Friday, September 9, 2011

Chasing Our Own Tail

The recent terror attack near Delhi High Court comes within two months of the terror attack in Mumbai. The attack on Mumbai was carried out days before the high profile visit of the US Secretary of State Hillary Clinton to India. Though there may be others but from what is available in the public domain, following deductions can be made (of course certain presumptions have been made since nothing can be claimed with certitude). And it's not good news:

  1. At least three different Emails have been received from different places owning up to the attack. “May be” red herrings to obfuscate the investigation.
  2. The time of the attack is of significance. Generally such attacks are expected and are known to have carried out near major events on a calendar like 01/26, 08/15, Diwali etc. spread throughout the year, and security is also maximum on and on days leading to these events, but on other days the security is a bit slack. Time chosen for Delhi attack was one such, to increase the probability of success.
  3. The terrorists are adapting and learning from their past mistakes, making sure not to repeat them. They are not leaving any tell tale signs like tapped communication, operating in extremely small groups, and causing just enough damage. A large scale attack like 26/11 is likely to decrease the probability of it's success and also force India to take really drastic measures like cutting diplomatic ties with Pakistan etc.
  4. The idea that India and not Pakistan is the raison de etre of the jehadi groups hence they should target India and not Pakistan itself is being reinforced with each attack.
In such a scenario we can't afford to drop the guard at any time. The terrorists are striking with ease knowing there won't be any retaliation. That's the price we pay for not taking investigations to their logical conclusion and bringing the culprits to book. We keep chasing our own tail.

(Picture courtesy AFP)
Postcsript: After 26/11 New boats were bought by Mumbai police to check infiltration from sea route, and after Delhi attack CCTV at Delhi High Court is likely to be fast tracked. It's anybody's guess where will the terrorists strike next.

Sunday, August 14, 2011

In Defense of Lokpal


Our friend Acorn have articulated his views against the Lokpal and Anna Hazare movement in his blog, the first half of his post is related to his views against the proposed institution of Lokpal and the latter half is against the fast unto death method adopted by Anna Hazare in his movement against corruption. The two IMO are different debates and required to be dealt with separately, I intend to deal with the Lokpal bill in this post. His arguments against Lokpal bill can be broadly categorized as under:


1. Indian system being Complex is inherently bad, and Lokpal will add another layer to the complexity.
2. Economic freedom is proven to lower corruption and we should demand more economic freedom, not Lokpal. If middle class vote in large numbers Govt would be forced to reform the economy and Lokpal won't be needed.
3. Lokpal may be impractical to implement and they may get mired in the system as well, making little difference to corruption on ground

Coming to the contention that Complex is inherently bad, may be he is confusing complex with complicated. Contrary to popular beliefs most good systems are complex in nature, including those found in nature itself as Eric Berlow explains. So blindly removing layers  or refusing to add any new one may not make the system any better.

Economic freedom is proven the world over to reduce corruption, I don't contest that. Economic reforms are important but checking corruption should not be held hostage to economic reforms. That's why a mechanism like Lokpal is important, it is not dependent on economic reforms which depends on political will and might take ages. Economic reforms can co-exist with a system like Lokpal or ombudsman as it does in free economies like Hong Kong.

Regarding the impracticality argument, the nitty gritties can be worked out, we already have a few successful models to learn from and replicate with required modifications. Lokayukta system of Karnataka said to be the most effective in checking corruption at the highest level is one such example, CAG is another example. These existing systems can provide the blueprint for the proposed Lokpal, we should not miss the woods for the trees, any new system may not work exactly as designed and will definitely require course corrections from time to time but a beginning has to be made.

(Picture courtesy topnews.in)

Wednesday, July 27, 2011

Changing The Northeast Narrative



In the national narrative largely fashioned by a small coterie of a permanent Delhi media elites, North East nearly finds no representation except for convenient and cursory invoking of Irom Sharmila, that too intended to establish that our citizenry is absolutely oblivious to her heroic struggle and that its only the great media worthies residing in Delhi who have their minds engaged on her fast. It’s no coincidence that forked tongued doyens of Delhi media build a crescendo over Irom Sharmila when their political masters face the brunt of  popular protest movement. Remember when that Hazare and Ramdev took Delhi by storm, we were repeatedly asked why Irom Sharmila’ fast never attracted the kind of mind share that anti-corruption movements achieved. Anyway we should not be too hard on news barbies and boy toys of Delhi media. Many of them would be challenged to locate correctly seven states of North-east in India map leave alone any nuanced understanding of their distinctive socio-economic-cultural composition.


On the other hand narrative that emerges from north east is largely based on standard grievance template based on utter neglect by mainstream India. While we generally don’t encourage victimhood narrative, north-east grievance narrative is legitimate. After Independence, development of far flung areas that were naturally disadvantaged due to their geographic location and for a cash-strapped country it was the least of priority. A single party dominated autocratic democracy without any opposition didn’t help either. The government of the day chose to go with the socialist model, and the only way economic growth or development could touch an area was through governmental intervention.

For whatever reasons not much investment reached the Notheast states. One explanation for that is the states that had powerful lobbies on account of the number of seats they occupied in parliament were able to corner the lion’s share of available government investments leaving smaller states with the little that was left. Everything else followed suit. Few new education institutes or any new infrastructure came up after independence, most of the infrastructure we see even today belongs to the pre independence era. The isolation was completed by the state owned media. The only news that came out of the region were of disasters and that too in true socialist spirit was restrained. Few people knew outside Mizoram when it faced massive famine and food scarcity.


Insurgency in the region began in Nagaland which may have fuelled due to religious identity reason as many Nagas, though not all, did not identify themselves with India. However many contend that insurgency in other states began as a result of the neglect by the state. The famine and food scarcity in Mizoram led to armed uprising, made worse by indiscriminate use of force, even fighter aircrafts were used to bomb capital Aizawl that led to massive collateral damage and civilian casualties. Similar feeling of alienation resulted in a bloody insurgency in Assam along with agitation by the people that culminated in the signing of Assam accord, the insurgency still persists. That four out of seven Northeast states have had insurgency speaks volumes about the sense of detachment and the flawed policies of the state.

Many people shifted to other cities for better education and employment prospects where they were not exactly welcomed. Many locals saw them as outsiders competing with them for limited resources and jobs. Although the conflict between locals and outsiders was not entirely unexpected, some handled it better than the others but it also led to reinforcement of the sense of alienation in some of them.

The human tragedy, armed uprising, agitations and insurgency finally managed to attract Center’s attention towards the region and concerted efforts were made to undo the damage caused by earlier policies. The counter insurgency operations by the Armed forces was able to quell insurgency and restore democracy in most areas .Efforts were also made to develop the economy of the region through investments in infrastructure and a few industries too came up like a refinery in Assam, doubling of Railway track, IIT and few other institutions etc. But despite that the sense of alienation stays, the general perception is that nothing gets done unless there is a massive hue and cry, coupled with the prejudices suffered by those who ventured out to other states for education, employment etc has only reinforced the earlier held beliefs.

How did things come to this pass? Why does it take a human tragedy of such proportion just to get noticed? While it might sound a over-simplistic formulation Nehruvian socialist policies are the reason for the stunted economic growth of Northeast region. If the government didn’t have funds to invest in the region at least it can create conducive conditions for private investments to come. If suitable incentives are given to private investments, there is no reason why it won’t come. The SEZ route can be been explored.. If the economy is liberalized adequately and necessary reforms carried out to an archaic system, there is no way industry would overlook the region. The narrative must change from looking up to Center for intervention to how sustainable economic growth can be achieved under own steam.


(Picture courtesy sinlung.com)
You can also read the article in Centre Right India

Saturday, July 16, 2011

Repeated Terror Attacks & What Can Be Done


The latest terror attack in Mumbai has reignited the debate on what needs to be done to deal with repeated terror attacks? Most preliminary information available in the public domain points towards Pak sponsored terrorism be it by the state or non state actors whatever the case may be. To sum them up:

a)  The attack was carried out in Mumbai signifies that the country was the target and it’s not the local/state specific issues that are involved here.
b)  Security arrangements in Mumbai increased a lot after 26/11, so carrying this out was more difficult than the previous one, means that it’s done by thorough professionals, another point to be noted is that all the mistakes that were committed during 26/11 like tell tale signs of communication with the handlers have been rectified this time.
c)  The scale of attack is smaller than 26/11, that is because they wanted this attack to succeed so it was confined to what was possible by a small group, and perhaps they wanted the impact to be big enough to serve their purpose but not so big that India is forced to suspend the dialogue like it did after 26/11.
Coming to the objective behind the attack, there could be many, primary among them the forthcoming visit of US Sec. of state Hillary Clinton’s visit and dictating the agenda of that meet. The agenda of that meet doesn’t appear to be economic, that may be an additional issue that gets discussed but US interest in the region right now is it’s withdrawal from Af Pak region and bring a closure to it’s war against terrorism, many analysts consider this withdrawal as overdue. Another objective could be to divert attention from the mess Pakistan finds itself in right now and perhaps also to remind the jehadis their raison d'etre.

What can be done?

That our police is woefully ill prepared to handle such situation has amply been demonstrated in numerous terror attacks. After 26/11 some, even all of the shortcomings may have been identified, but apparently huge gaps still exists and with the kind of bureaucracy and political compulsions there are, that is asking for too much.
It would make a huge difference if they focus on the actions taken post attack. The culprits of ’93 terror attacks have gone scot free, investigations into dozens of other such incidents have reached nowhere, some we have no clue about at all and even the convicts have remained unpunished. All these facts have lowered the “deterrence bar” for the terrorists and an invitation to try out their designs. Needless to say the deterrence needs to be restored, the perpetrators have to feel the heat, investigations have to be pursued relentlessly till it’s logical conclusion. Diplomatic pressure has to be sustained. If we don’t place a high value on our own lives they will certainly not.



(Picture courtesy BDINN.com)

Friday, July 15, 2011

Salwa Judum Verdict: Options Available to States

India has its share of insurgencies in a fairly large area in different regions and for different reasons. The north eastern states, Punjab and J&K had their share of insurgencies and lately Maoist insurgency has spread to a fairly large area encompassing at least 4 states and is threatening to spread to other states as well. The people who were directly affected by these insurgencies are the ones who have paid the heaviest price often with their lives for no fault of theirs. I am not even mentioning the potential ones that are not on the national radar yet, the ones I am referring to are the ones that were more than a match for the police as well as the regular para-military forces available with the states and threatened to undermine all democratic institutions in those states until Armed forces were called in.
There are many in favour of the use of Armed forces in insurgencies that have gone beyond the control of para-military forces and also there are many who opine that Armed forces must not be used against insurgencies under any circumstances for whatever reasons, the merits and demerits of the arguments related to use of Army in insurgencies is beyond the scope of the topic, in any case it is for the Central govt to decide if and when they want to call the Army.
The state govts meanwhile have limited options of requesting the Centre for adequate para-military forces to counter insurgencies and at times when all the options available to states fail to protect lives, often they resort to unconventional ad-hoc measures to minimise the loss of lives in most cases by empowering the people by arming some of them, mostly volunteers, so that the people are not helpless and at least some lives can be saved. Such measures have been taken by almost all states that were affected by insurgencies like NE states, Punjab, J&K as well as those affected by Maoist insurgencies. Salwa Judum was one such measure adopted by Chhattisgarh as all other options available to it like Central para-military forces were failing.
Never was the constitutionality of such measures adopted by the states affected by insurgencies ever questioned until now and the Supreme Court in it’s wisdom have pronounced constituting and arming these SPOs as unconstitutional. Now the message that is conveyed is that the govt with all the legal experts at it’s disposal can also be unsure about the legality of the actions it takes and there can be a huge gap between the executive and the judiciary on what they perceive as permitted in the constitution.
Arming of SPOs, VDCs etc. were never considered to be a solution to insurgency, they were meant to enhance the security of the people living in insurgency affected areas and supplemented the state forces and Army. The SC has clearly said that it is the govts sole responsibility to protect it’s citizens and that the responsibility cannot be delegated to the people in any circumstance, which entails that the govt only have the option of deploying Armed forces and para-military forces during insurgencies. Despite the presence of Army and PMFs in J&K it was felt necessary to supplement them with SPOs and VDCs, now that option is not available to the govt or the people affected.
(Picture Courtesy Outlook)

Tuesday, March 1, 2011

Soft Power Dissection


So much is being spoken about how India is making it's presence felt and also staking a claim at the global high table on the basis of it's "Soft Power". Is it all music to the ears signifying nothing or is their some substance in India's claim? When India stakes claim at the global high table of Soft Powers, it asks to be included in an exclusive club with countries like US, Western Europe, Japan, China and perhaps a few others that boast of world renowned culture, arts, science, literature, and other such matters related to human pursuits matured over ages attaining the status of being at the cutting edge of their respective fields.

Given that it's a tall order to match for any country staking claim to the membership of this exclusive club, what exactly is our claim to fame? Our culture is one of the oldest, Sanskrit is one of the oldest language that still attracts scholars in droves, all our major languages that have derived from Sanskrit are no less a treasure trove by themselves, some of the oldest literatures on virtually any subject can be found in IndiaIt's evident that India was one of the most advanced civilization during the time when our culture was taking shape of the form we recognize and take pride as our own. In addition to our traditional soft power we also hear about Bollywood, Multi-Culturism and IT Software development carried out in India in the long list of the things that supposedly make us a soft power. We may not agree with all of them but that is not the point.

India was all that and more when India was subjected to foreign rule first by Mughals followed by the British and even years after India became a republic it was counted among the poorest in the world and hardly anyone called it a soft power. We started to hear the soft power noise only when India’s economy entered a high growth trajectory and it’s GDP became comparable to the GDPs of the developed countries.

So, can we conclude that wealth makes the world see your other positive attributes? That IMO would be an extreme view. India does have a wealth of attributes that are considered necessary to be called a soft power, but unless it is backed by a sound economy and a perceptible hard power it is unlikely to be acknowledged.


(Picture courtesy Tribune)

Friday, February 25, 2011

Of Old Wines & New Bottles

After the BJP was re-routed in General Elections 2009 there appeared a consensus among the supporters that nothing short of a reinvention is required to not just stem the slide but to remain relevant enough in India's political landscape. Everyone seemed to have a prescription for it. After taking flak from both supporters and detractors and all and sundry as well, the party went into an introspection mode amidst expectations of reemerging as just more than an old wine in a new bottle. The party was literally forced to go back to the drawing board. For the party that once thought of itself as a replacement of Congress, the difference in level of confidence they had on themselves and the voting public had on them turned out to be wider than the worst case scenario they had imagined. However, after apparently spending some time at the drawing boards the party seems to have reemerged. So where does the BJP stands today?


The converted would like to point towards the developments of the last few months during which BJP appears to have improved their popularity also reflected in some state level elections notably Bihar vis a vis Congress that is still reeling under a series of scams and failures that allegedly involve some of the biggest heists ever, involving mind numbing figures and all round failure at governance and leadership leading to near paralysis in dealing with issues of maoists, separatists, telangana, inflation, ministers turning their ministries into virtual ATMs...you name it.


But the ones not yet converted have a point when they say that the party's turnaround seems to be more due to Congress doing everything wrong rather than BJP itself doing anything right to write home about. The decisiveness in dealing with state level differences earlier displayed in Uttarakhand and Rajasthan seems to have petered out in Karnataka, the change at the top level was limited to appointment of new leaders of the houses and the President, and barring may be a couple of spokespersons like N Seetharaman, no new faces have emerged at the central level, so do we really have a new party under a new leadership or do we more or less have the same old wine? we may not be required to wait till 2014 to get a definitive answer to the question as more challenging state elections to be held can themselves provide an answer, but then we can always wait till all doubts are laid to rest anyway.


(Picture courtesy daylife.com)

Monday, February 21, 2011

Fine Print On The Wall

The news of a recent recruitment rally conducted by the Armed Forces in the Ganderbal area of J&K that witnessed a huge response where around 9000 young men braved sleet and snow to appear for the test has evoked interesting reactions from the observers including on twitter ranging from the disinterested ones calling it a "No big deal" to the ecstatic. Whatever be our reactions, they obviously need jobs and the need to address this issue post haste can not be over emphasized. Much would depend upon how the govt reacts to it.


The obvious knee jerk reaction in such a scenario especially in disturbed areas in India has traditionally been to create more govt jobs or at least declare intentions of doing so and give an impression of doing ones best to solve the unemployment problem. IMO it's time we changed our approach to solving this problem. Here are some alternatives to consider if not done already:


Ignite entrepreneurial spirit in the state and help them create jobs by themselves. Create special economic zones wherever possible, like Jammu to begin with, make available micro finance to them, give them tax breaks. With time big ticket investments would follow. Facilitate their participation in trade fairs across the world and help create a demand for their produce. Make permanent exhibition grounds for them in Delhi and Mumbai to make it convenient for big ticket buyers. Build container terminals and tune their logistics with global practice.
Start the damn railway up to wherever possible and reduce their logistics cost to help them remain competitive even in faraway markets. Use the railway for purely logistics if safety is a concern.


And finally implement all of these in all the states!


(Picture courtesy Washington Post)

Saturday, February 19, 2011

Toying With A Dangerous Idea

Dangerous doesn't even begin to describe an idea that leads to or suggests India's balkanization. Am i being paranoid? Yes, and i think if we are not paranoid about it, we will keep suffering crazies suggesting it off and on like Goebbels in important discourses as well.


India does have freedom of expression although much of this freedom is available only in limited forums mostly apart from the so called mainstream. The mainstream media on the other hand tries hard to put on a facade of allowing space to even non conforming points of views even if it is only for those views that fits "their" mold of a dissenting voice.


So we are supposed to give a sympathetic ear to these non conforming points of views and also accept their victory in these make belief "debates". We are frequently made to read in the mainstream newspapers, magazines and hear them on prime time tv debates - their contention that it's good for humanity's sake to concede to Separatists in Kashmir, Maoists in the rest of India and some others of their pet subjects. It's high time we debated the consequences of the "ideas" that these liberals want us to toy with.


Do they seriously think that conceding to Separatists and Maoists will not have a domino effect in the rest of India least of all North East? will they be there to somehow "magically" prevent that from happening. What happened in Darjeeling after Telangana was promised is just an indicator. And when that happens what will happen to "democracy" in the balkanized states? When India divided into three parts after independence the other two came on the verge of being failed states ruled by tin pot dictators, if not became one. What will happen to the Armed Forces? Will all states get their piece and start settling out inter state disputes which exists even today with it? Will China and Pakistan be able to resist the temptation of fishing in troubled waters, like China trying to annex at least the North East while it can, and Pakistan trying to annex some of it's own to add to it's "strategic depth"?


Being unreasonably paranoid may not be the best attitude but dangerous ideas need to be emphatically refuted to prevent reinforcement of whatever agenda driven world-view being pushed by some. What do you think about it?


(Picture courtesy Economic Times)

Sunday, February 13, 2011

League of Nations

The Egypt upheaval has once again highlighted that the world, or at least the league of powerful nations consisting primarily of US, Western Europe and some other wealthy and powerful countries is an important stakeholder, or at least considers itself to be one, in the politics of the third world countries, and is definitely concerned about what kind of political system is being followed, whether there is democracy? and if there is an authoritarian political system then in that case who gets to be in power? Let's get real, given a "choice" they would definitely want a "friendly" guy who can act in their interest if need be, to head the respective governments in just about every third world country they can.
It's difficult to say how much influence this "outside" community wields over the politics in third world countries, may be it's different in each country, and could lie somewhere between absolute control and no control at all for each of them. Where does India stands? Well, any guess is as good as any other.
Having said that, we may "like" to think of ourselves as an absolute sovereign republic which doesn't let any one, including Uncle Sam, to have any say whatsoever in how we form our government. Is that wishful thinking? may be may be not. But let's not live under the impression that it's not being tried. We can't afford to let go of our sovereign rights or drop our guard can we?

Friday, February 11, 2011

The Quest For Parity

When India became free it was almost like start of a voyage into uncharted territory. Not that we were alone, there were other erstwhile colonies for company and the experiences of the few existing democratic republics albeit colonizers themselves like US for e.g. to assist navigation, the goal was to develop into like one of those existing democracies. No stone was left unturned at least in the initial years in it's quest for parity, like adopting the class benchmark constitution to begin with. India was initially high on idealism and looked at itself as an initiator of a democratic new world order.


Though India was never without it's share of flaws. Congress, the predominant party allowed the democratic system to retain it's flaws and no credible alternative was allowed to share the political landscape neither within itself nor without, the efforts to curtail the opposition increased with time in ruthlessness and were often below the belt as well, resulting in subversion of just about every institution including judiciary and media.


How long will India deny a less flawed democracy to itself where not only competing political parties are allowed to share the political landscape as a legitimate right besides facilitating necessary checks and balances, but also merit and not inheritance becomes the criteria for getting power to govern?

Tuesday, February 8, 2011

The Right Balance

Indian Right in general and BJP in particular gets it terribly wrong when it thinks that it's all about ideas, vision, debates, other such impressive stuffs and little else. So if it thinks that if it can come up with a high sounding idea, a great looking vision document or win debates on ELM it will get to form the government in Lutyen's Delhi? You may be forgiven for laughing at it.

And the left gets it right by almost exclusively focusing on populism – free rice, free TV, NREGA and other such dole outs. Pioneered by NT Ramarao in early 80s and later adopted and perfected by others, political parties have routinely used dole outs to win elections almost without fail over and over again. Simply put, it’s about "giving" fish, not "teaching" how to fish.


Despite seeing it all first hand, if the Right has still not been able to crack the code, then should they be in the race at all? NDA may have been a missed opportunity for BJP to become all things to all people, however they seem to have made amends in some states which they've managed to retain. It's "nice" to have a party in India that give prominence to ideas and vision, but it needs to find a balance between ideology and populism if it really wants to make a comeback.

Monday, February 7, 2011

What Is Our Best Alternative?

Negotiations are supposed to be an integral part of diplomacy. It’s but natural for two countries to find themselves across a negotiating table quite often. Whenever India and Pakistan sit across or for that matter any two sides go for negotiations, they carry their BATNA (the best alternative to a negotiated agreement) along, or that’s what we presume.


Due to the tight lipped nature of the Indo Pak dialogues, we can only guess what the both side's best alternatives are. The best alternative for Pakistan appears to be at least two pronged, one, going on a diplomatic offensive by leveraging it's closeness with US and China and applying pressure on India directly or indirectly to give ground, and two, carry on with it's bleed India strategy through it's not so tacit support to terrorists and separatists. That part is generally well understood, what is not, is the best alternative the Indian counterparts carry or should carry themselves with.


The best alternative for India appears to be a diplomatic offensive in the form of international pressure on Pakistan primarily through leveraging it's economic strength, neutralizing Pak's advantage of it's affinity with China and also US, and effectively countering Pak supported terrorism and separatism.


Usefulness of the track two variety in complementing regular diplomacy in our quest for strategic national objectives is debatable, but the kind of panelists chosen to represent India at such meets, like a US citizen, or a dubious power broker masquerading as journo, or an attention seeking airhead, is unfathomable. What are we trying to do?

Sunday, February 6, 2011

What's With That Smirk?

History has an uncanny habit of repeating itself untill it is convinced that everyone has read and understood the fineprint on the wall. Like it did in Egypt refreshing the memories of Anwar Sadat's assasination. It's being said that since he came to power, Hosni Mubarak has remained mostly invisible in his own country, except on television or in parliament. May be he was largely relying on secondary sources for feedback from the displeased Egyptians and apparently failed to foresee this upheaval. It was an epic failure of leadership, such an upheaval wouldn't have been possible without a gross disconnect between the people and the leadership.


So as expected, true to our disposition, we are pointing towards lack of democracy to the plight of Egypt and how the "Indian way" is just what the world, or at least the third world needs. Obviousely it's easy to judge from a distance with the famed smirk firmly in place. Infact it's "we" who need a reality check, and fast.


There appears to be a serious communication gap if not a total disconnect between at least a major section of the people and the establishment. The establishment's "inertia of the status quo" is understandable but even the media that is supposed to act like a watchdog is acting more like a lapdog looking for crumbs. The pretty picture of the robust "Indian way" may be more due to a rosy prism than hard facts.

Friday, February 4, 2011

Cheeni Kum

China has always been an enigma shrouded in mystery. What drives its existence? From a layman's perspective China is a humongous developing country with a humongous population that is not feeding off western aid but cocking a snook at them. All of them.


China has done rather well to keep its population gainfully employed, but just to do that it needs to flood the world with it's produce causing havoc in all other manufacturing facilities, coupled with the paranoid frame of mind symbolic of an era long gone, it has found itself ill at ease with just about everyone it does business with. The only friend it recognizes is perhaps the ones who qualify as an enemy's enemy. Probably it also looks at most relationships as a zero sum game.


It's tough being India, having to deal with China along with a Pakistan induced migraine to begin with, hope we realize the gravity of this.

"Small" Problems

Small businesses are said to be a Major Driver of any economy, and one of the biggest Job Providers, I am sure India is no exception. Despite that government policies are hardly as Friendly to small businesses as they are to big ones, most obvious reason IMO being that small businesses can hardly afford the services of lobbyists required to tilt policy making to favor them :p. But jokes apart, following is an attempt to assemble the problems, or at least the major ones, that are affecting small businesses in India.


Funding, but naturally, remains a problem. Banks do not provide funding till a small business has at least three audited balance sheets and ITR, and fat ones at that. Entrepreneurs are expected to finance their venture through their own resources. Even non banking financial institutions aren't much better either. Citing an example, if an entrepreneur wants to buy a commercial vehicle for starting a car hire service, he can't buy it in installments unless he can produce like 5 commercial vehicle registration certificates. Though funding remains an issue as is ought to be, but it's not the biggest of all problems.


Bigger problem is the well entrenched Crony Capitalism. Most small BtoB enterprises depend on contracts from large companies. Let alone public sector, cronyism is well entrenched even in private companies.


Another major problem is the absence of a one stop shop for Information with regards to legal compliances, forcing them to either pay through their nose to good CAs, consultants, lawyers etc. or make do with cheap sub-standard alternatives who end up complicating their problems even further.


Corruption being in our DNA, at all levels, is another problem that makes matters worse for small businesses already struggling to make ends meet.


Manpower related issues which is a topic in its own right and a major deterrent is another major problem for small businesses.


And these are just some of the problems that occupy a day in the life of small business. I bow to the quintessential Indian entrepreneur who still perseveres against all odds.

Thursday, February 3, 2011

Watch Thy Neighbour

It's unfortunate that Pakistan is going through a low ebb. It's struggling to contain terrorism that is striking at will, besides struggling to "convince" the world that she is doing enough to contain it in the first place! The fact that Pakistan nurtured and used them as a tool to achieve their strategic objectives of gaining and retaining "strategic depth" in Afghanistan and bleed India besides others isn't helping matters either.


Prima facie it appears that having pushed to the wall it's options are limited, but after a closer view things begin to change. The US led forces in Afghanistan is itself struggling to justify their presence to their "management" on the face of mounting casualty, cost and plain failure in reaching their stated objectives even after investing so much capital - human or otherwise, they too are seeking a face saving exit from the region. In these circumstances Pakistan has offered to facilitate the "soft" exit, although it has enraged the jehadis but she has traded it off for the continued strategic alliance and the vital "aid" from US.


As far as India is concerned, it not only needs to keep a close watch on the developments inside Pakistan but also on the likely diplomatic offensive assisted by Pakistan's renewed alliance with the US.

Wednesday, February 2, 2011

Green Is In

Environment Minister Jairam Ramesh makes news quite frequently, just a few days back it was for the approval given to POSCO Steel Plant in Orissa, and a few days before that, for the approval given to Lavasa township and few days before that for pointing out the non approval to Adarsh Society and so forth.


For the "Classes", being Green is not an option, so we see their "Outrage" whenever they see a picture of mining being carried out anywhere, if they have their way all mining would come to a grinding halt immediately, but i bet they would also be the first to call the authorities to complain about load shedding if they face one. There was an outrage when Pune authorities proposed purchasing 200 Air conditioned buses to provide comfortable commuting for the public, they pointed out the would be damage to the environment, clearly, when we talk of increased carbon foot print due to air conditioning, we exclude the ones in our home and car! and just because we see pictures of mines in mainstream media we need not get into Pavlovian Outrage Mode


Of course there is a trade-off and some Environment clearances for mining and other such environment damaging activities are required to be given, but what is needed is transparency. For example, why, and using what criteria, environment clearance are denied and approved to mega projects like Navi Mumbai Airport, Posco etc. is shrouded in opacity. IMO that needs to change.

Introduction


We are witnessing the unraveling of new age media like twitter, it's impact is also being felt in countries where the traditional media was found to be inadequate in providing a platform for all voices. The new age media filled the void and the nonconforming voices are making themselves heard with a vengeance. Though new age media has been able to step in to fill the inadequacies of traditional media in these countries to a great extent, however whether it has ushered in a culture of debate like it is in freer countries  is, well, debatable.

The disadvantage of twitter is that although it does initiates debates, but veers off leaving them unresolved to say the least, critics might add absence of "editorial filters" as well.

This blog is intended to be a platform for channelized debates and try to reach at logical conclusions like all debates are expected to.