Tuesday, December 8, 2009

Will Copenhagen results in any meaningful treaty?


















[How Long?]

"Every roads leads to Copenhagen” may not be a familiar proverb for you. But now from all parts of the world, leaders are flowing to Copenhagen to attend the conference on climate change. After the recent change in raining pattern, greenery in Thar deserts, deforestation of Chirapunchi, ever increasing count of Hurricanes and cyclones, increasing sea level and temperature there is no need to write volumes about the need of reducing green house gas emission. Already lacks of books and articles are available on the subject. Over and above who can ignore nature's articles?

So finally world is assembled in Copenhagen to fight the climate change or fight against themselves? Many developed countries want binding sanctions and some like US, Russia, China etc unilaterally declared emission cuts. Countries from Africa, India, Brazil are still arguing for a fair deal.

Actually climate change is one of the ‘rare’ subjects were everyone knows the importance - there is no question on whether it is needed or not - but still majority is not ready to implement it. Countries from pacific and other island nations like Maldives are the most concerned ones. If sea level raises more than one or two feet many of these island nations will be wiped out from the atlas of earth.

I don’t think any world leader has any doubts about the need for reduction in green house gas emissions. Everyone knows it’s the need of time. But the need for industrialization in developing nations which are emerging after centuries long sleep and internal fighting sees industrialization as their sole way for growth. There argument is also based on the points like historical responsibility. Can you compare the pollution in some sub-Saharan African countries to that of some developed countries? All these developed countries now in Copenhagen passed through the stage of Industrialization in which they emitted gases in huge volumes to the air. But these African, Latin American and many Asian countries are now slowly entering in to the league of industrialization. They are now enjoying more recognition and power which they were unable to get in the past years.They wants to wipe out their poverty and propagate growth through industrialization - of course using their natural reserves.

This is the point were all the problem emerges. If they have to cut the green house gas emissions at this point of time they will have to acquire new technologies, infact they have to pump money for it. But from where this money will come in? It will not be that much easy, the new investment will increase their manufacturing cost, which in turn will result in the decrease in profit. Will the developed countries, already immersed in the worst economic crisis, find enough funds to support these developed countries? If yes, then to what extent?

Another problem is related to the carbon credit policy. Will it turn to another golden jackpot for the companies who have powerful lobbying groups in government? What about the per capita emissions? Will it consider at the time of declaring emission targets?

The countries who already announced cuts proved that they have very good mathematicians. Is there any country which announced emission cuts that will start from the very next day? or in the next year at least? Many calculated the emission reduction in such away that it will allow them enough space to emit the desired amount of gases they want.

This is not a child's game. The world leaders who are assembled in Copenhagen are dealing with millions of people living in the island nations and coastal areas. The mass deforestation, gas emissions, pollutions in air, water, sound, light etc are already taking its cost. Rivers are drying up, thickness of ice shelves are reducing rapidly, irregular rain pattern, floods, draught ... nature is already writing the future in the black board, But humans refuses to read it... How long? When humans are trying to extract oil even from Artic pole will this Copenhagen summit ends in meaningful results?

I hope (In fact I really wish that Copenhagen will result in some thing even if the chances are law), the countries will accept real and meaningful reduction in emission instead playing well in Mathematics, and the developing countries will get enough assistance in terms of technology and capital, to move forward in the way of reducing emissions. I hope climate change summits will not become another 'Six party talks on North Korean Nuclear issue' or Indo – Sino Border talks.

Otherwise you can go and watch movies like 'Water World' and be familiar with situations, or wait until scientists find any other place in this vast universe where humans can live and later destroy the environment.

Sajeev.

Thursday, December 3, 2009

The upcoming confusion in Indian Markets

After independence ‘water’ in Indian industry flowed in many different directions. Some times it even took a ‘u’ turn and flowed all the way back and reached the square 1. Then it moved in the opposite direction. With out a chance for doubt anyone can say that Indian economy will be good study material for a bright research student on financial markets. Once a major trading hub; left behind in the industrial revolution; joining hands and heart with socialist philosophies after independence and finally - after the collapse of Soviet Union and crisis of 1991 retraced all the way back and find a new ally in market economics.

                                          [A farmer]
After the acceptance of market economy India witnessed a study growth, mainly due to the things which the western economies can’t offer - cheap labour and the so called high skilled people. Some may say that China is growing at a rate more than us. But we have to remember that China accepted market economy some two decades before us.

Water again flowed. We say the South Asian crisis, dotcom crash, Subprime crisis of 2008, Dubai financial crisis and more. India may be escaped from all these because of the less dependency in export oriented growth. And still the economy is growing.

But is this growth sustainable? Will the emerging economies rule the coming ages? Will they control the world markets? If any one asks me this question my answer will be a straight no. It can’t. If we are ready to change the deep rooted policies which is there in many people's mind, we may remain in the path of growth but will not be in the position of Spanish in the 17th and 18th century, Britain in the 19th century and US and Japan in the 20th century. In fact no one can do that again – even if it not impossible.

                                         [Mumbai - Pune express highway]

I don’t know where I read, but I feel its right. Google and other companies may be able to unseat (or already unseated) Microsoft from the all powerful position in software and IT; but they can't attain the seat of IBM in the 60's and 70’s and that Microsoft afterwards. In fact it will turn to a Boxing ring where all can come - fight - survive/go. The same thing will be applicable for the emerging economies too.

India enjoyed this position mainly due to the cheap labour available here, huge domestic economy and due to some highly motivational people. But what we usually saw in these times is after a continuous growth, cheap labour will no longer remains a cheap. As money is available along with other resources, normally people will turn to/like to become a part of band wagon called Consumer economy. There they will spend the money in imported things and many other things no problem whether it’s needed or not. In many times this will be on credits. But life in credits need more credits to go on. In order to sustain this consumerism they will go for loans. As cash surplus raises normally companies will pay them more. But in this case they are slowly but inevitably losing the tag of cheap labour.

What will happen if this is coupled with the absence of highly creative, visionary leaders/workers? Now the inevitability comes, in an equally valued set new companies will go for quality. And by this time workers from all over the world will more affordable. As Shakespeare once said “All the world’s a stage…”.

This is the point where we have to stop and start thinking; recent surveys estimated that only a low percentage of students passing out of the colleges in India are actually employable. So what happened to the rest? Is it due to some specific phenomenon happens only to the people from Kanyakumari to Kashmir or Gujrat to Assam?

No prize for guessing the answer – it’s a straight-forward no. As one my friend recently described in one of our conversation "We are Jack of all trades but master of none". Here in this educational system every student has to study almost all subjects. Over and above many want to become Engineer and Doctor due to pressure or due to the high attention(read as social status +salary) getting to that job. Did you ever think what a Doctor will do by learning advanced calculus? And what a mathematician will do after leaning the Biology? If a person is interested in management sector and working for some commercial banks how Physics and Geography (in academical sense) will come to his help during a market analysis? You may have many reasons to justify the current system. After all we are living in this system for many years and enjoyed the comfort of it. Suddenly venturing in to a new world will simply unacceptable for many.

                                          [Jawaharlal Nehru Port Trust- Mumbai]

You may have many questions to ask like; a) we are progressing now, and have so and so companies who are really the world leaders in their areas. b) Our international trade increases, and many companies are venturing out to other nations to acquire new companies. c) In IT, Defence manufacturing, Generic Parma, oil we have good shares and countless others.

But can you locate a single computer microprocessor manufacturing plant in India? Can you give me the name of a company in the level of Siemens AG, Hitachi, and General Electric? How many Nobel laureates in Science sector are Indian national who are educated in Indian universities? Even after these much revenues from IT how many companies are in the scale of SAP, Microsoft, Intel, AMD, NVIDIA, Google etc? How many Indian government sites are down due to virus attacks? Even after having a long coastal belt how many container trans-shipment terminals we have? Why we are still using Colombo (Yes Colombo is indeed a huge port), Salala, Singapore ports for container trans-shipment? Is there any company on the scale of Pfizer, J & J etc?

The next question really disturbing Indian Industry is - how professional we are? Whenever the production time lines didn’t met companies will simply raise the working hours. Will give some more benefits to employees and thus fix a temporary problem. How Indian companies are finding and grading their employees? Conducting internal exams? Based on seniority? They will find the Date of Birth certificate, joining date and after a through analysis they will promote a person who is more senior to the higher position –no matter what they did in between. It is sure that if a person younger than you joined in the company before you, then you will never reach the top – even if your track record is better. So it’s normal that people will start to think - what is the point of doing something great, if you will not be rewarded for that? Anyway you will get the salary!!!

Did you ever thought how a manager is promoted? In the so called professional companies, which don’t consider age as the sole limit (even if it’s a barrier) boasts about their promotional guidelines. He may be the champion of something. But ever they checked the progress he/she made in the career of people working under him? Did they make substantial improvement in (of course positive only) after joining his/her team? How much they gained under his guidance? Does he utilize their abilities effectively? Any of these companies approach third parties to evaluate their managers based on these criterias?

After some years Indian employees too will not be cheap, Mass production of Graduates in Colleges will not help the situation.

In order to attain the professional qualities and greatness and satisfaction in work, our system needs a complete change. Quick Fixes will no longer help. Change is always painful, but for the survival of India economy it’s needed.

PS:

In my home state - Kerala, people from neighboring states and from many distant parts of the country comes for work. They will do all sort of hard labour and will complete it in time. For the last many years I didn’t saw a person from Kerala digging a channel for BSNL telephone lines. And now Chinese people are coming to India and doing hard work in many parts of India. Recently I read statement of a CEO “Chinese will complete the work in 15 months, but....” I am leaving the rest for you to complete.

Yes we have to change, not a change but a complete replacement, otherwise other countries will replace us.

Sajeev.

[Images are from Wikipedia]

Friday, November 20, 2009

Indian arms procurement policy and snails, who will win the race?

“The internal politics over the years is such that whatever defence requirements are cleared by the government, they are opposed by the opposition parties and the same happens when roles change and the opposition sits in government. That impinges very badly on our defence requirements. As far as defence goes, we don’t even match up with Pakistan,” Barbora, while referring to Defence exports, told an aerospace seminar organized in New Delhi by the CII.













[Malabar 2009]

The Barbora referred here is no other than our Vice Chief of Air Staff Air Marshal P K Barbora. Normally personals from armed services will not come in open space and criticize the policies of government. In such a background if Vice chief of IAF made a public statement on this issue then anyone can imagine how much critical the issue is.

In fact there is no need to argue on whether India need more artillery, fighter aircrafts, submarines or not. The reasons are well known. In fact India's "highly friendly neighbors" will increase their military potential to the maximum extend they can under any circumstances. And we have one of the most bloody borders in the world. In fact we fought war in the eastern(Bangladesh Liberation war), north and north east(Indo - Sino war), west (Indo - Pak wars).




















[A picture from Kargil war]

Apart from this there are many insurgent activities with in India like Maoists(who already have presence in approximately one third of the country), illigals militias of north east, Terrorism in J & K, and random terrorist attacks in other part of the country. In many cases these people are fighting with security forces using their advanced weapons, all time favorite AK 47 to the latest guns, LMGs etc visible in Hollywood films.

There is only two ways to get the modern weapons. Either we have to develop it or buy it from other countries. But the main problem to attached to developing arms in India is the long development cycles, some projects in defence sector is taking decades to show result. Some times it will achieve target or we simply buy the necessary weapons from outside in wake of urgency.

The main problem to secure cutting edge defence technology is the high price tag attached to it. Any country will think twice before buying machines like F22 Raptor, B2 Spirit etc. Thanks to our developing economy we have funds. We have funds(even if it may not be enough for a maga shopping always) to buy or develop it. As a usual exercise we are allocating funds for defence purchases.












[IAF Aircraft over Chenab river]

But what happens later? Armed forces will identify requirements, and submit the proposal to the government. So far good. Later we will float the tender, shortlist the defence firms, make the trails accross all the terrains, then negotiate on price and bought the weapon and train the personals to use it.

But after the proposals stage we will take a long time to float the tender, more time to short list. In some cases we will float the tender again short listing again, the long time negotiations on price. At this point of time some politicians will accuse the government about corruption. Some one will file a case in Supreme Court. And our long legal procedure will start. In the mean time the accused company may be blacklisted, and the project stalled. After sometime we may again open the cold storage and show some lights to the old proposals. But by that time requirement may be changed. As long as we have 'n' number of parties at any time to oppose the government, most of the time we will have accusations over defence purchases even if it is right or wrong. And except in rare occasions investigation will took years to complete.

For more read my articles on defence
Modernization of Chinese Navy and other Asian countries
Private Companies will no loger be untouchable in Indian defence sector
Indian Navy required complete modernisation
Suryakiran team should not be disbanded
Continuous saga of delay in defence contracts, Army's struggle with choppers

Due to fear of future accusations, now a days purchase order files are moving with snail's pace or even dead. And after blacklisting many companies there may be 1 or 2 company remains in many sectors. Remember that the worlds of arms market are not run by angles.
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I don’t understand the problem with FII and private sector firms in Indian defence sector. What the problem with FII when we are buying the arms itself foreign companies? As long as there will be strict guidelines for FII and the investments are in the companies/places in India I don’t see any problem at all. What about private companies? Why government have problem about the private sector's entry to core defence sectors? After all they are Indian companies working under the guidelines of GOI. Anyone thinks that Lockheed Martin, Boeing, General Electric, Dessault etc are pure government companies?

In my opinion we should develop a process model for defence purchase, and stick to it. We should precisely define a framework and guidelines for purchasing arms. From requirement gathering phase on wards, set a time line and completely obey it. The framework should define what we have to do in each and every phase, and paying a premium for cutting edge technology is not bad. Build a specific professional team for arms purchase and make direct contact with top arms manufacturers. At the same time make it sure that if we bought a weapon, spare parts will be available for it in the future.

It’s our duty to give most advanced weapon in the hands of soldiers protecting our borders in time. In a time when our  internal and external security threats are rising; multiplying our capabilities should be a high priority task.

Sajeev.
 
Allow more FDI in defence sector: IAF Vice Chief
IAF vice chief hits out at political class over defence issues
IAF Vice Chief’s latest: Politics stalls defence purchases

Thursday, November 19, 2009

US Policy towards India and China - Changing tables


[Facing the great Wall of Chinese Policy?]

What is the best way for US to get something done by China? The most efficient way may be showing more attachment to NewDelhi, Taiwan or start some military project with Japan etc or create a hint about the possible US criticism on the human right policies of China. US can easily do this, they have all the available means to execute this strategy.

What will happen if they ruled out all these options first (self goal), and went to China? I think the best answer will be “They can saw the great Chinese Wall” both literally and diplomatically.

This is what happened to the present US administration this time. They approached their biggest creditor without anything in hand, and saw the Great Chinese wall. As usually happens in deplomacy here too they discussed a lot on various issues. But as you know its not necessary that discussions always produce results. For example India and China are continuously discussing the border issues, making it one of the longest running border issues in the world. But even after numerous joint sessions it not solved.

Likewise the discussion went on many issues, and certainly produced results but all went in favour of China. Certainly a big victor for Chinese diplomats.

What about the problems concerning US? Is there any progress on

1. Iran nuclear issue?
2. Chinese Currency Policy?
3. Human rights issue?
4. Tibet?
















[Changing Equations?]

As far as India is concerned the relation with US is becoming more and more strained day after day and the US - China joint statement give it more push downwards. The statement about the involvement of China in South Asian matters - Mainly Indo- Pak relations- was more than enough.

Already there are rumours that many of the policies agreed by former US administration and Indian government may be reworked by the new US government. There may not be any more joint exercises between the navies of India, US and Japan(After all its concern for China and Pakistan). The searching operation by US Air force to find the missing personal during the Second World War in Arunachal Pradesh may be abandoned or kept in cold storage.

It is certain that any policies to involve China in Indo – Pak issues won't be welcomed by India. Its said that the Semin -Clinton statement almost broked Jaswant Singh- Strobe Talbott talks. Now the statements came at a time when Indian Prime Minister Manmohan Singh is preparing to visit US. Certainly another great victory for Chinese diplomats.

Now every eyes will be in the coming US visit of Manmohan Singh. Will there be any improvement in relations? or will US allow to loose the tie slowly so that the impact will not be that much but make an end to the strong Indo - US ties built by former president George Bush and Dr Manmohan Singh?

If they are chosing the second way, then India too should opt for alternatives. The best thing to start with is to make strong ties with Russia and Iran. After all we dont have any problem with Iran and Russia is our one of the best friend for a long time.

The coming days may show more activities in diplomatic stage. But if the US policies goes in this way, the Indo - US relations will no longer be that much good.

Sajeev.

Kadam kadam badaye ja . . .

          I don’t know when I first heared these lines but it becomes one of my favorite lyrics. "Kadam kadam badaye ja..." composed by Capt Ram Singh Thakur and now the Regimental quick march of Indian Army. He also composed the tune for “Subh Sukh Chain ke..” the national anthem adopted by Azad Hind. The music of the current version of national anthem “Jana gana mana…” was also composed by Capt Ram Singh Thakur.

Devnagari script Romanised Hindi Translation (Approximate)

कदम कदम बढ़ाये जा
खुशी के गीत गाये जा
ये जिंदगी है क़ौम की
तू क़ौम पे लुटाये जा

तू शेर-ए-हिन्द आगे बढ़
मरने से तू कभी न डर
उड़ा के दुश्मनों का सर
जोश-ए-वतन बढ़ाये जा

कदम कदम बढ़ाये जा
खुशी के गीत गाये जा
ये जिंदगी है क़ौम की
तू क़ौम पे लुटाये जा

हिम्मत तेरी बढ़ती रहे
खुदा तेरी सुनता रहे
जो सामने तेरे खड़े
तू खाक में मिलाये जा

कदम कदम बढ़ाये जा
खुशी के गीत गाये जा
ये जिंदगी है क़ौम की
तू क़ौम पे लुटाये जा

चलो दिल्ली पुकार के
ग़म-ए-निशाँ संभाल के
लाल क़िले पे गाड़ के
लहराये जा लहराये जा

कदम कदम बढ़ाये जा
खुशी के गीत गाये जा
ये जिंदगी है क़ौम की
तू क़ौम पे लुटाये जा

Kadam kadam baṛāē jā
khushi kē geet gāē jā
yē zīndagi haiñ kâum kī
tū kâum pē lūtāē jā

tū shēr-ē-hind āgē baṛ
marnē sē tū kabhī nā daṛ
Ūṛākē dushmanō kā saṛ
jōsh-ē-vatan baṛāē jā

Kadam kadam baṛāē jā
khushi kē geet gāē jā
yē zīndagi haiñ kâum kī
tū kâum pē lūtāē jā

himmat tēr baṛtī rahē
khuda tērī suntā rahē
jō sāmnē tērē khaṛē
tū khāñk mē milāē jā

Kadam kadam baṛāē jā
khushi kē geet gāē jā
yē zndagi haiñ kâum kī
tū kâum pē lūtāē jā

Chalō Dillī pūkār kē
gam-ē-nishāñ samhāl kē
Lāl qilē pē gāṛ kē
lahrāēñ jā lahrāēñ jā

Kadam kadam baṛāē jā
khushi kē geet gāē jā
yē zndagi haiñ kâum kī
tū kâum pē lūtāē jā

Approx English Translation[I am very thankful to the person who provided this translation]

Take all your steps forward
Sing songs of happiness as you go
This life belongs to motherland
Lay it down for her a hundredfold

You are the Tiger of India
Do not ever fear death
Blow away the enemy's head
Raise the spirits of your comrades

Take all your steps forward
Sing songs of happiness as you go
Your life belongs to the motherland
Lay it down for her a hundredfold

Your courage is your strength
The Lord listens to you
As for he who stands in your way
Turn him into dust and stamp him into the ground

Take all your steps forward
Sing songs of happiness as you go
This life belongs to motherland
Lay it down for her a hundredfold

"For Delhi" you scream
Hold your banner high
Plant it on the Red Fort
And let it fly eternally

Take all your steps forward
Sing songs of happiness as you go
This life belongs to motherland
Lay it down for her a hundredfold.

Sajeev.