America has perhaps never been anyone’s friend.

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America has perhaps never been anyone’s friend. It hasn’t been anyone’s enemy too with a true reason. But yes, if the reason was oil, it would do the unfathomable. America’s foreign policy has indeed been dictated by oil. The rule is simple – if you have oil, you are not unknown to America’s friendship or perhaps even enemity.

On October 6, 1973, the holy day of Yom Kippur for Jews, Arab states like Syria, Iraq & Egypt launched a surprise military attack on Israel. Despite being outgunned and outnumbered, Israel decisively won the war and the entire Arab world was in a state of shock. The Arab world was convinced that Israel won the war because of the backing of powerful western nations like US & Israel. The mood in Arab streets was one of seething anger and resentment. On October 18, 1973, the Organization of Oil exporting Countries (OPEC) announced a brutal hike in the price of crude oil to $48 per barrel. In 1979, the most important ally of US, the Shah of Iran was blown out of his Imperial Throne by a radical Islamic Revolution. OPEC also announced yet another crippling hike in oil prices. This time it touched $90 per barrel! The ‘Oil Shock’ administered by the Arab-dominated OPEC turned everything upside down. Economies across the world suffered huge dislocations. For the first time, Americans got a dose of what it means to wait for hours in a queue to fill up petrol. The beginning of the end of Detroit can be traced to the tumultuous events of 1973. The rise & rise of Asian brands in the consumer durables sector can also be traced to that year as can be the beginning of the end of US as the most powerful empire in history.

Declassified documents of that era clearly show that the Richard Nixon administration had seriously considered military action against the Arab world to ensure an uninterrupted supply of oil for the West. Post World War II, the global economy became critically dependent on oil and a sudden disruption could have had apocalyptic effects. The only reason the Arab world escaped the military attention of the West was America’s humiliation in Vietnam and the inglorious exit of Nixon as President. The loss of Iran as an ally and its emergence as a fulcrum of hatred against America has been a blow that US has never recovered from.

The relentless pursuit of energy security (coupled with the Soviet defeat) has provoked US to implement foreign policies that have started haunting the west. It has literally become a no-win situation for US. After losing Iran in 1979, it helped Iraq ruled by Saddam Hussein to wage a vicious war against the then unstable Iran. The bloody war lasted till 8 years with no clear victor. US earned even more hatred from the Iranians for winking while Saddam used poisonous gas & chemical weapons against Iranian troops. Not that supporting Iraq helped. Despite close to 30 years of sanctions and economic embargoes, Iran continues to be a prosperous state thanks to high prices of oil and is also threatening to acquire nuclear weapons.

After losing Iran, US also adopted a policy of allying with the coercive governments of Saudi Arabia & Kuwait. It helped that the Soviet Union invaded Afghanistan in 1979 and Uncle Sam became a close friend and trusted ally of Islamic jehadis. The CIA supplied arms and trained the Mujahiddeen that included a certain fellow from Saudi Arabia called Osama Bin Laden. We all know what Osama Bin Laden and his supporters did to US in September 2001.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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SHIMIT AMIN - Chak de shimit!

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SHIMIT AMIN
Chak de shimit!

‘Expect the unexpected’ would be the phrase that would best describe Shimit Amin and his passion for cinema. Before he stormed the industry with his directorial debut Ab Tak Chhappan, Shimit was a well respected film editor and had even bagged a Filmfare Award for Best Editing for the film Bhoot. When he was to bring forth his next directorial offering – Yash Raj Films’ Chak De! India – nobody thought it would become one of the most successful films at the box office. It became the third highest grossing movie for the year 2007 in India. Who could have imagined that a film which had a superstar like Shahrukh Khan watching the action from the stands, and a gang of unknown faces hogging the limelight could fare this well? The girls’ hockey team went about overcoming their differences through teamwork and sparked off the flame of patriotism in the audience’s heart sans the high pitched slogans or the basanti cholas! Well, that’s what one gets as Shimit Amin goes about attempting to give shape to his dreams of film making.

While the world goes ga-ga over his directorial prowess, one would believe that life for him would have changed tremendously post Chak De... Shimit begs to differ, “Not really! Nothing has changed, it’s just day to day work. I am right now trying to work on my next film for which I do have something on my mind but nothing concrete as yet.”

This cine-lover has been praised by critiques, his audiences and colleagues alike, for his penchant for good cinema and his simplicity, which helps to safeguard his individual creativity even as he takes a leap from RGV Productions to the warmth of Yash Raj Films. And while the world is waiting for him to share his secret of success and future goals, Shimit laughs uncomfortably, and adds, “I wish I had one (secret) to share with the world!” And there he strikes a goal again, for he has his head upon his shoulders and is one who we can expect to take India by surprise and do the unexpected once more. The question however remains, will he be able to better his track record? Why not? Chak De Shimit!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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KIRAN MAZUMDAR SHAW - Injecting health

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KIRAN MAZUMDAR SHAW
Injecting health

The person who introduced Biotechnology to India is now all set to position the company in the global arena. She is none other than Kiran Mazumdar Shaw, CMD, Biocon (and currently also India’s richest woman). Shaw started Biocon in a small garage and it was just an enzyme company at that point of time. It was her clear vision that helped the company grow into a pharma stalwart in a short span of time. ‘Putting the grass where the horse’s mouth is...’ the strategy followed by Shaw. “The source of Biocon’s success as I see it is a visionary like Kiran Majumdar Shaw at the top of the management. Her being at the top has enabled Biocon to do what no one has done till date,” avers an analyst at Edelweiss Capital. Shaw is a lady whose reputation transcends all geographical boundaries. “Currently, India is fourth largest producer in pharma and our company is making all the possible efforts to escalate the country to the number one spot,” avers Kiran Mazumdar Shaw to B&E. Biocon’s strategy of innovative research truly empower India to make the 21st century the Indian century. The company has till date been able to achieve a commendable CAGR of 10-15% every year and if the strategy of innovative research goes in favour of the company in the near future Shaw can take the company to newer heights. “We are an innovation-led company and our major aim is to come out with at least $1 billion worth of blockbusters,” adds Shaw. As India is becoming a high end niche manufacturing hub by the day, Kiran’s Biocon is getting ready for the coming time when bio-drugs’ demand would drastically rise. Her dream of making Biocon a truly global company would prove to be a new start to a new era for India’s pharma sector.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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India for the next 75 years and beyond

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Industry

Indeed, it is the ineffectiveness and flaws in infrastructure and policy that have hamstrung the development of manufacturing, which has in-turn negatively, affected its export inefficiencies. Neither side of the coin is rosy, the agriculture in the rural area and services in the urban has failed to absorb the second largest population on earth and provide a sustainable development.

There is need to start 750 Special Economic Zones (SEZs) in order to encourage manufacturing and entrepreneurial skills across India. The polity should learn from the success of Navratnas companies and should recognize more such 75 public companies and give them a status and privileges like Navratnas companies. In order to motivate the private sectors, 750 best performing companies should be also given privileges and stature of Navratnas companies and should be supported to make a mark in global market.

An Industrial corridor like that of ‘Delhi-Mumbai industrial corridor’ undoubtedly encourages and eases the trading. More of such corridors rather 75 such corridors connecting major industrial cities should be constructed. In order to encourage small and medium industries, and let the budding entrepreneur grow, 75 hubs for small and medium industries should be planned across India. Moreover,7500 small and medium companies across India should be identified and should be helped in all possible ways to become big companies and enter a large market. This will also lead to the growth of more non-skilled employment and allow the not-so-educated population to benefit out of it.

Public transport

Though public transport in India has made immense progress, still it remains inadequate for Indians. As the country progresses and ranks 2nd in eradicating poverty, witnesses growing urbanisation and is emerging as major power in the global footage, a decent public transport system will surely play a major role.

Interestingly, the road transportation meets 80% of the transport need in India. The total length of paved road track in India is about 3.38 million kms, making the Indian road network one of the largest in the world. However, the road transport is partly operated by public sector (28.7%) and majorly by private sector (72.7%). What ails India is that there has been a staggering 100 fold increase in the population of motorised vehicles; but the road network has not expanded with similar pace. While the motor vehicle population has grown from 0.3 million in 1951 to over 30 million in 2004, the road network has expanded from 0.4 million km to 3.38 million km, only an eight fold increase in terms of length. Major of these paved road are built by National Highway Authority (NHA), State Highways (SHs) and Major District Roads (MDRs). Thus the milestone of 7.5 million kms of road length with another 7.5 lakh new buses through Public-Private-Partnership (PPP) can reduce major transport hazards.

One of the world’s largest rail networks with about 108,805 km length of rail track still is insufficient and overcrowded. Another 750 new trains and at least 7,500 length of rail track specially focusing on east and south India can solve many of the problems which remain key challenges. These parts of the country remains neglected. And on the lines of Metros which is rapidly expanding, 75 more cities across India should be provided with ‘Mass Rapid Transport System’. As freedom can’t be gifted or aided, revolution can’t be witnessed without effort and dedication. In such circumstances, doesn’t India want a revolution in public transport?

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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