Thursday, March 11, 2010

Rise of the phoenix?

History has shown that experiments like Third Front have failed miserably, but this time there's hope

In 1977 two parties came together to form Janata Dal and grab power at the Centre. The government fell after socialist leaders questioned dual membership of Bhartiya Jan Sangh leaders. In 1989 they formed a National Front comprising five parties but it suffered a stroke in November 1990 and ultimately died four months later. Seven parties got together in June 1996 to cobble United Front, suffered a stroke in April 1997 and died an untimely death seven months later. On March 12, 2009 ten parties came together once again to create the hype of Third Front (they are yet to find a fancier name for the group) and take another potshot at the government.

One could easily call it the rise of the phoenix or a result of adventurism of Indian politicians and electors, but Third Front is gaining strength with each passing day. The two bigger parties – Congress and BJP – together bagged 283 seats in 2004 elections. This time, there is a distinct possibility that their tally will be drastically reduced and put together won’t reach the halfway mark in 543-member Parliament. That leaves the scope for smaller parties to come together and form a coalition to grab power at the Centre.

Going by the past experiences, coalition of small parties have not been successful. They lack ideological meeting ground, have sky-high ambitions and a sharply defined regional focus. The first two experiments failed on account of ideological clashes erupting only after the coalition came to power, but the last experiment was ideologically still-born, cobbled up only as a marriage of convenience. Partners in the ruling alliance couldn’t agree on the name of its leader and twice it was selected by process of elimination– first it was HD Deve Gowda, euphemistically called Karnataka's Prime Minister and then came IK Gujral, who couldn’t win a seat. Now, Gowda has taken it upon himself a pre-poll alliance bringing together parties as diverse as Mayawati’s BSP and Jayalalithaa’s AIADMK, besides of course four Left parties and two Telugu parties – TDP and TRS – who don’t agree on creation of Telangana state.

AIADMK along with SP, Indian National Lok Dal, National Conference, Telugu Desam Party and a couple of other smaller parties was part of another still-born experiment – United National Progressive Alliance (UNPA) formed last year. But, soon Jayalalithaa fell out with SP Chief Mulayam Singh Yadav over UNPA’s leadership. Other parties too sided either with BJP or the Congress during the Confidence Vote sought by Manmohan Singh government last year.

The new Third Front has already come under fire from various quarters. Congress calls it the “biggest mirage of Indian politics” and BJP expects it to “vanish in thin air after elections” as most of its constituents would either go with the BJP or the Congress and SP leader Amar Singh fails to distinguish seculars from the “communal” among constituents of the new front.

But, political analysts feel the new Third Front can’t be taken lightly. They expect a “political mayhem” as declaration of results would be followed by vigorous pursuing of smaller parties by the bigger parties/alliances. “It is going to be really dirty and elected MPs and their parties would be more demanding than ever,” is how a BJP general secretary puts it. In case, it gets support from fence sitters like Biju Janata Dal, Nationalist Congress Party and Janata Dal (United), it could take on the two established alliance. Everything will depend as much on the outcome of next elections as on whether they have learnt their lessons from the three earlier experiments.
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Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Wednesday, March 10, 2010

La Maison Arabe (Marrakech)

Although luxury is only a state of mind, at the La Maison Arabe, this dream transforms into a very beautiful reality. Besides being one of the most magnificent hotels in the whole of Morocco, the La Maison Arabe has the finest location too. Offering an amazing blend of tradition and opulence, the hotel is the quintessence of Morocco’s hospitality, mysticism and tradition. The hotel has 17 rooms and suites, swimming pool, spa and a cooking school...something very unusual, especially in a hotel where there are translators who teach how to cook.

The view: Located at perhaps the best location in the pink city – Marrakech, La Maison Arabe promises its esteemed guests a lovely view onto the rooftop of the Bab Doukkala Mosque, one of the most prominent mosques in Marrakech. Archi type: La Maison Arabe accentuates the true meaning of luxury. Its aesthetics, rich architecture along with plush interiors and fine furnishings are a mark of excellent craftsmanship. This expertise has been handed down over centuries in order to restore and preserve the noble origins. Here the walls are covered with tadelakt (a coating that is hand polished with agate stones), gebs (intricately chiselled plaster), carved cedar, and the floors are made of bejmat (small sand-coloured bricks).

Bon appétit: Morocco is known for its exquisite cuisines and sinfully delicious preparations. Once you are at La Maison Arabe it is certain that appetisers would not be required to trigger those hunger pangs. It has several restaurants where one could savour traditional Moroccan cuisine. One could grab a light meal at the hotel’s Piano Bar or by the pool at the new restaurant “Les Trois Saveurs” (The Three Flavours), which offers International, Asian and inventive Moroccan dishes.

Around the corner: The La Maison Arabe is superbly located for sightseeing as it is in the heart of the city, the Jemaa el Fna (central square). Koutoubia (a 12th century minaret which is the symbol of Marrakech) and souks (the traditional marketplace) are at walking distance. After all the sightseeing the hotel also has the traditional hammam (bath) for relaxation.

From under the carpet: Since the city of Marrakech is nuzzled amidst tall buildings, the scope for a good view for those at the lower floors of the hotel is limited. In essence: A Moroccan holiday at the La Maison Arabe means a wholesome experience entailing fun, exploration, adventure, learning and pampering oneself to the maximum.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Saturday, March 06, 2010

Cashing in on Cesarean?

Most women are hale and hearty and capable of an uncomplicated natural childbirth, yet surgical childbirths are increasing...

Any sort of experimentation with nature’s way always attracts attention and debate. Medicine in several ways has led to the triumph of human will over nature’s rules. But this time the world is divided over the delivery techniques of childbirth. Today, a mother can opt for a natural delivery or choose the surgical (Cesarean section) route, but a sharp increase in the latter method across the world has stirred widespread concern. While in the US, one in four children is born via Cesarean section (C-section), WHO has reported that one in five deliveries in India is by Cesarean too. Obstetrician David Campbell Walters in his book, Just Take it Out: The Ethics and Economics of Cesarean Section and Hysterectomy (1999) claims that in the US, ‘in 20 years, there will be no more vaginal births.’ If you look at Walters’ claim in light of the existing figures of C-section deliveries in metros like Mumbai and Delhi (20-25% C-section deliveries) and even in most provinces in China (where according to China Philanthropy Times, the average rate of Cesarean birth has reached 40 percent), his prophecy might actually become a reality in a large part of the world… But what is driving doctors and mothers-to-be to opt out of the natural vaginal delivery? Why do doctors like David Campbell Walters (though in minority) advocate that women be allowed to choose a pre-planned Cesarean?

“Apart from the straight visible medical indications that suggest choosing a Cesarean delivery, most of the doctors today want to avoid the possibility of lawsuits for any problems in the child arising during labour,” says Dr. Kiran Dua, an experienced Gynecologist associated with several health care institutions like Lamaze that advocate normal delivery. He adds, “Most of the doctors think that if they can get free in two hours with a Cesarean, why should they monitor someone for 16-18 hours in labour and take stress?”

But while a Cesarean delivery leaves the mother with a severe, longer-lasting pain and with a risk of infections, it may cause harm to the child too in the form of ‘accidental surgical cuts, respiratory problems, failure to establish breast-feeding, and asthma’. Most often, mothers agree for a Cesarean “at the initiation and encouragement of the doctor and then to avoid labour pain”, says 31-year-old Sejal, a mother of two, and adds, “I was ill-informed about the cons of a Cesarean and my girl does have a respiratory problem.”

Vaginal births are not all perfect too, and in cases of poor care and midwifery, they may lead to ‘alterations in sexual sensation and if forceps are used, it may lead to urinary incontinence.’ Cesarean, as an informed choice, is being advocated by many in the US who contend that the costs, risks and benefits of both the procedures are balanced. But “In India, the money a doctor makes in a Cesarean is double the amount you get in a normal delivery, that too with much lesser effort,” reveals Dr. Dua. This leaves Indians with the task of discerning if their doctor is really concerned about their health, or of his/her own vested interests...
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Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Friday, March 05, 2010

From 9,903 to 17,641!

After the euphoric bull run of 2009 it’s the stock pickers who will rock the market in 2010. Gyanendra Kumar Kashyap uncovers the front-runners and dark horses...

The Indian equity markets churned out one of the best annual returns (a whopping 76.35%) in 2009 – a reflection of investor confidence in the Indian economy’s resilience. Nonetheless, even after the euphoric rally, a number of questions remain over the market’s future course, most critically pertaining to the future course. After the unidirectional trends of the previous two years, 2010 is likely to usher in a period of volatility with the market moving in a broad trading range for the better part of the year. The bullish sentiment is likely to continue in 2010, only that it will be more selective than being broad based.

Mid and small cap indices are likely to outperform the key indices in 2010. Analysts expect about 12-15% gain for the key indices in 2010 from the current levels. However, the focus would gradually shift from macro driven unidirectional market moves to stock-specific investment opportunities based on earnings growth and absolute valuations. Given the current scenario wherein there are apprehensions regarding reversal of interest rate cycle led by spike in inflation, adverse impact of the withdrawal of the economic stimulus, the fears of further fiscal slippage and the sustainability test of global recovery; the markets could turn edgy in the first half of 2010.

The benchmark index, Sensex, is in a position of relative safety since it has retraced close to 70% of its prior downtrend making re-test of March lows (8,047 level) highly improbable. And if equity experts are to be believed, then 2010 is well poised to bear good returns. Moreover, the government is likely to mop up more than Rs.240 billion by divesting stakes in several state-owned companies and the primary route for this fund raising will be through initial public offers (IPOs). This will certainly provide the much needed fillip to the market rally in 2010. In fact, there are analysts who believe that if history can form any basis for future and if historic average internal rate of return of 17.25% per annum is maintained, then the Sensex can even reach astonishing levels of 1,00,000 by 2020. Although that’s quite pleasing, one would assume it’s an expectation more belligerent than required.

Like others, Dinesh Thakkar, CMD, Angel Broking, too is of the opinion that banking & infrastructure are the two sectors that will outperform in 2010. His reasoning is based on the pick in economic activity and high spends on infrastructure. Apart from infra, capital goods (as the investment cycle picks up with a lag in demand), media, retail and cement (a dark horse that could surprise positively amid pessimism) stocks could well surprise the investor fraternity in 2010. Clearly, if you have excess money, this is the place for you. If it’s a matter of your life’s savings, stay out!

IT’S AN UNEVEN TERRAIN OUT THERE

Globally the investment markets are past the worst of the downturn and market drivers are trending up from all time lows, however, 2010 will likely be another challenging year for investors. Business activity in 2010 will continue to bear the scars of the global economic crisis. Stock markets, which have bounced back strongly, have further upside potential in 2010. But it will not be a one–way street upwards. Indices will react very sensitively to the changes in the underlying backdrop. Above all, the economic policy switch from a very expansionary to a less expansionary mode is unlikely to take place without rattling the markets. If analysts and research reports are something to go by, then temporary setbacks of 10 to 15% cannot be ruled out. But the underlying stock market trend is likely to be positive in 2010, with an overall gain of about 10% on the cards.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Thursday, March 04, 2010

No Cash for Celebration!

Recession had hit every possible event from 'day of love' to sports!

The economic downturn was reflected on the Cupid as well, as a mundane celebration of this year’s Valentine’s Day was the proof of troubled times that the world is going through.

Talking about numbers in the US — the largest market for Valentine’s Day merchandise — the average spending per person was reduced to $102.50 down from $122.98 last year. In spite of a smaller budget, the purchase pattern did not change as 35.7 per cent of Valentine consumers in the US bought flowers; in sign with the last year’s trend when the figure was 35.9 per cent. 16 per cent purchased jewelleries as against 16.6 per cent in previous year, and 58 per cent went for greeting cards viz-à-viz 56.8 per cent in 2008. The fact that people had a cut-short budget was visible across the world. In Thailand where the populace celebrated Valentine’s Day and Chinese New year on the same day, they blamed economic recession, high prices of commodities and political problems for their low spending.

Recession impacting festives is just not confined to Valentines' day but also envelopes various other similar celebrations and events across the globe. Take for instance, a new musical fest in Kent. It was cancelled last year due to recession. In order to make sure that event organisers do not face a huge monetary lossses due to cancellation, events like Glastonbury, Sonisphere, Camp festival and Global Gathering, had schemes where audiences can pay for tickets in installments.

Festivals in the US are experiencing a bad time because sponsors have cut down their their budgets. Back home, in India, shop owners and trade analysts opine that due to the recession, Diwali sales had gone down by 15-25 per cent.

Even sporting events like NBA basketball against the Miami Heat on Feb. 4, 2009 in Auburn Hills, experienced a half-filled stadium, for the first time. Likewise, Japanese manufacturers Suzuki pulled out of the world rally championship, LPGA Tour featured fewer events, Major League Baseball has been hit by low attendance and sponsorships — to name a few.

The gloom of economic crisis had its dark shadow on super rich and on their conspicuous consumption with a reduced budget. A survey by National Retail Federation in the US has shown that people with high level income above $150,000 have sliced their spending by a quarter. As Richard Baker, chief of Premium Knowledge commented, “You have a level of social opprobrium about being labeled as ostentatious" and were "pulling back substantially." Be it love for food, sports, music or "love itself", when it comes to money everything seems to take a backseat, at least during recession.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-



Outlook Magazine money editor quits
Don't trust the Indian Media!