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Showing posts from January, 2013

UN has not served any purpose in the Last Decade

The United Nations was constituted in 1945 with an objective to promote international peace, economic development, social progress and respect for international law. It was the successor to the failed League of Nations. It is the world's largest international body with 193 member nations but has only 5 permanent members of the security council. In the last decade UN has failed to serve any of its desired objectives. In terms of International peace, we have seen attacks on Iraq and Afghanistan by the US. There has been civil wars in Libya, Syria and Somalia. While the tensions have been on the rise in Iran and North Korea. UN has played no major role in preventing these attacks. The mighty powers, like US and Israel, have largely had there way in world politics without any respect for the UN. In the past 60 years UN has also failed to resolve the Israel-Palestine conflict and territorial disputes are prevalent all over the world. India has disputes with Pakistan and China, an

Growth vs Inflation

There has been a lot of debate recently on growth vs inflation with the government pushing for reforms and higher growth. The Government has been pitching for India as an attractive option for investment, but the growth model has gone wrong. The growth has not been inclusive. Our country has more mobile phones than toilets. This growth is futile. The unbalances growth over the years has led to a widening gap between the rich and the poor. While the rich are enjoying tax benefits, the poor are struggling to make ends meet. This gap between the rich and the poor is bad for the economy itself. It will lead to a very unstable economy. High rates of inflation are bad for the society as well. We have 57% of our population that lives below the international poverty line of $1.25 per day. This means that even a small rise in the inflation is detrimental to the fate of millions of Indians. In a country like India, high rates of inflation will have its political ramifications as well.

Mergers and Acquisitions are expensive for corporate growth

There has been a rise in the amount of mergers and acquisitions across all sectors. In the wake of the global economic slowdown, it has helped in consolidation. A merger is the convergence of two firms, in the same or allied sectors, that see synergy in them working together. An acquisition is a purchase of a firm by another firm as a part of its strategy to either expand or consolidate. But mergers and acquisitions come at a cost to both the corporate and the customers. Consolidation, as a result of M&As, leads to reduced competition. As the number of companies in the sector gets reduced, it is easier for the new firm to increase prices. We saw such increase in the aviation sector after the acquisition of Deccan air by Kingfisher and that of Sahara by Jet airways. There is also a chance of cartel formation when the industry has just 3-4 major players. M&As are good for bringing stability but are bad for innovations. When two firms merge to form a bigger unit,

Forgotten Crusaders

The biggest flaw in our society is that any anger, awareness or revolt is only  ephemeral . Any issue is taken up only for it's face value. Once out of sight, the issue as well as its crusaders are soon forgotten and the long fight is left to be fought by their kin. The recent rage against rape isn't any different from that against corruption, black money, blue line, Jessica Lal, Arushi and many others that even I couldn't recall. The issues here are different but there is one common thread that binds it all. They all happened in National Capital Region , where all the news channels have their headquarters. A Project Director with NHAI gets killed for blowing the lid off a major scam and the CBI arrests poor rickshaw puller as the main accused. No matter how absurd this sounds, its not relevant enough to make the headlines. Eight out of ten people would have completely forgotten or never heard of Satyendra Dubey and the rest two wouldn't be aware of what exactly