImg"><img src="6CFF3035-DA18-44A4-8FFC-47F311EEA786" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>So it is that the profligacy of Greece has only borne its citizens a damaging loss of self-image and economic ruin while Germany readies itself to act once again as Europe’s lender of last resort. Yet in the past few weeks, as the eurozone struggles to come to terms with its myriad inadequacies and the upheaval in Greece, there is a risk that hard truths may be conveniently overlooked. In some quarters, there is now a hardening of opinion that suggests that a recent focus on austerity is to blame for a continent’s elusive growth. But as seductive as this line of enquiry is, it is ultimately flawed. It assumes that growth and austerity are mutually exclusive. Yet far from being so, a commitment to fiscal prudence is a necessary precondition for sustainable growth. As governments across Europe strive to come to terms with the crisis, the underlying issues ought to matter to policy makers elsewhere too.</div><div>It is now clear that what was initially viewed as a financial crisis has morphed into a wider crisis of legitimacy for a centralized European project. In recent elections, the Greek electorate was asked to bless a cocktail made in Brussels and it emphatically rejected the concoction. When Greek democracy met a determined ‘Eurocracy’, unlike the movies, it did not translate into a happy union for both parties.</div><div>The latest triumph of street opinion in Athens may have served as a public vent for its long standing frustrations. But ironically, democracy’s message was not greeted with cheers in Brussels. Nor were the Greeks welcomed for speaking aloud. Instead, the immediate by-product of this democratic ‘debacle’ lay in the spectre of contagion making itself known in Spain and Italy. It has given way to a continent twitching nervously, uneasy and unsure of what might come next. </div><div>The big question is how might this morass be resolved? Yet in order to attempt a lasting solution to the eurozone’s structural difficulties, it is critical to acknowledge how this problem arose in the first place. The plain truth is that the eurozone crisis has lain threadbare the manifest contradictions residing at the core of the European project. A single currency club of members with divergent social traditions being hitched together without fiscal oversight was always likely to flounder in the long run. Economic sense pointed to the futility of pretending that with a single currency, Greek levels of public spending could miraculously turn into a version of German prudence and that Germans could be encouraged to behave a bit more like high spending Greeks.</div><div>The markets and the real world do not work in this idyllic revenue neutral way. But political considerations held sway with the consequences being felt today. Rather than promoting responsibility, the protective balm of a single currency promoted irresponsible public spending in most of the eurozone states. What comes through is that a strategy premised on reckless members strengthening themselves at the expense of the prudent ones was never truly a sustainable one.</div><div>The real truth is that a European response to the crisis appears to promote centralization when the democratic impulses of many citizens are headed in the opposite direction. To be sure, in order for the eurozone to emerge from this crisis with a long term solution in mind, a fiscal union among its surviving members would be essential. But for this to take place with credibility, such a union must necessarily draw potency from a democratic mandate too. This is not to overlook the crucial role that the EU plays in promoting free trade within a single market of 27 members. It is also important for the EU to speak in a cohesive voice at global platforms, particularly when dealing with a rising power such as China. That said, a bureaucratic vision of a ‘United States of Europe’ represents a pipedream to most ordinary citizens.</div><div>In the short term, the real challenge before governments across Europe lies in balancing the imperatives of austerity with a message of hope for the electorate. The paradox of austerity is that too much of it in the short term is likely to spook the public but too little of it would spook the markets and be hazardous in the long term. </div><div>From an Indian perspective, this debate ought to matter considerably too. The UPA’s penchant for fiscal profligacy does not sit easily in a climate of global economic uncertainty and rising food and oil prices. But it will have to take difficult decisions while balancing public sentiment. Otherwise, avoiding politically awkward choices is unlikely to enhance its credentials when seeking a third successive term in office.</div><div>Returning to the crisis in Europe, as its leaders contemplate urgent choices in the days ahead, they should resist the temptation to see this as a battle between growth and austerity. These are not binary values. Admittedly, the here and now matters too. But for the EU’s long term growth, prudence is an essential ingredient. Forgetting this would run the risk of repeating mistakes of the past. It is a lesson that governments in the EU and elsewhere would do well to remember. </div><div><i>Rishabh Bhandari is a lawyer based in London. He also writes on subjects that include British and Indian social, political and economic affairs.</i></div> http://www.livemint.com/2012/05/20235620/A-giveaway-anniversary.html Austerity combined with reform is the right solution for a ‘stagflationary’ India A Visible Hand | Narayan Ramachandran Sun, 20 May 2012 18:26:00 GMT 0fe87ab6-a288-11e1-b862-000b5dabf613 http://www.livemint.com/0fe87ab6-a288-11e1-b862-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/0fe87ab6-a288-11e1-b862-000b5dabf613_300_200E09Vpf.gif <div>François Hollande, France’s first socialist leader in nearly 20 years, was sworn in last week at a ceremony at the Elysée Palace before flying to Berlin. <i>The Guardian </i>newspaper reported that the trip was likely to be Hollande’s first in his quest to “temper Europe’s austerity drive”. In Greece, repeated opinion polls predict that voters will swing in even greater numbers to Syriza, the once-tiny hard-left party that surged to second place in this month’s election because of its promise to scrap austerity and Greece’s bailout agreements. Thousands of Spaniards angered by their grim economic prospects and political handling of the international financial crisis turned out in street demonstrations in the country’s cities, marking the one-year anniversary of a movement (demonstrators call themselves the indignants) that inspired similar pressure groups in other countries. In a brilliantly anachronistic move, finance minister Pranab Mukherjee called for austerity measures in India. </div><div>Despite Mukherjee’s recent call (with no details), the give-away culture is alive and well in India. The widespread belief is that this entitlement/welfare culture that has progressed in the last six-seven years is a creation solely of the United Progressive Alliance, particularly of the National Advisory Council that recommends policy. Alas, India’s reacquired dole culture is pervasive and cuts across party lines. Tamil Nadu chief minister Jayalalithaa tooted her own horn in all major newspapers of India last week crowing about her government’s achievements during its first year in office. The four-page jacket cover advertisement explicitly detailed dozens of give-away programmes. The highlighted points include rice at no cost, gold for women of marriageable age, mixies, grinders and fans for women, laptops for students and greenhouses with solar lights. The detailed schemes have some remarkable ideas such as battery-operated cars for senior citizens in temples, special scholarships for Olympic hopefuls, reduced age limit of 18 years for pension for the differently-abled, pilgrimage assistance for Hindus travelling to Mansarovar and Muktinath and digital cameras for government departments. Revenue and supply-side reforms made-up less than 10% of the 4-page spread and was largely restricted to memorandums of understanding. The infomercial proudly claims that the Tamil Nadu budget had crossed Rs1 trillion for the first time. </div><div><div class="dvbxImg"><img src="4D37244B-6ED4-406A-A6C8-B4FE23349199" alt="Photo: Bloomberg" title="Photo: Bloomberg" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Photo: Bloomberg</div></div>Elsewhere in West Bengal, chief minister Mamata Banerjee was busy spending her way into a deeper hole. Banerjee completed one year in office on 20 May saddled with an inherited debt burden of over Rs2 trillion. The party she leads vociferously rejects price increases of any kind at the centre including the first passenger fare increases for the railways in eight years recommended by the then railway minister from her own party. The rail budget remains in the red and incapable of self-financing required infrastructure upgrades. Akhilesh Yadav, the new Gen-X chief minister of Uttar Pradesh, cleared tablet PCs for students passing class X exams within hours of taking over his post. </div><div>As politics becomes more factional, the structure of governance more federal and as parties go in and out of power, it appears that we have arrived at a fully unaccountable “spend and rule” policy in the states and at the centre. Parties vie with each other on how clever they can be with giveaways. The complex financial transfer arrangements between the states and the Union government allows each side to claim that the other is responsible for financial profligacy. Rice, bicycles and TVs have given way to gold, laptops and tablet PCs. At this rate, the much needed correction will only come when we drive ourselves into another balance of payments crisis. </div><div>Austerity may not be the right solution for a deflationary Europe faced with a demand bust. But austerity combined with reform is the right solution for a “stagflationary” India that is badly in need of supply-side improvements to service increasing demand. The first step to austerity in India is not about tinkering with “size of committees” and “first class travel”; it is about eliminating subsidies and killing wasteful entitlement programmes. As a target, the priority must first be to get rid of the revenue deficit, the difference between income and expenditure not including interest payments on debt. As a matter of principle, governments in the states and at the centre must get out of the business of day-to-day subsidies for all and instead provide tightly targeted assistance. As a step to achieving this, legislatures should ban any new item of subsidy for a new class of recipients. Chief minister Jayalalithaa’s missive is a good place to start—three of the four pages of giveaways should be blanked out. </div><div>The economic disease in Europe is different from the one in India. Persisting with the wrong drug here (anti-austerity) is likely to kill the patient. </div><div>PS: “There is no austerity equal to a balanced mind, and there is no happiness equal to contentment; there is no disease like covetousness and no virtue like mercy,” said the wily Chanakya.</div><div><i>Narayan Ramachandran is an investor and entrepreneur based in Bangalore. He writes on the interaction between society, government and markets. Comments are welcome at narayan@livemint.com</i></div><div><b>Also Read | </b><a href="http://www.livemint.com/avisiblehand" target="_blank">Narayan Ramachandran’s previous columns</a></div> http://www.livemint.com/2012/05/20225643/IndiaPakistan-ties-turning-a.html India took an in-principle decision to allow foreign direct investment from Pakistan; the two countries also opened an integrated check-post - the second at the Wagah border -to allow easier trade ties Capital Calculus | Anil Padmanabhan Sun, 20 May 2012 17:26:00 GMT 4ae4c1d8-a2a1-11e1-b862-000b5dabf613 http://www.livemint.com/4ae4c1d8-a2a1-11e1-b862-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/4ae4c1d8-a2a1-11e1-b862-000b5dabf613_300_200E09Vpf.gif <div>On the eve of a highly forgettable third anniversary of the second tenure of the Congress-led United Progressive Alliance (UPA), it is almost impossible to spot a silver lining in the cloud of despair. Yet, there is one, and it lies outside the borders of India; ironically, it is its delinquent neighbour, Pakistan.</div><div>Yes, I am sure the popular response will be: what a preposterous thought. Pakistan? You’ve got to be kidding.</div><div>No, it’s indeed Pakistan. This is not to say that our troubled neighbour has been transformed; not yet, it is still very much a work in progress.</div><div>But the fact is that it has, albeit slowly, allowed economic linkages with India to be initiated at an unprecedented frequency. The signing of the $7.6 billion gas pipeline deal later this month will be the latest such instance. Called the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline, it will transport 90 million standard cu. m per day (mscmd) of gas of which India and Pakistan will get 38 mscmd each and Afghanistan the remaining 14 mscmd. Given the countries through which the pipeline will pass, it’s no wonder that it has been referred to as the peace pipeline.</div><div>This is not an isolated instance.</div><div><div class="dvbxImg"><img src="CEFF03BC-1795-4D7F-8BF7-DE6B46A27438" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>Earlier, India took an in-principle decision to allow foreign direct investment from Pakistan; the two countries also opened an integrated check-post—the second at the Wagah border—to allow easier trade ties. Pakistan, after dithering for God knows how many years, took a big step towards normalizing trade relations by shifting to a negative trading list in preparation for according India the status of most favoured nation. And, finally, Pakistan has put in a request to import petroleum and power from India.</div><div>This is not to say that India and Pakistan are about to bury their hostilities. That would be naive; similar to the argument of some policy wonks in South Block that it is time to bury the hatchet on Siachen—giving up such a strategic toehold in a region where the Chinese are uninvited guests would require much, much more than deeper economic access.</div><div>But what it does show is that India and Pakistan are willing to make progress on issues on which there is some commonality of views even while they keep their differences alive. This is far better than absolutely no progress. Economic opening up is politically far more acceptable and can be effected below the national radar, particularly in Pakistan. What it will do is formalize what is already happening unofficially between the two countries; it will save on costs and, consequently, boost the volume of trade—at present, the volume of trade between the two countries is a little less than $3 billion annually.</div><div>No one will officially admit it, but part of the exports to the United Arab Emirates—India’s largest trading partner—and Singapore are routed to Pakistan. This is because the present trade regime in place in Pakistan would not allow imports of these products from India. Not surprisingly, the UAE and Singapore are among India’s top five export destinations. Together, these two countries accounted for a little under one-fifth of the total exports in April-October of fiscal 2012.</div><div>The next stage is to encourage people-to-people contacts. And for this, there is nothing like reviving cricket contacts. Already, cricketers such as Wasim Akram (the retired pace legend and my all-time favourite in cricket) are employed with Indian cricket clubs. Once the cricket ties are resumed, I am sure people from Pakistan will want to cross the border to watch the games as much as we would like to (I look forward to travelling to Lahore to savour first-hand the mutton cooked by my friend Maria’s mother; the tinned samplings she used to send across are no substitute for the original).</div><div>It may be worthwhile to insert some context so as to correct any misapprehensions that may have gained ground. No one is making a romantic case here; the military, which still influences the polity of Pakistan, could still launch a fresh covert or overt offensive. The point is very simple: a deeper relationship mitigates the chances of conflict.</div><div>And it is a fact that relations between the two countries have turned the corner, which is allowing, for now, deeper economic linkages. No matter what the motivation—popular impression is that it is being provoked by the squeeze being applied by the Americans—it is significant. Once these linkages acquire momentum, it’s very difficult for some rabble-rousing elements to reverse them easily.</div><div>From India’s point of view, it is critical. An untamed or imploding Pakistan is not good news. As a near $2 trillion economy (eight times the size of Pakistan’s) with an aspirational population of over one billion, the stakes are far higher on this side of the border. The country’s potential cannot be held hostage to hostilities from across the border.</div><div>So, to come back to where we began—the silver lining is indeed the deepening relationship with Pakistan. And this may have happened thanks more to the fact that it has eluded the focus of the political bigwigs from either side of the border. Alternatively, it could have deteriorated into a case of “full of sound and fury signifying nothing”.</div><div><i>Anil Padmanabhan is deputy managing editor of </i>Mint <i>and writes every week on the intersection of politics and economics. Comments are welcome at capitalcalculus@livemint.com</i></div><div><b>• • • • • •</b></div><div><b>Also Read</b></div><div><a href="http://www.livemint.com/2012/05/20224003/Bridging-the-gap.html" target="_blank">Bridging the Gap</a></div><div><a href="http://www.livemint.com/capitalcalculus" target="_blank">Anil Padmanabhan’s earlier columns</a></div> http://www.livemint.com/2012/05/20211459/A-letter-to-Kapil-Sibal.html Sir, community radio is on the threshold of changing the country’s information landscape. On behalf of the myriad local communities that are waiting to be empowered through community radio, I request you to consider foregoing the spectrum fee altogether Digital World | Osama Manzar Sun, 20 May 2012 15:46:00 GMT 57e2b7ae-a293-11e1-b862-000b5dabf613 http://www.livemint.com/57e2b7ae-a293-11e1-b862-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/57e2b7ae-a293-11e1-b862-000b5dabf613_300_200E09Vpf.gif <div>Dear minister,</div><div>You are in a unique position which, in some way or the other, is responsible for connecting almost the entire country through the information highway. You are working on how all the 245,500 <i>panchayats</i> could be connected through broadband in the next few years; being the minister for human resources development, you also have the responsibility of seeing how you could introduce information and communications technology (ICT) in 1.4 million schools, more than 90% of which have no inkling about ICT. The success of the two initiatives could bring about a revolution and take governance in the country to a new level.</div><div>You are also aware how information is being democratized, thanks to social media networks and orally enabling technology tools—mobile phones and community radio—that are connecting the country. The information and broadcasting (I&B) ministry has allowed FM radio licences to be given to non-governmental organizations and non-profit institutions to broadcast to local communities within a radius of 5-15 kilometres. There are around 126 operational community radio stations and more than 500 at various stages of being granted a broadcast licence. There is a possibility of about 4,000 community radio stations broadcasting in our country if the coverage and geographical areas are calculated. The ministry of I&B has been working hard to put in place as many such radio networks as possible so that the local communities can find a voice, and communicate in their own dialect in their own area. </div><div><div class="dvbxImg"><img src="A6A66F5A-58A3-4889-9CDD-CE9AB2A36CF7" alt="Pradeep Gaur/Mint" title="Pradeep Gaur/Mint" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Pradeep Gaur/Mint</div></div>According to one calculation, each community radio covers about 20-40 villages and about 5,000 people. That means we are giving access to the media to thousands of villages whose residents perhaps never had a chance to read a newspaper or listen to the radio or watch television. This is a great inclusive programme devised by the government.</div><div>Sir, the licensing process of a community radio network goes through five ministries, including the two that are in your charge. One of the most essential parts of running a community radio is that it uses spectrum in the form of FM and for that each licencee was supposed to pay Rs 19,700 until recently; the fee has been increased to Rs 90,000. </div><div>I would like to bring to your notice that, according to a Supreme Court of India ruling in February 1995, “airwaves constitute public property and must be utilized for advancing public good.” That implies that if the use of the airwaves is not commercial, no licence fee should be charged. </div><div>Community radio stations are run by not-for-profit organizations by law and are not meant for commercial use. In fact, more than 50% of the programmes aired on them are supposed to be made with the involvement of communities. Recently, in order to make community radio sustainable, the government also allowed 5 minutes of advertising per hour. Many government departments are now looking at community radio as a viable medium to reach out to the citizens with information about the programmes and schemes they are pursuing.</div><div>If we look at the history of the United Progressive Alliance (UPA) government, it has launched several inclusive and participatory programmes aimed at enhancing citizens’ rights and improving their life. They include the Right to Information Act, the Mahatma Gandhi National Rural Employment Guarantee Act and the Right to Education Act. Common service centres have been started in each <i>panchayat</i>, and community radio allowed. Given that background, it is only natural to expect that the government machinery would work together to ensure an integrated approach in framing and enforcing administrative orders.</div><div>Not only is charging not-for-profit organizations a spectrum fee for community radio (let alone increasing it from Rs 19,700 to Rs 90,000) a violation of the Supreme Court’s 1995 order, it’s also at variance with the policy approach of the UPA government. This shows a lack of coordination between various government ministries and departments.</div><div>Sir, community radio is on the threshold of changing the country’s information landscape. On behalf of the myriad local communities that are waiting to be empowered through community radio, I request you to consider foregoing the spectrum fee altogether and be an agent of change in the movement we call an information revolution.</div><div>Hoping for a favourable decision from you.</div><div><i>Osama Manzar is founder-director of Digital Empowerment Foundation and curator of the mBillionth Awards. He is also a member of a working group on Internet governance established by the ministry of communications and information technology. Tweet him @osamamanzar. </i></div> http://www.livemint.com/2012/05/20210214/Ourview--Mamata8217s-year.html When the Left Front was ousted from power in West Bengal last year, cries of poribortan (change) rent the air Sun, 20 May 2012 15:32:00 GMT 8182698c-a28a-11e1-b862-000b5dabf613 http://www.livemint.com/8182698c-a28a-11e1-b862-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/8182698c-a28a-11e1-b862-000b5dabf613_300_200E09Vpf.gif <div>When the Left Front was ousted from power in West Bengal last year, cries of <i>poribortan</i> (change) rent the air. The people of the state—both in rural and urban areas—were concerned about their future. The state hardly attracted any investment; job-led growth, if there was any, could hardly keep pace with what was needed. When investors finally looked favourably, the draconian means by which these investments were to be made productive—seizing of land and downright repressive means to secure it—ensured the Left’s exit.</div><div>Today, a year later, Mamata Banerjee is unable to give meaning to the expression <i>poribortan</i>. Her political choices have ruled out industrialization in the state. Her populist outlook makes it impossible to bring the state’s finances back on the rails. Finally, her abrasive political behaviour has left her with few friends in the Union government. For survival, the Manmohan Singh government tolerates her but does not yield to what she really wants: a financial bailout package for her government.</div><div><div class="dvbxImg"><img src="8116B750-93AA-4DA1-8F8A-507C62238BD9" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>West Bengal’s electoral calendar is packed all the way till 2016. From local elections to the general election and finally the state assembly elections in 2016, Banerjee’s anxiety is palpable. The results are quite predictable. On the one hand, she does not have a coherent strategy by which she can revive West Bengal’s sagging economic fortunes and then showcase her achievements on the eve of the 2016 polls. On the other hand, with restricted room for manoeuvring, she has to rely on populist politics to try and keep herself on high political ground. Opposition to increases in fuel prices, railway passenger fares and even sharing of Teesta river waters with Bangladesh (which, legally and constitutionally, is none of her business) are her way of showing her “relevance”.</div><div>This is a low-level political playing field where jostling between rivals is intense. The Left parties, with their better articulated programmatic ideals —however ruinous they may be in practice—are able to deliver her a punch or two every now and then. It will be much better for her, and for her electoral fortunes, if she concentrates on giving West Bengal a good government instead of a chimerical chase for power.</div><div><i>How should Mamata Banerjee’s one year as chief minister be remembered? Tell us at views@livemint.com</i></div> http://www.livemint.com/2012/05/20210259/Ourview--A-freedom-imperilled.html India has proposed the establishment of a new United Nations committee for Internet-related policies Sun, 20 May 2012 15:32:00 GMT d9e6ecc2-a28c-11e1-b862-000b5dabf613 http://www.livemint.com/d9e6ecc2-a28c-11e1-b862-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/d9e6ecc2-a28c-11e1-b862-000b5dabf613_300_200E09Vpf.gif <div>India has proposed the establishment of a new United Nations committee for Internet-related policies (CIRP). Currently a smattering of voluntary, non-profit and independent organizations oversee the democratic, chaotic and endlessly innovative mess that is the Internet. This system is not without shortcomings. Problems such as Internet fraud, malware and child pornography continue to plague the Web.</div><div>But for all its flaws, it remains by far the most democratic form of media on the planet with the lowest cost of broadcasting. Today, one in three people on the planet have access to the Web. From planes landing on the Hudson river to galvanizing oppressed populations in the Middle East, the Internet is crucial to our lives.</div><div><div class="dvbxImg"><img src="F6C26F07-E2F7-4318-8E48-FC369A6886E0" alt="Shyamal Banerjee/Mint" title="Shyamal Banerjee/Mint" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Shyamal Banerjee/Mint</div></div>When it comes to defending our freedom today, the Internet may not be sufficient but it is undoubtedly necessary. Knowing about injustice is the first step in acting against it.</div><div>India’s proposal will replace these independent bodies with an inter-governmental watchdog. This is a proposal that, if implemented, will endanger a precious freedom.</div><div>The Indian government’s recent posture towards the Internet at home, with the Information Technology (Intermediaries Guidelines) Rules, 2011, and abroad, with the proposal for CIRP is, almost certainly, deeply malicious.</div><div>The fact that the intermediaries guidelines were notified in the same month that Anna Hazare launched his anti-corruption campaign last year may not be mere coincidence. Since then the government has shown shameless audacity in redacting any content it does not approve of, with a particularly intense hatred of satirical cartoons.</div><div>Of course, all these proposals have been couched in the most benign copperplate. This is from the proposal for CIRP: “As a democratic and open society that has historically welcomed outside influences and believes in openness to all views and ideas and is wedded to free dialogue, pluralism and diversity, India attaches great importance to the preservation of the Internet as an unrestricted, open and free global medium that flourishes through private innovation and individual creativity and serves as a vehicle for open communication, access to culture, knowledge, democratization and development.”</div><div>The government perhaps takes comfort in one fact: many citizens will happily sacrifice freedom for “law and order”. It is easy to win popular support by talking of blasphemous cartoons and insensitive blog posts. However, subjecting these freedoms to malicious laws is as good as giving them up for good.</div><div>It may be too hard to repulse the government’s mindless ideas at home. Hopefully, better sense will prevail at the United Nations.</div><div><i>Can governments be trusted with managing the Internet? Tell us at views@livemint.com</i></div> http://www.livemint.com/2012/05/20210130/Greece-must-exit-euro-zone.html A return to a national currency and a sharp depreciation will quickly restore competitiveness and growth Nouriel Roubini Sun, 20 May 2012 15:31:00 GMT ee946f6c-a28e-11e1-b862-000b5dabf613 http://www.livemint.com/ee946f6c-a28e-11e1-b862-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/ee946f6c-a28e-11e1-b862-000b5dabf613_300_200E09Vpf.gif <div>The Greek euro tragedy is reaching its final act: it is clear that either this year or next, Greece is highly likely to default on its debt and exit the euro zone.</div><div>Postponing the exit after the June election with a new government committed to a variant of the same failed policies (recessionary austerity and structural reforms) will not restore growth and competitiveness. Greece is stuck in a vicious cycle of insolvency, lost competitiveness, external deficits, and ever-deepening depression. The only way to stop it is to begin an orderly default and exit, coordinated and financed by the European Central Bank (ECB), the European Union, and the International Monetary Fund, or IMF, (the Troika), that minimizes collateral damage to Greece and the rest of the euro zone.</div><div><div class="dvbxImg"><img src="5A14262B-A213-453A-A245-89B3DB546F63" alt="Photo: Simon Dawson/Bloomberg" title="Photo: Simon Dawson/Bloomberg" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Photo: Simon Dawson/Bloomberg</div></div>Greece’s recent financing package, overseen by the Troika, gave the country much less debt relief than it needed. But, even with significantly more public debt relief, Greece could not return to growth without rapidly restoring competitiveness. And, without a return to growth, its debt burden will remain unsustainable. But all of the options that might restore competitiveness require real currency depreciation.</div><div>The first option, a sharp weakening of the euro, is unlikely, as Germany is strong and ECB is not aggressively easing monetary policy. A rapid reduction in unit labour costs, through structural reforms that increased productivity growth in excess of wages, is just as unlikely. It took Germany 10 years to restore its competitiveness this way; Greece cannot remain in a depression for a decade. Likewise, a rapid deflation in prices and wages, known as an “internal devaluation”, would lead to five years of ever-deepening depression.</div><div>If none of those three options is feasible, the only path left is to leave the euro zone. A return to a national currency and a sharp depreciation would quickly restore competitiveness and growth.</div><div>Of course, the process would be traumatic—and not just for Greece. The most significant problem would be capital losses for core euro zone financial institutions. Overnight, the foreign euro liabilities of Greece’s government, banks, and companies would surge. Yet these problems can be overcome. Argentina did so in 2001, when it “pesofied” its dollar debts. The US did something similar in 1933, when it depreciated the dollar by 69% and abandoned the gold standard. A similar “drachmatization” of euro debts would be necessary and unavoidable.</div><jump /><div>Losses that euro zone banks would suffer would be manageable if the banks were properly and aggressively recapitalized. Avoiding a post-exit implosion of the Greek banking system, however, might require temporary measures, such as bank holidays and capital controls, to prevent a disorderly run on deposits. The European financial stability facility/European stability mechanism (EFSF/ESM) should carry out the necessary recapitalization of the Greek banks via direct capital injections. European taxpayers would effectively take over the Greek banking system, but this would be partial compensation for the losses imposed on creditors by drachmatization.</div><div>Greece would also have to restructure and reduce its public debt again. The Troika’s claims on Greece need not be reduced in face value, but their maturity would have to be lengthened by another decade and the interest on it reduced. Further haircuts on private claims would also be needed, starting with a moratorium on interest payments.</div><div>Some argue that Greece’s real gross domestic product (GDP) would be much lower in an exit scenario than it would be during the hard slog of deflation. But that is logically flawed: even with deflation, real purchasing power would fall, and the real value of debts would rise (debt deflation), as the real depreciation occurs. More importantly, the exit path would restore growth right away, via nominal and real depreciation, avoiding a decade-long depression. And trade losses imposed on the euro zone by the drachma depreciation would be modest, given that Greece accounts for only 2% of euro zone GDP.</div><div>Reintroducing the drachma risks exchange rate depreciation in excess of what is necessary to restore competitiveness, which would be inflationary and impose greater losses on drachmatized external debts. To minimize that risk, the Troika reserves currently devoted to the Greek bailout should be used to limit exchange rate overshooting; capital controls would help, too.</div><div>Those who claim that contagion from a Greek exit would drag others into the crisis are also in denial. Other peripheral countries already have Greek-style problems of debt sustainability and eroded competitiveness. Portugal, for example, may eventually have to restructure its debt and exit the euro. Illiquid but potentially solvent economies, such as Italy and Spain, will need support from Europe regardless of whether Greece exits; indeed, without such liquidity support, a self-fulfilling run on Italian and Spanish public debt is likely.</div><div>The substantial new official resources of IMF and ESM—and ECB liquidity—could then be used to ring-fence these countries, and banks elsewhere in the euro zone’s troubled periphery. Regardless of what Greece does, euro zone banks now need to be rapidly recapitalized, which requires a new EU-wide programme of direct capital injections.</div><div>The experience of Iceland and many emerging markets over the past 20 years shows that nominal depreciation and orderly restructuring and reduction of foreign debts can restore debt sustainability, competitiveness, and growth. As in these cases, the collateral damage to Greece of a euro exit will be significant, but it can be contained.</div><div>Like a doomed marriage, it is better to have rules for the inevitable divorce that make separation less costly to both sides. Make no mistake: an orderly euro exit by Greece implies significant economic pain. But watching the slow, disorderly implosion of the Greek economy and society would be much worse.</div><jump /><div><i>Nouriel Roubini is chairman of Roubini Global Economics, professor of economics at the Stern School of Business, New York University, and co-author of the book Crisis Economics.</i></div><div><b>©2012/PROJECT SYNDICATE</b></div><div><i>Comments are welcome at theirview@livemint.com</i></div> http://www.livemint.com/2012/05/20210044/India8217s-drug-regulation.html The Indian government’s rationale for clinical trials is that drugs occasionally cause unexpected problems in different ethnic groups and so should be tested on all ethnicities before being widely used Roger Bate Sun, 20 May 2012 15:30:00 GMT 6991f274-a290-11e1-b862-000b5dabf613 http://www.livemint.com/6991f274-a290-11e1-b862-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/6991f274-a290-11e1-b862-000b5dabf613_300_200E09Vpf.gif <div>India’s ministry of health announced emergency plans recently to prevent irregularities in how the government approves new medicines. The sense of urgency comes after a 78-page parliamentary report that found that officials in India’s drug regulator, the Central Drugs Standard Control Organization (CDSCO), colluded with pharmaceutical firms to speed up medicine approvals. Such collusion is a problem, but the risk is that the government will waste energy tackling the wrong disease.</div><div><div class="dvbxImg"><img src="9A7C3AB3-2A83-4DB7-86A8-D1ED7D87A3BF" alt="Photo: Bloomberg" title="Photo: Bloomberg" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Photo: Bloomberg</div></div>So far, the ministry has been short on specifics, saying it will strengthen CDSCO and streamline its functions. The ministry needed to be seen acting after the parliamentary report, which accused several large pharmaceutical companies, including Germany’s Bayer AG, of colluding with CDSCO. In Bayer’s case, the report cited several examples of letters of recommendation in support of rivaroxaban, Bayer’s anti-blood-clotting medicine that were purportedly written by different, independent Indian university experts thousands of miles apart and yet were “word to word identical”. Bayer says it had no input in the supporting letters, which were obtained by CDSCO.</div><div><a href="http://online.wsj.com/article/SB10001424052702304192704577407144061046170.html" target="_blank">Click here</a><b>to read the full article.</b></div><div><i>Roger Bate is a resident scholar at the American Enterprise Institute in Washington, DC.</i></div><div><b>—THE WALL STREET JOURNAL</b></div><div><i>Edited excerpts. Comments are welcome at otherviews@livemint.com</i></div> http://www.livemint.com/2012/05/20203905/Markets-may-try-to-recover.html The markets are showing signs of recovery and based on key technical studies there are chances of a recovery in the Indian stock markets this week Ahead of the Ticker | Vipul Verma Sun, 20 May 2012 15:09:00 GMT 0767465a-a28e-11e1-b862-000b5dabf613 http://www.livemint.com/0767465a-a28e-11e1-b862-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/0767465a-a28e-11e1-b862-000b5dabf613_300_200E09Vpf.gif <div>It seems Indian stock markets are on a ventilator. With sentiment worsening and the crisis deepening in the global markets as well as in India, investor confidence has plummeted. According to a Bank of America Merrill Lynch report, business confidence has gone below the level it was at when Lehman Brothers Holdings Inc. collapsed in September 2008.</div><div><div class="dvbxImg"><img src="2D91B834-8B94-4DC5-BF3E-7168DBC319A9" alt="Shyamal Banerjee/Mint" title="Shyamal Banerjee/Mint" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Shyamal Banerjee/Mint</div></div>While valuations are below long-term averages, the market has been derated because India’s growth momentum is at a 10-year low and the twin deficits (fiscal and current account), too, are at their worst levels in over a decade. Add to it the rupee’s sharp depreciation against the dollar, the overall Indian story looks bad and the future bleak. This is particularly true in light of the fact that the Indian government is a mute spectator and policy reforms and economic measures needed to lift growth are at a standstill. Because of political compulsions, reforms are unlikely in the near future and this is a key reason for the equity and forex markets floundering.</div><div>There are some positives. Falling crude prices have lent some support to the Indian economy and lower commodity prices are also likely to help; a $10 per barrel decline in the oil price reduces India’s current account deficit by 0.4% of gross domestic product (GDP) and the fiscal deficit by 0.2% of GDP. The rupee’s sharp depreciation means the benefits are not reflected either in terms of economic parameters or equity benchmarks.</div><div>Going forward, the broad trend remains weak and despite a strong recovery on Friday, after State Bank of India posted surprisingly strong earnings, the outlook has not changed much. Since inflation remains a big concern, the latest consumer prices index, which accelerated to 10.36%, has added to the worries, narrowing monetary policy options. It had been expected that the Reserve Bank of India (RBI) may take some monetary policy measures in its June meeting to revive economic growth. That looks like a bleak possibility now.</div><div>Technically, the markets are showing signs of recovery and based on key technical studies there are chances of a recovery in the Indian stock markets this week. With the broad trend being weak, any rebound would be essentially a short-lived relief recovery, which would be difficult to sustain unless it is supported by some strong policy-related measures. On Monday, the markets are likely to resume on a cautious note and after some range-bound volatility, may try to edge up. </div><div>On its way up, the National Stock Exchange of India Ltd's Nifty index will come across its first resistance at 4,923 points, which is a moderate resistance level, but could see some profit taking. If the Nifty is able to hold above this level with good supporting volume, this would be a positive and could push the index to 4,957 points, which is a good resistance level. If the Nifty is able to settle above this level on higher volume at the close, this would signal the beginning of a relief rally, with a target of 5,124-5,159 points. En route to this target, the Nifty will come across resistance at 5,017 points and 5,076 points. On its way down, the first support for the Nifty is at 4,846 points, which is an important level. If the Nifty drifts below this level on good volumes, this would be a bearish signal and could mean retesting its recent low of 4,789 points in the immediate term. Technically, this is not a very strong support and might succumb under volume-led selling. In this case, the Nifty would try to find support at 4,723 points, which is likely to be a strong level.</div><div>Among global factors, Saturday’s meeting of G-8 nations strongly supported keeping Greece in the euro zone and vowed to take all steps necessary to combat the financial turmoil while revitalizing a global economy increasingly threatened by Europe’s debt crisis. This is likely to ease sentiment, which had been rattled by the condition of Greece and an emerging crisis in Spain. The relief may be short-lived as the markets would like to see concrete measures and not hear just assurances. Among key economic data in the US, the new homes sales report is due on Wednesday. Numbers on initial jobless claims and durable goods orders will be released on Thursday, while consumer sentiment data will be released on Friday. Any positive indicators would be welcomed by the markets.</div><div>At home, among individual stocks this week ACC Ltd, DLF Ltd and Reliance Capital Ltd look good on the charts. ACC, at its last close of Rs 1,159.85, has a target of Rs 1,192 and a stop-loss of Rs 1,123. DLF, at its last close of Rs 186.20, has a target of Rs 191 and a stop-loss of Rs 180, while Reliance Capital, at its last close of Rs 290.90, has a target of Rs 298 and a stop-loss of Rs 281.</div><div>From my previous week’s recommendations, Voltas Ltd met its target easily while Tata Motors Ltd and HDFC Bank Ltd triggered their stop losses. HDFC Bank remains a valid recommendation.</div><div><i>Vipul Verma is chief executive officer</i>, Moneyvistas.com. <i>Comments, questions and reactions to this column are welcome at</i> ticker@livemint.com.</div><div><b>Also Read |</b><a href="http://www.livemint.com/articles/Authors.aspx?author=Ahead%20of%20the%20Ticker&type=wa" target="">Vipul Verma’s earlier articles</a></div> http://www.livemint.com/2012/05/19003124/Quick-Edit--Perception-proble.html It is heartening to note the government has “taken note” of the negative outlook to India’s long-term rating by Standard and Poor’s Fri, 18 May 2012 19:01:00 GMT 57cdbb96-a11d-11e1-9d73-000b5dabf613 http://www.livemint.com/57cdbb96-a11d-11e1-9d73-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/57cdbb96-a11d-11e1-9d73-000b5dabf613_300_200E09Vpf.gif <div>It is heartening to note the government has “taken note” of the negative outlook to India’s long-term rating by Standard and Poor’s.</div><div><div class="dvbxImg"><img src="55F983BD-A381-49FA-A64E-48B36369DDCE" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>Finance minister Pranab Mukherjee, while replying to a question in Parliament on Friday, said the revision in outlook may have some perceptional impact. This is an understatement: the world’s perception of India began changing in 2010. Matters have gone further ahead—India is being “shorted”.</div><div>There are two simple things the government can do to revive the bleeding Indian economy: stop interfering in the markets and end the dangerous efforts to create an entitlement society. Both processes are creating serious distortions in prices and incentives that are feeding into the downward economic spiral. The taste to interfere, however, is hard for the government to give up.</div><div>There is more pain ahead.</div> http://www.livemint.com/2012/05/18231107/India8217s-lost-decades.html A listing of India’s real ills would read thus: profligacy and an emphasis on entitlement-driven government programmes without a corresponding focus on reforms and the lack of political and administrative leadership R. Sukumar Fri, 18 May 2012 17:41:00 GMT f57fbfda-a111-11e1-9d73-000b5dabf613 http://www.livemint.com/f57fbfda-a111-11e1-9d73-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/f57fbfda-a111-11e1-9d73-000b5dabf613_300_200E09Vpf.gif <div>Ours will be the generation that saw India break out of the Hindu rate of growth and then return to it.” </div><div>One of the 227 people I follow on Twitter said this and the probability of the statement coming true increases by the day. </div><div><div class="dvbxImg"><img src="A07F3FFD-4FB1-49F0-9B26-2ED7D7838839" alt="Shyamal Banerjee /Mint" title="Shyamal Banerjee /Mint" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Shyamal Banerjee /Mint</div></div>Not surprisingly, some pundits are already beginning to speak of India’s lost decade. I believe the situation is far more serious; if things do not change, the 20 years to 2014 could well become India’s lost two decades. Then, there’s no telling what lies in store after 2014, the year the next general elections are scheduled. </div><div>Here’s a quick litany of India’s troubles: a rapidly depreciating currency; falling stock markets; rising inflation; declining factory output; a slowing economy; and low investor, consumer and business sentiment. </div><div>These, though, are merely the symptoms. A listing of India’s real ills would read thus: profligacy and an emphasis on entitlement-driven government programmes without a corresponding focus on reforms and the lack of political and administrative leadership. </div><div>These are the real issues about which everyone, including the worthies in Parliament, should be worried. Instead, what we have is an obsession about the sensational (in government and media circles) that, unfortunately, comes with a complete obliviousness to the substantive. </div><div>On Friday, some of our politicians and the TV channels were outraging about cricket, specifically the Mumbai Cricket Association’s decision to bar Shah Rukh Khan from entering the Wankhede Stadium for five years after an expletive-laden exchange between officials of the association and the actor, who is part owner of Indian Premier League (IPL) team Kolkata Knight Riders (or Team Kolkata as it is referred to by a media company that will now probably look for a similar non-brand descriptor for Nike, Apple, and other brands). The TV channels and some other politicians were focusing on the alleged assault of a US citizen by a member of another IPL team, Royal Challengers Bangalore. The minor matter of consumer price inflation in India entering double digits was overlooked (the new data series was launched in January). So was another minor matter, an emerging stand-off between the rural development ministry and a Parliamentary standing committee on the critical land acquisition bill. A few days ago, it was spot-fixing by some inconsequential cricketers in some inconsequential matches that was the focus of everyone’s attention. And before that, it was a 63-year-old cartoon. </div><div>But to return to the economic crisis that now looms large, it is becoming increasingly clear with every passing day that radical measures are needed. If there ever was a time for incremental measures —there may have been, briefly, in 2009, after the United Progressive Alliance returned to power, stronger, yet, as it is now evident, strangely dysfunctional—it is long gone. What we need now are bold steps. </div><div>Not as bold as replacing the Prime Minister and the finance minister (they are both wrong men for their respective jobs) and disbanding the National Advisory Council. Not even as bold as shutting down Air India. But bold enough to bring down both deficits (fiscal and current account) and control inflation; reassure investors, both domestic and foreign, about the stability of policy regimes in India; create jobs; and send out the message that someone (anyone) is in charge and the country isn’t being run by activists and courts (not that this is an entirely bad thing). To be sure, it won’t be easy and there are no off-the-shelf solutions, but it is debate around issues such as these that should be occupying Parliament and the media. Surely, the future of the country matters more than a spat between an actor and some cricket administrators? </div> http://www.livemint.com/2012/05/18225153/Relationships-policy.html Maybe Indian companies should think of not only having a relationships policy, but also one that deals with romances positively, supportively Cubiclenama | Sidin Vadukut Fri, 18 May 2012 17:21:00 GMT 40f3e584-a10f-11e1-9d73-000b5dabf613 http://www.livemint.com/40f3e584-a10f-11e1-9d73-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/40f3e584-a10f-11e1-9d73-000b5dabf613_300_200E09Vpf.gif <div>Recently I’ve been thinking of all the human resources (HR) policies, HR manuals and employee handbooks of every single company I have worked in. And I am trying to think if any of them had even a single clause pertaining to amorous relationships between co-workers.</div><div>But first an observation. If there is one characteristic I can think of that is common to all these policy documents, it has to be ‘an utter lack of balance or proportion’.</div><div><div class="dvbxImg"><img src="BD83B5AA-9486-47D8-9B7B-E9A1F5395968" alt="Sidin Vadukut " title="Sidin Vadukut " height="300" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Sidin Vadukut </div></div>For instance, one company had a reasonably slim Employee’s Handbook of 40 pages of which some one-third was dedicated solely to explaining the many nuances of the company’s travel policies. Page after page was dedicated to lists of Category A cities and Category B cities, and hotel allowances and laundry allowances. Then there was a special two-page section that dealt with travel to ‘dangerous’ places. This section had the book’s most popular typo: “Employees MUST travel to Jammu and Kashmir without explicit permission from the Administrative Manager at the Head Office in Mumbai.” </div><div>Okay then!</div><div>But while reading a recent article on the CanadianBusiness.com website, it occurred to me that none of these policies ever touched upon the topic of in-office relationships. Which seemed odd. The article indicated that companies in the West explicitly had policies dealing with cubicle coochie-coo. </div><div>Usually what HR managers in India do is take policies from the American Head Office, control-find-replace the phrase ‘company will reimburse employee’ with the phrase ‘employee will reimburse company’, change dollars to rupees, substitute all American leave allowances with its square root, and then add a new 17-page Capital Expense Requisition Proforma at the end with questions such as: ‘Explain, with diagrams, how this purchase of new optical mouse will benefit the company’s P/E Ratios and Free Cash Flows over the next 4 quarters.’ </div><div>But somehow none of them had ever adopted office romance clauses. The closest I’d come to anything like that was a special Rs 5,000 allowance one ex-employer gave every employee on their marriage. However, this was only valid for the first marriage. And if two employees married each other, only one of them got the allowance.</div><div>Now, I have nothing against office romances. I am not some kind of Cubicle Taliban. But I was always under the impression that these were fraught with risk for both the organization and the individuals concerned.</div><div>Having a couple working within the same team or department can be extremely complicated. Especially if one reports to the other. As it is, managing people is such a hard thing to do. Imagine having to tell a girlfriend or a boyfriend that they are behind schedule? Or appraising them? Shudder.</div><div><i>“Darling, I feel like going and watching The Dictator tonight. Do you have any plans?”</i></div><div><i>“Why don’t you go along by yourself. Today I am thinking of working on improving the extent to which, commensurate to my grade, I am cooperative, considerate, and tactful in dealing with supervisors, subordinates, peers, customers and other shareholders.</i>”</div><div>Now it appears my fears are unfounded. According to the Canadianbusiness.com piece, ‘Office romance is good for business’, cubicle coupling might actually be not only tolerable, but also beneficial. For all parties.</div><div>Author Jasmine Budak quotes a number of research reports. For instance, one study shows that there is a 20% chance of an office date turning into a long-term relationship. Apparently this is much, much better than the odds offered both by many dating websites and, according to a personal survey I have with me, doing C++ projects for girls in engineering colleges. </div><div>There is more. Budak refers to a Swedish survey of 1,500 workplaces and 37,000 employees that threw up a rather counter-intuitive result: spouses who worked together had half the divorce rates of the general public. </div><div>This goes in the face of prevailing wisdom: that distance and limited interaction is what truly keeps a married couple together. Who wants to see the same face at work AND at home? But then think about it. What if your spouse could see first hand the pressures you’re under and the deadlines you’re grappling with? </div><div>Companies, meanwhile, see better morale, productivity and higher retention among those in relationships or married to colleagues. No wonder America’s successful Southwest Airlines welcomes office relationships. Budak says there are 1,200 married couples out of the airline’s 35,000 headcount. (Air India! Are you listening?)</div><div>Suddenly, office romances no longer seem a bad idea. Maybe Indian companies should think of not only a relationships policy, but also one that deals with romances positively and supportively. Also, they may want to encourage already married employees to actively interact with single colleagues of the opposite sex. In a purely mentoral capacity. It just makes good business sense.</div><div><i>Cubiclenama takes a weekly look at the pleasures and perils of corporate life. Your comments are welcome at cubiclenama@livemint.com</i></div><div><b>Also Read |</b><a href="http://www.livemint.com/articles/Authors.aspx?author=Cubiclenama%20&type=wa" target="_blank">Sidin Vadukut’s previous columns</a></div> http://www.livemint.com/2012/05/17205941/How-to-make-your-charity-count.html Indians do not give enough to charity, but the habit is growing among those who have been lucky enough to benefit from a dynamic economy. A little scientific inquiry can ensure that your charity can be effective The Impartial Spectator | Niranjan Rajadhyaksha Fri, 18 May 2012 14:48:00 GMT c4539d18-a01d-11e1-a8fa-000b5dabf613 http://www.livemint.com/c4539d18-a01d-11e1-a8fa-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/c4539d18-a01d-11e1-a8fa-000b5dabf613_300_200E09Vpf.gif <div>Many years ago, our schoolboy gang had mastered a little trick to maximize collections for the neighbourhood Ganpati festival. We used to first approach the families that were most likely to make large donations. A crisp Rs 50 note meant a lot in those days. The initial donations we collected acted as a benchmark. Other families would then decide how much they would contribute in comparison to these large donors. Some would try to match that number while even the stingy would try to stay as close to the initial donations as possible. Our devious mind game was inevitably successful, with the average contribution higher than what we could normally have collected.</div><div>Behavioural economists would now describe this trick as an exercise in anchoring, a tendency of the human mind to focus on one piece of information to make a decision. Those first handsome donations for the local festival played on the minds of subsequent donors. I remembered the old trick when, in April, I read on the Mostly Economics blog written by Amol Agrawal about an interesting experiment conducted by two economists on how to encourage small donors to give for a particular cause.</div><div>The experiment was conducted by Dean Karlan of Yale University and John List of The University of Chicago. Here’s what they did: They sent letters seeking donations for a charity focused on poverty reduction to two sets of people— those who had previously donated to the charity and those who had not. One set of letters told potential donors that their contribution would be matched by a similar sum by the Bill and Melinda Gates Foundation while another set of letters made no mention of such a matching grant.</div><div><div class="dvbxImg"><img src="34DDABB1-B016-4068-8FC4-5B1D764C4B96" alt="Science of giving: Donors like Microsoft founder Bill Gates (second from left) bring credibility to any organization seeking funds. Sondeep Shankar/Getty Images" title="Science of giving: Donors like Microsoft founder Bill Gates (second from left) bring credibility to any organization seeking funds. Sondeep Shankar/Getty Images" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Science of giving: Donors like Microsoft founder Bill Gates (second from left) bring credibility to any organization seeking funds. Sondeep Shankar/Getty Images</div></div>The result from both groups was basically the same. Those who were told about the matching grant from the Gates foundation tended to give more. Charities seeking donations usually reach out to people who do not have credible information about its activities. I am sure several of us face this problem; we feel strongly about a particular issue but do not know enough about the people who approach us for money. What the promise of a matching grant did in the experiment conducted by Karlan and List is that it gave potential donors a credible signal that even the Gates foundation had confidence in the charity.</div><jump /><div>I saw a similar process work at Mysore in 2009, during the first TED conference held in India—TED is a global set of conferences that invites well-known names from a variety of fields to talk about new ideas and innovations. Sunitha Krishnan had given a chilling talk on sex slavery in India, one that I would urge readers to watch on the TED website; it not only won her a standing ovation but disturbed people enough for the subject to linger on during the evening party as well. At the end of the talk, a woman stood up and told the audience she would give $10,000 (Rs 5.36 lakh now) for the cause—but only if another 10 people in the audience made matching grants. More than 10 people put up their hands to join in. The conditional commitment worked like magic.</div><div>Let’s shift to the other part of the charity game: What should you fund? Giving to social causes is a deeply personal act. You give to the causes you most intensely believe in. Large donors can definitely follow their passion, because the very size of their philanthropy can make a dent in the problem they are most concerned about. But smaller donors will have to perhaps think a bit harder about what activities to fund. Should it be education or environmental protection or human rights or something else? Where will you get the best bang for your buck?</div><div>A bit of scientific research could be useful here as well. One guide has been provided by the Copenhagen Consensus Center (CCC), a think tank housed in the Danish capital that seeks to provide well-researched advice on how money should best be spent to help people and the planet. “The idea is simple, yet often neglected; when financial resources are limited, it is necessary to prioritize the effort. Every day, policymakers and business leaders at all levels prioritize by investing in one project instead of another. However, instead of being based on facts, science and calculations, many vital decisions are based on political motives or even the possibility of media coverage,” says the CCC website.</div><div>The advice proffered by the think tank is largely targeted at governments, civil society groups and businesses, but small donors can learn something from their research as well. In 2008, CCC published a report based on two years of careful analysis by 50 economists who were asked to find the most cost-effective solutions to 10 important global problems. Then a group of eight major economists, including five Nobel laureates, vetted the proposals.</div><div>The results were surprising. The most effective intervention is a very simple one—vitamin A and zinc micronutrient supplements for children. Giving such help to 80% of the 140 million undernourished children in the world would cost just $60 million but lead to $1 billion of benefits.</div><div>Five of the top 10 suggestions attack the malnutrition problem, with solutions ranging from salt iodization to deworming and nutrition promotion in communities. More fashionable concerns such as development of low-carbon technologies to combat global warming or conditional cash transfers feature relatively lower on the list (though their very presence means that they are important interventions as well). At No. 2, new global trade talks are a rare fashionable issue at the top of the list.</div><div>So if you want to figure out in what areas your charitable donations will have the maximum impact, then the Copenhagen research suggests that it would be in simple solutions that deal with malnutrition, the education of girls, clean drinking water and maternal care. I have tried to focus my meagre donations to charities every year on micronutrient support to young girls in poor communities.</div><jump /><div>The Upanishads define three principal human virtues: <i>damyata</i>, <i>datta</i> and <i>dayadhvam</i>, or restraint, charity and compassion. Indians do not give enough to charity, but the habit is growing among those who have been lucky enough to benefit from a dynamic economy. A little scientific inquiry can ensure that your charity can be effective.</div><div><i>Niranjan Rajadhyaksha is executive editor,</i> Mint.</div><div><b>Also Read</b> | <a href="http://www.livemint.com/impartialspectator" target="">Niranjan’s previous Lounge column</a></div><div>Write to Niranjan at impartialspectator@livemint.com</div> http://www.livemint.com/2012/05/17205925/Why-the-Congress-represents-In.html The flexibility has kept India democratic, and it is a Congress trait. The party also represents the middle-class consensus which views India as a great civilizing force, and seeks a nurturing of India’s cultural aesthetic Reply To All | Aakar Patel Fri, 18 May 2012 14:40:00 GMT 24552608-a020-11e1-a8fa-000b5dabf613 http://www.livemint.com/24552608-a020-11e1-a8fa-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/24552608-a020-11e1-a8fa-000b5dabf613_300_200E09Vpf.gif <div>We are a Congress-minded nation.</div><div>In saying this, I don’t mean we’re a nation of Congress voters, though that also is not inaccurate. Other than in one election, 1977, Indians have always voted for the Congress more than for any other party.</div><div>What I mean is that Indian values are best, and I would even say, only represented by the Congress. These values are religious accommodation, comfort with racial and linguistic diversity, acceptance of caste in politics, comfort in dynasty and a preference for compromise over principle. This flexibility has kept India democratic, and it is a Congress trait. The party also represents the middle-class consensus which views India as a great civilizing force, and seeks a nurturing of India’s cultural aesthetic.</div><div>In Pakistan’s <i>The Express Tribune</i>, Khaled Ahmed wrote on 8 April: “The Indian Constitution informs the attitude of the Indian middle class, which is tolerant of secularism.” This is true, and as an idea it is owned by the Congress.</div><div>Unlike the Tories and Labour in the UK or Republicans and Democrats in the US, we don’t have division by ideology in Hindu middle-class society.</div><div><div class="dvbxImg"><img src="38C92EBF-30BE-42CE-9D69-8BA6122120AA" alt="Woman power: BSP chief Mayawati is a terrific orator. Keshav Singh/Hindustan Times" title="Woman power: BSP chief Mayawati is a terrific orator. Keshav Singh/Hindustan Times" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Woman power: BSP chief Mayawati is a terrific orator. Keshav Singh/Hindustan Times</div></div>Writer Arvind Rajagopal made this point by asking who, if the Bharatiya Janata Party (BJP) was the Hindu right, was the Hindu left? There’s no such thing, of course.</div><div>The BJP thinks it is an ideological party but it doesn’t have any real ideology. The party’s three ideological thrusts are all negative: Muslims shouldn’t keep their family law, Muslims shouldn’t keep Ram Janmabhoomi, Muslims shouldn’t keep separate status through Article 370 in Kashmir.</div><div>Ideology is something you stand for, not against. The CPM is an ideological party. The BJP is a party of resentful Hindus (symbolized by the face of a permanently sour Arun Jaitley).</div><div>We can observe a demonstration of this in the collapse of the Ayodhya movement. Its supporters were not in favour of the temple, but against the usurping mosque. Once the mosque disappeared, so did the movement of which we now hear little. This flaw is in the Rashtriya Swayamsevak Sangh (RSS) gene and was passed on.</div><div>Muslim concession always deflates the BJP, and this explains the party’s decline, which will continue. The middle-class Hindu’s bigotry against the Muslim is reactive. His hatred is not ideological or dogmatic, such as the Muslim’s for the Jew. His bigotry responds to offences against him real and imagined—Somnath temple or Partition.</div><div>Because the bigotry is reactive and not ideological, the Congress has been able to accommodate it where required almost as efficiently as the BJP.</div><div>An irreligious Congress such as Jawaharlal Nehru’s does not put off Hindus, but it thinks it cannot afford to take the chance. This opportunism also aligns the Congress morally with Indians.</div><jump /><div>Many hate Gujarat chief minister Narendra Modi now but historically, the Congress has never been above using a little slaughter to appease Hindus, like in Ahmedabad in 1969 under Hitendrabhai Desai. During the 1992-93 riots, when Surat burned, Gujarat was ruled not by the BJP but by Chimanbhai Patel. When Delhi’s Hindus turned against Sikhs in 1984, Rajiv Gandhi looked away.</div><div><div class="dvbxImg"><img src="1F220BCE-E166-4350-9507-D332D44D33CE" alt="Sonia Gandhi is one of the Congress’ finest leaders. Subhav Shukla/PTI" title="Sonia Gandhi is one of the Congress’ finest leaders. Subhav Shukla/PTI" height="467" width="200" align="left" /><div class="dvbxImgCapt" style="width:300px">Sonia Gandhi is one of the Congress’ finest leaders. Subhav Shukla/PTI</div></div>It is only under Sonia Gandhi that the party has again become the standard-bearer for Ashokan secularism. She will go down in history as the finest Congress leader along with Nehru.</div><div>Pakistan’s Ahmed separates Congress voters from BJP voters in this fashion: “Many factors are common between the city-dwelling middle classes of India and Pakistan. The middle class lives in the city and votes rightwing. The Bharatiya Janata Party gets its vote in the city; the Congress party gets it from the rural areas.”</div><div>This is how many people see it. There are two problems with this formulation. The first is that the Congress, in its various forms, is currently dominant in four out of six metros. The BJP has only Bangalore.</div><div>Secondly, the BJP’s appeal for its voters lies in caste rather than ideology. For example, it is a Lingayat party in Karnataka. Its problems there have come because the RSS does not accept this fact and denies Lingayat champion B.S. Yeddyurappa his due. Ahmed’s observation that the middle class aligns with the BJP is valid only so far as middle class can be conflated with upper castes, seen as BJP voters. Middle-class expansion is today happening in India because of the rapid entry of lower castes. This is actually lethal for the BJP and good for the Congress. Unlike in Pakistan, India’s middle-class expansion will make it more moderate.</div><div>There is a reason why the Congress continually attracts young and urbane talent, but the BJP doesn’t. The reason is the alignment of the Congress with the broad Indian sentiment, which makes it naturally attractive and competitive. The open-minded BJP leader like Manohar Parrikar senses this and must often distance himself from the RSS position. In the Congress, Nitin Gadkari would have made even district president with difficulty.</div><div>I predict the decline of the BJP and the fragmentation of its state units into regional parties based on caste. This breaking away will paradoxically make these units more acceptable in coalitions and more coherent. The signs are visible in Rajasthan and Karnataka, where Hindutva has become irrelevant. In Gujarat, the party will collapse after the autocrat exits.</div><div>The Congress under the Gandhis, and later the Vadra-Gandhis, will remain our one great national party.</div><div>I nailed my colours to the mast in my column of 17 May 2009, but it is appropriate in a piece such as this that I again disclose my allegiance.</div><div>I am a Bahujan Samaj Party (BSP) voter. I was persuaded by a newspaper article. In 1996, writer Meenal Baghel reported a BSP rally in Uttar Pradesh for <i>The</i><i>Indian Express</i>. She described rain, a large crowd, wet, and the bamboo barricades it was straining.</div><div>Mayawati mounted the stage and said: “<i>Chamari hoon, kunwari hoon, tumhari hoon</i>” (I’m low-caste, single, yours). What a terrific line. I was seduced immediately.</div><jump /><div>The BSP is corrupt, true. But it has not butchered Sikhs or set Muslim children on fire. It has more legitimate grievance with India than any other group (Gandhi said of B.R. Ambedkar: “That he does not break our heads is an act of self-restraint on his part”). But it doesn’t extract justice through collective punishment. It is pragmatic with its social tormentors, a quality I admire.</div><div>It doesn’t share the Hindu middle-class fantasy that India will become a world power tomorrow, though most of us are illiterate and hungry and will remain so in our generation, and the next and the next.</div><div>I have sometimes wondered if I do right in voting BSP, for I am greatly attracted to Manmohan Singh, and because I have lived in states where BSP candidates usually forfeit their deposits.</div><div>But I have never felt guilt.</div><div><i>Aakar Patel is a writer and columnist.</i></div><div>Send your feedback to replytoall@livemint.com</div><div><b>Also Read</b> | <a href="http://www.livemint.com/aakar-patel" target="_blank">Aakar’s previous columns</a></div> http://www.livemint.com/2012/05/18200336/No-one8217s-monkeys.html Ismat Chughtai was a woman who walked her own path. The thing about a writer like her is that any “label” does not really do her full justice The Reading Room | Tabish Khair Fri, 18 May 2012 14:33:00 GMT 6725f882-a0dd-11e1-9d73-000b5dabf613 http://www.livemint.com/6725f882-a0dd-11e1-9d73-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/6725f882-a0dd-11e1-9d73-000b5dabf613_300_200E09Vpf.gif <div><b>Ismat Chughtai</b></div><div>It has remained a source of personal pain to me that I still find highly literate and very open European, African or American scholars of literature who have never read or even heard of Ismat Chughtai. I always photocopy one or two stories by her—usually <i>Lihaaf</i>, which has appeared as <i>The Quilt</i> in English—and give it to them. As a rule, I receive a raving email in a few days, asking me for greater details, followed by another raving email in a few months, thanking me for introducing the scholar to, as one such email put it, “one of the greatest short story writers of the 20th century”.</div><div><div class="dvbxImg"><img src="AC0D90FD-C0C1-4DEC-88E3-1EA43370062B" alt="Memoirs: Writer Ismat Chughtai. Photo: Hindustan Times" title="Memoirs: Writer Ismat Chughtai. Photo: Hindustan Times" height="508" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Memoirs: Writer Ismat Chughtai. Photo: Hindustan Times</div></div>Yes, that is what Chughtai was. But she was also a woman who walked her own path. The thing about a writer like Chughtai is that any “label” does not really do her full justice. Take, for instance, a story like <i>The Quilt</i>: How does one read it? Is it a feminist narrative, a lesbian love story, psychological drama, the portrait of a semi-feudal family structure, the story of an alternative modernity? It is all of these and something else at the same time. </div><div>Chughtai’s celebrated Urdu memoir <i>Kaghazi Hai Pairahan</i>, a title aptly lifted from one of Mirza Ghalib’s more obscure <i>shers</i> (couplets), is now available in lucid English translation by M. Asaduddin as <i>A Life in Words: Memoirs</i> (reviewed in <i>Lounge</i>, “A woman for all seasons”, 31 March). It is a must-read for anyone interested in literature, or for that matter, life.</div><div><b>Plucky publisher</b></div><div>It is one of those little remarked aspects of publishing today: Most translation takes place from English to other languages, and not from other languages to English. Some rich countries, like north European ones, have a bit of money invested in translating their own writers into English, but still the ratio is grossly uneven. What is even more uneven is the ratio of non-Western texts entering the English-reading market in places like India. It is an aspect of our colonial experience that we use largely colonial cultural bridges, ignoring all others.</div><div>One such bridge, which has also existed between India and the “world”, is that of Arab literature. It remains grossly ignored. In this context, the Indian imprint, Women Unlimited, an associate of Kali for Women, is doing a brave and necessary favour to all of us by bringing out contemporary Arab literature in English.</div><div>The one that I read this week is Hoda Barakat’s <i>The Tiller of Waters, </i>which won the Naguib Mahfouz Medal for Literature. Translated by Marilyn Booth, this is a major work by an acclaimed Lebanese novelist. Born in Beirut in 1952, Barakat graduated from Beirut University in 1975, and moved to Paris later on, where she continues to reside.</div><div>Barakat’s <i>The Tiller of Waters </i>is a complex meditation on science, craft, tradition, modernity, Arabs, Greeks, Kurds, history, myth, etc., presented as the many-layered recollections of a hallucinating man in war-devastated Beirut. This is literature that is no one’s performing monkey.</div><div><b>Comparative literature</b></div><div>Why is it that in India when we do “comparative literature” what we mean is comparison over the colonial bridge? That is, the comparative study of texts from Germany, France, the US or UK, mostly.</div><div>There seems to be almost no real “comparative literature” within India and between Indian literatures. Surely, a lot can be done between Bangla, Urdu and Tamil literatures, as well as, say, when it comes to the study of Tagore not as a Bengali writer (or as an Indian writer) but as a writer in Hindi or Telugu translation? It is time Indian universities invested much more in regional comparative literature programmes.</div><div><i>Tabish Khair is the author of </i>How to Fight Islamist Terror From the Missionary Position. <i>He is taking a break from writing this column.</i></div><div>Write to Tabish at readingroom@livemint.com</div> http://www.livemint.com/2012/05/18200222/Notes-on-how-to-change-the-wor.html Children are not just financial or emotional transactions, yet we constantly define them as such My Daughters’ Mum | Natasha Badhwar Fri, 18 May 2012 14:32:00 GMT 07139ed4-a0d5-11e1-9d73-000b5dabf613 http://www.livemint.com/07139ed4-a0d5-11e1-9d73-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/07139ed4-a0d5-11e1-9d73-000b5dabf613_300_200E09Vpf.gif <div>We are a society that does not give itself permission to love daughters.</div><div>We have family and social systems that are dismissive of our feelings, that are designed to break the natural bonds of support between people. They damage and hurt us as individuals; yet we cling to hierarchies and to the status quo, like a frayed security blanket. </div><div>In the last column, I wrote about taking on a stranger who had been rude to my children and me (“Do girls make you uncomfortable?”, 28 April). It was a random encounter. A woman we were meeting for the first time saw a family with three daughters and assumed that the only reason we would have crossed the golden threshold of “<i>hum do, hamare do</i> (<i>two children per couple</i>)” is to have a son. Out of the blue, in front of the children, she said to me, “You had three children because you wanted to have a son.”</div><div><div class="dvbxImg"><img src="BF03627F-B567-41D0-9A89-FF7EDC330EE9" alt="Self-sufficient: Teach your children to deal with meanness and cruelty rather than try and protect them from it at all times. Photo: Thinkstock" title="Self-sufficient: Teach your children to deal with meanness and cruelty rather than try and protect them from it at all times. Photo: Thinkstock" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Self-sufficient: Teach your children to deal with meanness and cruelty rather than try and protect them from it at all times. Photo: Thinkstock</div></div>Our children, all of them under 10 years, were right there listening to her. They watched me react, first with hesitation and then a sureness born out of shock.</div><div>My problem with her was not that she had judged me so bluntly. After all, it is a common desperation in India to crave for a son. I could have been in her place and thought the same thing.</div><div>What was totally unacceptable to me was how rude and dismissive she had been of the children. Talking about little children in front of them as if they are deaf, daft and worthless is another great tradition of our culture. We behave as if children don’t grasp the world around them, as if their feelings don’t matter.</div><div>I stepped away with the woman and confronted her. My own anger had crossed a boundary that made my words come out calm and clear.</div><div>In the scheme of things, it was a small incident. Yet I shared it and something about it resonated with those who read it. Three weeks later, I am still receiving responses in my mailbox.</div><div>Much of the email is from parents of daughters. That is where I got the first line of this column. As a society, we deny parents the permission to be in love with their daughters. We refuse to validate how they feel. A friend of mine recently became a father of two daughters.</div><div>“I am perfectly happy,” he said to me, “yet I have this nagging feeling as if I have failed an important exam. Others are thrusting disappointment on me.”</div><div>People want to stand on rooftops and declare, “I love my children, whatever their gender or abilities may be.” I can tell this from the resounding applause I receive when I do that. And you know what? I was full of self-doubt too on my way to the roof. I started raising my voice only because it was drowning in the din. I couldn’t hear myself any more.</div><div>Mothers of sons have written in. They get to hear that their lives are incomplete without daughters. Apparently sons cannot have emotional bonds with parents the way daughters have. Yet every parent knows differently. </div><div>Why do we limit ourselves so radically? Are we scared of the power of love and intimacy? As a society, we seem to have bottled up our natural feelings in jars and left them to pickle in the sun.</div><div>Children are not just financial or emotional transactions, yet we constantly define them as such. Who will take care of us later? How will we maximize returns on the investment we are making?</div><div>Individually we are all reasonable voices of sanity and yet collectively we pull each other down with our ruthless judgements. We despair about how some things never change, yet the only power each of us has is to change ourselves. We don’t have to be helpless victims. We can be powerful. We are powerful. We must challenge the language of this discourse.</div><div>Among the many responses was one from a daughter. Anubha Yadav is one of four sisters and she shared stories of how they learnt to laugh, be angry and play games as they dealt with a million silences and unwanted reactions in their growing-up years.</div><div>“Children are bright, Natasha,” she writes. “They will learn to make fun of and take on the people who challenge them. Because they are lucky to be born to you.”</div><div>I didn’t know I was looking for it, but this is the reassurance I needed. I don’t have to protect my children from meanness and cruelty. I have to show them how to deal with it. That’s how we will change the world around us.</div><div>We are and will always remain our children’s first, most influential, role models. Let the only luck they will ever need be the luck of having YOU as their parents. </div><div><i>Natasha Badhwar is a film-maker, media trainer and mother of three. Write to her at mydaughtersmum@livemint.com</i></div><div><b>Also Read | </b><a href="http://www.livemint.com/natasha-badhwar" target="_blank">Natasha’s previous columns</a></div> http://www.livemint.com/2012/05/18200255/The-power-of-minimalism.html Our home cooking is dramatically lighter, but in general, sometimes, we just do too much with food Our Daily Bread | Samar Halarnkar Fri, 18 May 2012 14:32:00 GMT c7ae6f68-a0d8-11e1-9d73-000b5dabf613 http://www.livemint.com/c7ae6f68-a0d8-11e1-9d73-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/c7ae6f68-a0d8-11e1-9d73-000b5dabf613_300_200E09Vpf.gif <div>So, what Indian food do you miss most?”</div><div>That was my American friend from graduate school, visiting me in Berkeley, California, just before we left the organic capital of the US after a five-month teaching stint.</div><div>“Nothing,” I said.</div><div>His eyes widened. “Nothing?”</div><div>“Well, if you insist, home-made <i>dosa</i>, perhaps.”</div><div>I explained what <i>dosa</i> was, and he said, “Well, that sounds like something I could miss.”</div><div>Don’t get me wrong. I love Indian food as much as any other Indian. But my tolerance for the bastardized, heavy curries that pass off as <i>desi</i> fare in restaurants—Punjabi, Mangalorean or Andhra—is fading. Our home cooking is dramatically lighter, but in general, sometimes, we just do too much with food.</div><div><div class="dvbxImg"><img src="5CBEED44-3323-48DE-8B1A-1506B13259A0" alt="Quick fix: Serve bork (or pork) atop tzatziki sauce. Photo: Samar Halarnkar" title="Quick fix: Serve bork (or pork) atop tzatziki sauce. Photo: Samar Halarnkar" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Quick fix: Serve bork (or pork) atop tzatziki sauce. Photo: Samar Halarnkar</div></div>We over-prepare, over-spice and overcook. Too many vegetables are frankly, well, buggered, by ceaseless simmering and tossing, and meats are too many times drowned in curries and soaked in spices.</div><div>As I said in a previous column (“Minimum kitchen, maximum impact”, 21 April), I learnt in Berkeley—as you read this, I am in New York, preparing to fly home to Bangalore—that a handful of spices are all you need to run a kitchen.</div><div>So, on a particularly rushed last week, between editing stories, writing columns and cooking for the family, I put all my speed-cooking skills to test.</div><div>One of the things I cooked as I started emptying out my freezer was my packet of “bork”. In my last column (“San Francisco, ’tis hard to leave”, 5 May), I wrote how I had bought a little packet of meat that was half-boar, half-pig, but I never got around to cooking it. I finally did, and the minimalist recipe I used really did bring out the flavour of the meat.</div><div>The same goes with snacks. Whenever we had a party in Berkeley, the wife always insisted I make tzatziki sauce, an old mainstay. You can have it with chips of all kinds, and when the party is over, it works wonderfully as an accompaniment to anything from curries to roasts.</div><div>This is how, after the farewell party we threw for ourselves in our Berkeley backyard, I considered the leftover tzatziki, a sauce that is used by the Greeks and Turks (like India and Pakistan, another example of enemies with common culinary traditions).</div><div>My old friend was visiting, and we didn’t want to buy more food when our aim was to empty the refrigerator. So, out came the “bork” and the leftover tzatziki.</div><div>I spread out the tzatziki and laid the roast “bork” atop. We ate it with leftover bread—of course, this was Berkeley bread, studded with sesame seeds and lovingly crafted in a local bakery.</div><div>It was a simple, rough and ready meal. Sometimes, when your mind is full of other things, that is all you want.</div><div><b>Roast ‘bork’ on tzatziki sauce</b></div><div><b>Serves 2</b></div><div>Ingredients</div><div>400g “bork” (you can use regular pork, or even lamb)</div><div>1 tsp garlic paste</div><div>2 tbsp soy sauce</div><div>1 tsp chilli powder</div><div>Juice of 1/2 lemon</div><div>Salt to taste</div><div>Method</div><div>Marinate the meat for 3-4 hours with the ingredients listed. Place in ovenproof dish, cover with foil and roast for 90-120 minutes (depending on how tough the meat is) at 275 degrees Celsius. Serve hot on a bed of tzatziki sauce.</div><div><b>Tzatziki sauce</b></div><div><b>Serves 2</b></div><div>Ingredients</div><div>200g curd</div><div>1 small cucumber, grated and water squeezed out</div><div>1 clove garlic, finely minced</div><div>3 tbsp mint, washed and finely chopped</div><div>Salt to taste</div><div>2 tbsp olive oil</div><div>Method</div><div>Hang the curd in muslin, until thick. Beat well with a fork until smooth. Add grated cucumber, garlic, salt and mint. Mix well. Drizzle in the olive oil and mix.</div><div><i>This is a column on easy, inventive cooking from a male perspective. Samar Halarnkar is consulting editor</i>, Mint <i>and </i>Hindustan Times.</div><div><i>Write to Samar at ourdailybread@livemint.com</i></div><div><b>Also Read | </b><a href="http://www.livemint.com/ourdailybread" target="_blank">Samar’s previous columns</a></div> http://www.livemint.com/2012/05/18185851/Views--Why-we-need-anonymous.html The utterly arbitrary Internet Technology (Intermediaries Guidelines) Rules, 2011, which would have made criminals of most of us, should have been annulled Farah Rahman Fri, 18 May 2012 13:28:00 GMT c8a959fa-a0ec-11e1-9d73-000b5dabf613 http://www.livemint.com/c8a959fa-a0ec-11e1-9d73-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/c8a959fa-a0ec-11e1-9d73-000b5dabf613_300_200E09Vpf.gif <div>Anonymous is like Aamir Khan.</div><div>Currently, in India, both are succeeding in drawing attention to important issues. What their actions will actually accomplish is uncertain. Aamir Khan’s show about female feticide brought that issue into the public consciousness and at the same time shed light on the fact that the government has not done a whole bunch about the matter. </div><div>Anonymous has hacked the websites of the Supreme Court of India, the All India Congress Committee website and maybe the Department of Telecommunications (DoT) website too. Its actions are meant to draw attention to censorship in India. In this case we have the government doing too much about the matter. </div><div>Overzealous in all the wrong matters is the sine qua non of the Indian government’s action and policy. Parliamentary disruptions are over the most inconsequential matters. Of late, it is cartoons that are spurring such vehement discourse, demands and drama. If only such passion was given to real issues, I am certain that Indian citizens would be enjoying the benefits of better infrastructure and public services.</div><div><div class="dvbxImg"><img src="34511789-9183-4A9F-B776-5DA0BD10BDB1" alt="Photo: PTI" title="Photo: PTI" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">Photo: PTI</div></div>The blocking of video sharing sites such as Vimeo, Daily Motion and The Pirate Bay by Internet service providers (ISPs) who claim to be following orders is odd indeed. Putting all the possible evils in one basket and snuffing them all out at one shot is the wrong way to go about curbing piracy. Vimeo is a site that is used by many to share original content. It is silly to block it. Moreover, piracy is here to stay. There will always be people who get something for nothing over the internet. That genie will never get stuffed back into the bottle. While I am in full support of content creators getting paid for their original works I am also against censorship in all forms.</div><div>The Indian government’s stance on the Internet in general is suspect. There is no doubt that the government wants to have the ability to just say no to anything it deems inappropriate. The utterly arbitrary Internet Technology (Intermediaries Guidelines) Rules, 2011, which would have made criminals of most of us, should have been annulled, but at least we are assured now that the government’s original intent will not prevail. Thanks mainly to the efforts of P. Rajeev, Rajya Sabha member of the Communist Party of India (Marxist).</div><div>Anonymous is an organization that wields tremendous power in the brave new world. And we should all be grateful that such an organization exists to fight the Orwellian beast that governments worldwide are increasingly becoming.</div><div>Governments want to know all and see all but they are also engaged in activities that they do not want us to know about. These activities could be illegal, intrusive and harmful. Anonymous is helping citizens everywhere in the balancing act. Sadly though the suggestion by Anonymous to trash the government and install a new one makes little sense. New one or old one, the current pool of politicians, barring a few like Rajeev, inspire little confidence.</div><div>Until we have a few more good men and women, we need Anonymous as much as we need Amir Khan.</div> http://www.livemint.com/2012/05/18111536/Views--The-Indian-markets.html Corporate earnings seem to indicate good tidings, but here’s the party pooper: companies are protecting margins at the expense of sales Pramit Bhattacharya and Ashwin Ramarathinam Fri, 18 May 2012 09:28:00 GMT 35efd5b0-a0ad-11e1-9d73-000b5dabf613 http://www.livemint.com/35efd5b0-a0ad-11e1-9d73-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/35efd5b0-a0ad-11e1-9d73-000b5dabf613_300_200E09Vpf.gif <div><div class="dvbxImg"><img src="5BBEDA68-E0C8-4D3A-8996-3B2EFC3DD6BF" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>It is difficult to say anything good about Indian markets these days but one such feature is easy to find in attractive valuations. As a matter of tautology, valuations improve as markets head southwards. </div><div>But that’s not all.</div><div>Surprising as it sounds, corporate earnings seem to indicate good tidings, at least on first glance. Two-fifth of the BSE-500 companies are yet to declare their earnings for the March quarter but there are some broad trends that are unlikely to be reversed by the end of the earnings season.</div><div>As the chart below shows, the net profits of 223 firms in the BSE-500 universe (for which data is available for the past 27 quarters) grew by 3.7% in the March quarter, whereas in the past three quarters, profits of this set of firms fell by an average of 11%. Margins seem to show a sign of bottoming out too.</div><div><div class="dvbxImg"><img src="635D8737-514E-46BA-A8AD-BB6C70391681" alt="" title="" height="809" width="483" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>But before the champagne bottles are uncorked, here’s the party pooper: the rise in profit margins is driven by a lower denominator. The March quarter saw a sharp drop in sales growth over the corresponding period in the previous year. Companies are protecting margins at the expense of sales. As the chart below shows, the sales growth of Indian firms is the slowest in 10 quarters at 12.5% and nearly half the average in fiscal 2012.</div><div>The really bad part is what is going to come next: muted sales growth in the coming quarters as the economy slows, putting pressure on pricing power. The era of 20% plus sales growth seems to have ended. And unless sales revive, investors might not even bother to look at other indicators.</div><div>Isn’t there any hope of a revival soon? Yes, there is. But there lies the sad part of the market drama: the theory of revival is built atop a number of heroic assumptions. </div><div>The first assumption is that the Eurozone remains intact and even if it doesn’t, the ECB has enough firepower to stem a crisis. The second is that despite expectations of further rupee depreciation, foreign investments will still flow in. The third heroic assumption is that the government will initiate bold reforms to put the fisc in shape. The fourth and crucial assumption behind a revival has to do with the investment cycle. The optimists expect companies to raise investments in the next couple of quarters despite falling interest coverage ratios and shrinking room for rate cuts.</div><div>The saddest part though is that several investment banks who are peddling dreams of a revival are not recommending stocks in sectors such as banks or automobiles which move up the fastest in a rally. Instead, their ‘buy’ calls are largely in defensive sectors such as pharma and consumer goods. That alone says a lot about the chances of an imminent and sustained revival. </div> http://www.livemint.com/2012/05/18193327/Views--The-road-to-Rashtrapat.html The burden of being seen as a candidate seems to have brought some visible changes in the body language of some of these prospective candidates. Pranab Mukherjee is a case in point Liz Mathew Fri, 18 May 2012 08:39:00 GMT ec3aa2e2-a0f2-11e1-9d73-000b5dabf613 http://www.livemint.com/ec3aa2e2-a0f2-11e1-9d73-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/ec3aa2e2-a0f2-11e1-9d73-000b5dabf613_300_200E09Vpf.gif <div>With President Pratibha Patil all set to exit Rashtrapati Bhavan, the corridors of Parliament are abuzz with talks about a possible successor.</div><div>In the list of names doing the rounds that includes a few unexpected ones such as E. Sreedharan, former head of the Delhi Metro Rail Corp, finance minister Pranab Mukherjee is ahead of everyone, at least going by media reports. There is also an election coming up to choose the Vice President as Hamid Ansari, is also retiring in August. There will be a new deputy chairman for the Rajya Sabha too. While Ansari and Lok Sabha speaker Meira Kumar are considered to be serious contenders for the top post, governor Margaret Alva, Punjab chief minister Parkash Singh Badal, Janata Dal-United leader Sharad Yadav are among the names that are taking rounds as possible vice presidential candidates. Though his term is ending soon, senior Congress leader P. J. Kurien seems keen for the post of deputy chairman in the Rajya Sabha.</div><div><div class="dvbxImg"><img src="B038D009-77BE-4863-A2EB-A95695E960A9" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>Interestingly, the burden of being seen as a candidate seems to have brought some visible changes in the body language of some of these prospective candidates. In both houses, MPs say, those who are in chair have become more accommodative. Mukherjee is one of the most seasoned politicians in Parliament. Many ministerial colleagues and fellow politicians are slightly afraid of his short temper and only a few in Parliament would dare to engage in light conversation with Mukherjee, who is virtually the sole political trouble shooter in the UPA.</div><div>In his speeches in the last two years, he had always criticized the opposition for disrupting the proceedings and blocking economic reforms. However, in his recent reply to the debate on the Finance Bill, Mukherjee’s demeanour was entirely different. Not only that he kept referring to BJP leader Yashwant Sinha’s speech, he did not say a word criticizing the opposition. Mukherjee, who used to lose his temper frequently when the members disrupted the proceedings, kept his cool this time.</div><div>However, the other day he lost control when the BJP members ran to the well of the house raising slogans against home minister P. Chidambaram . Mukherjee, with a sheepish smile, apologized later to the members. Opposition and ally leaders say he has become “softer” as he is preparing to go to a “higher position.”</div><div>Mukherjee is perhaps the only leader in the Congress on whom the ruling party can evolve consensus for. If it can reach an understanding with the main opposition BJP, both the allies of the Congress, BJP and even so called third front parties including Left may agree to his candidacy. However, it is hard for him to get leave of his duties in the government and the party. Persons close to the finance minister said Congress chief has already conveyed that she has not been able to find a replacement for him. If at all Congress finds another finance minister, the successor to Mukherjee as the leader of the house is not going to be an easy replacement. Prime Minister Manmohan Singh and defence minister A K, Antony are members of the Rajya Sabha. Sonia Gandhi herself taking over that post is highly unlikely . Former Maharashtra chief minister Sushil Kumar Shinde is apparently trying to be a contender. </div><div>It is important for the Congress to have a candidate who could draw support from the entire UPA as well as some of the non-UPA, non-NDA parties. The Congress, at this stage, is not keen to have a consensus candidate which means it has to compromise on the vice presidential candidate. Given the arithmetic in the Rajya Sabha, where the Congress-led UPA is in minority, the post of vice president, who is also the chairman of the upper house is very crucial for the ruling alliance to get its legislation passed. The Congress cannot risk the position by having a chairman from the opposition. So the leadership prefers a candidate who can win with the UPA and some parties’ votes. Therefore it is left with very few options.</div> http://www.livemint.com/2012/05/17235642/India-and-the-fight-for-the-Ro.html Instead of succumbing to false hopes of peace, India must consider the adverse consequences of withdrawing from the Siachen glacier Siddharth Singh Thu, 17 May 2012 19:43:00 GMT 978ae78e-a04d-11e1-a8fa-000b5dabf613 http://www.livemint.com/978ae78e-a04d-11e1-a8fa-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/978ae78e-a04d-11e1-a8fa-000b5dabf613_300_200E09Vpf.gif <div>On 7 April, 120 Pakistani soldiers perished after an avalanche hit their base at Gayari near the Siachen glacier. On a visit to the area, Pakistan’s army chief, General Ashfaq Parvez Kayani, pointed to the futility of occupying those forbidding heights. Soon enough, liberal opinion in both countries latched on his statement and mounted pressure to “demilitarize” that area. Next month, India and Pakistan are to hold talks on the subject. In the meantime, Islamabad has postponed discussions on another contentious subject—the Sir Creek dispute (on the Kutch-Sindh border between the two countries). Siachen—or the Rose Garden, as it is known locally—many expect is a “doable” idea. It hardly is.</div><div><div class="dvbxImg"><img src="BCD58239-D826-43AE-AB77-DE6EF6F2740B" alt="In this 18 April 2012 file photo, Pakistan’s army chief Gen. Ashfaq Parvez Kayani talks with reporters after visiting a Siachen area at Skardu, Pakistan. AP" title="In this 18 April 2012 file photo, Pakistan’s army chief Gen. Ashfaq Parvez Kayani talks with reporters after visiting a Siachen area at Skardu, Pakistan. AP" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px">In this 18 April 2012 file photo, Pakistan’s army chief Gen. Ashfaq Parvez Kayani talks with reporters after visiting a Siachen area at Skardu, Pakistan. AP</div></div>India established its troops in the Siachen glacier (and also key passes on the Saltoro ridge to the west of Siachen glacier) in 1984 after Pakistan indulged in what can only be described as “cartographic aggression”. Since then, India has held the high ground, making it difficult for Pakistan to seize area and initiative there. This, however, has not prevented military adventures by ambitious Pakistani soldiers. India has lost thousands of soldiers in the world’s highest battleground. The cost—men, material and treasure—has been formidable. If it withdraws now, these will be in waste.</div><div>Operational reasons apart, India has to contend with Pakistan’s diplomatic and military strategy which, for obvious reasons, is geared at securing the area for itself. Roughly, Islamabad’s idea of a “solution” includes the following elements. First, it wants redeployment away from the glacier/zone of contention. This is to be followed by noting of redeployed positions and creation of mechanisms/procedures for monitoring, etc, by experts. Finally, the Line of Control (LoC) beyond point NJ9842—the last map reference point till which the LoC is demarcated—is to be demarcated by an agreed process. </div><div>The problem is: this is hardly a solution. India wants the existing positions of the two countries in that area recorded. If this is not done and the procedure listed above is followed, it will fritter away its only advantage: its physical occupation of the Saltoro ridge. Pakistan rejects any demarcation of existing positions as it feels this will bestow a “legal” right on India to claim this territory. The farthest it has gone towards agreeing with India is agree to record the ground positions on a map—to be included as an annexure in an agreement—while the text of the agreement continues to spell extant claims.</div><div>There is danger in undertaking such a course of action. Even if India agrees to withdraw, there is no guarantee that Pakistan will not take over those heights after India vacates what it currently occupies. If anything, the military situation points to alarming possibilities.</div><div>Siachen and the Saltoro ridge, from the Pakistani side, are under the command of the Force Command Northern Areas (FCNA) based in Gilgit, which in turn is controlled by X Corps based in Rawalpindi. Most Pakistani military adventures at gaining advantage in Jammu and Kashmir (J&K) owe their origins to the peculiar “strategic culture” of this military formation. Two examples illustrate this point. In 1992, FCNA launched a daring mission to counter India, and hopefully, recover positions in the Siachen area. The operation failed, but just so. Then, in the spring of 1999, when one could smell détente in the air, an ambitious and rash military operation was launched to seize strategic advantage in J&K, this time in Kargil. Once again, the FCNA and X Corps leadership was intimately involved.</div><div>Scholarly opinion in Pakistan and elsewhere affirms this state of affairs. Three experts—Peter Lavoy, Feroz Hassan Khan and Christopher Clary—state that “in particular, no existing explanation adequately explores the crucial driver of conflict: the unique strategic culture of the Pakistan army, in general, and the X Corps and FCNA, in particular”. They add, “The X Corps and FCNA were particularly embarrassed by the loss of the Siachen Glacier, which was undemarcated and unoccupied until 1984 when India launched Operation Meghdoot to capture it… Regardless of the actual circumstances, FCNA was held responsible for the loss of Siachen and other significant Indian incursions on the Pakistani side of the LoC… Officers posted to FCNA are quickly socialized to remember the past and at all costs defend their area of responsibility. They would rather be reprimanded for over-aggressiveness than leave a perceived vulnerability unprotected.” (“Pakistan’s motivations and calculations for the Kargil conflict”, pages 66-67 in <i>Asymmetric Warfare in South Asia: The Causes and Consequences of the Kargil Conflict</i> edited by Peter Lavoy, Cambridge University Press, 2009). Clearly, these soldiers will do whatever they can to recover territory, honour and prestige.</div><div>Seen thus, there is a tight fit between Pakistan’s political objectives and its military outlook. Its legal position—no agreement to demarcate the existing ground position—is suited for exploiting military opportunities should they arise at a later date, as they surely will, if India withdraws.</div><div>When seen in the light of these factors, withdrawal from the heights it occupies will be foolhardy for India. Given a recurring pattern of ambitious generals and “visible opportunities”, coupled with Pakistan’s woefully inadequate political oversight over its armed forces, it is a given that Islamabad will try and snatch what is currently under Indian control. History has proved that twice.</div><div><i>Comment at views@livemint.com</i></div><div><i>Siddharth Singh,is Editor (Views) at Mint.</i></div> http://www.livemint.com/2012/05/18001414/Quick-Edit--Airline-trouble.html The current woes of the state-owned airline are being blamed, almost to the exclusion of everything else, on the shotgun wedding between Air India and Indian Airlines Thu, 17 May 2012 18:44:00 GMT 51de1d88-a051-11e1-a8fa-000b5dabf613 http://www.livemint.com/51de1d88-a051-11e1-a8fa-000b5dabf613_67_67SubVpf.gif http://www.livemint.com/51de1d88-a051-11e1-a8fa-000b5dabf613_300_200E09Vpf.gif <div><div class="dvbxImg"><img src="4EC5C7E2-82E1-4A70-A6AD-7EBE7A75C515" alt="" title="" height="200" width="300" align="left" /><div class="dvbxImgCapt" style="width:300px"></div></div>The current woes of the state-owned airline are being blamed, almost to the exclusion of everything else, on the shotgun wedding between Air India and Indian Airlines. The merger appears to have been unable to unify two seemingly irreconcilable cultures. Employees of the domestic airline, for instance, work a six-day week, while those on the international service have a five-day one. This puts the Indian Airlines workers in a better light, especially since the current strike seems to be aimed at keeping pilots from that service out of the Dreamliner cockpit.</div><div>Even the current civil aviation minister has been pointing at predecessor Praful Patel’s merger push as an ill-fated move. It hasn’t escaped notice that the leader of the union heading the strike belongs to the same party as Patel. Meanwhile, all taxpayers can do is watch despairingly as more of their money looks set to go down the drain.</div> http://www.livemint.com/2007/05/14234753/Not-much-room-for-RBI-to-cut-rates.html The key to the monetary policy debate is the output gap, a measure of how the economy is expanding compared to its potential Niranjan Rajadhyaksha Sun, 15 Apr 2012 21:45:00 GMT 0965cd64-022a-11dc-b74a-000b5dabf636 http://www.livemint.com/0965cd64-022a-11dc-b74a-000b5dabf636_67_67SubVpf.gif http://www.livemint.com/0965cd64-022a-11dc-b74a-000b5dabf636_300_200E09Vpf.gif <div>Hopes that the Reserve Bank of India would go in for significant reductions in its key policy rates to fight the slowdown are rapidly diminishing. The March inflation numbers released on Monday, a day before governor D. Subbarao unveils his new monetary policy, in no way change the situation. </div> <div>The Indian central bank could announce a small rate cut on Tuesday, as a peace offering to the finance minister as well as a signal to the financial markets, but that will leave it with even less wiggle room through the rest of the fiscal year. It seems very unlikely right now that we will see more than 75 basis points of cumulative cuts over the next 12 months. So Subbarao will have to make his moves carefully. </div> <div>The key to the monetary policy debate is the output gap, a measure of how the economy is expanding compared to its potential. India has been suffering from high inflation because of a wide output gap that built up after around 2005, and recent research from the Asian Development Bank shows that India is even now growing only a bit slower than potential, thus capping the potential for deep rate cuts. </div> <div>What is even more worrisome is that the potential growth rate itself has drifted downwards since 2008, by around 1.5 percentage points. This means that India cannot grow at more than 7% a year without unleashing inflation. The potential non-inflationary growth rate was around 8.5% before the global financial crisis. </div> <div>The blame for this loss of economic momentum squarely falls on the government. The disinterest in economic reforms as well as the regulatory tangles that have choked off private investment activity is now hurting. Loose fiscal policy has added to the problem, providing a boost to consumption when the crying need is for higher investment. I have argued several times in the past that what India needs right now is a healthy dose of supply-side economics led by reforms and better fiscal discipline. </div> <div>Subbarao has to make his choices in this complicated situation. His critics already accuse him to moving too slowly to hike rates after the economy stabilized in late 2009, thus proving room for inflation to accelerate. He could in future be held responsible for keeping the cost of money too high in the midst of an investment slump. It`s not a good position to be in. But it is hard to see how the governor can steer the economy through these troubled waters unless he gets policy support from New Delhi. </div>