Reports go that the above song, Mehangai Dayan from Peepli Live has had offers from the political parties in opposition. No wonder with the so called 'strike' requiring the opposition to put all its goons to force, it is clearly evident that the UPA-II is difficult to defeat in spite of the current state of affairs. Is the UPA-II performing too well for a government to sit at peace cooling its heals. Hell no! UPA-II is definitely a different animal as compared to a typical Congress Govt. It is far more dynamic, its ministers have new ideas - yet, it is reaping benefits of a global wave towards investing in the developing world, not to mention the benefits from momentum of past governments, Vajpayee's NDA govt included. But what is making the UPA-II govt tick and lie in peace is a fragmented opposition which is busy infighting - whether its the NDA or the BJP within the NDA or the communists or the SP-vs-BSP feud. Politics in a democracy is hardly ever about performance - it

Mahesh Murthy argues here that the budget does not matter any more - especially not to entrepreneurs. He laments that the booty being promised for special focus areas is not meant for genuine entrepreneurs but for those who are politically connected. While I may not disagree with Mahesh on the fact that most funds outlay on Govt. schemes benefits the big co's and politically connected, I don't agree a wee bit with him that the budget does not matter to an entrepreneur. For example, here's how this year's budget announcements may help entrepreneurs: Now you can hire an individual for upto 1.6 lakhs and forget anything about paying taxes to the Govt on his behalf - that's substantial admin cost savings for a small firm If you are a bootstrapper, funding your business with your salary or of a spouse/friend - you have a little more cushion for your startup If you are selling a service to end consumer, you know know that they have a little more money in their hands to i

Here are quotes from Leo Tolstoy's " Letter to a Hindu " written to Mahatma Gandhi: If the English have enslaved the people of India it is just because the latter recognized, and still recognize, force as the fundamental principle of the social order. In accord with that principle they submitted to their little rajahs, and on their behalf struggled against one another, fought the Europeans, the English, and are now trying to fight with them again. A commercial company enslaved a nation comprising two hundred millions. Tell this to a man free from superstition and he will fail to grasp what these words mean. What does it mean that thirty thousand men, not athletes but rather weak and ordinary people, have subdued two hundred million vigorous, clever, capable, and freedom-loving people? Do not the figures make it clear that it is not the English who have enslaved the Indians, but the Indians who have enslaved themselves? When the Indians complain that the English have ensla

"Democracy is the worst form of government, except for all the others that have been tried from time to time" - Winston Churchill, 1947 This Op-ed in the Times by Paul Krugman could as well have been written for India. In the 17th and 18th centuries, the Polish legislature, the Sejm, operated on the unanimity principle: any member could nullify legislation by shouting “I do not allow!” This made the nation largely ungovernable, and neighboring regimes began hacking off pieces of its territory. By 1795 Poland had disappeared, not to re-emerge for more than a century. Today, the U.S. Senate seems determined to make the Sejm look good by comparison. Whether its a regional movie like Jhenda (also remember protests against Ashutosh Gowarikar's Jodha-Akbar) or a comment by SRK on IPL, any political party or son of a politician objects and brings half the nation's media to attention and sometimes even holds the Govt's policy decisions to ransom. Just explains that dem

As I picked up the newspaper today expecting more information on what more steps the outgoing RBI Governor Subbarao would take to curb inflation, I was greeted to my utter distaste by a synopsis of the verbal duel between MNS-Sena-Congress. For all the heat being generated in this Mumbai-for-Marathis and Mumbai-for-India debate, no one in particular is actually fighting for Mumbai's own cause. The MNS-Sena is fighting for rights of Marathis in Mumbai, Congress-RSS for rights of non-Marathis in Mumbai. But no one is addressing the problems of the average citizen in Mumbai - Marathi or non-Marathi! The BMC announced its annual budget yesterday - a news which got buried, thanks to the cacophony on Marathi Manoos issue [probably raised on purpose by the Sena to avoid attention to the budget]. The budget at best can be described as 'barely essential' if not insufficient. The budget of Rs 20,417 crore has shown an increase of merely 4 per cent in comparison to last year’s budge

Recently Sam Pitroda recently mentioned that - "too much focus on engineering and medical education has created a situation in India where liberal arts really did not get the kind of attention it deserved." He said: "A good liberal arts education is important to produce leaders. India has now begun to recognizse that we need not only world class engineering education, we also need world-class liberal arts education. And, we agree that the model we have in (University of) Chicago or Harvard is a model that we need to look at , but it needs to be Indianised - it has to be of a local context." Clearly, Pitroda is talking about the skewed model of having competitive exams for professional courses only which has created a void in liberal arts education in India. Unlike US system, Indian universities do not have a uniform SAT for admission across disciplines – so while for entry to professional courses like engineering and medicine we rely on AIEEE/SEEE and PMT/CPMT’s bu

Continuing the chain of thought from my previous post , I got thinking as to whether the changes in the Indian economy since 1990's have been top down and visionary or merely reactionary and ad-hoc. The conclusion which I have reached has been that they are a combination, but above all - they are based on a Groundswell from the masses. While multiple sectors - IT, Retail, Financial Services and even manufacturing - have contributed to rise of the Indian Tiger; to illustrate my point, I would concentrate on the Financial Sector [ related post ]. Pre-liberalization, there were many shackles, like license raj, on the Indian financial services sector. But more gruesome were the factors of immature or absent regulatory supervision and resulting power of large investors to manipulate the free markets. The Banking sector meanwhile was dominated by PSU banks which were slow, bureaucratic and customer unfriendly. Starting the 90s there were many top down reforms starting like Dematerializ

I have previously pointed a lot of links [ 1 ][ 2 ][ 3 ]to Atanu Dey's blog, also praising his RISC model for development of Indian rural/semi-urban areas. However, this comment on his blog (by someone with an alias Human Blasphemy ) sets out some very pertinent doubts on this model - reproducing it here: Dear Atanu, I heard you during your session on RISC at XIMB. One of the members asked you a question whether Rural Infrastructure can be developed through people’s participation and through microfinance. Which according to you is not possible, because large infrastructure projects have to be completed at one go. But the problem is that why will any private company invest in rural infrastructure? You only said that i dont know how it will be possible. I believe you will agree that in future Microfinance will not remain microfinance it will become SM-finance [Small and medium finance. We have already seen the examples of increased limits of credit in Andhra Pradesh, where Mf loans

Image Credit: deen I took about 2½ hours to reach office today. Apparantly some truck has oveturned near Chembur and hence all traffic from the Sion-Trombay highway has been diverted towards the Suman-nagar flyover (where Eastern Express enters the Island city). This has resulted in a huge traffic jam at Sion. The small incident explains how fragile the infrastructure demand-supply equilibrium is in Mumbai. The roads are just about sufficient to support traffic. So, if it rains or a truck/bus stranded on the road side - it creates queues of traffic kilometers long. Image Credit: Marc van der Chijs This is because of multiple reasons - first of course being that road-space is narrow. The others are like: There are no alternate routes to reach the Island city apart from the arterial roads. The JNPT road remains unutilized even at the time of the traffic jams and natural calamities like water logging. The Highway Maintenance services such as towing trucks to clear stranded vehicles are n

The aftermath of the election is that Congress is back in power and national governance will be back in inaction as it has been. [With exception of the NREGA the previous UPA govt has started no new schemes and even existing visionary projects like the Golden Quadrilateral have slowed down].  The lesson for the BJP has come not from where it has lost but from where it has won - Madhya Pradesh, Chattisgarh and Jharkhand; and from its ally in Bihar. And the lesson is governance works, ideology doesn't, religion alienates electorate and hate politics takes you two steps backward. When the BJP came to power in MP in 2005 under Uma Bharti, the state of affairs was dismal - there was more emphasis on where the next Sadhu congregation is going to be than which districts need roads. It was by a stroke of luck that Uma exited and entered Shivraj Chauhan who started concentrating on development from Day 0. In Rajasthan, Vasundhara Raje however repeated the same mistakes as Uma Bharti, but a

Is this the resurgence of the (Nehru-Gandhi) dynasty? With Rahul Gandhi being credited for engineering the Congress's performance in UP, do we see the Gandhi family rising again. Senior Journlist Inder Malhotra felt otherwise on CNN-IBN. And his quite astute analysis of the rise dynasty politics makes one believe that he is correct.  Mr. Malhotra (who is also a biographer of Indira Gandhi) noted that Nehru was known as a vocal opponent of nepotism, and Indira Gandhi did not even contest a seat in the 1962 elections [ 1 ]. And while Sardar Patel's son contested [which then was not seen as nepotism anyway], Indira did not until the death of Panditji. It was actually Indira who brought in the dynasty politics by projecting Sanjay (and later Rajiv) as her heir. What was worse is that in order to ensure the family upperhand in politics, she destroyed careers of any cadre-risers in the party, in effect also weakening the party organization and hence leaving critical issues on the ta

I have been gleaning/ watching a lot of election analysis since yesterday - and have some interesting bits to report. To start with the blogging world, GreatBong is bang on target when he says:  ...but the Mandir issue is just too 90s, like the Spice Girls, to have any further resonance A lot of people I know ... dislike the Congress for their pandering and for their neglect of the urban middle class. They are aware of the Congress’s dismal record on urban violence. They are attracted to the BJP’s more solid commitment to policies (as opposed to handouts) of relevance to urban India, at least in comparison to the Congress. The only thing that prevents them from putting their stamp on the lotus has been the radical hard Right section of the party. Vajpayee, with his demeanor as a statesman and a moderate, was a master at bringing this section over to the BJP. L K Advani in contrast totally dropped the ball and pushed these “undecided but Right leaning” right into the Congress lap.  Tru

I saw two movies today- Pride and Glory Road - coincidentally both of them focus on how the sportsmen overcame racial challenges.  While Pride focuses on a black swimming team from Philadelphia rising above competition and winning under guidance of a black coach; Glory Road is about a underdog basketball team from Texas (comprising of both blacks and whites) beating the champions Kentucky in national championship in spite of all hardships. While the coach in Glory Road ,  Don Haskins is not black himself - the story revolves round the racial undercurrents that he has to struggle against to retain the proportion of blacks in his team (7:5) and the repeated sabotage attempts that the team members have to face. Pride is more about how coach Jim Ellis must fight not only racism, but also protect his swimmers - most of them from poor background - from social evils which surround them. Both movies go a long way to tell the tale of how America as a nation has had to fight a long battle wi

" The time for lighting candles at Wagah border has long since passed " - quips Veer Sanghvi in his latest article in the Hindustan Times. He argues that we now need to shun our 'friendly neighbour policy' towards Pakistan and embrace the military attitude of "hit back every time we are attacked".  Veer is correct from the Indian perspective - with the Taliban hovering on the borders of Islamabad - the Military and government have lost control of the country and we are soon going to deal with a loose group of multipolar infidels in our neighbourhood who neither understand nor heed 'international policy and neighbourly ties'.  However, looking beyond the limited view of India - Pakistan is a democratic experiment which the world cannot afford to fail.  In the multicultural word today, International politics is more like politics in a democracy - while the rich and powerful rule the roost, minorities and weaker sections also have their say. A majority

This is the last post in this 3-post series ; read the previous one . Sidenote: I argued in the previous post how urban slums arose as a result of "cultural pollution" by the imperial powers who attempted reengineering the socio-demographics of Indian cities and villages. I must clarify that I do not blame the continuance of these slums on imperialism - I am merely trying to identify the root causes in an attempt to better understand these phenomena and hence lead a way towards solving them.  Presented next is another example of how cultural pollution has created a problem for the modern world. Most political systems in the world which developed without any interference from outside developed through a natural cycle of tribal / feudal set ups to monarchial / semi-monarchial setups to parliamentary or councilor (community based) democratic systems. This is true of ancient democracies as well as modern. After the end of imperialism / colonialism, most of the world underwent dem

... continued from here . Taking India as the case in point - how did slums in Indian cities come about?  When the British marched into India they were unaware to the way villages functioned in India. This was because by the 18th century Industrialization had kicked in Britain and the city was the center of development - unlike India where villages played a big role in polity and economy - especially due to a strong self regulation and governance system.  In Britian due to the fast industrializing society, the city was where the seat of the kingdom lay and which controlled governing structures. In contrast, cities in India were mere 'centres of trade' meant to facilitate trade between the several villages which surrounded it. In absence of this understanding – the British  assumed  (mistakenly) that India lacked cities and so it lacked development. So what did they do – they killed the village’s internal economy by forcing cash crops like Indigo and Cotton which were completel

There is an episode in Star Treck [The Next Generation, Season 3, Episode Number 52 ] where a team of Federation sociologists are accidentally exposed to a primitive race (Mintakans). When an injured and unconscious Mintakan is taken aboard the Enterprise (star ship) for medical attention and is healed by the advanced medical methods on the starship. While coming to consciouness he catches a glimpse of Captain Picard, and so on his return to his people (as he narrates his story) Mintakans begin to perceive Captain Picard as a God. The episode makes a fascinating commentary on primitive sociology and acquired monotheism. But the more interesting part is Captain Picard's take on "Cultural Pollution". According to star trek’s lingo – cultural pollution refers to the effect a more developed society can have on a lesser developed one by not allowing the natural course of cultural evolution and exposing the lesser developed species to ‘development’ and ‘innovation’ out of their

Corporate India and Changing Face of Terrorism KPMG in India conducted a survey with over 60 companies in India, with the objective of assessing their level of preparedness in the wake of this emerging threat of terrorism. These organizations were from various sectors and the majority of them had an annual turnover of over USD 150 million. You can check out many other Thought Leadership publications by KPMG-India on our website http://in.kpmg.com/archives/archives.asp In case you need any other inputs or have feedback, feel free to leave a comment on my blog and I will get back to you. Download Report (946 KB) Privacy & Disclaimer © 2009 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

Link to Part I of this series    The character of an undivided India was a weak one - the leadership composed of Gandhi-Nehru-Jinnah took a decision to divide the country on religious lines [ 1 ][ 2 ][ 3 ]: On 3 June 1947, he (Lord Moutbatten) presented his plan [to partition India into India and Pakistan] to Nehru and Jinnah. They both accepted it. Gandhi, was fearful about partition but even more fearful of civil war. The AICC adopted the resolution in June, 1947. Nehru served on the Partition Council that finalized the separation of government institutions and provincial resources between the two new dominions. However, the leadership of Independent India composed of Nehru - Menon - Patel had a different character. When faced by a situation similar to partition because of reluctance of princely states to integrate their domains into independent India - the trio adopted a cunning, pragmatic yet bold and steadfast stance.  In July 1946, Nehru pointedly observed that no princely state

The world has just witnessed a celebration of sorts on Obama's swearing in as the 44th President of America. What needs to be seen is how fast Obama delivers on the promise that - " the chalenges will be met ". Whether the United States of America meets the current challenges is to be seen, but this nation has always shown a character of unity and resoluteness. One realizes this on comparing how this nation faced situations against similar situations faced by other nations. The point in case I take here is the situation of imminent partition .  In 1860s, the United States found itself divided into two halves on the issue of salvery. Just as president Abraham Lincoln was being sworn in as the 16th president - seven Deep South cotton states South Carolina, Mississippi,Florida, Alabama, Georgia, Louisiana, and Texas announced secession from the US to form the  Confederate States of America . America had two choices to make at this point of time - allow America to be divided