One-man crusade for Telengana

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Former-UPA minister plans to expose the party in Andhra for leading them the garden path

When Congress’s allies were squabbling to get into the UPA Ministry after the NDA coalition had been surprised in the 2004 General Elections, there was only one ally who was willing to accommodate the interests of the coalition at the cost of self: chief of the Telengana Rashtriya Samiti (TRS), K.Chandrasekhar Rao. Rao, who had already been allotted a portfolio, backed out of the proposed Union Cabinet after allocation of ministries became a problem, saying interests of a separate Telengana were more important, as far as he was concerned.

Last week, Chandrashekhar proved he was as good as his word. He along with three of his other colleagues in the Lok Sabha resigned from its membership, saying their demand for a separate state had been ignored for nearly four years. “We will expose the Congress for leading us the garden path, by making false promises of a separate statehood. We will sound the death knell for the Congress in Andhra Pradesh this time around,” threatened Rao, normally a mild-mannered and reticent man. Rao’s threat is not to be taken lightly. While most politicians merely hold out resignation threats, the TRS chief is serious about taking them to their logical conclusion. In addition to his four MPs (including himself) quitting, 26 MLAs and 5 MLCs quit the Andhra Pradesh assembly on Tuesday to pressurize the Congress to concede their demand for a separate state. Rao and the TRS are, understandably, seething in rage. When the campaign to oust Chandrababu Naidu government led by the Congress gained ground in 2002-2003, TRS was its principal ally. Rao personally led some of his team members into tying up with the Congress, purely on the grounds that the party had supported the Telengana cause.

For the first couple of years, Chandrashekhar Rao held the hope that the Congress would honour its promise for separate statehood. But when it became clear without a shadow of doubt that there was no question of any Congress support, Rao has decided to adopt a hard line. Rao told B&E: “When the Congress was in opposition, 42 of its members, who are now ministers, pledged that Telengana would be created. Now all of them have backed out.” The 47-year-old Rao, who was elected four times to the state assembly from his home constituency of Siddipet in Medak district, quit the deputy speaker’s post, his membership of the assembly and the ruling Telugu Desam Party to revive the Telangana movement. Rao, who began his political career with the Congress as a student leader, has served as minister in the governments of the late TDP founder, N T Rama Rao, & then N Chandrababu Naidu.

He, however, wants to avoid the pitfalls that had prevented the people from achieving their goal of a separate Telangana during 1969-71. “ I have a one-point programme and a single goal -- achieving statehood for Telangana. I am not interested in garnering the support of legislators since I am not here for grabbing power,” Rao asserts. By the looks of it then, he is playing for higher stakes than mere ministries or departments.

B&E edit bureau: Ranjit Bhushan

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Source : IIPM Editorial, 2008

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

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The mother of all inventions

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Indian retailers have decided to capture the niche segments; they are going ‘micro’

Haven’t we heard enough of the retail revolution sweeping across the nation? Yes we have! But one thing which most of us still seem to miss out on is the latest changes in the growth and investment patterns. The fiercely growing Rs.9.3 trillion retail rodeo (as estimated by CII) is heading for a twist in 2008 as both existing biggies and new players start experimenting with innovative retail formats.

Slated to start its operations by January-end, Dabur’s new health and beauty retail venture ‘new u’ has put aside Rs.1.2 billion for 2008 and aims a turnover of Rs.10 billion by 2010. But the question is how, when everyone suddenly seem gearing up with big money? “To achieve such a turnover, we plan to have exclusive tie ups with various brands and our revenue model will try to leverage such strategic collaboration,” elaborates Peter Baker, CEO, Health and Beauty Stores, Dabur India. Even Mukesh Ambani is trailing this stride of innovative formats. He plans 10 new retail formats in 2008, which will cover almost all the business verticals. Affirms Raghu Pillai, President, Reliance Retail, “We are open for tie ups but at the same time we will develop several in-house brands as we believe the margin in them is always high.”

In fact cornered by the Korean chaebols, Godrej & Boyce, too seems to ramp up its act. Cashing in on the retail boom, Godrej is going gung ho to revamp its consumer durable retail venture – Lifespace. And to sustain its profitability, the company is resorting to constant value addition. “But for the value-added products we need to have own retail stores, which will also save the cost of hiring dealers. We have tested the water for over two years now and we think this is the right time to launch our stores across the country,” adds Jamshyd N Godrej, Chairman, Godrej & Boyce, who plans to open as many as 90 stores by 2010. With retail expected to grow at 50% and specialised formats to cover over 25% of the total organised retail in 2008 (Retailers Association of India), Kishore Biyani is also combating back. But unlike other retailers, Biyani is investing in small retailers to promote their retail ventures.

Indeed, these strategies are unique. But the real question is whose retail model will fetch the maximum revenues? Well, analysts claim that new formats of retailing are cashing in on value-added services by creating lucrative revenue models and this is what makes them distinguished from regular retailing. But what becomes necessary is exclusive tie ups and penetration which certainly seems taking off now. However, one thing which retailers still need to keep in mind is that the key to success is not just about formats, it’s about understanding the consumers dynamic, mindsets and attitudes. And this is the real challenge as well as the panacea for success.

B&E edit bureau: Angshuman Paul

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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De(education)

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Lack of fund may raze MDGs

When the UN came out with Millennium Development Goals in 2000; with universal primary schooling for all boys and girls, as one of its goals, alongwith seven other similar goals, UN members and leading institutions which participated, were over-excited and over-confident over accomplishing it. But at halfway of 2015 deadline, when poor countries are in need of additional $11 billion for spreading education, major developed powers are lackadaisical.

‘Education for all’ is one of the imperative goals to uplift a vast section of global society. Poor school children, specially those who don’t go to schools, are used as low-paid labourers in hazardous occupations, vulnerable to trafficking and often sexually harassed just like oppressed women. On the urge of the World Bank, many underdeveloped countries like Ghana and Kenya have devoted 10% of their national budget for education. Countries like Norway, Sweden & Netherlands are generous to the mission but the US and Japan, like many others are reluctant and stingiest for it. A meeting in Dakar, Senegal, recently, is a pointer towards North’s denial to fund South further. But isn’t North equally responsible when it hunts these poor countries for their national interest?

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Source : IIPM Editorial, 2008

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

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The Somalian tragedy – too valuable to live in peace

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“This poor country keeps taking one blow after another,” Peter Goossens observed, two months ago in an interview with The New York Times’ Jeffrey Gettleman. “Ultimately, it will break.” The country is Somalia, and Goossens directs the World Food Programme, which is now feeding some 1.2 million people there, 15% of the population. This tragic & tortured land is “marching right up to the edge of a crisis,” Goossens said. With a vigilance stepped up since Sept. 11, the US has reformulated its long standing efforts to control the Horn of Africa (Djibouti, Ethiopia, Eritrea & Somalia) as a front line in the “war on terror.” Somalia is at its very tip. Members of the African Union have sent small peacekeeping forces there. But they are unlikely to succeed, as “there’s no peace to keep (in Somalia) in the first place,” Richard Cornwell, Institute for Security Studies in South Africa, told Scott Baldauf & Alexis Okeowo of The Christian Science Monitor. By November, the UN noted that Somalia had “higher malnutrition rates, more current bloodshed & fewer aid workers than Darfur,” Gettleman reported.

Responsibility lies substantially in the US’ hands. In 1992, after the overthrow of the Somali dictatorship & the ensuing famine, the US sent thousands of soldiers on a dubious “rescue mission”. But in October 1993, during the “Battle of Mogadishu,” two Black Hawk helicopters were shot down by Somali militiamen, leaving 18 US Army Rangers dead, along with perhaps 1,000 Somalis. US forces were immediately withdrawn. CIA officials privately conceded that during US operations, in which 34 US soldiers were lost, Somali casualties may have been 7-10,000, Charles William Maynes reported in Foreign Policy. “After that, the US – and much of the rest of the world – basically turned its back on Somalia,” Gettleman reports. “But in the summer of 2006, the world started paying attention again after a grassroots Islamist movement emerged from the clan chaos & seized control of much of the country.”


UN officials observe that “the country was in better shape during brief reign of Somalia’s Islamist movement last year” than post US-backed Ethiopia invasion, which took place just after the UN Security Council, at US initiative, passed Resolution 1,725 for Somalia, essentially calling all states to refrain from action that could further endanger humanitarian situation.

Immediately after Sept. 11, the US spearheaded an international effort to close down Al-Barakaat – a Dubai-based Somali remittance network – on grounds that it was financing terror, which was widely hailed. In contrast, US withdrawal of its charges, as without merit, a year later aroused little interest. The greatest impact was in Somalia. As per the UN, in 2001, Al-Barakaat was responsible for about half the $500 million remittances to Somalia, “more than it earns from any other economic sector and 10 times the foreign aid (Somalia) receives.”

US is launching a new Africa command & extending naval operations, part of a broader campaign to ensure domination of primary energy resources in the Gulf & Africa. Africa’s resources are too valuable to be left to others, particularly with China extending its commercial reach. If poor Somalia collapses in starvation & misery, it’s merely a sideshow of grand geopolitical designs, and of little moment.

Noam Chomsky

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).

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