Monday, September 29, 2008

Health is not for all

Committed officers are making a difference at the grassroots level. But experts feel the government is chasing quantity, not quality, says GYANENDRA KASHYAP
After more than two and half years of the launch of the National Rural Health Mission (NRHM) to provide accessible, affordable and accountable health services to the poor, the programme is plagued with problems. As I traversed 530 kms to Himachal Pradesh, stopping at various places like Nagrota Bagwan and Gopalpur, I realised that the UPA government’s commitment to hike public spending on health to 2-3% of GDP is hogwash. And the objective of ‘Health For All’ is a distant dream.

But first let me focus on the good news. The drizzle that morning had further dipped the temperatures, but that had not deterred the First Referral Unit (FRU) staff to come on time. As I entered the room of A.R. Raghu (Block Medical Officer, Nagrota Bagwan), what caught my attention was the photographs of national heroes. Before I could quiz him on them, pat came his reply, “I draw my inspiration from them.” As we settled down, Raghu explained how adequate funds and attempts to make the local community a partner in achieving the health goals was the real innovation of the scheme.

At the local level, Raghu said that there had been a major turnaround in the past 6-7 months. The reason, according to him, was that “in the first 11 months or so I was humiliated, and had no administrative powers. But thanks to J. S. Chandel (chief medical officer), who played a pivotal role, things have changed. Had you come a few months ago, you would have been able to see the changes for yourself.” Take the case of the availability of funds. “There is no scarcity of funds; all that we need to do is to spend the amount judiciously,” says a confident J.S. Chandel,. Quite true, as a sum of Rs.53.36 crore was received under NRHM in 2005-06; of this, the state spent Rs.34.54 crore. In the current year, the grants-in-aid released for NRHM up to November 2007 was Rs.18.84 crore. At the national level, Rs.4,75,000 crore was allocated under the Family and Welfare Camp in 2007-08, of which Rs.2,98,000 has been utilised.

Getting into specifics, Chandel revealed that the number of girl children per 1,000 male children went up from 815 in 2006 to 846 in the next year. Similarly, the number of OPDs has more than doubled from 6,051 in the first quarter of 2006 to 12,212 in the same period in 2007. To reduce costs in the future, the administrators are deliberately working on the concept of quality circles; they take suggestions by staff and patients, and necessary actions are taken accordingly. “The awareness of the scheme is slowly catching up,” says Chandel.

I saw evidence of this in Gopalpur, where a board with names of 204 medicines available under the scheme was hung publicly. In the area, the blindness control programme was in full swing. Ansali Devi, a patient, had no attendant, and the CMO ordered for necessary arrangements to be made so that she could get her eyes operated. Neeru Ram, an asthma patient, agreed that he gets free medicine from the unit at Gopalpur. Kamala Devi, another patient, was a bit skeptical: “Aaj to muft mein diya hai, kal bhi denge to yaakin ho jayega (Today, I have got free medicines, if I get them tomorrow, I will believe it).”

Added Munsi Ram, “Pehle bahut mushkil tha, buri halat thi. Dawai bahar se kharidna hota tha. Ab to yahin se mil jaata hai (Earlier, it was difficult and the situation was bad. One had to buy medicines from the market. Now, I get it here).” Roshan Khanna, a local contractor in Nagrota, said: “Prayaas aur Niyat dono hi hain. Alochana ke saath saath sarahna bhi milta hai (There are both efforts and intentions. Along with criticism, the scheme is praised too).”

However, this is just one part of the story. The second one relates to tardy implementation, lack of specialists, and inadequate reach. It’s only those who get free medicines and care who benefit. But there are millions who still have no access to the services. For instance, the number of institutional child deliveries has come down from 0.52 lakh in 2005-06 to 0.49 lakh in the next year. Just over 45% of the children are born in hospitals. Most women prefer to deliver at homes.

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Thursday, September 25, 2008

Mull N-ultimatum

The deadline set by Mulford makes the Communists see red
The Left’s desperation to nuke the Indo-US civilian nuclear deal took centrestage once more as US Ambassador to India David C. Mulford announced his “autumn deadline”.

Mulford had told an Indian TV channel that were India to dilly dally any further, the deal might just melt down forever – the toughest language the US envoy has used so far. This predictably had the Left hopping mad. For even though it shares power with the Congress in the UPA led by it, the Communists have throughout made the deal the centrepiece of their conditional partnership. Mulford’s warning was met with jeers in the Left ranks, which unanimously condemned the US “armtwisting”. Did the Americans consider India, a sovereign nation or not, was what CPI MP D. Raja, who started the debate, wanted to know. He smelt “intimidation” in the ambassador’s “ultimatum”. Uncle Sam ought to know that India had the capability of developing its own nuclear technology, and had been looking for alternative sources like uranium & thorium. According to Raja, the US was only looking for business opportunities in the guise of offering nuke empowerment. This was sheer blackmail, Raja said.

Expectedly all of the Forward Block echoed Raja’s “apprehensions” regarding the “US-specific” deal. AIFB General Secretary Debrabrata Biswas told mediapersons in Chennai that his party would pull out from UPA Government, in case it still went ahead with operationalising the 123 agreement. (The US has been insisting that should the nuclear deal remain unsigned during the Bush tenure, the non-proliferation lobbies would punch into the agreement additional conditionalities. The deal that Bush and Indian Prime Minister Manmohan Singh agreed upon in 2005 is regarded by many in both nations as a cornerstone of new, warmer Indo-US ties. Under it, India would separate its civilian and military programmes and place 14 of its 22 nuclear plants under unprecedented international safeguards in return for civilian nuclear technology. Washington, in return, has promised to amend the US Atomic Energy Act which prevents it from trading nuclear technology with nations such as India that have not signed the Nuclear Non-Proliferation Treaty.)

The Mulford interview comes just as India prepares for yet another round with the International Atomic Energy Agency (IAEA) to thrash out a safeguards agreement. Despite four rounds since November, there has been no agreement due to India’s insistence on the right to create strategic fuel reserves and uninterrupted fuel supplies. Now the Left parties, that have throughout threatened to withdraw support to the minority Congress Government – should India try to bulldoze its way through the deal – are doubly furious. How dare Mulford set deadlines for India? they ask.

The Communists see the pact as threat to India’s nuclear weapons programme and facilitating US foreign policy meddling. The Congress rubbishes these fears, arguing that the deal, while opening a new rich energy source, in no way threatens India’s sovereignty. The Catch 22 for Manmohan Singh is: If the Congress pushes ahead with the deal, the Left could walk out and force mid-term polls, which it would rather keep, as scheduled, for next year. And if the deal falls through, Manmohan loses the “place in history” that the deal assures. Indeed, it’s widely considered as singular an achievement as the economic liberalisation that he kick-started as India’s FM.
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Wednesday, September 24, 2008

To nourish social sectors

The budgeting process is planned as per changes forecast last year
An incremental budget treats existing programmes and departments as already approved, subject only to increases or decreases in the financial resources allocated. The organisation’s historical costs are the base from which budget planning starts. The focus of budgeting process is on the changes anticipated in the last year’s figures. If the government is in a fairly stable environment, this approach may be satisfactory, provided there is a thorough review.

BSE Sensex is skyrocketing to near 20,000 points, glorifying our capital markets, FDI and FIIs are entering the Indian market in a major way, all of it giving a very fairy tale kind of a rosy picture of our economy. But what people fail to see, however, are the bottom 35% of our population, who live below the poverty line. The achievement of the economy will fall short of credibility if we do not address the endemic hunger, lack of education and low standard of public healthcare. Our per capita spending on education is $26 (annually), as against $8,900 in the US! Our health expenditure (per capita) is $24, while the US spends $6,096 per person per year! The rural housing programmes have not been successful either. The insurance cover is far lower than that in the West.

Despite its limitations, most rich nations follow Incremental Budgeting, whereas developing countries follow Repetitive Budgeting. India, with one-sixth of the world’s population, needs to urgently and massively increase its allocation in the social sector in order to rid itself of poverty, disease and illiteracy. Should not then this system of budgeting be taken into account?

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Tuesday, September 23, 2008

Humongous multi-billion dollar business opportunity

If one multiplies the average cost per aircraft with the number of planes required in future, s/he will realise what humongous multi-billion dollar business opportunity lies ahead for the global players if they get to bag the deal from Indian airline companies. Now India is obviously at an advantageous position as it can use this opportunity to negotiate other economic and political issues with the countries. “India needs to negotiate issues like transference of basic assembly work & technology. It is time for the country to become partner in aircraft manufacturing, and not remain a customer,” emphasized aviation expert Brij Bharadwaj. Moreover, the presence of Brazilian major, Embraer, Canada’s Bombardier, Russian Sukhoi & French ATR, to name a few, has explored options in India and the country is not merely confined to buying it from the US or EADS. Therefore, India would be in a position where it can seek for something extra in return of this sort of mammoth business deal. It could be anything ranging from asking the companies to set up MRO facilities to investing in infrastructure, providing support-staff, getting planes at a discounted price or any other form of support system.

That’s not all. Apart from this, Air Cargo is also slated to become another money-spinning segment. As per government’s figures by the year 2020, Indian airports are projected to handle cargo in range of 3.4 million tonnes annually. And with most Indian domestic players already envisaging entry into that segment, it could become another enticing business for global players. The recent relaxation in FDI norms allows foreign carriers upto 74% stake in cargo airlines. At present, Air India is the only one which has freight operations. Though, Jet Airways is all set to enter into that segment, it will take nearly 18 months for it to commence its cargo operations. Other players like Flyington Freighters & Aryan Cargo Express are also willing to enter cargo business. Of late, the Indian government has approved 100% FDI in MRO facilities, Flying Training Institutes (FTIs) & helicopter services, which was initially 49%. While in ground handling services and non-scheduled airlines, FDI cap has been increased to 74%. Though for scheduled airlines, FDI cap still is 49%, government is quite optimistic of more foreign players’ participation with this review in policy. “The new FDI policy is expected to greatly boost investments, not only by Americans, but also by other foreign companies too. The sector is expected to bring in investments to the tune of $115-120 billion in the near future,” said Praful Patel, Minister for Civil Aviation, at the sidelines of policy review. But on the other hand, India is also quite circumspect on the issue of allowing foreign airlines flying on domestic routes. Even in its recent policy review, government showed no sign of relaxing those norms. This is when many international airlines like Thailand’s Nok Air, Indonesia’s Lion Air, UAE’s Ras Al Khaima, Malaysia’s Air Asia & Chinese major players, are more than willing to enter Indian airspace, at the backdrop of robust growth that the sector has experienced in the recent past.

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Monday, September 22, 2008

Understanding outsourcing biz

Europe lags the United States in reaping from the booming outsourcing business
Outsourcing as a global phenomenon is not new; it has been going on for long. But it was not until 1990s when outsourcing has come more into limelight. Traditionally West had always been considered as developed and the largest outsourcing market. But the paradox is that even within developed world, surprisingly the wealthiest continent, Europe, has really not been successful in becoming a major outsourcing market the way the US has become and take full advantage of this booming industry. Europe remained more like a primitive market.

The US and its corporations have been successful in adopting the fast changing business trends and emergence of outsourcing, whereas European Union as a continent has still remained aloof from reaping off benefit of outsourcing inspite of having the pride and greatest tradition of innovation and excellence in business and commerce giving global competitive edge to companies in various industries like banking, insurance, telecoms, automobiles and many others.

The latest Quarterly Index from TPI, an international sourcing advisory firm, revealed that the EU represents 49%of the value of major outsourcing contracts awarded worldwide, whereas the United States is standing at 44%. But fact is major outsourcers in the EU remained confined within the continent for the same purpose rather than focusing cheaper destinations like India, China and thinking beyond the continent. For example, Western Europe is more dependent on East European countries like Czech Republic, Russia, Ukraine, Poland, Belarus & the Baltic. Well, though experts claim that political stability, government commitment to the industry, highly skilled labour force and minimal socio-cultural differences were main reasons for over-dependence on the eastern continent.
But that is little exaggeration. Over-emphasise on these, has actually hid its inexcusable failures like labour inflexibility, lack of cultural openness, over-cautiousness on national identity. Leading countries like Germany, France have very rigid and conservative laws regarding employment and layoffs. There is a need to realise and learn from the US for its open, diverse culture, a land for all. Many Asian companies are not comfortable initiating businesses in those countries. However, the UK, is exception.

The matter of the fact is the EU has not imposed any protectionist laws but as the maxim says, “delay in restructure is delay in regeneration,” slow pace of restructuring and policy adoption incurs huge cost to these economies. A research by McKinsey Global Institute revealed that each dollar of corporate spending that US companies outsource to India or China, it generates as much as $1.14 whereas with the present stiffness in laws, slow pace of adopting policies and keeping the labour re-employment rate as low as 40% Germany brings back merely €0.80 for every euro of corporate spending but if it can match with the US and raise re-employment rate as high as 70%, Germany can actually end up creating €1.05 in every euro corporate spending for German economy.

To put things in perspective, it is EU’s failure not to cope up with the changing phase. Its success is in re-orienting its laws, business practices, thinking et al to live in globalisation and extracting maximum profits from it. If the EU, as a country streamlines rules and policies with the changing business climate, it might get a chance to reap rich harvests from ‘global village’ before it gets too late.

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ZEE BUSINESS BEST B SCHOOL SURVEY
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Saturday, September 20, 2008

She’s back in the race

The Hillary-Obama contest is a fascinating show piece of American elections
Former US President Bill Clinton called Barack Obama a “kid” ahead of the Nevada Caucus. His wife & Democratic contender for presidential nomination, Hillary Clinton, said that electing Obama would tantamount to electing “another Bush” to the White House. On the eve of the Caucus, the Hillary camp complained that their supporters in the state’s unions were threatened by the union leaders, who backed Obama. The Obama backers hit back saying they received many telephone calls, which made continuous references to “Barack Hussein Obama.” Nevada saw it all. Still, Obama, the charismatic Illinois Senator who changed the entire arithmetic of Democratic contest, could not defeat the former first lady in Nevada.

What went wrong for Obama? He failed to keep up the hype, set by his own media managers, as the campaign spread to other parts of the country. His vulnerability to attract different demographic votes was visible in New Hampshire & Nevada. Although the Obama camp, having understood this fact, attacked the Clintons, saying they haven’t done much for the Hispanic community, it failed to pay. The Hispanic groups, the growing number of Democratic supporters, voted for Clinton in large numbers. She could also walk away with women votes as Obama managed to retain support of the blacks. Obama’s stunning Iowa victory has started to fade away with his straight losses in New Hampshire & Nevada.

“The Clinton-Obama contest is a fascinating showpiece of American political theatre. In addition to the male/female and black/white aspects, the personalities embody a contrast, few other countries embrace that of new v/s old & change v/s continuity. I cannot think of any country apart from the USA where political experience is an electoral liability. The two leading contenders for the democratic nomination, embody these observations, and Obama is praised for his strong commitment to “change” without defining what this means while Clinton emphasises her “experience” without convincingly demonstrating that she has any. It’s American, it’s “show business”, and it’s exciting, even if somewhat primitive,” Dr. Robert

McGeehan, an associate fellow at Chatham House, told B&E. The next Obama-Clinton fight will be on January 26 in South Carolina where the black community is crucial factor. Though the black voters were loyal to the Clintons since the first presidency of Bill, this time, according to the polls, Obama is more popular among them. A victory on Saturday is crucial for Obama to go to the Super Tuesday campaigns with confidence. Obama hasn’t so far played his racial cards vigorously, which many analysts say is a “strategic error.” Would he take them out in pretty American style? Well, let’s wait and see.

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Tuesday, September 16, 2008

‘Kingdom of God is within you’

Peace, pride and prosperity can’t be imposed, bought or sold

The maxim, “the Rabbit that stays in a hole must be ready to face the hunter’s fire,” aptly defines the problems that most of poor African and Asian countries encounter. And if the World Bank floods these poor economies with aids, they will remain poor in the next century. The world has to realise that poverty, health, money are not problems of Africa. It is their failure to realise their own role to come out from the anarchy and shame. Aids, donations and sympathy from the developed world have never helped them; these have in fact, made them more dependent to godfathers, colonisers and aid giving countries.

The only continent blessed with natural resources, comprising of petroleum, diamond, metals; Africa failed to reap off these. If godfathers are only to be blamed; then South Korea, India faced much traumatic, horrifying, colonial history. Still, S. Korea is 30 times richer than Zimbabwe in terms of PPP. The crux of the problem is exclusively on poor quality of governance. Economic boom of Botswana and shrinking future of Zimbabwean economy proves how quality of governance makes vast difference in last few decades. The history is not different in most African countries. Moreover, illiterate local tribal leaders, corrupt politicians, officials, local police, mafias have left nothing good in their countries.

The World Bank urges developed nations to aid poor countries. They are doing so. External annual aids to Africa are going to touch $25 billion by 2010. Aid is really not helping them. Peace in Sierra Leone, Liberia, Angola, Ethiopia and Eritrea is in progress and even Congo is now better than what it was a year ago, as they all strived for it. Aids have put these countries on crutches. Over-dependence on aids has discouraged entrepreneurial spirits, proactive participation on revenue generation and fuelled bribery, corruption et al. The World Bank has to keep in mind that pride and prosperity can neither be imposed nor be bought or sold. Those who have fought and strived for development, have achieved it. But will the World Bank heed to this?

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IIPM Editorial, 2008
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ZEE BUSINESS BEST B SCHOOL SURVEY
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IIPM in Financial times (Print Version)
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'This is one of Big B's best performances'
IIPM to come up at Rajarhat
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India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...domain-b.com : IIPM ranked ahead of IIMs

Tuesday, September 02, 2008

US economic slowdown

For famed turnaround artist Carlos Ghosn, CEO, Renault, it’s time to get back to the grind once more. Although the company grew by 2.2% in worldwide sales for 2007, Ghosn has reasons to be concerned. His most popular turnaround Nissan would be bracing for a tough 2008, with the US economic slowdown looming. The company’s sales for the European region for calendar year 2007 also dipped by an alarming 4.1%. Investors have been looking bearishly at the Renault stock as well, which was trading at €84.55 on January 8, 2008, as compared to its 52-week high of €122.47. Predictably, Ghosn has stepped up his activities in emerging markets, his latest focus being Russia. Renault is inking a deal in February 2008 to take up 25% of ailing Russian car maker AvtoVAZ (with 70% of domestic car making), which has been continuously losing market share to foreign brands (its market share currently stands at 30% compared to over 50% in 2000) and has also been lurching in the dark for a bail out. The value is estimated $1.3 billion. GM & Ford were also in the fray.

Of course manufacturing under the Renault brand name could work wonders for AvtoVAZ. Surprising, though it may be to see such keen interest in a failing company, the logic becomes clear, seeing the booming Russian auto market, which is slated to be Europe’s largest and reach sales of about four million vehicles by 2015. As per Ashish Sinharoy, Vice President, Corporate Affairs, Renault India, “The move is tremendous, since AvtoVAZ is by default the largest car maker...” The JV will lead to technology sharing as well as combined production, in particular for AvtoVAZ’s low-cost Lada car.

With this JV, one can well expect things to heat up in the Russian auto market as GM & Fiat would certainly look for more ways to gain a foothold. As for Ghosn, he’s back to what he does best, turning things around!

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Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...domain-b.com : IIPM ranked ahead of IIMs