indian

menafn.com…

(MENAFN – Kuwait News Agency (KUNA)) Indian and Pakistani Petroleum Ministers – Jaipal Reddy and Asim Hussain, respectively, held detailed discussions on various matters relating to bilateral …

Continued here:
India, Pakistan hold talks on gas pipeline project

Find our Weekly Commercial Real Estate, Private Equity and Fund Newsletters at www.WeeklyBrief.net

{ 0 comments }

Huffington Post…

It is now the 20th anniversary of economic reforms that converted India into a miracle economy, growing at 8 percent per year in the last decade. Critics complain that this has benefited only a few upper-crust millionaires, bypassing poorer groups. This is simply wrong. The poorest, lowest of all Hindu castes — once called untouchables and now called dalits (meaning the oppressed) — have started spawning millionaires too. The Federation of Indian Chambers of Commerce and Industry (FICCI) is India’s oldest business chamber. Dalits have now set up a Dalit India Chamber of Commerce and Industry (DICCI). This is no more than a start: dalits continue to remain at the bottom of the social and income ladders. But at long last some have ceased to be objects of pity and become objects of envy. Many dalit entrepreneurs came from the lower middle class, got a decent education, and then made good. But others came from laborer families, and their rise is especially heartening. Ratibhai Makwana’s father, once a farm labourer, later made leather pickers, used in textile machinery. Dalits have traditionally had the dirty task of disposing of dead animals, and in the process have become leather workers. Ratibhai greatly expanded his father’s small business by getting into plastic intermediates. His family now runs a sugar mill in Uganda and plans a cement plant there too. His revenues exceed $80 million a year. Sanjay Khsirsagar came from a lower middle class dalit family. His first venture was in high-end sound equipment. Later he created a construction company, APA Infraventure, which has become big in Mumbai slum redevelopment. He is now building himself a penthouse by redeveloping the very slum he grew up in. Bhagwan Gawai once worked alongside his father as a construction worker. But he got a decent education and joined a government oil company, HPCL. He was not well treated there, and successfully sued the company for caste discrimination. His lucky break came when he was posted in Dubai by HPCL. There he developed new contacts, and started a plastics trading business with Arab partners. This business now has a turnover of $20 million. Ashok Khade’s father was a cobbler, working under a tree in Mumbai. Ashok went to college, and then joined a government company building offshore platforms, Mazagon Docks. He acquired skills in offshore maintenance and construction. Today his company DAS Offshore is a major offshore services company, and he now plans a jetty fabrication yard that will employ 2,500 workers. Sushil Patil, another son of a laborer, was lucky enough to go to college (which waived his last year’s fees). Bitten by the entrepreneurial bug, he started several ventures, all which failed. Yet he persevered, and ultimately struck gold by setting up a construction company, IEPC. This now has revenues of $ 65 million. Another dalit , Balu, made good after much travail with a soldering equipment business. He says 32 girls in a row rejected him as a marriage partner because of his poor prospects! He claims many dalit businessmen still hide their caste name to avoid discrimination. In all these cases, education helped dalits rise. But rural government schools are pathetically substandard, leaving most dalits barely literate. Even so, they have made astonishing strides, according to a seminal study by University of Pennsylvania Prof. Devesh Kapur and others. This study looked at dalit outcomes over the last 20 years in sub-districts of west and east Uttar Pradesh, India’s largest state. The proportion of dalits owning their own business was up from 6% to 36.7% in the west, and from 4.2% to 11% in the east. The proportion in non-traditional occupations (like tailors, masons etc) was up from 14% to 37% in the east, and from 9.3% to 42% in the west. Political parties have long promoted government job reservations for dalits as the way to social progress. Yet, the study shows the proportion of dalits in government jobs in Uttar Pradesh has actually fallen from 7.2% to 6.8% in the east, and risen marginally from 5% to 7.3% in the west. Clearly, job reservation has not driven the state’s social and economic revolution. The main drivers have been the new opportunities arising from economic reforms, plus the rise of dalit politician Mayawati. She has been Chief Minister of the state four times in the last two decades, and done much to raise their status and reduce historical discrimination against them. Critics complain that India’s economic reforms have created new inequalities. They may even criticize the rise of dalit millionaires as a new sort of inequality. Nonsense. Viva la such inequality!

Read more:
Swaminathan S. Anklesaria Aiyar: Indian Untouchables Become Millionaires

Find our Weekly Commercial Real Estate, Private Equity and Fund Newsletters at www.WeeklyBrief.net

{ 0 comments }

Decline in Asian currencies

August 27, 2011

(MENAFN) Lam Chee Mun, the fund manager in Kuala Lumpur at TA Investment Management Bhd said that Asian currencies especially the Indian rupee and the Thai baht are declining adding more trouble for …

Read the full article →

Naveen Jain: Tips for Entrepreneurial Philanthropy

August 24, 2011

Helping people get what they need most in life is at the heart of successful philanthropy. It is no coincidence that fulfilling peoples’ needs is also the foundation of a successful business. I see no contradiction between them. Any venture, whether it is commercial or philanthropic, should aim at improving the lives of as many people as possible. Both should use technological tools to overcome infrastructure barriers and build scale. And both must be self-sustaining to be considered truly successful. I want to share with you what I have learned about philanthropy as person who was born in modest circumstances, as a boy who learned to take advantage of opportunities, as a businessman seeking new ways to create something of value for others, as a philanthropist trying to overcome global challenges, and as a father who wants the best for his children. At each stage of my life I have found that the values that matter most are those of an entrepreneur . . . someone who takes a risk and makes things happen; someone who is not afraid to fail because there are lessons to be learned from failure; someone who is focused on a mission rather than a static. I am convinced that only by applying the values of an entrepreneur to philanthropy will you ever be able to meet the needs of the greatest number of people. I understand human needs. I grew up where far too many people lived day to day without elemental needs like food and shelter. Compared to them I was fortunate. My father was a civil servant in the northern Indian where I was born. As a boy I saw the dire effects of poverty and illiteracy, especially on women and children. It often seemed that the only thing separating me from them was luck. But my parents didn’t believe in luck. They believed in hard work and in preparing me to take advantage of opportunity. Like many parents, they taught me to be generous but never to depend on the generosity of others. Because I was poor I had one special advantage. When you are poor, and basic survival is your concern, you have no alternative but to be an entrepreneur. You must take action to survive just as you must take action to seize an opportunity. That’s not to say no one helped me. Many generous people helped me and my family when we needed them. And that motivated me too. I promised myself to work hard so I would never be hungry and work harder still so that I could replay my neighbors’ generosity many times over – not just with money but with a clear path out of poverty. In some places the path out of poverty is through sports or other fields of excellence. In India, the path is through education. My parents drilled into me the importance of an education. It was a gift they themselves never had. I remember how my mother quizzed me in mathematics first thing in the morning and would often demand, “Don’t make me solve it for you.” Little did I know that she couldn’t solve it because she had never been taught math in school. They made sure I had the advantages they never had. I studied hard and earned an engineering degree and then an MBA. Because of my education I was ready when business opportunities began to open for Indian engineers. I seized one and used that opportunity to create many more as the founder of Moon Express, Intelius and InfoSpace. Along the way I never forgot who helped me and what I owed to them and others like me. I promised myself that one day I would be in a position to help my fellow countrymen and women, as well as anyone who is held back by lack of education, or by sexism, and grinding poverty. Today, I am privileged to be able to do that but not simply by giving money away. That is a temporary fix. Rather, I am approaching philanthropy in a strategic and systematic way just as an entrepreneur approaches a new venture. That’s the only way to make a self-sustaining difference in the world. My experiences as a child in poverty, as a business creator, and as philanthropist have taught me that there are at least four key elements for philanthropic success Overcome the Infrastructure . Many of the problems of poverty and need are really problems of physical infrastructure — not enough hospitals, too few schools, insufficient roads, bridges, and a lack of tools. This is what makes traditional philanthropy so daunting. You could build a thousand new hospitals in some parts of the world and barely make a difference. But what if you could capture the expertise of the world’s best physicians and create software that can diagnose patients remotely? Then infrastructure no longer matters. By turning an infrastructure problem into a technology challenge, you can eliminate the physical constraints of time and space. Build Scale . Technology allows you to replicate knowledge cheaply and reach many more people with it than you could in the physical world. To continue the example above, with diagnostic software you can now diagnose patients in every town, village, or farm in India. And you can do so objectively without the biases that even the best human physicians harbor. Make it Self-Sustaining . The problem now becomes, how do get this valuable diagnostic software and the device it runs on into the towns, villages, and farms where it can do the most good? You could enlist a wealthy donor to buy the devices and distribute them widely. But then you are beholden to physical constraints again — and even worse, you are dependent on a lifeline of someone else’s money. Instead of giving away $200 devices, why not allow people in the villages to rent them for $20 per month so they can go door to door making diagnoses for $5 each? That way everyone has an incentive to achieve the mission of getting the proper diagnoses to the greatest number of people. Instead of managing the whole program on your own, the program takes on a life of its own. Live an Entrepreneurial Life . By understanding and harnessing the forces that drive human behavior, you can create a self-sustaining philanthropic effort that reaches millions of people. It begins with an entrepreneurial attitude: take an idea and execute on that idea. If it doesn’t work, learn why and build on what you’ve learned. And be mission-oriented rather than goal-oriented. That way, if you do the best you can, you will always succeed. This is not simply an approach to philanthropy; it is an approach to life. Philanthropists can learn important lessons from business entrepreneurs. They both spend their time solving problems. And to be successful they both must overcome physical challenges and create self-sustaining operations. And ultimately, they must allow people to take action for their own benefit. Growing up in India I knew all I needed to change the world was one good opportunity and I prepared myself for it. When that opportunity came I was ready. I couldn’t count on luck so I created my own. Today, I’m sharing my passion for giving back with my children. I know they’ll approach the problems they want to solve in ways I never imagined and over time, research shows, if they are committed to philanthropy when they are young, they will make philanthropy a central part of their lives for years to come. That’s sustainable philanthropy. And we’re not alone. Because of the work of entrepreneurial philanthropists there are more new opportunities than ever opening up all over the world for the people who are prepared to grab them. Together, we are creating our own luck on a global scale. Find Naveen Jain on LinkedIn Twitter Google Plus Huffington Post Forbes Blogs

Read the full article →

India Weddings Faulted For Prodigious Food Waste

July 21, 2011

NEW DELHI — When the daughter of businessman Mohammed Sultan got married recently, guests were treated to a lavish 30-course meal served in super-sized silver platters. The Kashmiri feast, prepared by an army of chefs, included more than 20 meat and kebab dishes rich with spices to go with the saffron-flavored rice and naan breads. Hours later, after the more than 500 guests had eaten their fill, the leftovers were dumped by the cartload at a nearby garbage site. As the ranks of India’s wealthy surge with rapid economic growth, many families are staging extravagant displays of food at their children’s weddings to show off their newfound affluence. The prodigious waste that follows has horrified many in a nation where food prices are skyrocketing and tens of millions of young children are malnourished. At the recent wedding of the son of a ruling party leader, more than a 100 dishes representing Thai, Chinese, Mediterranean and Indian cuisines were served to over 30,000 guests. About 20 percent would’ve been thrown away. India’s Food Minister K.V. Thomas wants to curtail what has become known as the Big Fat Indian Wedding. He says about one-fifth of the food served at weddings and social gatherings is discarded. “It’s a criminal waste,” Thomas told The Associated Press. The tons of food wasted at social gatherings across the country each day contrasts sharply with the food shortages, often bordering on chronic starvation, faced by millions of poor Indians. Like elsewhere in Asia, food prices in India are rising fast – by 8.4 percent in June alone – as demand outstrips production. And the burden is falling disproportionately on the poor. Experts say the jump in prices for staples to record highs over the past few months has pushed another 64 million Asians into poverty. According to the food minister, around 100,000 weddings and social events are held in India every day. He says food wasted each day at weddings and family functions in Mumbai alone would be enough to feed the city’s vast slum population. The International Food Policy Research Institute ranks India 67 out of 84 countries in its 2010 global hunger index, a survey of the prevalence of child malnutrition, child mortality and the proportion of people who are calorie deficient. A committee Thomas established toyed with restricting the number of guests at weddings and the number of dishes that could be served. But the idea was quickly shot down by critics who said it would simply give corrupt inspectors another reason to solicit bribes. Instead, the committee has decided on a public awareness campaign through the media and outreach to schools and social organizations to spread the word that less is more when it comes to weddings. If the awareness campaign fails to make a dent, Thomas said he would consider resurrecting the guest limit proposal. It would not be the first time. In the early 1960s, in the aftermath of a brief border war with the Chinese, food shortages led the government to impose a ‘Guest Control Order’ limiting the number of wedding guests. The restrictions were short-lived, although it did focus public opinion on adopting a measure of frugality. Today, austerity is far from the minds of India’s wealthy, who fly in orchids from Thailand to decorate overstuffed buffet tables. “It’s my only daughter’s wedding. I don’t want to stint on anything. And certainly not on food,” said Alka Gupta, a businesswoman, as she studied a sheaf of menus from wedding caterers while planning her daughter’s December marriage. “My husband and I have worked hard all these years. Now we want a spectacular celebration to invite all our friends,” she said. Sociologist Abhilasha Kumari says that for the burgeoning middle classes, making a spectacle of weddings has become quite the accepted norm. Bollywood, India’s Hindi language film industry, has done much to popularize the theme of the big Indian wedding, says Kumari. “Conspicuous consumption is no longer viewed with distaste as it once was under India’s earlier socialist ethos,” she said. “It’s a new India where there are new value systems. Over-consumption is the norm.” The mere idea of scaled down celebrations has, not surprisingly, prompted a host of objections from businesses who bank on big weddings. Cutting down on the number of dishes may not be an easy task, says Nitin Luthra, a leading New Delhi caterer who has organized some of Delhi’s most spectacular weddings. “People have begun demanding exotic cuisines. What they want is a memorable evening for everyone who attends the wedding,” Luthra said. Wedding planners scoffed at the idea of a cap on wedding guests as a measure to curb food shortages. “It’s a knee jerk reaction, a populist measure,” says Ashish Abrol, a former IBM executive who in 2010 set up a wedding planning firm, Big Indian Wedding. “It would be an utter failure since it’s impossible to implement. The net result would be more corruption,” Abrol said. Suresh Misra at the Indian Institute of Public Administration, a New Delhi-based think tank, agrees that legislation to end the waste may not be “feasible or workable.” “It is true that we cannot force people to cut back on wasteful displays of food and spending, but if we get people thinking about the enormous amounts of food that’s wasted, that itself would be a step forward,” says Misra, who is a member of Thomas’ committee. But efforts to pick up the leftovers and distribute them to the poor have not taken off due to lack of infrastructure. Also, many Indians are reluctant to eat leftovers, partly because food spoils quickly in the country’s hot climate. Before cracking down on weddings, the government plans to cut back on its own excesses. Prime Minister Manmohan Singh’s office has sent out letters to government departments urging austerity at seminars and conferences. And in what could prove to be a landmark initiative, the government has prepared a draft law that would make access to food a basic right of every citizen. Under the proposed law, almost 70 percent of the population would be entitled to subsidized food. Rising food costs, coupled with steep increases this year in the price of cooking gas and gasoline, have led poor families to pare food budgets. But there are no such concerns for India’s moneyed elite. Gupta, the businesswoman, says for the affluent classes, rising prices are not the overriding concern when planning a wedding. “I would like to scale down things, but feel helpless. There are so many expectations riding on the children’s marriage. Very often it’s not in our hands,” she said. “If we resort to a scaled down wedding, it could send the wrong signal to our business associates.” Another problem is that most Indians don’t take the R.S.V.P. seriously. Wedding planners and caterers have to be prepared for huge turnouts at wedding parties, with the danger that the food may run out. If attendance is lower than expected, that extra food is scrapped. “You have no idea how many will turn up at the wedding reception, and have to plan for both contingencies,” said Gupta. “We would lose face, and it would look so bad, if the food ran out.” ____ Associated Press writer Aijaz Hussain in Srinagar, India contributed to this story.

Read the full article →

USAID Chief: Climate Change, Food Prices Spur East Africa Famine

July 13, 2011

The long-suffering nations in the Horn of East Africa are enduring the worst drought conditions in more than half a century, and are at risk of “massive famine,” Rajiv Shah, the administrator of the US Agency for International Development (USAID), told The Huffington Post Wednesday. The top American aid official said in an interview that the food crisis in countries like Ethiopia, Kenya and Somalia is putting millions of lives at risk, and threatens to further destabilize a troubled region of the world. “It’s very severe,” Shah said. “We know from the data that we’ve been collecting that this is the worst drought in 60 years and it’s going to have severe consequences. Eleven and a half million people are at real risk of malnutrition and famine already.” In its most recent update on the crisis , USAID declared the food and water shortage in East Africa “the most severe food security emergency in the world today.” “The current humanitarian response is inadequate to prevent further deterioration,” the report warned. Aid workers in East Africa have spent months gearing up for the looming crisis, thanks in part to an early-warning system operated by USAID that first predicted a round of devastating crop failures and food shortages late last year. But the high number of malnourished children and families so early in the dry season has nonetheless taken them by surprise, and the growing figures suggest the scope of a problem that is only beginning to emerge. “It’s going to get worse because the next rains aren’t until October, and we’re already seeing people completely reliant on relief,” says Anna Ridout, a Nairobi, Kenya-based spokeswoman for Oxfam. Aid workers say the severity of the famine conditions has been exacerbated by spiking food prices and the increasing regularity of major African droughts over the past decade, which has made local communities less able to cope with new challenges. In the Horn of Africa alone, drought conditions have affected crop levels three of the past four years. “There’s no question that hotter and drier growing conditions in sub-Saharan Africa have reduced the resiliency of these communities,” Shah said. “Absolutely the change in climate has contributed to this problem, without question.” Last week, the UN’s top humanitarian relief official Valerie Amos also pointed to environmental change during a tour of a refugee camp in Somalia. “We have to take the impact of climate change more seriously,” she said. “Everything I’ve heard has said that we used to have drought every ten years, then it became every five years and now it’s every two years.” This year, aid workers say they are seeing new levels of starvation and suffering. On a recent visit to the refugee camps in the Ethiopian town of Dollo Ado, along the Somali border, World Food Program official Judith Schuler said she found the area flooded with refugees seeking food and water. “They are in a desperate state,” Schuler said. “I was there there a bit more than a year ago in the same refugee camp, and back then everybody that arrived told me that they came because of violence and conflict. This is not the case anymore. It’s regular people who are coming because they have nothing left to eat.” Some 2,000 hungry refugees arrive at Dollo Ado from Somalia every day, according to the UN , and two of the camps there are already at twice their maximum capacity. The vast majority of those arriving at Dollo Ado are children, and Schuler says many of them die at the camp despite finally receiving aid. “They’ve had nothing to eat during their journey, which often last several days or a week,” she said. “The only time they get food is if they can beg for it from villagers along the way. There are people here dying every day.” Save the Children has reported that malnutrition rates among children in Kenya and Somalia have reached 30 percent in some areas — well above the official rate to classify a famine. So far this year, USAID has facilitated the distribution of more than $350 million in aid to the Horn of Africa, but Shah says that emergency response efforts are not sufficient to curb a growing — and seemingly chronic — problem in the region. “To me, the reason this is so glaring is it simply doesn’t have to be this way,” Shah told HuffPost. “We know how to help countries and work in partnership with countries to build real modern agricultural systems. We know that every few years the lack of rainfall creates a huge depletion of assets that causes kids to be pulled out of schools to work on the farm. And we know that this cycle of agrarian fall-off results in chronic malnutrition for kids, and holds these countries back.” “This is happening precisely in a part of the world that our Defense Secretary Leon Panetta just said is a critical part of our fight against terrorism and our overall international security,” he added. “It just underscores the deep link between food security and national security.” Shah continued, “It’s so important to be promoting security and stability in these parts of the world, as opposed to be dealing with these devastating and difficult consequences of failure.”

Read the full article →

Underemployed College Graduates Less Likely To Be Happy

June 29, 2011

With unemployment at 9.1 percent , and the broader underemployment rate at 15.8 percent , a Gallup poll released Wednesday suggests that higher-educated Americans are taking it hardest. The poll found that Americans who had earned a college or postgraduate degree, and who were unemployed or working fewer hours than they’d like, were less likely to report satisfaction with their lives than people in similar employment situations who hadn’t finished college. Gallup used a metric called the Cantril Self-Anchoring Striving Scale , which asks respondents to rate their current level of contentedness from one to ten, and to predict what level they’d be at in five years. Based on their answers, survey respondents are separated into categories of “thriving,” “struggling,” and “suffering.” Wednesday’s poll found that only 50 percent of underemployed Americans with a college degree fell into the “thriving” category, compared with 67 percent of college graduates who were employed to their satisfaction — in other words, people who had full-time jobs, or who had part-time jobs but weren’t looking for full-time work. Gallup notes this is a 17-point difference. Among underemployed Americans with postgraduate degrees, 54 percent could be classed as “thriving.” For employed Americans with postgraduate degrees, the number climbed to 71 percent — another 17-point difference. By contrast, 41 percent of underemployed Americans with a high school degree or less, and 51 percent of employed Americans at the same education level, could be considered “thriving.” That’s only a 10-point difference, leading Gallup’s Elizabeth Mendes to conclude: The findings suggest that there is something about having achieved a higher level of education and about being mid- to late-career age that allows underemployment to have a more significant effect on on one’s life. The poll dovetails with other Gallup findings about the relationship between mental health and unemployment or underemployment. Earlier this month, a Gallup survey found that underemployed Americans were 15 percent less likely to be “thriving” than those who were employed. A March 2010 Gallup poll found a 19-point difference for the same question among the two groups . But, in fact, there’s a body of research that suggests that those with college degrees are just naturally more prone to dissatisfaction, not less. In February 2010, Richard Florida at the University of Toronto found a fairly strong correlation between happiness and higher education in some metropolitan areas. The Cantril scale shows up often in Gallup polls, including a widely publicized survey of the world’s happiest countries , which appeared in April. It’s based on the work of Hadley Cantril, a researcher who set forth the idea for the scale in his 1965 book The Pattern of Human Concerns . In 2003, an article in the journal Health and Quality of Life Outcomes suggested the Cantril scale had been developed with “extensive attention to diversity and individual perspective.”

Read the full article →

Greek Parliament Passes Key Austerity Bill, Paving Way For Bailout

June 29, 2011

ATHENS, Greece (AP) — Greece’s lawmakers have approved a key austerity bill, paving the way for the country to get its next vital bailout loans that will prevent it from defaulting next month. The unpopular euro28 billion ($40 billion) five-year package of spending cuts and tax hikes was backed by a majority of the 300-member parliament Wednesday, including Socialist deputy Alexandros Athanassiadis, who had previously vowed to vote against. The European Union and International Monetary Fund have demanded the austerity measures pass before they approve the release of a euro12 billion loan installment from last year’s rescue package. Without those funds, Greece would be facing a default by the middle of July. The vote took place amid clashes between police and protesters outside Parliament. THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below. ATHENS, Greece (AP) — Greek lawmakers began voting Wednesday on new austerity measures needed to secure crucial bailout funds as protesters opposed to the bill clashed with riot police outside Parliament. The bill needs a simple majority to pass and Prime Minister George Papandreou appears to have enough votes even though one of his deputies said he would not be backing the package. A no vote would push Greece to the brink of default as soon as next month with potentially huge repercussions for Europe’s banking sector and global markets. As deputies debated inside Parliament, riot police fired volleys of tear gas to push back protesters, who were pelting police with bottles and trash and overturning barriers. Papandreou’s governing Socialists hold a five-seat majority in the 300-seat chamber. The bill needs a simple majority of 151 to pass. The package, which involves euro28 billion ($40 billion) worth of spending cuts and tax increases over five years, is a condition for the eurozone and the International Monetary Fund to release the next euro12 billion ($17 billion) installment of the country’s bailout fund. An additional bill that details how the austerity measures will be implemented must also be passed in a vote Thursday. Hours ahead of the vote, it looks like only one Socialist deputy will fail to heed Papandreou’s call to back the measures, suggesting that the bill will get at least the 151 votes needed for it to pass. Hopes that the bill will pass have seen European stock markets trade strongly Wednesday and the euro jump toward $1.45. The vote comes against a backdrop of violent demonstrations and on the second day of a nationwide general strike that has brought much of Greece to a standstill. Hundreds of flights and ferried have been canceled, leaving tourists stranded during the summer high season. Protesters were trying to encircle Parliament to prevent deputies from entering and voting for the bill and a massive security operation was under way, with a large section of central Athens sealed off to traffic. Scuffles broke out early in the morning as demonstrators attempted to block a major avenue leading to the center of the city, and to Parliament. Riot police responded with pepper spray, and 10 people were treated in a nearby hospital for minor injuries, hospital officials said. Demonstrators also hoisted ghoulish effigies of men they hold responsible for Greece’s misfortune — Papandreou, new Finance Minister Evangelos Venizelos and Deputy Prime Minister Theodoros Pangalos — and shook them in the air on sticks. “Dogs, you look after your masters,” they chanted at police. The furious marchers also emptied bags of garbage from municipal containers and lobbed them at the security forces, who stood their ground impassively. A day earlier, extensive clashes left at least 46 people injured, most of them police, as rioters pelted police with chunks of marble and ripped up paving stones, and authorities responded with repeated volleys of tear gas and stun grenades. Greece has said it has funds only until mid-July, after which it will be unable to pay salaries and pensions, or service its debts, without the next bailout installment from the eurozone and the International Monetary Fund. The country is also in talks for additional help in the form of a second bailout, which the prime minister has said will be roughly the size of last year’s euro110 billion ($157 billion) package. “Voting these measures is required to maintain our credibility in the (bailout) process,” Venizelos said during the debate Tuesday night. “Voting for these measures, regardless of any reservations, is an important, brave act of political responsibility.” Derek Gatopoulos, Menelaos Hadjicostis and Elena Becatoros contributed.

Read the full article →

$969m top bid for Boon Lay Way site « mypropertyblog

June 3, 2011

The third highest bid of $785.1 million or $820 psf ppr came from a Keppel Land-led joint venture together with Perennial Real Estate . Other participants in the tender were Frasers Centrepoint, … CMA, CMT and CapitaLand’s wholly-owned unit, CapitaLand Commercial , submitted their bid through JG Trustee and JG2 Trustee in a joint venture . CMA holds a 50 per cent stake in the venture, CMT has a 30 per cent stake, and CapitaLand owns a 20 per cent stake. …

Read the full article →

Nancy Birdsall: IMF Leader Selection: It’s the Process, Stupid

May 24, 2011

A Bretton Woods project statement issued on April 6 was prescient indeed: The MD must be, and must be seen to be wholly independent of any national or regional interest. This is particularly important when the home state is a powerful member of the IMF. In practical terms therefore, recent or sitting ministers should be ruled out. Who’s that? The candidate now supported by France and the UK: Christine Lagarde is, of course, a sitting minister of a powerful member country. Well at least she is a woman — widely discussed now as a good idea for the male-dominated IMF (compared to the World Bank and in culture as well as numbers) — and is said to be independent-minded. But would she be able to eschew “representing” France or the powerful France/Germany/UK triad in the tense discussions that seem to pit Greece (and other peripheral countries of the euro zone) against the banks in Germany? Would she not seem to be biased even if she wasn’t — beholden to Sarkozy and Merkel generating immoral hazard for the IMF (or the euro or Greece… )? Won’t she represent, whether she wants to or not, the stench of colonialism wafting around the IMF? The Bretton Woods project statement also emphasizes the logic of locking in a process including: a short and open list of candidates made public; no need for a candidate to have his/her own country’s support (Arminio Fraga headed the Brazilian Central Bank under the party now out of power; that is also Gordon Brown’s problem of course); an open voting process based on formal voting (as proposed by the Indian ED Arvind Virmani — go here; the need for any candidate to have a majority of country members not just a majority of weighted votes (the “double majority” idea ). (Our IMF leader survey includes creation of an eminent persons group to propose a short list of candidates (adding to country members’ nominees) that could include nominees their own country might not nominate, and also refers to double majority voting. I hope survey takers who favor “open, transparent and merit-based” agree strongly with those proposals too.) These changes are less likely to happen between now and end of June (by when IMF Board promises it will have selected a new leader) but pumping for them now could help improve the process in the next round. By the way, any of these changes in process would be a step in the direction of legitimacy for the new leader. None would take away the ability of the United States and of Europe to block candidates. For all practical purposes the large and powerful economies have effective vetoes (Europe if its triad of France/Germany/UK collaborates). With double majority voting other country groups in a coalition would also have veto power… and with an open list there would be more time for the public scrutiny that helps provide a new leader legitimacy. Related Content: About IMF Survey and Candidate Bios Take the Survey and View Results More IMF Blog Posts

Read the full article →

Japan will accelerate its Indian imports as the rebuilding process 

May 18, 2011

Japan will accelerate its Indian imports as the rebuilding process

Read the full article →

Diane Kramer-Pavelich Joins Alliant Specialty Insurance Services as Claims Advocate for Tribal First Program

May 5, 2011

Based in Alliant’s Centennial, CO, Office, She Has Worked Exclusively With Indian Governments for the Past 16 Years

Read the full article →

David Isenberg: It’s Private Sector vs. Private Sector in the Ultimate Maritime Smackdown

April 21, 2011

Most analyses of private military and security firms has as its core starting point the fact that a private firm is doing work formerly done by public forces; usually, but not always, as a tool of a recognized, sovereign state against either another state or against certain kinds of violent non-state actors. But private actors fighting private actors, while not unknown — the Gulf and Zeta drug cartels fighting each other in Mexico is a contemporary example — is rarer. That is reason enough to pay closer attention to the use of private security firms to guard maritime shipping against Somali piracy. It is something we have not seen in many centuries. In fact, one has to go back to the days of the Romans. The Roman Republic, then the Western world’s superpower, faced pirates who threatened its food supply. Ultimately, the Republic sent its general Pompey to put an end to the threat. Much later, in the late Middle Ages, the Hanseatic League, a league of merchant associations within the cities of Northern Germany and the Baltic, was formed in part to protect maritime trade from Baltic pirates. This brings us to a paper published last year. It is “Pirates Versus Mercenaries: Purely Private Transnational Violence at the Margins of International Law” by Ansel J. Halliburton of the University of California, Davis Law School. He probes the questions of how international law would, and should, react to purely private transnational violence. The background is that past and current approaches to dealing with Somali piracy have run their course. According to $16 billion per year . Maritime piracy, like any other criminal activity, can be reduced by diversion, deterrence, or incapacitation. These options themselves depend on changing potential pirates’ perceptions of risks, rewards, and opportunities. Diversion operates by providing alternative opportunities with acceptable rewards and less risk than the offense. Deterrence increases the perceived risk of the offense. Incapacitation removes the opportunity entirely by restricting the actor’s ability to commit the offense by, for example, putting him in jail. Diversion is a nonstarter. Halliburton writes, “Somalia’s ruined economy presents few compelling alternatives to piracy. Most of the country’s economy is based on agriculture and remittances from abroad, and its per-capita GDP is estimated at $600 — the fifth-lowest in the world. In contrast, one conservative analysis estimates an average individual pirate could expect to earn $15,000 for a year’s work. Lucky participants in a multi-million dollar ransom stand to earn far more.” Deterrence through military response, while making pirates work more costly, ultimately does not work. International military efforts off the coast of Somalia, such as the European Union’s high-profile combined naval operation, EU NAVFOR, focus on deterring piracy through a strong military presence protecting designated shipping lanes. Despite the impressive array of international cooperation and naval firepower, pirate attacks in the region have simply shifted outward into the Indian Ocean and beyond the easy reach of international patrols. Deterrence is further hampered by the frequent failure to prosecute those pirates who are captured by naval forces — a policy derided as “catch and release.” As for incapacitation, as discussed above, the pattern of “catch-and-release” seriously impairs naval forces’ ability to incapacitate pirates by putting them on trial and into prison. The alternative is to simply kill them instead. Before the birth of modern human-rights law, this had been the standard way of dealing with pirates in much of the world, and many now advocate its return. While less costly than the current defensive policy, Halliburton does not find it a viable long term solution: Because of Somalia’s poor long-term economic and social prospects, any incapacitation through violence would be only temporary, as new recruits with little to lose and everything to gain would be attracted to piracy for the same basic economic reasons as current pirates. However, because Somalia’s most active pirates operate in identified clan-based organizations, a concerted effort to incapacitate all the major pirate gangs simultaneously could likely set back piracy in the region substantially, because reconstituting the experience and operational capacity of the organizations would take some time. A concerted violent effort at incapacitation is likely to be only temporary; however, absent an enduring solution to Somalia’s political problems, it could well be more effective, and cheaper, than the current approach, which is almost entirely defensive and reactive. Given the lack of viable alternatives it is small wonder that shippers and their insurers are turning to private security forces. Halliburton writes that for a variety of reasons, “non-state actors could soon take the Somali piracy problem into their own hands by hiring private military companies to conduct offensive attacks against known pirate networks. The remainder of his paper addresses the question of what the law would and should do with such a situation. Bear in mind that if in the future private security personnel are actively fighting pirates, especially if they attack pirate strongholds it on land, will be an example of much talked about, but rarely seen in real life, “military provider” firm. One has to go back to the days when South African company Executive Outcomes was fighting in Angola and Sierra Leone to find something similar. Halliburton examines a number of legal treaties. He finds while the UN Charter does not directly prohibit private transnational violence in the same explicit terms in which it prohibits violence between states, it does provide a means for states to act against it. On the other hand, the law of the sea provides clearer results for private violence than does general international law. Two principal treaties define piracy and related offenses: the United Nations Convention on the Law of the Sea (UNCLOS) and the Convention for the Suppression of Unlawful Acts Against the Safety of Maritime (SUA Convention). Applying these treaties, the sea component of any attack against pirates by other private actors would likely constitute piracy or a related SUA offense. There is a UN International Convention against the Recruitment, Use, Financing and Training of Mercenaries (“Mercenary Convention”) but “It is entirely useless in the context of purely private international violence because it prohibits only the use of mercenaries by or against states in armed conflict.” Similarly there is the old Organisation of African Unity (now African Union) Convention for the Elimination of Mercenarism in Africa. But its definition is drawn narrowly to target only mercenaries working against an OAU member state or OAU-recognized national liberation movement. Because PMC attacks on pirates target neither states nor revolutionary movements, they too would fall outside both the OAU and Mercenary Convention definitions. There are other laws that he examines but for Halliburton the bottom line normative question is should private industry be allowed to kill pirates? Or, to put it another way, should there be a piracy exception to the fundamental right to life, as embodied in the Universal Declaration of Human Rights? Halliburton argues, “Given the strength and clarity of the prohibition against extrajudicial killing — which is unequivocally non-derogable for anything beyond self-defense — the obvious answer is no.” But, and this is a big but, he acknowledges many facts underlying piracy work against this absolute position. Because they sail from predictable locations with unusual equipment (e.g., weapons and ship-boarding gear such as ladders), with reasonable efforts, pirates could be identified with precision while they are at sea even before they engage in acts of piracy. Given the absence of innocent civilians or property at sea, collateral damage there is especially unlikely, assuming the attacks occur before the pirates take hostages. Further, pirates themselves routinely violate the human rights of their hostages, notably the right to be free from arbitrary detention and the right to life. [ See this International Maritime Organization statement ] In fact, the very act of hostage-taking is a denial of the hostage’s right to life. Unlike state combatants, or even many non-state combatants, pirates fail to give reciprocal recognition to the human and humanitarian rights of their hostages. Historically, pirates were regarded as “enem[ies] of the human race” — a categorization akin to a perpetrator of modern crimes against humanity. Finally, the culpability of men in a swarm of fast boats approaching merchant vessels with assault rifles, rocket-propelled grenades, and ladders is not seriously in question. Absent evidentiary problems, it is difficult to foresee a scenario under which fair judicial proceedings would result in a not-guilty verdict for someone aboard such a boat. When so many of the circumstances militating for full human-rights enforcement are lacking, the arguments for full enforcement of suspected pirates’ human rights lose much of their force. In theory pirates could be prosecuted as the criminals they are under the UN’s Convention Against Transnational Organized Crime (TOC Convention). The TOC Convention operates on any crime with a domestic sentence of four years or more, creates conspiracy offenses, and outlaws participation in organized-crime groups. Because piracy is recognized as one of the core international crimes and carries heavy punishment worldwide, Somali pirates would clearly qualify as “organized criminal groups” committing “serious crime,” and therefore would be subject to the TOC Convention. However, a PMC chartered to fight piracy could just as easily find itself ensnared by the TOC Convention. So long as it intended to kill, any modern firm would satisfy the TOC Convention’s definition of an “organized criminal group.” If the PMC is hired to kill pirates, its employees could be charged with murder — which, in all likelihood, carries a maximum sentence greater than four years in every state party to the TOC Convention. Halliburton’s conclusion is that if states really want to use private military companies as a tool to fight pirates they are going to have to step up to the international legal plate and take some action. Because modern piracy is largely an economic crime, and because states have proven ill-suited to stop it with any of the political, legal, or military tools thus far deployed, economic actors (i.e., the shipping companies) should be given greater leeway to respond effectively. In the Somali piracy context, this means using force — at the very least to defend against attacks in progress. However, because pirates are unlikely to respond to anything short of major violence, the next choice is stark: either stop at defensive force — which has so far provided little deterrence — or grant PMCs authority to strike pirate enterprises preemptively. This boils down to an easily stated, but troubling question: should the international community accept to the economic cost of piracy (which continues to rise), or should it accept the humanitarian costs of authorizing private military force against it? If states choose the latter option, they would be essentially reverting to the maritime law of centuries past. To do so today, however, they must create an explicit exemption to the substantial body of human-rights and humanitarian law that has developed since the world last grappled with large-scale maritime piracy. Although these bodies of law do not provide clear or complete coverage of private transnational violence, the trend toward greater coverage is unmistakable, and the human right to life is one of international law’s strongest positive rights. Without a clear exemption, any authority conferred on PMCs to fight piracy would be largely rhetorical because PMCs would rightly fear prosecution under these legal regimes, especially given the strong norm against mercenarism. Whether to grant a piracy exemption to the right to life depends on whether one views piracy as qualitatively different from other crimes. Historically, piracy has been treated differently from other crimes, but whether that remains true today is less clear. That the Security Council has acted repeatedly under Chapter VII, and authorized states to go on the offensive, suggests that it may.

Read the full article →

Sebastian Lindstrom: Summit at Sea: Breeding Collaboration and Breaking Down Convention

April 21, 2011

At a spring break on steroids, where “every one of you is a Clark Kent,” Barack Obama’s philanthropic adviser was in search of the future. Summit co-founder Justin Cohen told the crowd that his team had “created a social sculpture.” Their proverbial clay consisted of 950 hyperactive people, three out of five of them male, most based out of four main U.S. hubs: New York, Los Angeles, San Francisco and Washington, D.C. Alongside a hyperawareness of advertising slogans, attendees embraced the music/video/light performances, free-flowing alcohol, beer-fueled panel discussions and elite networking interactions. This cruise, with its Twitter hashtag #SASea , became the world’s epicenter for innovation as Summiteers focused on being true to who they were, with or without chocolate-coated mushrooms. My Indian friend Nitin tweeted the day after arriving back to shore that “apparently the one place where random guy with glow-stick spanks a VC is #SASea .” Summit at Sea , the latest in the Summit Series , was about creating a space that would breed collaboration and break down convention. The Summit team’s mottos: travel, friends/family, work on something meaningful and don’t be recognizable. Their rules of engagement: if you wanna play with us, you gotta be a kid; if it’s not fun, it doesn’t count; start the conversation being excited and passionate. Andr

Read the full article →

Goldman Sachs Values Assets Low, Sells High To Customers

April 14, 2011

As the subprime crisis was emerging on Wall Street, Goldman Sachs sold a client a slice of a complex security at a price nearly 50 percent higher than what the firm valued it for itself, according to a new Senate report on the origins of the financial crisis. Last week, another bank settled a similar case with securities regulators who accused it of “violating basic investor protection rules.” In May 2007, Goldman sold Bank Hapoalim a $9 million slice of Timberwolf, a $1 billion instrument linked to subprime mortgages, at about 78 cents on the dollar. The Israeli-based bank did not know that Goldman’s internal valuations at the same time pegged the slice at just 55 cents on the dollar. The purchase — the Israeli lender bought it at a 42 percent premium — is similar to one made by the Zuni Indian Tribe, which bought a comparable financial instrument from Wachovia in 2007 at 90-95 cents on the dollar even though the seller of the instrument, Wachovia, valued it on its own books before the sale at just 52.7 cents on the dollar. In that case , Wells Fargo, which took over Wachovia, was ordered to pay an $11 million fine by the Securities and Exchange Commission. In announcing the settlement, SEC director of enforcement Robert Khuzami said the lender violated a basic rule: “Don’t charge secret excessive markups, and don’t use stale prices when telling buyers that assets are priced at fair market value.” In this case, the SEC declined to comment, though it’s been widely reported to be investigating such cases. Goldman Sachs declined to comment. Bank Hapoalim did not return a call seeking comment. The revelations are among a trove of findings discovered by the Senate Permanent Subcommittee on Investigations after a two-year investigation into Wall Street’s role in causing the crisis. The panel accused Goldman of deceiving clients, betting against them and profiting off their losses. In the case involving the Israeli lender, Goldman withheld its internal valuations showing the securities were losing value, declined to tell the bank and other customers that it was betting the security would lose value and profited at the expense of its clients, who didn’t know they were buying “poor quality assets at inflated prices,” according to the report. In the SEC’s case against Wells Fargo, the regulator charged that the lender sold the securities knowing the prices it charged were excessive, according to the regulatory order describing the scheme. Whether Goldman will face sanctions for its dealings with Bank Hapoalim is another matter. “If someone has a security on their books at 50 cents on the dollar, then is marking it up to 90 cents on the dollar, well that just sounds like they’re taking advantage of the person, and it’s excessive,” said Allen D. Madison, a visiting professor at the University of Idaho College of Law who studies securities law. Goldman’s alleged mark-up was smaller, though. “It’s very subjective,” Madison acknowledged. Wall Street veterans, though, say Goldman’s behavior is to be expected. There’s no price transparency, and firms are at the mercy of the biggest banks. “If there had been a transparent valuation paradigm … this never would have happened,” said Sylvain Raynes, a founding principal of R&R Consulting in New York and a structured finance expert. “You could never sell something worth 55 for 78 with full symmetry of information. If you could, I have a bridge for sale.” Raynes said firms like Goldman likely value securities based on the conditions in the market, “but only a few people are privy to these conditions in real time,” he added. Thus, investors and traders at smaller firms can often lose out. “This can only exist in a world like finance where reality is what a few people say it is,” Raynes said. A few months after the Israeli bank bought a slice of Timberwolf, Thomas Montag, a top Goldman executive, referred to the security as “one shitty deal,” according to an internal email obtained by Senate investigators. Goldman kept marketing Timberwolf to its clients after that comment.

Read the full article →

Emerging Economies Meeting Could Shuffle Global Power

April 13, 2011

BEIJING — The leaders of the world’s largest emerging economies gather this week in southern China for what could be a watershed moment in their quest for a bigger say in the global financial architecture. Thursday’s summit comes at a crucial moment for the expanded five-member bloc known as the BRICS, which groups Brazil, Russia, India, China, and, for the first time, South Africa. Chinese President Hu Jintao, Brazilian President Dilma Rousseff, Russian President Dmitry Medvedev, Indian Prime Minister Manmohan Singh and South African President Jacob Zuma will attend. With the G-20 group of major economies seeking to remake parts of the global financial architecture, it’s time for the BRICS to test whether they can overcome internal differences and act as a bloc pursuing common interests. “The key priority is for the BRICS to put creative ideas on the table rather than just react defensively to proposals put forward by the advanced economies,” said Cornell University economics professor Eswar Prasad, former head of the International Monetary Fund’s China Division. Though largely an ad-hoc grouping at present, the BRICS have the potential to emerge as a new force in world affairs on the back of their massive share of global population and economic growth. With the inclusion of South Africa, the group accounts for 40 percent of the world’s people, 18 percent of global trade and about 45 percent of current growth, giving them formidable heft when dealing with the developed economies. Thursday’s one-day meeting in Hainan’s resort city of Sanya marks only the group’s third annual summit, while moves to lend it greater structure, such as establishing a permanent secretariat, remain under discussion. The five countries are loosely joined by their common status as major fast-growing economies that have been traditionally underrepresented in world economic bodies, such as the International Monetary Fund and the World Bank. All broadly support free trade and oppose protectionism, although China in particular has been accused of erecting barriers to foreign competition. In foreign affairs, they tend toward nonintervention and oppose the use of force: Of the five, only South Africa voted in favor of the Libyan no-fly zone. Yet, while the economies of Brazil, Russia and South Africa are driven largely by raw material exports, India and China – the world’s second-largest economy – are oriented more toward manufacturing and services. Brazil and India are also concerned over large trade deficits with China that critics say are supported by a deliberately undervalued yuan. Politically, Brazil, India and South Africa are functioning democracies, while China, and to a lesser extent, Russia, are authoritarian states characterized by heavy government control over the economy and civil society. The very lack of a common cultural, political or geographical identity brands BRICS as a new type of grouping forged by nontraditional concerns such as trade barriers and monetary policy, said Li Yang, a finance expert and vice president of the Chinese Academy of Social Sciences. “The fact that they are grouped together shows the impact of new factors on international relations,” Li said. In approaching G-20 reforms being proposed by France, which holds the body’s rotating presidency, the BRICS can already point to China’s success in advancing a 6 percent shift in voting rights at the IMF that would give it the third-largest say in decision making after the U.S. and Japan. That move also creates seats for Brazil, Russia, India and China on the IMF’s expanded 10-member governing board, while reducing the influence of Britain, France and Germany. A key concern now will be stemming inflation and pushing back against debt-fueled expansionary monetary policies being pursued by developed nations that now suffer from negative or anemic growth. With about 40 percent of world reserves lead by China with $2 trillion, the BRICS countries share a concern over exchange rate volatility and macroeconomic instability in the developed world. Other priorities include reducing economic imbalances and volatility in commodity prices, pushing for even greater influence in the IMF and other bodies, and gaining a say in the potential introduction of new reserve currencies, possibly including the Chinese yuan. Manbir Singh, a top official in India’s Ministry of External Affairs, said discussions should also cover global security, climate change, and social development goals. At this juncture, the five need to answer some fundamental questions about the future of their bloc, such as whether to plan for a permanent organization or to admit new members, said Zhang Yuyan, director of China’s Institute of World Economics and Politics. “They need to decide whether to focus on boosting coordination among their members or simply representing emerging economies in their dealings with the developed nations,” Zhang said. Regardless of the outcome of such debates, the growth of the BRICS represents an important attempt to create new centers of influence and prevent domination of the world economic order by one or two major players, said South Africa’s ambassador to Beijing, Bheki Langa. “This formation plays a very important role in rebalancing the balance of forces on the world stage,” Langa said.

Read the full article →

Obama Prevents Budget Cuts To Favorite Programs

April 12, 2011

WASHINGTON — Details of last week’s hard-won agreement to avoid a government shutdown and cut federal spending by $38 billion were released Tuesday morning. They reveal that the budget cuts, while historic, were significantly eased by pruning money left over from previous years, using accounting sleight of hand and going after programs President Barack Obama had targeted anyway. Such moves permitted Obama to save favorite programs – Pell grants for poor college students, health research and “Race to the Top” aid for public schools, among others – from Republican knives. And big holes in foreign aid and Environmental Protection Agency accounts were patched in large part. Republicans also gave up politically treacherous cuts to the Agriculture Department’s food inspection program. The full details of Friday’s agreement were released early Tuesday Morning. They reveal a lot of one-time savings and cuts that officially “score” as cuts to pay for spending elsewhere, but often have little to no actual impact on the deficit. As a result of the legerdemain, Obama was able to reverse many of the cuts passed by House Republicans in February when the chamber approved a bill slashing this year’s budget by more than $60 billion. In doing so, the White House protected favorites like the Head Start early learning program, while maintaining the maximum Pell grant of $5,550 and funding for Obama’s “Race to the Top” initiative that provides grants to better-performing schools. Instead, the cuts that actually will make it into law are far tamer, including cuts to earmarks, unspent census money, leftover federal construction funding, and $2.5 billion from the most recent renewal of highway programs that can’t be spent because of restrictions set by other legislation. Another $3.5 billion comes from unused spending authority from a program providing health care to children of lower-income families. Still, Obama and his Democratic allies accepted $600 million in cuts to a community health centers programs, $414 million in cuts to grants for state and local police departments, and a $1.6 billion reduction in the Environmental Protection Agency budget, almost $1 billion of which would come from grants for clean water and other projects by local governments and Indian tribes. The National Institutes of Health, which funds critical medical research, would absorb a $260 million cut, less than 1 percent of its budget, instead of the $1.6 billion cut sought by House Republicans. Family planning programs would bear a 5 percent cut rather than being completely eliminated. Homeland security programs would have to take their first-ever cut, though much of the 2 percent decrease comes from a $786 million cut to first responder grants to state and local governments. The IRS would see its budget frozen but be spared the 5 percent cut sought by House Republicans. About $10 billion of the cuts already have been enacted as the price for keeping the government open as negotiations progressed; lawmakers tipped their hand regarding another $10 billion or so when the House passed a spending bill last week that ran aground in the Senate. For instance, the spending measure reaps $350 million by cutting a one-year program enacted in 2009 for dairy farmers then suffering from low milk prices. Another $650 million comes by not repeating a one-time infusion into highway programs passed that same year. And just last Friday, Congress approved Obama’s $1 billion request for high-speed rail grants – crediting itself with $1.5 billion in savings relative to last year. The underlying issue is long overdue legislation to finance the day-to-day budget of every Cabinet department, including the Pentagon, for the already half-completed 2011 fiscal year. The measure caps 2011 funding for such operating budgets at about $1.2 trillion. About $10 billion of the cuts comes from targeting appropriations accounts previously used by lawmakers for so-called earmarks, those pet projects like highways, water projects, community development grants and new equipment for police and fire departments. Republicans had already engineered a ban on earmarks when taking back the House this year. Republicans also claimed $5 billion in savings by capping payments from a fund awarding compensation to crime victims. Under an arcane bookkeeping rule – used for years by appropriators – placing a cap on spending from the Justice Department crime victims fund allows lawmakers to claim the entire contents of the fund as budget savings. The savings are awarded year after year. Even before details of the bill came out, some conservative Republicans were assailing it. Rep. Mike Pence, R-Ind., said he probably won’t vote for the measure, and tea party favorite Michele Bachmann, R-Minn., is a “nay” as well. The $38 billion in cuts, Rep. Tim Huelskamp, R-Kan., wrote on his Facebook page, “barely make a dent” in the country’s budget woes. Huelskamp and other conservatives are also upset that most conservative policy “riders” added by Republicans were dropped from the legislation in the course of the talks. The White House rejected GOP attempts to block the EPA’s ability to issue global warming rules and other reversals of environmental regulations. Obama also forced Republicans to drop an effort to cut off Planned Parenthood from federal funding, as well as GOP moves to stop implementation of Obama’s overhauls of health care and Wall Street regulation. The administration also thwarted a GOP attempt to block new rules governing the Internet, as well as a National Rifle Association-backed attempt to neuter a little-noticed initiative aimed at catching people running guns to Mexican drug lords by having regulators gather information on batch purchases of rifles and shotguns. Anti-abortion lawmakers did, however, succeed in winning a provision to block taxpayer-funded abortions in the District of Columbia. And House Speaker John Boehner, R-Ohio, won funding for a personal initiative to provide federally funded vouchers for District of Columbia students to attend private schools. Instead of sharply cutting the Securities and Exchange Commission and the Commodities Futures Trading Commission, both agencies would get increases under the legislation as they gear up to implement last year’s overhaul of financial regulation. And renewable energy programs are cut $407 million below last year, almost 20 percent. The Army Corps of Engineers , which funds flood control and inland waterway projects, will absorb a $578 million cut, representing about 10 percent of its budget.

Read the full article →

SEC Under Criticism Yet Again For ‘Light’ Penalty Against Big Bank

April 7, 2011

The nation’s fourth-largest bank agreed to pay an $11 million fine this week to settle federal charges that it misled investors by hiding critical facts and charging them excessive prices on portions of two billion-dollar securities during the height of the housing boom. Or put another way: For $11 million, one of the world’s biggest investment firms was able to violate basic investor protection rules, defraud its customers, not admit wrongdoing, avoid a trial and likely pocket the profit off similar deals. The investors lost millions. The firm pocketed millions more in profit, more than offsetting the fine. In late 2006 and early 2007, as financial firms rushed to close deals and dump inventory on investors eager to cash in while the good times lasted, Wachovia Capital Markets, a unit of the Wachovia Corporation, sold securities tied to a pair of complex financial products linked to home loans. The products, known as collateralized debt obligations, or CDOs, contained slices of bonds backed by home mortgages. From 2004 through 2007, Wachovia, purchased by Wells Fargo in the fall of 2008, arranged 160 such deals worth more than $75 billion, according to data provider Thomson Reuters. The two targeted CDOs — Grand Avenue CDO II, then worth $1.5 billion, and Longshore CDO Funding 2007-3, then worth $1.3 billion — were then diced up and sold to investors. The riskiest portions promised the highest returns. The Zuni Indian Tribe, whose reservation is in Arizona and New Mexico, and another investor bought some of Grand Avenue. What they didn’t know was that Wachovia, upon closing the deal in October 2006, struggled to find investors to buy those portions, according to a complaint by the Securities and Exchange Commission . The unit of the bank that helped underwrite the deal then marked them down on their books to 52.7 cents on the dollar, a reflection of what the firm thought the securities could fetch in the market at the time the deal closed. Four months later, a different unit of the bank sold those same securities to the Zuni tribe and an unnamed investor at 90 and 95 cents on the dollar, the complaint shows. Though that’s a slight discount than the face value of the securities, it’s far above what Wachovia thought they were worth when the deal closed in late 2006. Worse, the market continued to deteriorate. Wachovia never told their customers they had marked down those assets, or that they had paid “excessive” prices. Grand Avenue entered default in early 2008. In the Longshore deal, Wachovia engaged in something similar, according to the complaint. The firm, in order to avoid recognizing losses on rotting securities, marked up the assets backing the CDO by $4.6 million, above what the firm’s internal calculations showed, the SEC said. Investors weren’t told, nor were they told that the affiliate within Wachovia that carried out the deed hadn’t done so on an “arm’s-length basis.” Seven investors bought portions of Longshore. “Wachovia caused significant losses to the Zuni Indians and other investors by violating basic investor protection rules — don’t charge secret excessive markups, and don’t use stale prices when telling buyers that assets are priced at fair market value,” Robert Khuzami, the director of the SEC’s enforcement division, said in a statement . Wachovia defrauded its customers in numerous ways, according to a cease-and-desist order prohibiting Wachovia’s successor, Wells Fargo, from engaging in the same kind of conduct. The firm ripped off investors, didn’t tell them about it, and its internal compliance department failed to catch any of it. Wachovia gave up what the SEC calculated to be $6.75 million in ill-gotten profit, and a penalty of $4.45 million. Most of that money will go to the swindled investors. But one wouldn’t know the severity of the crime by looking at the penalty, market experts say. “Once again, the SEC is giving a bank a light tap on the wrist for egregious behavior,” said Janet Tavakoli, a Chicago-based derivatives expert and founder of Tavakoli Structured Finance. “Now it’s Wachovia, but they’ve done that with many other banks as well.” During the boom, CDO underwriters took home at least 1.5 percent of the CDO’s face value as fee, experts say. For the $1.5 billion Grand Avenue CDO, that’s about $22.5 million. For Longshore, that’s equivalent to $19.5 million. Combined, Wachovia likely made about $42 million in fees. The penalty for Wachovia’s violations is about a quarter of that. The SEC has come under withering criticism for its apparently lax approach towards penalizing the nation’s largest financial institutions for crisis-era securities violations. Since the onset of the crisis, the SEC has found problems at Citigroup, Goldman Sachs and Bank of America, among others. Citigroup misled investors in 2007 about its exposure to more than $50 billion in securities tied to subprime mortgages. Bank of America didn’t tell investors voting on its 2008 merger with ailing investment bank Merrill Lynch that it had authorized nearly $4 billion in employee bonuses at the firm, which lost nearly $28 billion that year. And Goldman Sachs allegedly helped set up a mortgage-linked investment for a favored client that was designed to fail, yet sold it anyway to its other clients, reaping the favored client nearly $1 billion. Citigroup settled for $75 million. Bank of America settled for $33 million. Goldman settled for $550 million. The three firms collectively hold more than $5 trillion in assets. Wells Fargo, which assumed Wachovia’s liabilities when it bought it in 2008 for about $13 billion, has nearly $1.3 trillion in assets. “The SEC may as well just, like on the back of a parking ticket, list the fines so that firms can do a cost-benefit analysis as to whether it’s worth breaking the rules,” said Joshua Rosner, managing director at independent research consultancy Graham Fisher & Co. “Based on what we see out of the SEC, it appears to generally be in the interest of corporations to break those rules.” Wachovia, Tavakoli said, faces numerous lawsuits tied to its sale of complex financial products and soured mortgage loans it made to home buyers across the country. “Wachovia has been involved in a number of dirty deals,” she said. “It has this huge background of problems, and for the SEC not to use its moral authority is ridiculous.” Rosner said the allegations against Wachovia — not disclosing the true price of securities to buyers, and misleading investors about the involvement of its affiliates — were common throughout the industry when it came to packaging and selling CDOs. “It seems strange that there would have only been two such deals,” he said. The SEC declined to comment beyond its statement. A Wells Fargo spokeswoman said the actions were taken by Wachovia during the early days of the credit crisis, and that it was pleased to have resolved the matter. ************************* Shahien Nasiripour is a business reporter for The Huffington Post. You can send him an e-mail ; bookmark his page ; subscribe to his RSS feed ; follow him on Twitter ; friend him on Facebook ; become a fan ; and/or get e-mail alerts when he reports the latest news. He can be reached at 917-267-2335.

Read the full article →

Rajeev Sharma: America’s Relationship with India: A Source of Security in Times of Turmoil

April 1, 2011

Imagine a country that declares its independence from Great Britain, forges democracy from diversity, enjoys robust economic growth, and emerges as a world power. You’ve just described the United States — and modern India . In the midst of near-double-digit unemployment, many Americans are anxious about any nation that competes for high-skill jobs. But, when it comes to creating jobs, resisting terrorism, and advancing human rights, US — India relations should be regarded as an asset, expectant with opportunity, not a source of anxiety. Now is the time to broaden and deepen this mutually beneficial relationship. Commerce Secretary Gary Locke’s recent trade mission to India highlighted the economic advantages of an alliance between the world’s two largest democracies. Secretary Locke was accompanied by executives from 24 American businesses including small and medium sized enterprises. Building on President Obama’s very successful delegation to India in November, these visits are reaping rewards for American businesses and workers. Having accompanied both President Obama and Secretary Locke on each of their missions, I have personally witnessed their benefit in the increased awareness of and accessibility to US businesses in India. Most importantly, I have witnessed the impact of these trips on my fellow delegates, many of whom were visiting India for the first time, and the realization of their potential in the burgeoning Indian market. During the President’s journey, US companies completed more than $10 billion in business deals, supporting more than 50,000 American jobs at major employers. Following up on these gains, Secretary Locke’s trade mission tackled tough issues, such as tearing down trade barriers in the advanced industrial sector. As these tariffs are reduced or removed, US companies are able to expand their exports to India — and create good jobs here at home — in cutting-edge industries: civil aviation, renewable energy, communications, information technology and defense and security. These trade missions are bearing fruit because India’s fast-growing market is increasingly receptive to American exports. For its first four decades after independence, India’s economy was state-controlled and stagnant and it was considered a more challenging market to enter than China. But, following free-market reforms, including reductions in tariffs and taxes, India’s economy took off at an ever-accelerating rate, most recently growing by 5.5 percent in 2009 and an estimated 9.7 percent in 2010. India now plans for nearly a trillion dollars worth of infrastructure upgrades to its roads, bridges, harbors, water treatment and power plants, opening up opportunities on an unprecedented scale. As I write this, our company’s next generation, plasma gasification waste-to-energy solutions are being commercialized in India, both in thriving metropolitan centers and small villages without access to electricity. We are responding to a sharp growth in demand for power in India and a call by the Indian Government for 14,500 MW of added capacity from renewable sources by 2012. Competing and winning in a free market with US developed Intellectual Property, we are directly benefiting from the closer bilateral relations between the two countries. And our experience is not unique. American exports are growing in tandem with India’s economy, increasing by nearly 170 percent from 2005 through 2009 and amounting to nearly $50 billion in 2010. These exports are in sectors that help build America’s future with well-paying jobs — machinery ($2.3 billion in 2009), aircraft and parts ($2.3 billion), electric machinery ($1.3 billion), and fertilizers ($1.1 billion). Communities in this country with the largest exports to India include California ($2.2 billion) Washington ($1.8 billion), New York ($1.5 billion) and Florida ($1 billion). As exports continue to grow, those benefits will expand both within these communities and to other regions throughout the country. With India’s middle class expected to expand tenfold from 50 million to 500 million over the next 15 years, the potential market for American goods and services is extraordinary — and exponentially increasing. This is especially important because in a Global Attitudes Survey, over 76 percent of Indians responded with a favorable view of the US. This goodwill is an amazing foundation that extends to American products and American culture. But we face unrelenting competition from China, Russia, France, Britain and other rivals who aggressively want to establish dominance in this growing market, too. The prize: hundreds of thousands of high-wage, export-based jobs Our focus must be to innovate, compete and expand into this vast emerging market. Jobs created from an innovation economy provide stability and growth to the US and allay past concerns about issues such as outsourcing. And when domestic industries expand in India, we should recognize opportunity in their success, not view them as an opportunity lost. For example, India’s vaunted software and services industry accounts for about $60 billion in aggregated revenue, and spending in these sectors is forecast to grow over 17 percent per year between 2010 and 2014. In the midst of one of the most competitive markets for software services, our company is gaining traction with its open source, real time situational awareness and Cyber security software solutions both in commercial and government markets. Innovation and pioneering technology are key differentiators in all markets, even those as competitive as India. Innovation is what has distinguished American IP in the past and has to be the foundation for our growth in the future. In addition to the economic benefits, the American relationship with India is principally based on common interests and common values of free markets and trade. Unbeknownst to many, America is reaping the benefits of the newer phenomenon of growing Indian investments in the US. As Ernst and Young recently reported, Indian companies have increased their investments in the US by more than $20 billion over the past five years, supporting more than 65,000 jobs here in the US. That’s not outsourcing that costs American jobs — that’s in-sourcing that creates American jobs. Under Presidents Bush and Obama, our two nations have strengthened our strategic partnership and increasingly aligned our strategic interests; India, for example, is now the sixth largest bilateral aid donor to Afghanistan. Soon celebrating its 65th anniversary, India’s democracy includes free elections, competing parties, lively media, and an independent judiciary. Meanwhile, more than 3 million Indian Americans, including two Governors, contribute to our own country, participating in our democracy and enlivening our economy. At an event at our home last fall, President Obama eloquently discussed the indispensable nature of the US-India relationship in the 21st Century. The President postulated that the US relationship with India is an asset to be developed for the sake of American jobs and American businesses, American interests and American ideals. Americans from all walks of life can and should embrace India not only as a key partner in this recovery, but also as America’s next great ally. Rajeev Sharma is Chief Executive Officer of ABSi, a technology services and solutions company headquartered in Rockville, Md. ABSi also has offices in New Delhi, India.

Read the full article →

Internet Entrepreneur Bypasses High-Tech For Low-Priced

March 25, 2011

NEW YORK — The numbers that fill Warner Johnson’s head shake him from sleep most nights. There are phone numbers and area codes and long-distance calling rates to far-flung places like India, Slovenia and Hong Kong. Phantom phone calls to Mexico or Martinique ring in his dreams. “I just can’t help it,” Johnson said. “It’s my passion.” Johnson, 48, is a Harlem-based Internet entrepreneur whose model relies less on high-tech gadgetry and more on old-school simplicity and ingenuity. His most recent creation is FreePhone2Phone , a telephone service that offers free 10-minute phone calls to any city in the United States and to more than 50 countries around the world on the condition that the user listens to a short advertisement. Here’s how it works: You dial a local access number that you can locate at FreePhone2Phone.com, you listen to a couple 10- or 12-second advertisements, and then you dial the number you’d like to call. At a time when unlimited cell phone calling plans can easily eclipse the $125 mark, and smartphones and the latest tablets require costly data plans for optimized use, FreePhone2Phone is somewhat of a technological throwback. Its use and appeal harkens back to the days when a few quarters and a phonebook were all you needed to reach out and touch someone. And with the cost of gas prices, airline tickets and perishable goods rising for any number of reasons, millions of Americans concerned with everyday expenses can save anywhere from 10 cents to a $1 a minute off their long-distance charges. Johnson said the target audience for his service is broader than those with family or friends abroad, and includes anyone who wants to save money in these tough economic times. “Imagine you could save money at the gas pump by simply watching a few advertisements. Who wouldn’t do that?” he asked. “This is no different.” While the service is free, there are a few catches. Most overseas calls are limited to landline numbers. Each call is limited to 10 minutes, and if you try to call the same number a second time in the same day, the call is limited to five minutes. But the number of free calls you can make in a single day is unrestricted. Since the launch of FreePhone2Phone seven months ago, Johnson said users have made “millions” of calls and saved “hundreds of thousands of dollars.” (He admits to using the service himself at least three to four times a day to call business partners in Latin America.) His story is the stuff of pure Americana: boy with humble, middle-class roots follows his dreams, takes a few risks and finds himself along the way. And that journey has led Johnson to where he is today — a man on a mission. That singular mission has been to spread the word about FreePhone2Phone. Think an African American Billy Mays, Tony Little or Ron Popeil in a pair of perfectly pressed slacks and a sport coat. He tells the delivery guys schlepping packages up and down his block in Harlem about it. He tells the Indian and Greek waiters at his favorite restaurants. And he can’t take a bag of peanuts from a flight attendant or tip a skycap without at least a mention of FreePhone2Phone. “In the middle of the night, I’ll check the iPad to see how many people on the west coast are making calls to Asia or Europe,” Johnson admitted. “India is really big. Mexico is huge, and people are calling Europe like crazy.” FreePhone2Phone is just the latest venture for Johnson, who spent much of the mid-1980s and early ’90s working on Wall Street as an investment banker with Payne Webber. He is also the creator of the website fabsearch.com , which aggregates travel articles from luxury fashion and travel magazines to help people plan where to eat, stay and play while on vacation. His entrepreneurial impulses were nurtured at an early age, when he said his schoolteacher mother, keen to her son’s motivations, offered some sage advice. “Don’t become a doctor,” he recalled her saying. “You care too much about money to be a doctor.” So began his journey from a middle-class black neighborhood in Raleigh, N.C., where he was bused to integrated schools, to summer classes at the prestigious Phillips Academy, the elite prep school in Andover, Mass., and then to the ivy halls of Brown University, where he studied history. While at Brown, a friend introduced him to a program designed to give minority students access to Wall Street. Johnson said he took to that world naturally, and after graduating from Brown with a degree in history, went on to work as an investment banker. But after years of the stress and grind of working in finance, he felt stymied. “I realized that working on Wall Street just wasn’t for me,” Johnson said. “I was following the book and I could imagine my life with success, but I just said, ‘Why do it if my heart’s not into it?’” He recalled wanting to experience life beyond the tacky wood-paneled offices that he so often found himself in, where he consulted for many deep-pocketed businessmen with even deeper financial troubles. “I looked at Ted Turner and he was a rock star to me,” Johnson said. “Guys like that go out there and risk it.” So he quit his job and moved to France. “I learned French and partied my butt off,” he said, with a bit of boyish mischief in his voice. “I decided to eat pizza and be an entrepreneur.” After living in France for a year and a half, Johnson decided to move back to the States, first to New York City’s West Village neighborhood and then to Harlem. It was 1993 and Harlem had yet to gentrify. “Police helicopters were still flying outside of my window,” he recalled. But he said moving to Harlem, the “mecca of black America,” fueled his social and entrepreneurial juices. He was awed by the architecture and cultural richness of the place. “It has made me so proud to be a black American. And you realize the strength, the commitment, the dignity and the patience of my people,” he said. “But it also energized me to go out there and do things. I felt Harlem provided an open canvas for me to be able to pursue my dreams and I knew that I wouldn’t be judged one way or the other.” There were ups and down along the way, Johnson said. Companies he founded have both flourished and floundered. But the last few years with fabsearch.com have been profitable and full of successes, he said. And word of FreePhone2Phone has been spreading quickly, he said, mostly by word of mouth. (Surely, much of it his own.) There are plans to extend the service to more countries and investors, and advertisers have been extremely supportive given the tough lending and investing environment, he said. Meanwhile, Johnson remains his company’s best pitchman. “Your grandmother doesn’t know how to use Skype or Google Voice,” he said. “But this is simple, easy as using a prepaid calling card.” And he allowed that he is consumed by the need to spread the word about what he believes his product can offer money-conscious callers. “This is my passion and joy,” Johnson said. “I can barely go to sleep without telling people about this service.”

Read the full article →

Warren Buffett Says Possible Successor Could Make ‘A Lot More Money’

March 22, 2011

Berkshire-Hathaway hasn’t picked their next chief executive, but the current one certainly has good things to say about reinsurance executive Ajit Jain . Billionaire Warren Buffett, CEO of Berkshire-Hathaway and the world’s third-richest man , came out on Tuesday with a gushing review of the 59-year-old Jain, saying the company’s board of directors would support his selection as the company’s next Chief Executive Officer if he wanted the position, Bloomberg reports. Buffett says that although Jain, who has been with Berkshire since 1985, isn’t hoping to usurp Buffett’s position anytime soon, “[i]f he was, the board of directors would probably put him in there in a minute.” Buffett also said the Indian-born executive, who he describes as akin to family, had “probably made a lot more money for Berkshire than I have.” Berkshire-Hathaway has been readying for the 80-year-old Buffett’s retirement for some time. Last month, the company announced their search for the next CEO had been narrowed to four candidates , stopping short of listing those included. However, as Bloomberg notes, Buffett did praise a number of executives in his annual letter to the company this year, Jain included. The others, in no particular order, were energy executives David Sokol and Greg Abel, Geico CEO Tony Nicely, and Matt Rose, CEO of Burlington Northern Santa Fe railroads. After his departure, the Berkshire will split Buffett’s three roles — CEO, chairman, head of investments — into distinct positions.

Read the full article →

Regulators Knew Of Understated Seismic Risks To Nuclear Plants For Years

March 18, 2011

By Jim Morris and Bill Sloat The Center For Public Intergrity Nearly six years before an earthquake ravaged Japan’s Fukushima Daiichi nuclear power plant, U.S. regulators came to a sobering realization: seismic risks to nuclear plants in the eastern two-thirds of the country were greater than had been suspected, and engineers might have to rethink reactor designs. Thus began a little-noticed risk assessment process with far-reaching implications despite its innocuous-sounding name: Generic Issue 199. The process, which was supposed to have been finished nearly a year ago, is still under way. It is unclear when it will be completed.GI-199, as it is known, was triggered by new geophysical data and computer models showing that, as the Nuclear Regulatory Commission put it in an August 2010 summary document, “estimates of the potential for earthquake hazards for some nuclear power plants in the Central and Eastern United States may be larger than previous estimates.” Data from the U.S. Geological Survey and other sources suggest, for example, that “the rate of earthquake occurrence … is greater than previously recognized” in eastern Tennessee and areas including Charleston, S.C., and New Madrid, Mo., according to the NRC document. There are 11 reactors in Tennessee, South Carolina and Missouri. GI-199, a collaborative effort between the NRC and the nuclear industry, has taken on new urgency in light of the crisis in Japan. “Updated estimates of seismic hazard values at some of the sites could potentially exceed the design basis” for the plants, the NRC document says. NRC spokesman Roger Hannah said the exercise was never meant to provide “a definitive estimate of plant-specific seismic risk.” Rather, he said, it was done to see if certain plants “warranted some sort of further scrutiny. It indicates which plants we may want to look at more carefully in terms of actual core damage risk.” The information collected under GI-199 has been shared with operators of all 104 reactors at 64 sites in the U.S., Hannah said, and NRC officials are in the process of determining whether any plants require retrofits to enhance safety. He added that the assessment indicated “no need for any immediate action. The currently operating plants are all safe from a seismic standpoint.” Every proposed nuclear plant in the U.S. already must undergo an extensive environmental review that examines the site’s seismology, hydrology and geology, NRC spokesman Joey Ledford said. The Nuclear Energy Institute, a trade group, said in a statement this week that nuclear plants “are designed to withstand an earthquake equal to the most significant historical event or the maximum projected seismic event and associated tsunami without any breach of safety systems.” The U.S. Geological Survey updates its seismic hazard analyses roughly every six years, the institute said, and “the industry is working with the NRC to develop a methodology for addressing” newly recognized hazards. Asked why GI-199 has taken nearly six years, Ledford said, “These are very complicated issues. We’re talking about 64 plant sites. It’s not a small task.” According to a January 2010 NRC document, GI-199 was to have been completed last April. An agency document dated January 2011 says the completion date is “to be determined.” The NRC blamed the delay on issues relating to the release of a copyrighted Electric Power Research Institute report to an NRC contractor and on “the desire for internal and external stakeholder agreement.” Over the years, the NRC often has been criticized for taking too long to resolve important safety issues. One example: what’s known in the industry as a loss-of-cooling accident, regarded as the most serious event that can happen at a reactor. Since the 1980s, the NRC has been looking into the problem of clogged emergency core cooling pumps in boiling water reactors. The issue has not been resolved. The Fukushima Daiishi reactor and 35 reactors in the U.S. are boiling water reactors. Japanese regulators, too, recognized that they had understated seismic risks to their nuclear generating facilities, and were pushing utilities to engineer plants better able to resist tsunamis. At a previously scheduled NRC conference in suburban Washington last week, just days before the 9.0 earthquake that crippled Fukushima Daiichi, Japanese officials briefed their American counterparts on four quakes in Japan since 2005 that exceeded design standards for some nuclear plants. In no case was the damage severe. Nonetheless, the Japanese were re-evaluating seismic data and moving to buffer the plants. At the conference, the Japanese delegation said that tsunamis were a particular concern for coastal plants located in seismic zones. The officials said the industry should build upon “significant progress in tsunami hazard assessment, tsunami warning and mitigation and tsunami resistant design.” EVENTS GET AHEAD OF THE REGULATORS Earthquakes can occur in all sorts of locales. In January 1986, a late-morning quake measuring 4.96 on the Richter scale was blamed for cracks in the Perry Nuclear Power Plant on Lake Erie near Cleveland. At first, people thought it wasn’t a quake; speculation focused on an explosion somehow related to the Challenger space shuttle disaster or an attack on New York City. The newly licensed plant’s reactor was to be fueled for the first time the next day. Officials and the public were caught by surprise; few suspected Northeastern Ohio was in an active seismic zone. But it is. Experts determined that the quake’s epicenter was 11 miles from the plant, which has been dogged by controversy ever since. A previously unknown fault line also runs near the Indian Point plant, 24 miles north of New York City. Indian Point’s two units are up for relicensing by the NRC in 2013 and 2015, respectively, and a fierce battle is expected. New York Gov. Andrew Cuomo, while campaigning last year, called for Indian Point to be closed. Now he has ordered a safety review of the plant. In a 2008 paper, four researchers from Columbia University reported that “Indian Point is situated at the intersection of the two most striking linear features marking the seismicity and also in the midst of a large population that is at risk in case of an accident at the plants.” Indian Point’s two reactors, the researchers noted, “are located closer to more people at any given distance than any other similar facilities in the United States.” The plant’s operator, Entergy Corp., issued a statement saying all its nuclear plants “were designed and built to withstand the effects of natural disasters, including earthquakes and catastrophic flooding. The NRC requires that safety-significant structures, systems and components be designed to take into account the most severe natural phenomena historically reported for each site and surrounding area.” Even where nuclear plants have been built in established zones of potentially severe earthquakes, such as California, scientists are often far ahead of the regulators in raising questions about the safety of the plants. The California Coastal Commission, for example, has been sparring with the NRC over what the commission claims are under-appreciated seismic risks at the San Onofre plant, on the Pacific Ocean south of Los Angeles. After a review several years ago, the commission said “there is credible reason to believe that the design basis earthquake approved by [the NRC] at the time of the licensing of [San Onofre Units] 2 and 3 … may underestimate the seismic risk at the site.” Mark Johnsson, a geologist with the commission, said GI-199 suggests that the NRC is taking such risks more seriously. “In California, we’ve had our differences with the NRC,” Johnsson said, “but they are saying there is credible evidence the earthquake risk in large portions of the country may have been underestimated for decades. We have objected to things they have done. We have not particularly relied on their work here in California. But in this instance they are trying to get it right, I think. They are looking at the new science and are open to it. Right now, there is insufficient data to understand how these faults work at great depths under these power plants.” The Coastal Commission has accused the NRC of trying to weaken safety regulations for spent fuel storage sites in areas prone to tsunamis and quakes. It said the most likely incident on the West Coast would involve a major earthquake “immediately followed by inundation of the damaged facility by a tsunami.” That is exactly what happened in Japan. In a 2002 letter to the NRC, the commission’s executive director, Peter Douglas, said the storage areas should have safety standards “consistent with the requirement for nuclear power plants.” He said the NRC hadn’t offered any logical explanation for trying to weaken the rules. Douglas wrote, “It is especially important that an appropriate standards for … tsunamis be applied because perhaps the most likely scenario for release of radiation to the environment is damage to an [independent spent fuel storage installation] or [monitored retrievable storage installation] during a major earthquake, immediately followed by inundation of the damaged facility by a tsunami.” The NRC rejected Douglas’s complaint and lowered the seismic standards for spent fuel storage. Joe Litehiser, a Bechtel Corp. researcher, has studied the implications of earthquakes on licensing of proposed new nuclear plants in the central and eastern U.S. Litehiser said there is more seismological information available now than there was decades ago, when the existing plants were built. Scientists now believe, for example, that major earthquakes occur around Charleston, S.C., every 550 years instead of several thousand years apart, as industry models had assumed. This is relevant not only because South Carolina has seven active reactors, but because four more units are planned for the state. Applications filed by the proposed operators, Duke Energy and South Carolina Electric & Gas, seek NRC permission to build Westinghouse Advanced Passive 1000 (AP1000) reactors in Fairfield and Cherokee counties. In a March 7 letter to NRC Chairman Gregory Jaczko, U.S. Rep. Edward Markey, D-Mass., wrote that one of the agency’s own experts believes the AP1000’s shield building could “shatter like a glass cup” in the event of an earthquake or a similar disaster. Aaron Mehta and Susan Stranahan contributed to this story. What are the risks of an earthquake beneath a reactor near you? This image combines a 2006 map by the United States Geological Survey showing varying seismic hazards across the U.S. with locations of nuclear reactors. Reactors in black are active; reactors in blue are proposed sites for the new model known as the AP1000. Probability of strong shaking increases from very low (white), to moderate (blue, green, and yellow), to high (orange, pink, and red). Credit: Kimberly Leonard/Center for Public Integrity. For more information on each nuclear reactor in our map, d ownload the list. ” target=”_hplink”> map by the United States Geological Survey showing varying seismic hazards across the U.S. with locations of nuclear reactors. Reactors in black are active; reactors in blue are proposed sites for the new model known as the AP1000. Probability of strong shaking increases from very low (white), to moderate (blue, green, and yellow), to high (orange, pink, and red). Credit: Kimberly Leonard/Center for Public Integrity. For more information on each nuclear reactor in our map, d ownload the list.

Read the full article →

Japanese Nippon, Indian Reliance sign USD680m deal

March 15, 2011

Japanese Nippon, Indian Reliance sign USD680m deal

Read the full article →

Sramana Mitra: Spotlight On The Northwest

March 3, 2011

At this week’s One Million by One Million roundtable, we put a special focus on entrepreneurs in the northwestern part of the United States, and we had three presenters, all from Washington. The first, Nitie Mehta from Redmond, Washington, presented Dental Office Services, a business process outsourcing (BPO) concept targeted to help small dental offices handle their office management, financial processing, claims collections and patient communication functions. Nitie is working with dentists to validate her assumptions about the service, and she is a member of the 1M/1M premium program. In the spirit of 1M/1M, I invited the audience to connect her with dentists in the United States who may be willing to speak with her and help her understand the specifics of what she needs to put together in her offering. And readers, I request you to do the same. Please feel free to e-mail Nitie with your suggestions through 1M/1M. Meanwhile, I also asked Nitie to look into what athenahealth offers in terms of dental practices since they are one of the most successful SaaS-enabled BPO companies in existence right now in the field of healthcare IT. It would be a good idea to explore what part of their technology could be used to deliver what Nitie wants to offer. You can read more about athenahealth here . We also had two other entrepreneurs who are working with the William Factory Incubator in Tacoma, Washington. Scott Deutsch and Robin Deutsch with WiseMind Studios LLC in Tacoma presented Life Skills Winner, a learning app to help autistic and developmentally challenged children learn certain skills. The app has just been released and has been downloaded about 250 times in a week, which is a good start. While I like the basic concept, the company needs to do a lot of positioning work. It’s a bit all over the place, trying to cater to everybody and their mother (literally), including refugees from developing countries. I advised them to focus on parents of autistic children of a certain age band, say 5 to 7 years. It is that kind of precision that will drive a focused go-to-market strategy. Then Greg Snead, also from Tacoma, discussed Orbiter , an RFID venture that is moving along quite nicely, having clocked more than $700,000 in revenue last year. The company has bootstrapped using services, a philosophy we espouse heavily in 1M/1M, and has simultaneously gathered a group of angel investors who are supporting it through the next phase. At this point, Greg is in the process of bringing in two additional investors, and the primary topics of our discussion were valuation and ROI issues around the new investors. Orbiter expects to give its investors a 15 times return on investment based on their current pipeline and revenue forecast. If that does happen, I would say the investors will have done extremely well. In addition to the Northwest contingent, we had Dan Stewart from Safety Harbor, Florida, pitching Happy Grasshopper . Dan is also a premium member of the 1M/1M program and a serial entrepreneur, having done about seven companies so far. Happy Grasshopper is an e-mail marketing service that assists real estate agents in reaching out to their networks and generating referrals. Dan is already seeing strong conversion from site visitors to free registrations (over 17%, which is excellent), and reasonable conversion from free to paid subscribers for the service. Dan wanted to know how to increase the conversion. My sense is that because Dan has such good ROI case studies, it would simply be a matter of showcasing these case studies prominently on the landing page and then focusing on increasing traffic flow into the site. We discussed a numbers of customer acquisition methods to do so. We also discussed Dan’s options vis-à-vis channel partners. Up last, Thomas Vellaringattu from San Jose, California, pitched Social Pulse , a service through which he is helping small businesses that are not terribly net savvy set up profiles and use social media to market and curate relevant information to help them market. Tom wants to use college students and unemployed people and arm them with the Social Pulse platform, such that they can market the service in their local region, as well as make money by building and managing Social Pulse profiles on behalf of local small businesses. Tom has positioning issues and has presented Social Pulse as a much broader service than what it needs to be. We discussed ways to acquire small business customers and how to recruit college students through internships. Next week, we are going to partner with the Indian Angel Network for the strategy roundtable. You can register for the next roundtable here . You can also listen to the recording of today’s roundtable here and select the business you like best through a poll on the 1M/1M Facebook page . Recordings of previous roundtables are all available here .

Read the full article →

Ian Fletcher: Trade Solutions That Won’t Work

February 28, 2011

Americans in recent decades have not, of course, been entirely unaware that America has a trade problem. This has drawn into public debate a long list of proposed solutions. Unfortunately, many will not work, some are based on analytical confusions, and a few are outright nonsense. If we are to understand the true scope of our problem and frame solutions that will work, these false hopes must be debunked forthwith. For example, since the early 1990s it has been repeatedly suggested that the U.S. is on the verge of an export boom that will erase our trade deficit and produce a surge of high-paying jobs. Bill Clinton was fond of this idea, and Barack Obama proposed in 2010 that America double its exports in five years. The possibility looks tantalizing when we observe that America’s exports have indeed been growing rapidly — just not as rapidly as our imports. (Between 1992 and 2008, our exports more than doubled, from $806 billion to $1,827 billion.) This seems to imply that we are not uncompetitive in world markets after all, and that if only our export growth would climb just a few points higher, the whole problem would go away. Unfortunately, our deficit is now so large that our exports would have to outgrow our imports by two percent a year for over a decade just to eliminate the deficit — let alone run the surplus we need to start digging ourselves out from under our now-massive foreign debt. This doesn’t sound like much, but it is, in fact, a very strong export performance for a developed country, and unlikely in the present international economic environment, where every other nation is also trying to expand its exports. Much of our recent export growth has been hollow anyway, consisting largely in raw materials and intermediate goods destined to be manufactured into articles imported back into the U.S. For example, our gross (i.e., not net of imports) exports to Mexico have been booming, to feed the maquiladora plants of American companies along the border. But this is obviously a losing race, as the value of a product’s inputs can never exceed the value of a finished product sold at a profit. Not only is America’s trade deficit the world’s largest, but our ratio between imports and exports (1.28 to 1 in 2010) is one of the world’s most unbalanced. Given that our imports are now 17 percent of GDP and our entire manufacturing sector only 11.5 percent, we could quite literally export our entire manufacturing output and still not balance our trade. Import-driven deindustrialization has so badly warped the structure of our economy that we no longer have the productive capacity to balance our trade by exporting more goods, even if foreign nations wanted and allowed this (which they don’t, anyway). Therefore, the solution will have to come from import contraction one way or another. Exporting services won’t balance our trade either, as our surplus in services isn’t remotely big enough, compared to our deficit in goods (in 2010, $148 billion vs. $652 billion). Neither will agricultural exports balance our trade (a prima facie bizarre idea for a developed nation). Our 2010 surplus in agriculture was only $28 billion — about one eighteenth the size of our overall deficit. 2010 was also an exceptionally good year for agricultural exports; our average annual agricultural surplus from 2000 to 2010 was a mere $15 billion. It is sometimes suggested that to solve our trade mess, America merely needs to regain export competitiveness through productivity growth. Comforting statistics, showing our productivity still comfortably above the nations we compete with, are often paraded in support of this idea. Unfortunately, those figures on the productivity of Chinese, Mexican, and Indian workers concern average productivity in these nations. They do not concern productivity in their export industries, the only industries which compete with our own. These nations are held to low overall productivity by the fact that hundreds of millions of their workers are still peasant farmers. But American electronics workers compete with Chinese electronics workers, not Chinese peasants. It is narrowly true that if foreign productivity is as low as foreign wages — an easy claim to make with aggressively free-market theory and cherry-picked statistics — then low foreign wages won’t threaten American workers. But a problem emerges when low foreign wages are not balanced by low productivity. It is the combination of Third World wages with First World productivity, thanks largely to the ability of multinational corporations to spread their technology around, that has considerably weakened the traditional correlation of low wages with low productivity. For ex-ample, it takes an average of 3.3 man-hours to produce a ton of steel in the U.S. and 11.8 man-hours in China — a ratio of nearly four to one. But the wage gap between the U.S. and China is considerably more than that. In any case, productivity is not in itself a guarantee of high wages. U.S. manufacturing productivity actually doubled in the two decades from 1987 to 2008, but inflation-adjusted manufacturing wages rose only 11 percent. From roughly 1947 to 1973, productivity and wage growth were fairly closely coupled in the U.S., but since then, American workers have been running ever faster simply to stay in place. Wage-productivity decoupling has been even starker in some foreign countries: in Mexico, for example, productivity rose 40 percent from 1980 to 1994, but following the peso devaluation of 1994, real wages were down 40 percent. As I’ve been saying for a while now, a tariff is the real solution.

Read the full article →

Asia’s Richest Man Ink’s Huge Deal With BP

February 21, 2011

MUMBAI (By Jui Chakravorty and Sumeet Chatterjee) – Mukesh Ambani does not do small. He is the richest man in Asia, chairman of India’s biggest listed company, and lives in one of the largest and most expensive homes in the world. On Monday, he struck a deal with BP that will see the British energy giant pump at least $7.2 billion into gas projects developed by his Reliance Industries in one of the country’s largest foreign investments. The blockbuster deal comes less than a year after Ambani won a gas pricing dispute with his younger brother Anil that went all the way to the Supreme Court, leading to the end of a long-running family feud that had captivated India. At 53, Mukesh Ambani is the world’s fourth richest man with a net worth estimated at $29 billion, according to Forbes. The older son of Reliance Industries founder Dhirubhai Ambani, a schoolteacher’s son whose rise inspired a Bollywood film, Mukesh is known to be soft-spoken, a vegetarian and a teetotaller, and keeps a lower public profile than his brother. A chemical engineer by training, Mukesh Ambani dropped out of an MBA program at Stanford University, where he was a classmate of Microsoft CEO Steve Ballmer, and joined Reliance in 1981. After the death of their father in 2002, the two brothers fought publicly, ending with a split of the family business empire in 2005 that was brokered by their mother and saw Mukesh win control of energy-based conglomerate Reliance Industries. Anil, now 51, took control of the telecoms, power and infrastructure businesses. DEALMAKER Mukesh Ambani has been an avid dealmaker. Monday’s deal with BP is expected to boost shares in Reliance Industries, valued at about $70 billion, company watchers said, as it brings in capital and technology. Last year, he struck three shale gas joint ventures in the United States, including a $1.7 billion deal with Atlas Energy to own 40 percent of its Marcellus Shale operations in the eastern United States. Still, not everything he touches turns to gold. Reliance bid $2 billion for 65 percent of troubled Canadian oil sands company Value Creation but did not make it to the finish line. And its $14.5 billion offer to buy bankrupt petrochemicals maker LyondellBasell was rejected. LOW PROFILE A father of three, Mukesh Ambani enjoys watching Bollywood movies in private screenings. By comparison, Anil has been a regular on the social circuit with his wife, a former Bollywood actress. Mukesh’s wife, Nita, is trained in Indian classical dance and runs Mumbai’s Dhirubhai Ambani International School, popular with the city’s elite. She also co-owns the Indian Premier League cricket team Mumbai Indians, for which the Ambanis paid $111 million in 2008. A member of Mumbai’s prosperous Gujarati business community, Mukesh Ambani in 2010 said he would take a two-thirds pay cut after the Indian prime minister commented on “vulgar salaries.” But despite a staid image, Mukesh gave his wife a luxury private jet for her birthday in 2007. Late last year he moved his five-member family — and scores of servants — into a $1 billion, 27-storey home, featuring three rooftop helipads, that towers over south Mumbai. Monday’s deal underscored his penchant for the big. “Mukesh Ambani likes to play only on big platforms, and with this deal he has again shown the desire and hunger in him to take Reliance into a different paradigm,” said Jagannadham Thunuguntla, head of research SMC Global Securities in New Delhi. (Editing by Tony Munroe and Jane Merriman)

Read the full article →

BP Signs $7.2 Billion India Deal

February 21, 2011

LONDON — BP PLC is paying India’s Reliance Industries $7.2 billion to take a stake in key oil and gas blocks, gaining a significant foothold in the Asian country as it continues to reposition global operations following the disastrous Gulf of Mexico spill. The tie-up, which could eventually amount to a $20 billion investment from BP, was announced Monday and includes an agreement between the two companies to form a joint venture to source and market gas. London-based BP is making the initial payment for a 30 percent stake in 23 oil and gas blocks across India covering around 270,000 square kilometers, making the partnership the country’s largest private sector holder of exploration acreage “The partnership will combine BP’s world-class deepwater exploration and development capabilities with Reliance’s project management and operations expertise,” the companies said in a statement after BP Chief Executive Robert Dudley and Reliance Chairman Mukesh Ambani signed the deal in London. BP said that potential future performance payments, based on exploration success that results in development of commercial discoveries, are worth $1.8 billion while overall investment could eventually rise to $20 billion. “India is one of the fastest growing economies in the world,” said Dudley. “By allying ourselves with Reliance, we will access the most prolific gas basin in India and secure a place in the fast growing Indian gas markets, creating a genuinely distinctive BP position.” The deal marks another major strategic step for BP in the wake of the Gulf of Mexico oil spill last year. The company earlier this month reported a $3.7 billion loss for 2010 – its first loss in almost 20 years – as a result of the Deepwater Horizon disaster. It also announced plans to rebound from the Gulf of Mexico by looking outside the United States, where it is selling almost half its U.S. refinery business. “This partnership meets BP’s strategy of forming alliances with strong national partners, taking material positions in significant hydrocarbon basins and increasing our exposure to growing energy markets,” BP Chairman Carl-Henric Svanberg said of the Reliance deal. The Reliance deal comes a month after BP signed an $8 billion share swap deal with Russia’s OAO Rosneft to explore the Russian Arctic region.

Read the full article →

America’s Poorest County

February 13, 2011

ZIEBACH COUNTY, S.D. — In the barren grasslands of Ziebach County, there’s almost nothing harder to find in winter than a job. This is America’s poorest county, where more than 60 percent of people live at or below the poverty line. At a time when the weak economy is squeezing communities across the nation, recently released census figures show that nowhere are the numbers as bad as here – a county with 2,500 residents, most of them Cheyenne River Sioux Indians living on a reservation. In the coldest months of the year, when seasonal construction work disappears and the South Dakota prairie freezes, unemployment among the Sioux can hit 90 percent. Poverty has loomed over this land for generations. Repeated attempts to create jobs have run into stubborn obstacles: the isolated location, the area’s crumbling infrastructure, a poorly trained population and a tribe that struggles to work with businesses or attract investors. Now the tribe – joined by a few entrepreneurs, a development group and a nonprofit – is renewing efforts to create jobs and encourage a downtrodden population to start its own businesses. “Many, many people make these grand generalizations about our communities and poverty and ‘Why don’t people just do something, and how come they can’t?’” said Eileen Briggs, executive director of Tribal Ventures, a development group started by the tribe. “It’s much more complicated than that.” The Cheyenne River Indian Reservation, created in 1889, consists almost entirely of agricultural land in Ziebach and neighboring Dewey County. It has no casino and no oil reserves or available natural resources. Most towns in Ziebach County are just clusters of homes between cattle ranches. Families live in dilapidated houses or run-down trailers. Multicolored patches of siding show where repairs were made as cheaply as possible. Families fortunate enough to have leases to tribal land can make money by raising cattle. Opportunities are scarce for almost everyone else. The few people who have jobs usually have to drive up to 80 miles to tribal headquarters. The nearest major population centers are Rapid City and Bismarck, each a trip of 150 miles or more. Basic services can be vulnerable. The tribe’s primary health clinic doesn’t have a CT scanner or a maternity ward. An ice storm last year knocked out power and water in places for weeks. And in winter, the gravel roads that connect much of the reservation can become impassable with snow and ice. Nearly six decades after the reservation was created, the federal government began building a dam on the Missouri River, but the project caused flooding that washed away more than 100,000 acres of Indian land. After the flooding, the small town of Eagle Butte became home to the tribal headquarters and the center of the reservation’s economy. “There are things that have happened to us over many, many generations that you just can’t fix in three or four years,” said Kevin Keckler, the tribe’s chairman. “We were put here by the government, and we had a little piece of land and basically told to succeed here.” But prosperity never came. The county has been at or near the top of the poverty rankings for at least a decade. In 2009, the census defined poverty as a single person making less than $11,000 a year or a family of four making less than $22,000 a year. Eagle Butte has few businesses and the handful that do exist struggle to stay afloat. The town has just one major grocery store, the Lakota Thrifty Mart, which is owned by the tribe. There’s also a Dairy Queen, a Taco John’s and a handful of small cafes. There’s no bowling alley, no movie theatre. But a few entrepreneurs are trying to break the cycle of failure, with mixed results. Stephanie Davidson and her husband, Gerald, started a plumbing-and-heating business in 2000 with a single pickup truck. Eventually, D&D Plumbing started to grow, and they hired several employees. But the reservation economy, which was never strong, has been hit hard by the economic slump. Many customers don’t have the money to pay for work upfront, and the Davidsons have struggled to get contracts in new construction, such as a nearly $85 million federal hospital being built to replace the aging clinic. They’ve laid off employees and filled empty space in their building by adding a bait shop and then a deli. Nothing has worked. “People think you’re a pillar of the community because you have a business, and that part of it is good,” Stephanie Davidson said. “We don’t feel that way right now because we’re having such a tough time.” Nicky White Eyes, who owns a flower shop on Main Street, says there are days when she doesn’t sell a single flower. Most of her business comes from families who get help from the tribe to buy flowers for a relative’s funeral. “We’re getting by with nothing extra,” said White Eyes, who said she hasn’t taken any salary in the months since she quit another job to run the shop full-time. “But no, I have too much heart in it to let it go quite yet.” The nonprofit Four Bands Community Fund has invested in both businesses and people in Eagle Butte. The group teaches residents basic financial skills – how to open a checking account, how to save money on a budget and how to develop credit. “You have the most complicated little world here,” said Tanya Fiddler, Four Bands’ executive director. Without a viable private sector, federal money permeates every part of life here. The federal government pays for the Bureau of Indian Affairs, the Bureau of Indian Education and the Indian Health Service, three of the reservation’s largest employers. Businesses rely on the federal money that comes into the reservation. Federal stimulus dollars are paying for the new hospital, which will create about 150 permanent jobs when it opens this year. Other federal contracts bring sporadic jobs, too. One tribal success story is Lakota Technologies, which has attracted call-center and data-processing work and trained hundreds of young people since it started more than a decade ago. The company now employs a handful of tribal members on a State Department sub-contract, even though most of its cubicles remain empty. But other businesses owned by the tribe have run into trouble. Last year, a buffalo-meat processing company was sued by a rancher in federal court. The lawsuit accused the company, Pte Hca Ka Inc., of not delivering on contracts. A federal judge ruled against Pte Hca Ka for $1.1 million when it did not respond to the lawsuit. Keckler, the newly elected tribal chairman and a former business owner, has pledged to try to fix the problems. He said previous officials have rejected overtures from outside investors because they feared the loss of tribal control or the risk of losing their positions. “It’s difficult for us to get people to come here and have faith in us as a government,” he said. “We just had a new election, and there was discussion about, ‘Oh, people want to give away things.’ Those are kind of the issues that we have.” Still, there are small reasons to hope. Later this year, the tribe will start to receive payments from a $290 million settlement with Congress related to the farmland that was lost to the Missouri River flooding. The tribe will receive annual interest on the settlement money starting this fall. This year’s payment could be as much as $75 million, according to one tribal estimate. A Department of Treasury spokeswoman says the final amount hasn’t been determined yet. That money can be used for infrastructure improvements, economic development and education. Raymond Uses The Knife, a rancher and tribal councilman, wants the reservation to be “accessible for other companies to come in and invest their money right here.” “We have to attract business. Regardless of how much money we have, we can’t set up our own businesses,” he said. “We also have to realize that we’re all not experts.” Meanwhile, groups like Tribal Ventures and Four Bands continue to look for ways to bring in jobs and help those who are fighting the decades-old obstacles here. “You can have all the heart you want, but you have to have actual cash and resources,” said Briggs, of Tribal Ventures. “All those things play a part in our being able to basically use our greatest asset, which is our people.”

Read the full article →

Clean Global Energy Limited (ASX:CGV) Signs UCG Licensing Agreement With Indian Energy Multinational Essar (LON:ESSR)

February 9, 2011

Clean Global Energy Limited (ASX:CGV) Signs UCG Licensing Agreement With Indian Energy Multinational Essar (LON:ESSR)

Read the full article →

Sramana Mitra: Indian Entrepreneurs Are Maturing

February 6, 2011

For this week’s One Million by One Million round-table, we partnered with the Indian Angel Network (IAN). India, as you all know, is a rising power in the entrepreneurship firmament, and the country’s entrepreneurs are making a long-awaited switch from pure outsourcing and labor arbitrage to now venturing into building Internet companies, cloud businesses, and, as you will see in today’s presenters, some very cool hybrid businesses that leverage India’s cheap labor pool and combined with sophisticated technology, deliver solutions to hairy and hard core problem domains. It is particularly satisfying for me to work with these entrepreneurs, because I have long believed that India needs to diversify out of pure labor arbitrage. I deliberately wrote a highly controversial series of articles in 2008 [ Death Of Indian Outsourcing ] to provoke a debate on the topic. Other discussions on India’s need for product companies have also been equally controversial. But in the end, I believe, we have arrived at a better place as an industry where Indian entrepreneurs are thinking beyond outsourcing. Meanwhile, outsourcing itself is absolutely booming. You can read more on the topic in Top 10 Outsourcing Trends Of The Decade , while I discuss some of the entrepreneur pitches we discussed today. First up today was Ankur Tripathi with IRTEX: Indian Road Transportation Exchange . Ankur has underscored a very real and substantial problem in the transportation industry spanning road, rail, ship – that very often vehicle capacity goes under utilized due to lack of information on cargo and its whereabouts, and lack of communication among shippers and their clients. I like this business very much, and believe it can be a large, and important company. It reminds me somewhat of RedBus, India’s largest online bus-ticketing company , that went into a very low-tech, inefficient industry and completely changed its dynamics. In today’s session, we primarily discussed Ankur’s scaling challenges and prioritization issues. We also discussed how to move this cash transaction oriented business to a more efficient, electronic payment mode. The industry is extremely low-tech, but in today’s India, everyone uses mobile phones. I pointed Ankur to Obopay, a mobile payment solution , by which, conceivably, he can turn the cash-intensive nature of the business to a more efficient and accurate workflow. Then Praful Thachery pitched Delyver Retail Network – a home delivery solution through which Praful is already delivering food, flowers, and a variety of other products and services (like dry cleaning) to over 5,000 customers in Bangalore. The value proposition is sound. The Indian cities are incredibly crowded today and traffic is an absolute nightmare. Upwardly mobile consumers, I am sure, would welcome a service like Delyver. Praful is looking to scale his business, and needs cash to open additional hubs in Bangalore, as well as elsewhere. He also wants to build optimization technology to make the delivery process — today managed largely by hand — better optimized. For an investor, Praful needs to present a thorough financial analysis — based on his first 5,000 customers — on what are the margins and mechanics of the business he is trying to build, and also a clear articulation of the growth levers. Next Kiran Reddy presented Saagam.com . I learned that there are educational institutions in India that cater to non-resident Indians, and out-of-state students on a quota basis, but the information flow is extremely limited. Kiran is trying to bring transparency to the industry that currently has some awkward behavior like admission in exchange for donations! I detected a major flaw in Kiran’s business model assumption. He wants 8% commission off the admission fee for every students that he helps the institutes recruit, yet the institute wants to slap that fee on top of their regular fee, and pass the charge on to the student. This creates a pricing model disparity, whereby, the tuition fee on Kiran’s site is 8% higher than if the student goes directly to the institute. Well, guess what? The students will do all their research on Kiran’s site, and then go buy from the institute directly! Up last was Tuanni Price presenting Zuri Wine Tasting , a wine education service for African American women with a household income of $40,000 a year. Tuanni has come to realize that this segment has a somewhat specific palette – they like sweeter wines. And of course, at a $40k HHI, they cannot afford to buy Opus One or Stag’s Leap. But in their price range, say, $10-$25 a bottle, there are very nice wines from different parts of the world, and of those there are some that are better suited to the African American palette than others. I like the precision of the positioning in Tuanni’s business. I also think this is a perfect e-Commerce / Web 3.0 opportunity with a well-defined context. And she is also interested in doing a somewhat hybrid business with a physical tasting room in Los Angeles. Speaking of which, I like this trend of hybrid online businesses. I like the way Ankur is using physical resources to address the challenge that his clientele is low-tech, non computer-savvy (forget Internet savvy), and hence unable to provide data through electronic means. Over time, Ankur will be in a position to solve this with technology, but for now, human intervention is just fine. Similarly, Praful’s business is very much a hybrid business where, conceivably, consumers would order online (or by phone), and human beings do the actual delivery. I think, hybrid e-commerce will be a trend this decade. A very good case study to refer to is Fresh Diet , in this context. Overall, I’d like to suggest that entrepreneurs look at the trend more carefully, especially since these kinds of businesses also create a lot of jobs. You can listen to the recording of today’s roundtable here . Recordings of previous roundtables are all available here . You can register for the next roundtable here .

Read the full article →

Gates, Buffett Ask India’s Big Shots To Chip In On Polio Eradication

January 31, 2011

Over the next six months, Bill Gates and Warren Buffett will travel to to India to ask top business officials to ante up to end polio. Gates highlighted in his annual letter the $720 million gap in the Global Polio Eradication Initiative. The Gates Foundation will ask Indian billionaires to be part of the Giving Pledge and donate most of their fortunes to charity. As one of the countries with the highest rate of polio transmission, India’s government, alongside the Gates Foundation, is the biggest contributor to wiping out polio . In 2010, India cut cases by 95 percent , and the disease is close to being stamped out, which would make it the second disease in history to be wiped out, after small pox. Gates calls it “good progress” but says there’s still more work to be done. “If eradication fails because of a lack of generosity on the part of donor countries it would be tragic. We are so close, but we have to finish the last leg of the journey.”

Read the full article →

Marcus Samuelsson: Marcus Samuelsson: A Dispatch From Davos

January 29, 2011

I’m so excited to be here in Davos. I was here many years ago as a student cook. It was the same principle of hard work and trying to not get yelled at in Swiss-German. I’m excited about the discussions here. I heard Medvedev, Clinton, and ran into Bill Gates, and Michael Dell came to one of my sessions. Best food? It’s a tie between the Canadian beaver tails with chocolate and the Indian Pavilion. I love the swiss cheese but can’t make a meal out of it. The hotel where I was part of a dinner had a small explosion the next morning — nobody got hurt but kind of a scary moment. The weather here has been fantastic — I find myself looking at the mountaintop often, but no skiing for me this time. I have now shared my views on food safety, cooking for the State Dinner, cooking from a diversity point of view, food in Harlem, and talked about foodrepublic.com — our site that we will launch in the next month. It’s been such a pleasure being here and I hope I get to come back next year. Gruezi as they say here in Davos, Graubünden. See you in Harlem!

Read the full article →

South Indian Bank wins award

January 19, 2011

South Indian Bank wins award

Read the full article →

Death Toll In Indian Stampede Rises to 102

January 15, 2011

Death Toll In Indian Stampede Rises to 102

Read the full article →

Airbus gets $15b order from Indian airline

January 12, 2011

Airbus gets $15b order from Indian airline

Read the full article →

PM: Indian economy to grow 8.5% this fiscal

January 9, 2011

PM: Indian economy to grow 8.5% this fiscal

Read the full article →

Katherine Jentleson: The Top New York Art Auctions of 2010

December 30, 2010

Throughout 2010, record-setting sales served as powerful jolts of adrenalin for the auction market, which had been sluggish in 2009. The year opened with a bang: In February an iconic, sinewy bronze sculpture of a walking man by Alberto Giacometti stunned Sotheby’s London salesroom when it more than tripled the house’s presale estimate, selling for $104.3 million. Giacometti’s L’homme qui marche I was an outlier; excluding the sculpture’s phenomenal sum, the average price of a work in that sale was only $3.5 million. Nonetheless, the bold display of the Giacometti proved that high quality consignments had the potential to soar in 2010. Consignors responded to this green light immediately. Whereas highly valued masterpieces were rare in 2009, reassured sellers sent top-tier works tumbling across the auction block in 2010. Christie’s and Sotheby’s–the rival auction houses that dominate the market worldwide–ditched the conservative estimates that had become their defense for dealing with conservative buyers and sellers in 2009. In May, for instance, Christie’s offered Picasso’s Nude, Green Leaves and Bust for upwards of $80 million; the work made good on the house’s astronomical expectations, eking past the Giacometti sale price to bring $106.5 million–the highest price ever paid for a work of art at auction. These jaw-dropping sales–along with a slew of unprecedented prices for artists like Amedeo Modigliani and Roy Lichtenstein–made it feel as though the market has fully recovered from the recession, even though it hasn’t. Buy-in rates in most categories are still higher than they were in 2007, and auctions produced fewer sales over $10 million than they did in the heady days of the boom. Even though the market isn’t quite as bright and shiny as it was two years ago, the takeaway from 2010 is that it will bear masterpieces. New York has been the center of much of the year’s record-setting action, holding blockbuster sales of Impressionist, Modern and Contemporary art, as well as notable auctions of Photography, Indian and Southeast Asian art, American art and Latin American art throughout the year. As the Editor of The ART Report, a monthly newsletter that profiles trends in the auction market, I’ve been following these big Big Apple auctions closely; for this slideshow I handpicked a selection of the most memorable New York art sales of 2010. Katherine Jentleson is the Director of Analytics at Art Research Technologies in New York. She is the editor of The ART Report , a monthly newsletter that provides high-level analysis of the auction market in a timely fashion. Her art market research appears regularly in the weekend edition of the Wall Street Journal. She is also a PhD student in the Art History Department at Duke University; her research at Duke is on American art and the art market.

Read the full article →

No Pre-Nup, Big Problems? Hurley Could Lose Millions In Divorce

December 15, 2010

Liz Hurley is set to get a ‘quickie’ divorce from husband Arun Nayar, the Daily Mail is reporting–a move that will ensure she doesn’t lose her multi-millon-dollar fortune. Despite earlier Daily Mail reports that the British actress, 45, stood to lose substantial amounts in the divorce, because she and her Indian businessman husband, 46 did not have a pre-nup, the paper is now reporting a source as having told Indian reporters at the couple’s home in Mumbai, “It will be an amicable settlement with no party giving out large portions of money to anybody. Liz doesn’t want Arun’s money and neither is Arun interested in her wealth.” Hurley’s fortune, which is reportedly substantially larger than her husband’s, includes a £4.3 million farmhouse in South-West England and a £2.5 million townhouse in London , which she co-owns with former boyfriend Hugh Grant. In cases where one spouse is wealthier than the other and there is no pre-nuptial agreement, the poorer spouse can claim for a piece of the richer spouse’s money. Though it’s unlikely that Nayar would have gotten half of her money, he could have demanded other significant divorce spoils–a house, for example. Hurley and Nayar, who were married in 2007 in luxe ceremonies that spanned two continents, are set to split amid allegations that Hurley cheated.

Read the full article →

Inder Sidhu: Profiles in Doing Both: How Cutting-Edge Thinking Keeps Gillette Sharp

December 10, 2010

There’s a movement under way in India that has led to some dancing in the streets . No, I am not talking about some up-and-coming political revolution, but a simple change in consumer behavior instead. It all has to do with a new razor unveiled in October by Gillette. The single-blade razor may look like a throw-back to shavers from another era, but in fact is one of the most significant product launches ever by the company, according to Gillette Chief Technology Officer Bruce Brown. Recently, I had an opportunity to participate in a webinar with Bruce, Emory University Professor Jagdish Sheth and Harvard Business Review contributor and venture capitalist Scott Anthony. Our topic: ” Innovate or Adapt: The Challenge of New Markets .” More than a study of a company’s efforts to grow sales in one emerging economy, Bruce’s story of how the Guard came to be and, moreover, how it could help Gillette in other parts of the world, is a powerful lesson in business strategy. While some only look to the emerging world for new customers or cheap labor, Gillette, Heinz and a growing number of organizations now leverage the creative energies and innovative thinking from there. When Gillette tapped these capabilities, for example, it produced one of the world’s most-effective and yet most-affordable razors. Unveiled in May, the Guard costs less than 35 cents. It provides a clean, close shave for as little as a few pennies each. And thanks to its unique design, it doesn’t nick, scratch or cut men the way that double-edged razors–the most widely used shaving tools in rural India–do. To produce the Guard, Gillette rethought everything it had learned about razors in its 173-year history. Instead of adding more, thinner blades to cartridges as it does to razors sold in the United States, Gillette went back to a single-blade design after spending thousands of hours with Indian men. The company watched them shave, accompanied them as they shopped and discussed with them their personal preferences. What they told Gillette convinced the company to develop the Guard in India, where needs and habits are very different than in America. Consider: In many parts of India, men don’t shave every day. Nor do they have an abundance of water to rinse their razors. Because of these and other considerations, Gillette designed a product that would work with longer hair and require less cleaning. Gillette also reduced by 80 percent the number of parts that go into a razor–a move that helped keep costs down. The net result is Gillette’s first product designed from scratch that features technology and design inputs from customers in the emerging world. It’s a significant milestone for a company that traditionally develops razors, batteries and dental care products in one part of the world and then adapts them to another. And it is just the beginning. Recently, Gillette expanded its research and development center in Beijing, and announced plans to open a new facility in Singapore. Engineers there will collaborate with counterparts in the U.S., Japan and India. The goal? Transfer the best ideas from one part of the world to the other so Gillette can more easily enter new markets and disrupt existing ones. “There are significant synergies between markets that can be tapped,” says Bruce, “and learning from one market can be a foundation as we move to additional markets.” Does this mean you will see some of the thinking that went into the Gillette Guard in a product near you? You might. A low-cost razor for European men who camp in the wild? An affordable, one-time use product for American Emergency Medical Technicians who need to clean wounds quickly? Thanks to doing both–adapting products developed in the established world and innovating new ideas in the emerging one–the possibilities for Gillette are endless. The virtuous, back-and-forth cycle of idea sharing and innovation exchange is helping to make the company one of the sharpest in its industry. When you make razors for a living, that’s a good thing indeed. Inder Sidhu is the Senior Vice President of Strategy & Planning for Worldwide Operations at Cisco , and the author of Doing Both: How Cisco Captures Today’s Profits and Drives Tomorrow’s Growth . Follow Inder on Twitter at @indersidhu .

Read the full article →

Preet Bharara, Scourge Of Wall Street: Prosecutor Making His Mark With Insider Trading Investigation

November 25, 2010

NEW YORK — Preet Bharara was a newly appointed U.S. attorney when he added his own twist to a signature Hollywood line to put Wall Street on notice. “Sometimes,” he said in touting a massive securities case, “greed is not good.” A year later, Bharara hasn’t let up in his pursuit of real-life Gordon Gekkos. Making broad use of wiretaps – routine in mob and drug cases, but groundbreaking in white-collar probes – the Manhattan prosecutor has widened an investigation of hedge funds and other financial institutions suspected of insider trading. The latest arrest came Wednesday, the same day a judge rejected a defense challenge to the wiretap tactic. Amid the crackdown, the 42-year-old Bharara has displayed a trademark tenacity tempered by a humility – a combination that’s won admirers inside and outside the nation’s largest U.S. attorney’s office. “I think he really does appreciate the power of the office and he’s not going to waste it,” said Eric Snyder, who has worked at a Washington law firm since leaving the New York office in June. “There’s outrage out there. He represents the people and he’s going to react to what people are outraged by.” Born in Ferozepur, India, Bharara immigrated with his parents to the United States in 1970 as an infant. He spent his childhood in Monmouth County, N.J., and came away a fan of local hero Bruce Springsteen. He graduated from Harvard in 1990 and Columbia Law School in 1993, and worked in private practice until 2000, when he became an assistant U.S. attorney in Manhattan. Five years later, he became U.S. Sen. Charles Schumer’s chief counsel, helping to lead the investigation into the firings of nine U.S. attorneys under President George W. Bush. Bill Burck, a former federal prosecutor himself in Manhattan who worked as Bush’s deputy White House counsel while Bharara was investigating the firings of prosecutors, said Bharara “comes across as extremely professional and apolitical. He’s viewed by Republicans as a very fair-minded guy who is not motivated by partisanship.” Burck said Bharara’s likability stems partly from his sharp wit. “He’s one of the funniest people you’ll ever meet. He disarms people with his humor and is very self-deprecating. That combination is extremely effective,” he said. Publicly, Bharara goes out of way to credit his 200 assistant prosecutors for a string of recent successes. Behind the scene, he’s shown them his sense of humor by putting together a self-deprecating video montage of news broadcasters’ tortured pronunciations of his name. (It’s bah-RAHR’-ah.) A review of his speeches and his remarks at his swearing-in reception in the Manhattan federal courthouse also revealed a deep devotion to family. During the swearing in, he choked up as he told about his father’s sacrifices, which included living in a small Indian village home that lacked basic plumbing and coming to America with only a few dollars in his pocket. “He will never be more proud of me than I am of him,” he said as his family, including his father, watched. Seconds later, he vowed to honor the obligations of his new job, including to resign, if necessary, over principle; to resist even overwhelming public pressure to do the wrong thing; to banish politics from deliberation and decision-making; to admit mistakes, even if they are embarassing; to view defendants and victims alike with dignity and self-worth and to value fairness over cleverness and justice over victory. He also warned the prosecutors he leads that they might get to know his three children on Halloween. “They will be coming to ask you for candy,” he said. “Lots of candy.” In the year since, he’s led the continuing probe of the collapse of Bernard Madoff’s multibillion-dollar Ponzi scheme and the prosecution of the Times Square bomber and the first trial of a Guantanamo detainee, along with numerous white-collar cases. With great fanfare – including the nod to the “Wall Street” movie franchise starring Michael Douglas as Gekko, a no-holds-barred financier – Bharara announced in October 2009 the prosecution of what he called the largest hedge fund insider trading scheme in history. Since then, 14 of the 23 people arrested in the probe have pleaded guilty, with many of them cooperating. The investigation has led in many ways to the new insider trading probe, an outgrowth Bharara had forecasted that day when he said, “Today, tomorrow, next week, the week after, privileged Wall Street insiders who are considering breaking the law will have to ask themselves one important question: Is law enforcement listening?” Deputy U.S. Attorney Boyd Johnson said he admires his boss and close friend for the personal touch he brings to the job. “He spends a lot of time walking the halls late at night, on the weekends, speaking to the prosecutors about their cases and their lives,” Johnson said. Yet, he added: “He doesn’t have a very high opinion of himself. He’s a confident guy but self-deprecating. He jokes around with the assistants a lot, which I think they enjoy and appreciate.” Burck said he is confident the attention Bharara is getting will not affect his aspirations. “If he was offered attorney general, I think he’d keep his job,” Burck said. “He’s not a guy about titles or prestige. This is not a stepping stone for him. This is what he wants to be.”

Read the full article →

Video: Obamas Honor Diwali With Candle-Light Service, Dancing

November 8, 2010

Nov. 8 (Bloomberg) — President Barack Obama and First Lady Michelle Obama met with school children and attended a candle-lighting service and dance performance honoring Diwali, the festival of lights, this past weekend in Mumbai. They joined young children in a dance dedicated to the Indian region’s fishing traditions. Bloomberg’s Deirdre Bolton reports. (Source: Bloomberg)

Read the full article →

Georges Ugeux: Barack Obama Visits Mumbai…on Diwali!

November 5, 2010

Diwali is the most important celebration in India: it begins today and continues through November 9th. It is the equivalent of Christmas for the Christians or Yom Kippur for the Jews. This is the day that the President of the United States has chosen to visit Mumbai. While the Indian authorities have obviously agreed with the decision to pick this time for the President’s trip, much of the Indian press and public percieve the timing as a lack of sensitivity on the part of the U.S. However, this was not an oversight, and the President lit the traditional “diya” or oil lamp for Diwali at the White House yesterday before embarking on this trip. While observing Diwali was a tradition initiated by George W. Bush, Obama is the first U.S. President to attend events associated with the Indian holiday. “To those celebrating Diwali in India, I look forward to visiting you over the next few days. And to all those who will celebrate this joyous occasion on Friday, I wish you, your families and loved ones Happy Diwali and Saal Mubarak,” said the President. He will pay homage to the victims of the heinous Mumbai attack of November 26, 2008, by Pakistani terrorists. He even decided to stay at the Taj Mahal Hotel Palace in Mumbai, the iconic landmark that remained under the control of terrorists for four days. Was it, however, necessary to send home 90% of the 1,400 employees of the hotel, in order to replace them with US staff sent from thousands of miles away? Was it necessary to have a party of 3,000 people accompany the President? And what about the 43 warships around Mumbai? Was it really important to remove the coconuts from the trees surrounding Mumbai’s Gandhi museum? Was it necessary to prohibit Diwali celebrations in the whole District of Colaba in Southern Mumbai? At a time when we are looking for public saving opportunities, shouldn’t we rethink such escalations in security? The United States protects itself by constantly building higher walls. It reminds us of it the illusion of the Babel Tower: we cannot protect ourselves against the sky, let alone reach it. We human beings, are not able to protect ourselves against every risk. Our denial is very expensive. It is interesting to note that he will visit Holy Name High School, run by the Archdiocese of Mumbai, a very exclusive school but not exactly representative of Indian education. What matters, however, is that Mumbaites and Indians in general, are thrilled to receive the U.S. President who enjoys a hugely positive reputation in India. He and the First Lady are extremely popular, and the pride of welcoming them will supersede the rather strange aspects of the trip. The most delicate economic issue that will be addressed by business leaders from India is the attitude of the United States towards outsourcing. Generally demonized and sometimes considered the source of unemployment in the United States, outsourcing has massively improved the competitiveness of US companies and created hundreds of thousands of jobs in the United States. Outsourcing is for India what the value of the Yuan is for China: the target of considerable misconceptions as well as blunt attacks by U.S. officials. Ultimately, the fact of the matter is that the United States could not satisfy its IT needs with the insufficient number of engineers produced by the country’s Universities. At the end of the day, India and the United States have more fundamental issues to discuss, such as the situations in Pakistan and Iran. And it is true: the countries are natural partners. If the U.S. could realize the immensity of its power and influence in India, perhaps any feelings of being threatened by the country would subside. As to the question of a permanent seat for India at the United Nations Security Council, President Obama acknowledges the difficulty of the issue. There is no doubt that President Sarkozy (who favors India’s entrance) will relinquish the French seat to India! Happy Diwali, the Festival of Lights.

Read the full article →

IMF Chief Warns Against ‘Currency Wars’

October 9, 2010

WASHINGTON — The head of the International Monetary Fund on Friday urged global finance ministers to stop trying to manipulate their currencies for economic advantage and instead to join to save a fragile recovery. The global economy is struggling to emerge from the worst recession since the end of World War II, said IMF Managing Director Dominique Strauss-Kahn. Unless the pace of job growth quickens, he said, “we really face the risk of a lost generation” of young people unable to get work. Strauss-Kahn’s remarks came as finance ministers from around the world gathered for the annual meetings of the 187-nation IMF and its sister lending organization, the World Bank. “We are gathering at a pivotal moment facing a very uncertain future,” Strauss-Kahn told the delegates. “Growth is coming back but we all know that it is fragile and uneven,” he said. Strauss-Kahn said he saw a particular threat to the recovery from a breakdown in cooperation among nations, emphasized by growing talk of currency wars. In recent days, the Obama administration has increased pressure on China to allow its currency to rise in value against the dollar as a way to boost U.S. exports. Various other nations, including Japan, Brazil and South Korea, also have taken steps to keep their currencies weaker in an effort to increase their exports. In comments on Friday, Treasury Secretary Timothy Geithner said that progress in combatting the global recession was being put in jeopardy by China’s resistance to a faster appreciation of the yuan. “Our initial achievements are at risk of being undermined” by countries that are relying on exports for growth instead of building up their domestic demand, Geithner said. Canadian Finance Minister James Flaherty told reporters that the global economy would be the loser if nations followed “beggar-thy-neighbor” currency policies where one country tries to get an advantage over another by lowering its currency, making its exports cheaper. The consequences of such actions “are bad for a world economic recovery that is fragile,” Flaherty said Friday night before a dinner of finance officials from the Group of Seven wealthy industrial countries. Geithner called on the IMF to play a greater role in monitoring economic actions in its member countries, saying such surveillance could be critical in preventing the next crisis. But Chinese officials continued to insist that their efforts to revalue their currency gradually was the best approach. “China will move the exchange rate gradually,” Zhou Xiaochuan, head of China’s central bank, said during a panel discussion Friday sponsored by the BBC. “We will do it in a gradual way rather than shock therapy.” China in June announced that it would introduce more flexibility into its currency system but since that time the yuan has risen in value by only 2 percent against the dollar when American manufacturers contend the yuan is undervalued by as much as 40 percent. China’s gradual pace prompted the U.S. House to vote last month for legislation that would give the administration the power to impose stiff trade sanctions on countries found to be manipulating their currency to gain trade advantages. The measure faces an uncertain fate in the Senate but Democrats wanted a House vote before November elections where the weak economy and high unemployment are expected to be uppermost in voters’ minds. The government reported Friday that the U.S. unemployment rate remained stuck at 9.6 percent in September. Strauss-Kahn said without greater cooperation the global economy will continue to struggle and job creation will remain weak. He noted that since the recession began in 2007, more than 30 million jobs have been lost around the world. Strauss-Kahn spoke as the IMF and World Bank began two days of talks in Washington. Besides those meetings, the finance ministers from the Group of 20 major economies also met. This group includes traditional economic powers such as the United States, Germany and Japan, joined by major emerging countries including China, India and Brazil. In a statement to the annual meetings, Indian Finance Minister Pranab Mukherjee said that the economic slowdown that hit many nations beginning late last spring had dampened optimism about the recovery. “The impact of the crisis is going to last for decades,” said Mukherjee. “It is a great cause for concern that an additional 64 million people have been pushed into poverty.”

Read the full article →

Airbus eyes new height of success in Indian skies

October 2, 2010

Airbus eyes new height of success in Indian skies

Read the full article →

Vivian Norris de Montaigu: The Future of Banking

September 30, 2010

Based on the adherence to the Chatham House Rules, no individuals nor companies will be identified by name. A remote location near St. Andrews, Scotland, was a somehow ideal place for bankers and their technology bedfellows to discuss their common future, held under gray clouds and bad financial news brewing in nearby Ireland, and austerity protests in much of Europe. Except these bankers were 90% from Africa, Asia and the Middle East. The rare European and even rarer (expat) American, although often dominating the speaking space, added little to the reality of those who attended. Underlining this fact was a Kenyan banker who announced a 36% yearly profit or an Indian CEO expanding internationally taking the stage just after a gloom and doom American analyst or frankly depressing former Central Bank representative from the West. Will the emerging market economies be able to sustain this optimism or will yet another wave of crisis hit those markets as well? Or had they learned from the ’97 crisis (bankers from countries such as Thailand helped to put that crisis in perspective) and were thus in better shape to deal with any new ones to come? And is this crisis in the West not a kind of karmic payback for that ’97 Asian Financial Crisis, without which China and much of Asia would have already been much stronger? Africa, without violence, famine and AIDS too would have risen up as a financial leader much earlier. At last these parts of the world, where the majority of the poor, those Bottom of the Pyramid citizens of the world, were seeing a brighter future. Our crisis in the West should not be hindering their prosperity, nor should globalization force those who have begun pulling themselves out of dire poverty, fall back because of rising food prices or debts to the IMF and World Bank. Ironically those same countries, which were told they could not bail out their own banks when times became rough, have been watching closely as the US bailed out its own banks. This kind of hypocrisy does not go down well. I doubt that kind of advice will be listened to again. Yet one hopes they do not follow in our Western footsteps and that regulations will indeed hinder the kind of hyper-speculation and virtual splicing, bundling and reselling of thin air. Ironically we ran into an old friend who had been an executive at a large bank in the US (which had failed) who happened to be vacationing, golfing in St Andrews. When he found out we were attending a banking conference he asked questions, and the answers we provided demonstrated that not all was gloom and doom. The demographic charts showed the aging US and Europe while most of the developing world has young populations that are energetic and entrepreneurial… and which can trade with one another. In other words, speaking from a US perspective, in some ways, they simply do not need us. The former banker friend went on to work with manual laborers and has been questioning the way things were done in the past. He witnessed firsthand how cheap credit and over-expansion brought down a once strong economy. And though the first evening a former Irish rock star turned philanthropist and humanitarian took the stage to address and scold those he perhaps believed to be a Goldman Sachs and City crowd, the reality was that I spent much of the free time discussing with Indian, African and expat US bankers, about the good being done by banking the unbanked, how technology could help speed up that process, and how the BRIC economies were not looking towards their Western colleagues for how to build their economies, but rather trying out new architectures and customer-focused approaches that we in the West would be wise to learn from and implement. Microcredit, women, microsavings were all discussed with bankers who all focused on the human needs in their countries. I was impressed time and again that they did not ignore these difficult topics but were extremely straightforward. I was also frankly shocked as I spoke to several expat American former bankers and analysts who had seen the crisis coming and has moved to Australia and other parts of the world. All of them stated they had done so to ensure their children a better future. WE in the West are now finding ourselves having to stare poverty in the face as much of our population is suffering and without work. There was talk of the end of banks as we know it, mobile banking and bank branches in a box, but also maintaining a human connection and knowing the customer. But the most exciting ideas came from ex-bankers or those who had been running big banks and who were focusing on funding projects and businesses created by women, or looking at how the poorest of the poor were fulfilling their financial needs via new technologies. African telecoms buying up banks, non-banks doing business that used to be monopolized by banks — local investments in Africa and Asia were paying off. But perhaps the most moving part of the event was the final evening, as we were bussed to a farm for a Scottish dinner and dance, accompanied by traditional music of the bagpipes and a farewell sendoff by the Scottish guards. As we stood there, bankers who came in many cases from former European, especially former British empire colonies, watching the cultural manifestation of a fading glory, I realized that the world has already changed, things will never be as they once were, and that is for the best. It is a new time. We need to learn from those we thought we were helping, as they will save us in the end.

Read the full article →

Dot Hill inks key Indian distribution partnership with Knitlogix

September 27, 2010

Dot Hill inks key Indian distribution partnership with Knitlogix

Read the full article →

Video: Societe Generale’s Martin Recommends Japan’s Makita: Video

September 19, 2010

Sept. 20 (Bloomberg) — Todd Martin, equity strategist at Societe Generale, talks about his investment strategy for Asian stocks. Asian stocks fell, led by raw-material producers, after an unexpected drop in U.S. consumer confidence. Martin also discusses U.S., Chinese and Indian economies. He talks with Rishaad Salamat on Bloomberg Television’s “On the Move Asia.” (Source: Bloomberg)

Read the full article →

Hamilton impressed by early Indian GP features

September 18, 2010

Hamilton impressed by early Indian GP features

Read the full article →

Gregory Unruh: Scarcity: The Fountain of Innovation

September 16, 2010

Monday morning Tianjin, China and it’s the first session of the World Economic Forum’s “Summer Davos 2010″ event. Ironically, after a filling breakfast in opulent surroundings, my panel colleagues and I are discussing scarcity. With concerns about peak oil, peak water, peak real estate, peak financial markets – and just about peak everything else – scarcity is on the minds of business and political leaders alike. The panel members come at scarcity from diverse disciplines. I come at it from the perspective of environmental sustainability, where scarcity has been a polemic since at least the 18th century (although the roots go deeper to Roman times in the west and ancient Chinese culture in the east). Most people remember the “Limits to Growth” debate about resource scarcity posited by the Club of Rome in 1972, but the modern dispute begins with the early economists like Robert Malthus, who in 1798 recognized that exponential growth can’t go on forever. When we talk about resources scarcity, we tend to think of energy and material constraints. But that’s only half of the story because it forgets a third important resource: human creativity. It is our current state of know-how that determines how scarce something is. Give a 1970s muscle car to 1 billion Indian drivers and oil will become scarce fast. But if you give them Priuses, it’s a different story. Scarcity is relative. And the mere act of perceiving scarcity changes the game. Great designers understand this. Charles Eames says design is all about innovating around constraints. And it’s the constraints – the scarcity – that fires the designer’s creativity. Smart business people “get it” too. Amazon founder Jeff Bezos embraces self-imposed scarcity saying, “One of the only ways to get out of a tight box is to invent your way out.” These guys are bright and talented, but as is often the case, our best scarcity tutor is Mother Nature herself. Nature is the ultimate example of leveraging the power of self-imposed constraints. Just look outside your window. Amazingly, 95 percent of every living thing you see is made out of just four elements: carbon, hydrogen, oxygen and nitrogen. Out of the 90 plus naturally-occurring elements in the periodic table, nature constrained herself to just four in manufacturing the living world. Most importantly, scarcity of design options has not limited nature’s creativity. There are tens of millions of diverse species and even more miraculous functions. Just think of the super computer banging around in your skull or abalone nacre, a substance that humbles our best high-tech ceramics. And nature builds all these wonders, not by tapping into the intense heats and pressures possible with fossil fuels, but from the free rain of renewable energy of the sky. Nature can do this because of eons of innovating under (self-imposed) scarcity. The result is a tremendous store of know-how encoded into the DNA of living things. Now to be fair, nature has had over 3 billion years to experiment. But remember, nature experiments randomly, subjecting haphazard mutations to the forces of natural selection. If the mutation makes a critter more fit, then the knowledge is conserved in DNA and added to nature’s patrimony of know how. If not, it’s deleted. This fact gives us an innovative advantage. Unlike nature, we can be purposeful in our design decisions, not random. Given the right signals, that is the right constraints, we can innovate ourselves out of scarcity problems. As my WEF Panel colleagues rightly point out, however, it does take some time. Proactive policy that corrects externalities and market failures before a crisis point is reached is needed. But business and government leaders should not fear constraints. Given the right signals innovative designers, engineers and entrepreneurs can get us out of the box. Cross-posted from Forbes

Read the full article →

GlobalLogic Appoints New Chief of Asia Pacific / Managing Director for India

September 16, 2010

MCLEAN, VA–(Marketwire – September 16, 2010) – GlobalLogic, the leader in software R&D services, has appointed Sunil Singh as Chief of Asia Pacific and Managing Director of India. A current resident of Silicon Valley, Singh will relocate to New Delhi to manage GlobalLogic’s Indian operations and market development, as well as guide the company’s overall business strategy in the Asia Pacific region.

Read the full article →