Halloween

Halloween through my Camera Lens

The Mighty and the Meek - through my Camera Lens

Similarities between 2008 Financial Meltdown and India 2013

One of the reasons attributed for the Financial meltdown of 2008 was the short sighted behaviour of the CEO's and other Senior Executives of the Financial Institutions world wide, who put personal short term goals ahead of the long term health of the Organization and the Economy. In order to earn performance linked fat bonuses, they turned a blind eye to policies and products that were doomed to fail. So called 'innovative' derivatives that were churned out by these Financial Whizkids were aimed at attracting customers in the short term, but not taking into consideration the impact in the long run. Most of them were, in a way, akin to Ponzi Schemes. Prudent Financial Discipline was given a go by, and mortgage loans were given to people who couldn't afford them, creating a Real Estate and Housing bubble that burst at the first prick made by a small needle. How the behaviour of these individuals brought their companies down and took the global economy with them is history.

There is a striking similarity to the 2008 Financial Market scenario with what is happening in the Political front in India during the last few years. Congress and UPA has taken a very very short sighted view to somehow get back to power. They have splurged public money, not on Planned Expenditure, but on welfare schemes that are leaking and are totally unproductive. The avowed objective is to win votes at the cost of the nation. There is no long term vision. Minority (read Muslim) pampering has reached absurd levels. Muslim youth cannot be arrested as per the Home Minister of India, while Karnataka Congress Chief openly exhorts Muslims to not repay loans. How Akhilesh Yadav, BSP and Congress turned a blind eye to the equally guilty Muslims in the Muzzafarpur Riots is known to all. It is a game of one upmanship where the loser is the Country. Fearing negative reaction from Muslims, the Defence Minister craftily declares an invasion by Pak Army as one done my Terrorists dressed in Pak Army Uniforms. The PM is uncaring if our Jawans are beheaded. MNREGS, Loan Waiver, Ordinance against MP disqualification and finally the thoughtless creation of Telengana is tearing the Country apart. For a few seats, Congress, which sat on Telengana demand for more than a decade, came out with a hastily pronounced decision, without arriving at a consensus. And the result is for all to see. Contrast this with how NDA under Vajpayee created Chattisgarh, Jharkhand and Uttarakhan, without any ripple. 

One can just hope that, while no one could save the Global Economy from crashing in 2008, at least the electorates are wise enough to throw the Congress and UPA to the Bay of Bengal in the 2014 elections.

Time to hit the Lecture/Seminar Circuit again?

For nearly a decade and a half, I was associated with Training and Teaching, though I was not a full fledged academician. I was holding regular jobs in the field of Strategy, Investment Banking, New Venture Advisorywhile also heading middle level companies, including mine.

 

But there was always a stigma associated with it. In the course of my job, whenever I gave sane advise to my own Directors or to the Clients, it was always shrugged off with a "Ah! the Professor speaks" meaning my advise is more theoretical than having any practical value, and hence invariable ignored. Posterity proved in many cases my advice, if taken at the right time, would have brought more profit for the other party. Of course, not all my advises were spot on. I had my own share of bloomers, which is par for the course.

 

When I moved to Muscat in 2010, I took a decision to give up teaching and training to concentrate on my Consultancy Business. It was a very painful decision as I really enjoy teaching. It is 3 years since I moved to Muscat, and people here listen to me with more of an open mind than when I was in Kuwait.

 

This is unfortunate. Decisions taken with a theoretical background tend to be more correct than not. I have seen this in the case of recruitment of staff. Whenever I have been forced to give a go by to my recruitment process and guidelines, due to pressure of having to fill a post, I have suffered, getting stuck with people with poor attitude. Ditto in the case of Company deviating from the Strategy developed and try to be opportunistic, without doing a proper evaluation and risk assessment. Intuition and experience counts, but backed by solid theoretical foundation, they are unbeatable.

 

It is also one of the reasons why Consultants go to great extend to do lectures, or teach in Universities.

 

Maybe the time has come for me to hit the lecture/seminar circuit again!

Manmohan Singhs Survival Strategy during the past Decade - Blind-Deaf-Dumb

See No Scam, Be Deaf to People's Cries of Anguis, Speak Nothing

Closing a hole with darkness

I am sure I will be pillored for writing this.

 

Recently, Supreme Court passed a 'verdict' barring convicted lawmakers from continuing in Parliament or State Assemblies. This has been welcomed by almost all, except those politicians who face imminent conviction.

 

Much water has flown since. First the ruling party, under pressure from Lalu and Rashee Masood and a handful of others, decided to introduce a bill in the Loksabha to overturn the verdict. But it proved to be non-starter. Then the Government, ill advised, tried to take the Ordinance route. This was scuttled, first by BJP and Left, then by the President before 'Dumbo' entered the picture with his irresponsible press conference.

 

The subsequent events should not cover up the root cause. The Supreme Court was wrong in pronouncing the judgement.

 

We have a legal system which states that every person is 'innocent till proved guilty' (It is another matter that we have a mobocracy, led by TV Anchors and Media, that pronounces everyone 'guilty even if proved innocent'). Take the example of Laloo Prasad Yaday- He has been convicted by the CBI court in the Fodder Scam (well and good, though it took them 16 years to arrive at this verdict,during which he enjoyed all the perks of office and more). But this is only a lower court. He is free to appeal in the higher courts, including the Supreme Court, and he can even go scot free. If he that happens (after 10 years or so) then all of us would have been unfair to him. Right?

 

Supreme Court is reluctant to attack the Root Cause - the inordinate time it takes to arrive at a verdict. Why verdict, even the first trial date is more than a decade after a case comes to the court. Add to this, the shoddy job done  by the Police across the country, resulting in 90% of the people getting acquitted for want of evidence. Is there any wonder people are becoming more arrogant?

 

Take the case of P Chidambaram's election from Sivaganga, that is being challenged. It is obvious to everyone, except our Courts, that a fraud was committed and results were manipulated. It is almost 4 1/4 years since the election, but the case has not even come up for hearing!!!. And PC has worked as Home Minister and then Finance Minister during this period. If his election was null abinitio, then whatever decisions taken by him during the past 4 1/4 years are null and void. But......?

 

This is true of most of the cases. Also, the accused are denied of their right to clear their name and are permanently under suspicion, which is unfair.

 

Supreme Court has not come up with any concrete plans to speed up the justice system, and various Police Reform suggestions are gathering dust.

 

The current Supreme Court verdict on disqualification of politicians on being convicted, while popular, is a grave mistake and akin to closing a hole with darkness.