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Another step forward Targeting the track |
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Towards new Iraq A daunting task ahead THE US-led Coalition Provisional Authority has formally handed over sovereignty to the nominated government in Baghdad. The development is being seen as a step towards an independent and democratic Iraq. The reality, however, is different.
Agenda for growth
Present over past
Dateline Washington Management crisis caused by MBAs
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Another step forward THE Foreign Secretary-level talks between India and Pakistan have brought the two countries closer than any other dialogue in recent times. Both sides showed a keenness to understand each other's perceptions while agreeing to confidence building measures which will make the composite dialogue between the two countries proceed smoothly. What's more, they have agreed on structured talks on specific issues like Siachen and economic cooperation to be held before the Foreign Secretaries review the entire gamut of relations by the second week of August. The Joint Statement released at the end of the talks, which by itself is quite significant, suggests how meaningful the two-day dialogue was. The earnestness of purpose the two sides showed is manifest in the statement which once implemented will normalise their relations. In other words, the hand of friendship then Prime Minister A.B. Vajpayee extended to Pakistan is getting a warm response. The new-found bonhomie in India-Pakistan relations has been facilitated in the main by the realisation on both sides that they should shed the baggage of hatred. There is recognition in Pakistan that it would not be able to achieve by proxy war what it could not achieve even after waging four wars. There is increasing realisation in Islamabad that the proxy war with which it wanted to bleed India has not brought its dreams any closer to reality. Obviously, Pakistan is also not oblivious of the fact that support for its stance on Kashmir has been dwindling even among Islamic countries. Forced to play the role of an ally of the US in its campaign against terrorism, it cannot afford to be seen patronising terrorist groups whether operating in Afghanistan or Jammu and Kashmir. Hence when India took the peace initiative, Pakistan found it convenient to play ball. It is a measure of the inherent strength of the democratic system in India that the UPA government has not fought shy of carrying forward the policy set in motion by the NDA government. It has always taken the stand that it would never be found wanting in reciprocating any friendly gesture from across the border. However, it cannot overlook the brittleness of the Pakistani system as is borne out by the manner in which its Prime Minister had to leave office. Nor can it forget the fact that Pakistani jehadis are responsible for the insurgency in Kashmir. For India cooperation without complacency is the watchword. |
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Targeting the track THE under-construction railway link to the Kashmir valley is an abiding symbol of social integration which can change the face of the neglected area. The Rs 1,300-crore project also has the potential to bring about an economic revolution there. That is why terrorists are mortally afraid of this vital link and have been doing all that they can to disrupt it. Last week's murder of a railway engineer, Mr Sudhir Kumar Pundir, and his brother allegedly by Lashkar-e-Toiba militants was yet another inhuman attempt to further their designs. What added another dimension to the brutal murder was the fact that it coincided with the India-Pakistan talks. The killers have succeeded in their evil plan to some extent, considering that the engineers have gone on strike demanding foolproof security. That is going to be a tall order because the rail track between Udhampur and Baramulla happens to pass through five of the most terrorist-infested districts. The project may thus slow down greatly. Even otherwise, railway tracks happen to be a soft target because it is almost impossible to man such a long tract. The Centre is seized of the matter with the issue figuring even before the Cabinet Committee on Security. The state too wants the project to go ahead because it can be a money-spinner. But the security agencies have not been able to mount an effective vigil because of the usual ego clashes between the Army and the police. This malaise has to come to an end if the rail project is to move ahead. The importance of the railway line is multi-dimensional. Besides ushering in prosperity, it can eliminate the feeling of alienation in the remote areas of the valley. That is why it is imperative that the project goes on unhindered. Banning outsiders from the construction site is a good step but it may not be enough. The need of the hour is better coordination between the Army and the police — and a steely resolve to put it to good use. |
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Towards new Iraq THE US-led Coalition Provisional Authority has formally handed over sovereignty to the nominated government in Baghdad. The development is being seen as a step towards an independent and democratic Iraq. The reality, however, is different. So long as the large US and British military presence is there, Iraqi independence will remain incomplete. The Iraqi public and the rest of the world cannot believe that the interim government in the war-torn country will be able to function without taking dictations from the US representatives in Baghdad. However, Prime Minister Iyad Allawi's government has begun to sing independent tunes, obviously with a view to gaining some respect from the Iraqis. He has announced amnesty for those among the resistance forces "who have acted against the occupation out of a sense of desperation", but, at the same time, vowed to immobilise the "foreign terrorist fundamentalists and criminals". This approach is contrary to that of the Americans, who considered all those indulging in violence directed against the occupation forces as terrorists. May be, there is a change in the US strategy to enable the members of the interim regime to acquire a new image, different from that of being US cronies. After all, they have to contest the January 2005 elections for their political survival, and some anti-American noises could be made but within the limits prescribed by Washington. Mere pious pronouncements are, however, unlikely to help the Allawi government in its efforts to endear itself to the Iraqis. Besides curbing violence, it will have to work tirelessly at different fronts to normalise the situation in the country. The Iraqis are crying for even basic amenities like water and power supply. The health care system, which was one of the best in West Asia, is a shambles today. The interim regime is, no doubt, faced with a challenging situation. It can hope to accomplish the task only if it gets active cooperation from the Iraqi public. |
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We make war that we may live in peace. — Aristotle
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Agenda for growth THE UPA government has set an annual economic growth target of 7-8 per cent over the next decade and more. The CII, India’s premier industry association, is confident that given the right policy mix and an investment-friendly environment, this target can be achieved and even bettered. Both the Prime Minister and the Finance Minister fully understand the critical role of sound economic policies in the overall development of India, and Indian industry looks forward to working closely with them and the entire government in ensuring that the growth target is met. High economic growth on a sustained basis requires consistent achievements across all three sectors of the economy — agriculture, industry and services. In agriculture, the CII would like the new government to focus on increasing economic opportunities for farmers and farm workers and on providing the necessary infrastructure — irrigation, roads, electricity, harvesting, post-harvesting, and marketing facilities. For enhancing employment opportunities for rural labour and for developing the rural economy as a whole, it is important to look beyond agriculture and develop a dynamic non-agriculture sector — sericulture, food processing, handicrafts, pottery and other cottage industries. Financial support for the rural poor should be increased through people-friendly micro-credit structures. Several of these measures have been outlined in the Common Minister Programme of the coalition government. India’s economy cannot grow at 8 per cent per year on a sustained basis, if the manufacturing sector does not grow at around 10 per cent a year. Indian industry has proved the various prophets of doom wrong. Contrary to expectations, we have survived the removal of quantitative restrictions on imports, lower import duties, the entry of Chinese products, the high cost of infrastructure, an inflexible labour market, and higher interest rates. Our rate of growth in manufacturing has climbed back to a respectable 6.5 per cent; it must now reach 10 per cent a year. To do this, Indian manufacturing must become more competitive, reduce its cost of production, manufacture at optimum scale levels; and aggressively tap global markets. While companies will internally do all that they can, the government can play a role in enhancing the competitiveness of Indian manufacturing by lowering the cost of infrastructure, lowering the cost of accessing foreign markets and by implementing labour reforms. The focus should be on the medium-size companies that have the potential to become world-class, and on transforming more and more Indian businesses into multinationals. The CII also recommends that the government should focus on developing a few key sectors, with high employment generation opportunities, which have the potential to become globally competitive. The new government is aware of the challenges facing this sector and we are confident that it will take all the necessary steps to promote industrial growth. The commitment to set up the National Manufacturing Competitiveness Council constitutes one such important step. Small and medium enterprises (SMEs) constitute an important component of Indian industry. The development of SMEs is vital for overall economic growth, and the government should focus on providing appropriate technology and affordable finance, and improving the competitiveness of small-scale industries. Specifically, the CII would like the new government to enact a Small Industries Development Act, restructure the Credit Guarantee Fund Scheme, create a Rs 1,000 crore Incubation Fund, gradually do away with the reservation policy, and focus on providing technology, innovative financing and market assistance to SMEs. The services sector has over the last few years become a key driver of growth as well as a major source of employment. The success of Indian software companies has raised the profile of the country and made the world look at India with admiration. The government must continue to support the IT and telecom sectors, and promote the proliferation of Internet and broadband services. At the same time, sectors such as tourism, healthcare, retail, entertainment and education provide significant growth as well as employment potential. Policies and incentives that give a boost to these segments should be adopted. As the example of China has shown, infrastructure development forms an integral part of any strategy focused on economic growth and job-creation. The CII welcomes the highest priority accorded by the UPA government to the development and expansion of physical infrastructure such as roads, highways, ports, power, railways, water supply, sewage treatment and sanitation. We also fully endorse the new government’s emphasis on providing houses both in the urban and rural areas to the weaker sections of society. Specifically, in the area of infrastructure, the CII would like 100 out of the 461 public sector projects being tracked by the Department of Programme Implementation to be identified and selected for fast-track completion in two years. On the roads front, the National Highway Development Project and the Rural Roads Project should be implemented and an Urban Roads Development Project should be formulated and implemented. The railways constitute the core of India’s infrastructure and it should be modernised by investing in better technology, track renewal and safety, and improving passenger amenities. With regard to the power sector, the CII would like 10,000 megawatts of electricity generating capacity added every year over the next five years. The private sector should be encouraged to play an active role in the generation as well as distribution of power. We hope that the review of the Electricity Act 2003 is undertaken expeditiously and no significant changes are proposed. All long-term growth strategies have to be investment-driven. We expect higher public spending particularly in the areas of agriculture, irrigation, infrastructure development, health and education. However, public spending alone will not do. Private investment, too, must be encouraged. All bureaucratic and administrative hurdles to investment should be eliminated, and with the exception of a few strategic industries, the requirement to seek any form of permission for making investments should be removed. Foreign Direct Investment (FDI) should be welcomed; sectoral caps should be liberalised, and the approval process made more transparent. As the CMP says, the country needs and can easily absorb at least two to three times the present level of FDI inflow. The government should devote considerable attention to improving the country’s fiscal management. While the government needs to redirect its expenditure towards more productive channels, it needs to increase its tax collection as a percentage of the GDP. Substantial reforms need to expand the base of taxpayers, increase tax compliance and make the tax administration more efficient. The CII believes that a tax regime that imposes low tax rates but minimises exemptions is best suited to Indian conditions. As an immediate priority, the CII would like to urge the new government to work with state governments to implement a comprehensive Value Added Tax (VAT) system preferably within six months, and the latest by April 30,
2005. The writer is Director-General, CII |
Present over past ON a bright April afternoon we drove into the Gwalior Fort. A steep road winds its way to the fort, flanked by statues of the Jain tirthankaras, carved into the rock face. We drove past the Scindia School. Housed in the erstwhile British barracks, this gift of local royalty symbolised India emerging from her proud past. Or so we thought. Samar Singh accosted us as we alighted at the gate. Introducing himself as a third-generation guide whose great-grandfathers had served the royalty, he took us round a couple of palaces, temples and monuments. An awe-struck Babur described this fifteenth century fort as the pearl amongst the fortresses of the Hind, the guide gushed. We too marvelled at the medieval architecture, admired the chivalry and heroism of various kings and chieftains and gasped at the sight of Jauhar Pond where the Rajput “ranis” committed mass “sati” after their consorts had lost the battle, to escape defilement at the hands of invaders. That is Gujari Mahal, pointed our guide, a monument of Raja Man Singh Tomar's love for his ninth queen. Wooed and won over by the hunting Raja after he saw her spiritedly separating two battling buffallos blocking his way, so the story goes, Mrignayani demanded that he build her a separate palace with a constant water supply whereby she lived from the nearby river Rai via an aqueduct and always keep her company. Man Singh gave and kept his word. Good heavens, why on earth he needed ninth, my wife whispered. His harem had eight of them already. Details of his dalliance made bystanders and us blush. Vast diamond-studded chambers with fine stone screens were once the music halls. Courtesans performed in elaborately adorned rooms to please the powerful. A non-stop extravaganza enlivened the atmosphere. Fort visited, we wheeled to the Jai Vilas Palace, the house of the Scindias. It is an Italianate structure combining Tuscan and Corinthian architecture. The imposing Darbar hall has two central chandeliers weighing a couple of tonnes and hung only after ten elephants had tested the strength of the roof. Ceiling picked out in gilt, heavy draperies and tapestries, fine Persian carpets and antique furniture from France and Italy adorn the spacious room. The 35-room regal museum houses personal mementoes of past family members, gifts, trophies, objets d'art and numerous eye-catching treasures which give a glimpse into the rich culture and opulent lifestyle of princely India. Perhaps the common man was too common to cause a blip on the royal radar screen down the ages. Aristocracy flourished in the midst of stark poverty and destitution. British India was far more developed than the princely states. Time to say good-bye to the feudal mindset, emerge from the pathos of the past and take a peep and leap into the future. Unless the un-shining India moves forward along with the shining segment, unrest and strife may become pervasive, sooner rather than later. Warts and all, results of recent elections signify a silent revolution, a yearning for an India, which lives in 21st century, not one which lives in 21 different
centuries. |
Dateline Washington
MONDAY'S furtive handover of sovereignty to a new administration in Baghdad, prematurely precipitated by the threat of violence, is a troubling reflection of the tenuous security situation in Iraq. Worried that insurgents would "blow up the handover of sovereignty," the U.S. administration in Iraq transferred the reigns of power to Prime Minister Iyad Allawi in a ceremony shrouded in secrecy and security. Officials in Washington and Baghdad had anticipated an increase in violence on June 30, the official date for the handover. The early turn over, they acknowledge, was an orchestrated attempt to pre-empt the insurgents. As L. Paul Bremer, the American face on the occupation, flew out of Baghdad, he left behind over 100,000 U.S. troops and a nascent government that will spend the rest of its existence struggling to prove itself independent of the Americans. Christopher Preble, Director of foreign policy studies at the Cato Institute, sees the handover of limited political sovereignty as "largely symbolic." "But it will be an important symbol if it is seen as the first step toward ending the U.S. military occupation in the country," he says. "Unfortunately, nearly 140,000 American troops remain in Iraq, and there are no plans for their removal." The presence of these troops, Mr. Preble argues, undermines the legitimacy of the new government and opposition to the occupation has become a "rallying cry" for insurgents and terrorists. U.S. officials admit that while Monday's handover may have pre-empted insurgents' plans, "they are now going to change their sights, probably, and try to focus on the elections." With former President Saddam Hussein languishing in a prison guarded by American soldiers, and Mr. Allawi widely viewed as captive to western political machinations, the new Prime Minister has an enormous challenge on his hands. Iraqis will need to see Mr. Allawi stand up to the U.S. government to defend Iraqi interests, while at the same time drawing on considerable U.S. technical, financial, military, and intelligence resources to bolster his own rule. "It is a difficult role for both sides to play, and those roles are likely to grow more difficult over the next six months," Mr. Alterman says. Mr. Allawi, a former exile, has inherited a nation whose resources and infrastructure have been ravaged by war — a nation that has lost an undocumented number of its citizens to the violence that accompanied the U.S.-led invasion on March 20, 2003. While there is no official statistic on the number of Iraqi civilians killed, the volunteer group Iraq Body Count has compiled a list of casualties gleaned from media reports. According to this organisation of British and American academics and researchers, 5,000 to 7,000 Iraqis might have been killed during the invasion. As of June 28, 854 U.S. soldiers had been killed in Iraq. Regular attacks on American forces and Iraqi civilians, and kidnappings that too frequently end in gruesome beheadings, have become part and parcel of life in Iraq. It's on this tenuous foundation that the administration of President George W. Bush confidently declares its intention to build a "model" democracy for the Middle East. One of Mr. Allawi's chief tasks, Mr. Alterman says, is to drive a wedge between militants who use violence in their pursuit of power and Iraqi citizens who hunger for a normal life. "Improving security will go a long way in pursuit of that goal but is neither easy nor sufficient," he admits. Over a year since Saddam Hussein was deposed, concern over infringement of human rights continues to grow. Activists worry about the secret detention of thousands of Iraqis and the publicised abuse of those in U.S. captivity. These concerns are likely to heighten as the new government gets down to business. Mr. Allawi has made clear his intention to declare martial law and reintroduce harsh penalties and laws, some of which existed under the Saddam regime. U.S. officials have deflected questions about these plans saying they would prefer to "cross that bridge when we get to it." Director Michael Moore's "Fahrenheit 9/11" — a documentary that ties the Bush administration and its selective war on terror to the financial interests of its players — grossed a record $22 million over the weekend. You don't need to wait in serpentine queues at movie halls across America to realise that Mr. Bush's political future now, more than ever, depends on the outcome in Iraq. One way to ensure success in Iraq, Mr. Preble suggests, is to announce a "formal plan for withdrawing U.S. forces on the understanding that the new government of Iraq is responsible for security inside the country." Ultimately, Iraq's future depends on its new leaders' ability to walk the tightrope between a practical dependence on foreign assistance and the need to prove itself as a viable alternative to dictators and uninvited occupiers. |
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Management crisis caused by MBAs MANAGEMENT is in crisis and the MBA, the flagship course of most business schools, bears a substantial part of the blame. Such is the thesis of Henry Mintzberg's indignant and stimulating new book, Managers, Not MBAs. He starts from the principle that trying to teach management to someone who has never managed, as most MBA programmes do (Mintzberg specifically exempts some UK courses from his criticism), is as misguided as `trying to teach psychology to someone who has never met another human being'. Worse, by elevating management `science' (analysis) over its equally important components of craft (experience) and art (vision), current business teaching equips unsuitable people with both potential weapons of mass destruction and the massive overconfidence to use them. Paradoxically, MBAs teach little about the real, messy, difficult business of managing: they teach business functions and management disappears in the interstices between them. The trouble ... is that many of these people make dreadful leaders, precisely because their hands are off the business. In fact, the landscape of the economy is now littered with the corpses of companies of headstrong individuals who never learned their business.' An exaggeration? If MBAs are so disastrous, how come the US, the home and capital of the MBA, is still the most vibrant economy and its companies the most powerful in the world? Mintzberg's answer (implied, not fully spelled out) is that American companies have succeeded despite rather than because of current business education. A striking number of the most admired managers (Jack Welch, Bill Gates, Warren Buffet, Michael Dell) don't have MBAs, and plenty of MBA-led firms, with Enron at their head, have plunged to disaster. Moreover, the costs of today's paradigm — `training the wrong people in the wrong ways with the wrong consequences' - are escalating all the time. In the grip of their own business goals, business schools are legitimising practices they should be challenging. Businesses are frenziedly becoming leaner and meaner, driving people harder and exploiting both workers and customers in the name of (academically sanctioned) shareholder value. Startlingly, Mintzberg argues that, rather than producing flexible, progressive entrepreneurs, MBAs are breeding a new race of big-company bureaucrats ill-equipped to operate today's evolving organisations. A growing number of academics accept, at least in private, that something is amiss with a system that is as fragmented and departmentalised as the commercial firms it criticises, and that competes primarily on the basis of the salaries graduates can command rather than more fundamental criteria. Mintzberg is not alone in believing that breaking vested academic interests is an important part of the way forward. Finally, thoughtful practicising managers are becoming increasingly troubled by the contradictions that MBA management leads them into. Although some corporate social responsibility is cynical PR, its huge and instant popularity can also be viewed as something more hopeful: a massive pent-up desire for legitimacy which today's officially approved management models can't provide. Again counterintuitively, what management education needs is not `relevance' and `practicality', as the parrot cry has it. Managers, as Mintzberg points out, live practice every day. What they really need is insight: theories or models that enable them to make sense of practice, learn from experience and reach better judgments. That's what business schools should be for, not turning out MBAs. — The Guardian |
God is Life, Truth, Light. He is Love. He is the Supreme Good. — Mahatma Gandhi God’s kindness towards His creatures is more than a mother’s towards her baby. — Prophet Muhammad The disciple is not above his master; nor the servant above his lord. It is enough for the disciple that he be as his master; and the servant as his lord. — Jesus Christ God does whatever He wills. — Guru Nanak Performing all works always, taking refuge in Me, he attains the eternal and immutable state through My grace. — Sri Krishna |
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