Thursday, March 15, 2007

Nandigram Tragedy

West Bengal is becoming the battlefield where all the players of the globalization saga are stagging war against each other. Nandigram Tragedy is yet another episode in this ongoing saga. It seems the government is hellbent on acquiring land without giving proper compensation.

11 People have been shot dead in violent clashes with police forces. This tragic event might not deter the Government from pressing forward. Is "Grapes of Wrath" like scenario the next episode in this yet another greek tragedy?

Wednesday, March 14, 2007

Butterfly Effect

The Butterfly Effect has once again take place in the global stock markets.

World stocks tumble on US fears - This is the second fall in as many weeks.

In India, The markets continue to trade weak in noon deals with the benchmark index trading 12,568 levels with a loss of over three per cent or 414 points.

Even though experts believe that long-term growth story is intact, they suggest that investors are interested in company specific investment ideas rather that buying the macro economic story.


The impact of these events on Indian Growth Story is anybody's guess.

Wednesday, February 28, 2007

Services Business Model for Maid Servants in India

Bodyshopping was the derogative name given to companies that were doing placement services for Indian Software programmers. These companies took 40-60% of the programmers salaries. Infosys and other companies then positioned themselves as companies whose business model is the same as that of consulting companies like Accenture etc. but in software domain.

The success of this business model is now set to proliferate across several other domains, including for Maid Servants. In India, Maid Servants are paid dismally low and they reciprocate by doing a shoddy job. It has been a lose-lose situation for all. Some shrewd Entrepreneurs have adopted the Service Business Model for this domain.. These entrepreneurs assure professional quality service and in turn ensure that the maids are better paid, inducing a cycle of win-win situation for all. Also, hopefully these maids are also provided other benefits related to social security.

As India is vying for a service oriented economy, this business model has to be successful in many many domains, creating win-win situation for all. This adoption is also critical for shifting the large population that is currently underemployed in the Agricultural Sector.

I have been visiting several farms across Tamilnadu. One recurring compliant from small farmers is that it is now very difficult to get labour these days. The Textile Industry has successfully lured the agricultural labourers by providing additional benefits related to social security. If this trend continues, other industries would grow at the expense of agriculture. This would threaten the self-sufficiency of the Country.

My solution for this problem is that someone start a major service agency for agricultural labourers, which would provide benefits on par with other industries. There is seriously lot of money to be made in this space.

The recent walmartization of the Indian retail industry could also be thought of as the adoption of the service model for retail industry. Currently, those working in the retail industry (especially in kirana shops) are more or less like bonded labourers. Streamlining this industry with the service model would lift millions out of poverty.

The adoption of the Service Business Model across domains is inevitable and seems unstoppable.

Tuesday, February 27, 2007

Jetix Hero Wins Local Body Elections in Tamil Nadu

An independent candidate contested the local body elections in a village called Veerapandi, near palladam, a town in Tamil Nadu. He had selected Jetix heros as his election symbol and started distributing jetix heros branded balloons and other toys..

It happened that he scored a resounding win in the election, beating leading political parties like the Ruling DMK, AIADMK and others.. But why did the public vote for him?


This is what they have to say :

"We have voted listening to leaders for a long time.. In this election, we listened to our kids who were cheering for this Jetix guy.."

Monday, February 19, 2007

Globalization making the world a better place

Here comes a research report that states that violent conflicts in the third world countries are declining.. making the world a better place..

"Without new superpower "proxy wars" starting in the Third World, overall armed conflicts have fallen by more than 40 per cent, and extremely violent conflicts -- those with 1,000 or more battle deaths -- have dropped by 80 per cent... International arms transfers, defense budgets, armed forces personnel and refugee numbers have also all decreased."

Good News?

But the interesting part of this story is : Andrew Mack, the Report's Author finds people reactions to his report as curious..

Reaction to his report ranges from disbelief to relief to scornful dismissal. Those on the political right and left each accuse him of siding with the other."

Friday, February 16, 2007

Tamil Remix



Tamil Popular Culture has been monopolized by Cinema for more than 5-6 decades.. Internet has not been able to impact pop culture till now.. but YouTube and its cousins are going to chance this situation very soon.. It is going to give millions strong audiences to artistes who want to experiment and explore venues themes..

This Tamil Video is a precursor for things to come.. YouTube stats say about 58,000 visitors which is quiet a good audience.. As YouTube is going to pay for its contributors, it is going to provide a business model also for supporting the emerging tamil Rap and new art styles..

Tamil Culture desperately needs new voices ..

so may a Thousand Videos Bloom..

Wednesday, February 14, 2007

Of the world's 100 largest economies, 51 are now global corporations, rather than countries

  • Of the world's 100 largest economic entities, 51 are now corporations and 49 are countries. (see chart)
  • The world's top 200 corporations account for over a quarter of economic activity on the globe while employing less than one percent of its workforce. (source)
  • The richest 1 percent of Americans own 40 percent of the nation's household wealth (as of 1997). (source)
  • The assets of the world's 358 billionaires exceed the combined annual incomes of countries with 45 percent of the world's people. (source)
  • The average CEO in the U.S. made 42 times the average workers pay in 1980, 85 times in 1990 and 531 times in 2000. (source)
  • The courts have given corporations the basic Constitutional rights of persons, but workers lose those rights on entering the workplace.
  • The corporate share of taxes paid has fallen from 33 percent in the 1940's to 15 percent in the 1990's. Individuals' share of taxes has risen from 44 to 73 percent.
  • The World Trade Organization effectively gives corporations veto power over our U.S. environmental and labor laws, weakening your right to protect ourselves and our land by our legislation.

This is How the System Works

These facts give lot of insight into the state of Global Economic Scenario..