Karnataka assembly elections

The first phase of polling in Karnataka went of peacefully last week. Rural areas reported a much higher turnout than urban areas. There is hope that many more younger voters will exercise their franchise. While that remains to be seen, I sincerely hope that voters will cast their votes after giving due thought to the shenanigans that have marred the coalition government over the past 4 years. The coalition partners have spent more time sparring and trying to pull the rug from under each other’s feet than on governance. Not surprisingly, the state’s development has suffered. New investments into the state have slowed down. Infrastructure has not been given as much attention as necessary and Bangalore has palpably worsened.

Yes, the Metro is finally off the blocks- more than a decade after it was first proposed and the first feasibility report was done. But the new international airport has not become operational yet; connectivity issues to Devanahalli remain unresolved and I suspect that for the first 6 months after the BIAL airport becomes functional, it will take more time for passengers from neighbourhoods in South Bangalore to reach the airport and check in than it will to even fly from Bangalore to Delhi or Kolkata. And if the HAL airport remains open (as may well happen), the chaos will only amplify. Interestingly, Bangalore has become a key point on the election manifestos of both the Congress and the BJP- explicit acceptance that the previous governments have let the state capital down badly.

Irrespective of what exit polls predict, the calculus of coalitions and who finally gets to form the government and becomes CM will become clear only towards month-end, when all 3 phases of polling are done and the results declared. Politics makes for strange bed-fellows and my fear is that we may again end up with dirty coalition politics that further stymies Karnataka’s progress. I hope I am proved wrong.

The rebuilding of Indian hockey

A TV channel sting operation was the undoing of long-time IHF Secretary Jothikumaran. And soon after, KPS Gill has been eased out of his post as IHF President. If the IOA could do it now, why could it not have done it earlier? Anyway, one just hopes that at least now, the process of rebuilding Indian hockey can (and will) begin in earnest. A group of experienced hockey players has been chosen to select the team and one hopes that the collective expertise and experience this group has will enable it to efficiently discharge the responsibility entrusted to it by the nation. Now that there will hopefully be no more “instructions from the top” regarding selection, training, coaching etc., one hopes that Indian hockey will again see an up-tick. Obviously, things cannot change in a month ot two. The new dispensation will have to work tirelessly at strengthening hockey at the grass-roots level and at restoring public confidence and pride in the Indian team and the sport at large. And for its side, what the Indian public will need to do is trust the new establishment - at least give it a fair trial- at least for the next few tournaments.

If they don’t have bread, let them eat cake!

Marie Antoinette and her family paid a very heavy price for her naive comment on the common people of France in around 1789. I shudder to think of the modern day equivalent in India- which is probably the Maoist/naxal attacks one reads about in the newspapers almost daily. Thanks to the drought in Australia, India is finding it hard to import wheat. And why should we import wheat? Simply because we are not growing enough of it at home in India. Thanks to the cartel (OPEC), which is not willing to increase production and hence supply of crude, oil/petroleum prices remain on an upward trajectory. Today, crude is selling for about $120/bbl- nearly 2.5 times the price it sold for a little over 12 months or so ago. Not surprisingly, inflation is on the rise. The official figures peg it at over 7% but if you consider the typcial urban middle class basket of goods, I am sure the figure is closer to 12%. High inflation means higher interest rates, which mean tighter credit availability, which means slower growth. And to top it all, elections in key states like Karnataka are just round the corner, with Lok Sabha elections also less than a year away. Consider the slowdown in the US and Europe and the effect this is having on the Indian IT/ITES sectors and you know why Dr Manmohan Singh and Mr P Chidambaram are worried. I just hope that for all our sakes, the monsoon is normel- and timely.

Caste-based reservation is not tenable

The Supreme Court’s recent judgement to uphold reservation of seats in educational institutions for OBCs (”Other Backward Classes”) has understandably stirred the pot. Opinions and arguments from both camps have been coming thick and fast, whether in private conversations or through the media. There is jubilation in one side, despondency on the other. I do not have anything against the need for some kind of affirmative action to ensure that a level playing field is created for the under-privileged millions in our country. However, where I do have a problem is the manner in which every government in the past 30 years or so has been trying to convert this important socio-economic issue into an issue of vote-bank politics.

So what are my reservations (pun intended) about the reservation policy? The underlying premise of the philosophy of reservation is that all members of the “backward classes” are disdavantaged, while all members of “forward castes” are deemed to be good enough to get admission under ther own steam. I do not think this is a valid assumption; neither is it fair. Economic considerations cannot be ignored in arriving at who needs extra care in our society.

1. A policy of reservation - especially in institutions of higher education- per se does nothing to promote access to primary education. Millions of children will still be denied access to even basic schooling- and it is this lack of primary schooling that often denies acces to future education and employment oportunities.
2. Reservation should explicitly include economic criteria. In my view, a rich person (irrespective of caste) can access and afford education for his/her children and does not need the protection offered by the reservation policy. It is the poor who need such protection- again, irrespective of their caste.
3. Does this policy not reinforce and ecnourage corruption? Rather than study and work hard, it will be tempting for people to spend a few thousands of Rupees on procuring a certificate that states that they are an OBC (or SC/ST for that matter). Again, those that have the money for this will benefit; genuine OBC aspirants without the financial resources will be denied.
4. Where does one draw the line on “reservation”? Why the furore when Raj Thackeray’s MNS is asking for 80% reservation of private sector jobs in Maharashtra for sons and daughters of the soil? And what gets precedence- son of the soil or caste? And how do you categorize someone that is a second-generation son or daughter of the soil?
5. Extending the above point, what happens when the products of a reservation policy enter the job market? Performance evaluation/management is part of every company’s HR mandate. Should there be reservation based on irrelevant, non-performance criteria such as caste? Should it be mandatory for 20% or 30% of the top-performers in any company to be determined based on caste? When the world is moving to ensure equal opportunity by legislating against discrimination on the basis of age, colour, creed, religion, gender, sexual preference and so on, why should we in India promote a culture of discrimination? And what will such policies do to our country’s overall competitiveness- say in a knowledge intensive industry such as IT, consulting or financial services? Should a client have to accept lower standards just because the work was done by someone who got the degre and hence job because of a certificate stating that s/he is of a certain caste, and not because s/he was the best the company could hire? Will you trust a doctor or lawyer if you knew that s/he got her/his degree simply because of her/his caste? This is not to say that everyone who benefits from the reservation system is not competent- but the odds are higher that someone using the policy will have it easier than someone who cannot. And that can cause distortions in professional competency and skills that in turn, can impact our society at large.

As I said before, I am all for leveling the palying field. My recommendation is to make primary education free for the econmically weaker sections of society, independent of caste. Those that come from economically backward sections of society (irrespective of “caste”) should be given additional facilities such as healthy food/nutrition, free books, extra coaching, access to extra-curricular opportunities and so on. Let there be a common “public” examination at the end of 10 years of schooling- and let those that qualify be awarded scholarships for higher education- again, only if they come from economically weak families. Rather than quibble about what constitutes the “creamy layer” and how it is to be defined, give everyone a chance.And may the best boys and girls, men and women be given opportunities commensurate with their performance in an otherwise level playing field. Otherwise, I fear that the much-hyped “India story” will only remain a pipe dream. Worse, a real opportunity for sustainable progress will have been squandered, nay sacrificed, at the altar of political convenience.

There will be many who will quote the case of Tamil Nadu with its ridiculously high % of reserved seats as an shining example of why the policy works. But look at the number of migrants from that state to other parts of the country/world just to pursue education. It is because of such policies that other states are now feeling the pinch and demanding reservation for sons and daughters of the soil. And while there is no official statistic, it would be an interesting study to find out how many thousands of bright students from Tamil Nadu have been denied the opportunity to pursue the field of their choice just because of pernicious policy.

Admittedly, the underlying problem of social oppression and inhuman denial of human rights is very real. It is a slur on our country and a solution must be found to redress those that have suffered. But if 50 years after such policies were first introduced, there is still huge disparity and the need is felt to perpetuate the policy, clearly something is wrong- or has not worked the way it was supposed to. Any which way, it’s time for a change.

On executive search and placement agencies

Over the last decade or so, leading global executive search majors like Egon Zehnder, Spencer Stuart, Stanton Chase and many others have entered the Indian market, in pursuit of business opportunities created by two major trends:

1. MNCs setting up shop in India, looking for local managerial talent at the senior and middle level. It must be said that increasingly, MNCs are also looking for talent to run their businesses outside India as well.
2. Indian businesses globalizing, and consequently looking for talent from around the world- not just for their India operations, but also for business overseas.

But typically, these top tier executive search firms only work to fill the creme-de-la-creme of openings. They research their clients’ needs thoroughly, develop a list of attributes and skills expected and then research potential candidates- often from very different industries as well.  These firms develop a dossier on the candidates and that is then used by the client (in collaboration with the search firm) to arrive at a shortlist and thereafter, make the final selections. When done ell, the process is discreet, effective and increases the odds of finding a good match for the position on hand.

But like every other market in India, the market for search services is also fragmented and fairly well segmented. There are thus many smaller firms (many of whom are one-person operations) that adopt a different approach to sourcing talent. Not for them the finesse of research, dossiers and so on. Their modus operandi seems to be to search job portals like Monster and Naukri for resumes with specific key words and then simply shoot out e-mails or call. This is not to say that this approach does not yield results; however, it can have the immediate effect of annoying the recipient of the mail if the position is grossly not compatible with the experience/profile. I know how I reacted when I got a mail asking if I was interested in a BPO job that required working in shifts. If the sender of the e-mail had spent 2 minutes glancing over my resume, s/he would have discovered that I had 18 yeas of middle/senior management experience and was a far cry from what his/her client was seeking- graduates with less than 1 year experience!

Dear Placement Consultants- every resume in your database is an executive waiting to be placed- or better still, a potential customer. Please treat them with care. And please read through the resume/profile rather than just relying on whether the resume includes words like “experience”, “manager” and “industry”!

The political impact of inflation

Inflation in India has been on the rise for the past few weeks, and now stands at 7%. Much has been said about the economic mpact of high inflation- i.e. interest rates will rise, access to capital will shrink and hence growth will sufer. Indeed, pundits are already talking about 7.5% GDP growth, compared to the 8.5% and 9% a few months ago.

But for politicians, there is an even bigger danger. In the past, price rises have unseated governments and the UPA  will not be immune unless inflation is brought down to half the current level. The government has initiated action, but for these steps to bear fruit will take time- perhaps as much as 6 months. But that is precisely the dilemma. Elections is key states like Karnataka are just round the corner (less than 2 months away), and the Congress can’t afford to lose. In 6 months, the entire country will start prepping for general elections, which will almost certainly be conducted in early 2009 at the latest. Inflation dents any government’s pro-people image like no opposition can. And the UPA’s “aam aadmi” protestations will fall on deaf years. The people will vote through their ballots and a change in guard will be the likely result.

But given that inflation is being driven by factors like the rising price of crude/petroleum, food imports like wheat, edible oil etc., there is perhaps only so much that the government can do. And even if the NDA or some other coalition comes to power, managing the legacy of high-inflation will not be easy; it will take up perhaps the first year or so. It is only by 2009 end or so that one can expect the world economy to come out of the current slowdown. The next 8 months will also see a new President in the White House. What policy changes occur as a result will be a major determinant of the global politico-economic dynamics- and hence inflation.

Decongesting Bangalore

The more I think about it, the more I am convinced that Bangalore’s infrastructure crisis is the result only of a lack of political will, combined with public apathy. I moved to the city some 13 years ago- long before the IT industry struck roots here. In fact, I remember meeting the then Head Honcho of the Metro Rail corporation to discuss project structuring and so on- services offered by the Big 5 firm I worked for at the time. 13 years on, all we have to show is a series of dug-up roads across the city. If only the powers-that-be had moved decisively at the time, Bangaloreans could have been spared much of their daily agony. Even now, I am not convinced that projects like the elevated road on Hosur Road will do much to decongest traffic. It may have been faster and cheaper to develop other roads that connect say Sarjapur Road or Bannerghatta Road with Hosur Road. All it will take is one accident or vehicle break-down on the elevated carriage-way and all hell will break loose. The same thing is true of the “magic box” at the Cauvery theatre junction. Vehicles going towards Mekhri Circle have no choice but to make a left turn at Cauvery, then make a U turn before rejoining Bellary Road after making another left turn. Not only will this slow down traffic considerably, but this also creates a new choke-point at that place. Again, if a vehicle breaks down at the turn inside the maig box, think of the mess it will create. And right now, this is right on the main road to the new airport at Devanahalli!

As real estate prices in Bangalore sky-rocketed, supply became limited. Whether land was bought up by speculators, sharks or parties with genuine needs for a home/office etc., the fact of the matter is that each passing day makes it more difficult to acquire land for public purposes, such as roads and MRT programs. The longer we delay decisions around building expressways, peripheral ring roads and so on, the more it will cost us as citizens of Bangalore- not just in direct costs of fuel, time, wear and tear and stress/fatigue, but also in terms of productivity, health and overall environmental degradation. So many of Bangalore’s famous tree-lined boulevards have been denuded in the last few months. I understand that trees need to be cut to make way for roads. But can’t new trees be planted or existing trees be transplanted? It will of course cost more to transplant trees, but maybe that should go under the head of “intangibles”- after all, there is a certain joy and pride to having trees that are 50+ years old. Here, I am not talking about the Casuarina or Gulmohur trees; I am referring to Neem, Peepul and other such trees that are inherently strong in terms of resistance to rain & winds.

On a recent visit to Hyderabad, I was struck by how much that city has improved visibly over the last five years. Multiple flyovers, wide roads, swanky shopping arcades with bright neon signs…. the traffic snarls are still there in several places, but overall, Hyderabad arguably has better road infrastructure today than Bangalore. Of course, the new airport there will surely cause heartburn and chaos for a few months. After that, people will only remember the facilities offered by the new airport, and not worry so much about the 1.5 hours it takes to get there!

Bangalore Agenda Task Force (BATF), Bangalore Forward, Unlock Bangalore…. so many initiatives, but so little progress. I suppose we only have ourselves to blame.

Salary hikes for Government & Defence employees- what’s the big deal?

The 6th Pay Commission, headed by Justice Srikrishna, has proposed an upward revision in the salaries of central government employees as well as those serving in the armed forces. Note that this is only a proposal; it is upto the government to accept the proposal in toto or in a modified form. Already, the media is going to town, tom-tomming the news about a 40-100% hike in salaries.

Comparisons are always odious, and the comparison between the salaries and perks of government officers and private sector executives is no less so. A leading TV channel commented that a senior IAS officer in Delhi enjoys the benefit of living in a bungalow in a prime location, and valued this at Rs40 lakhs per month in terms of rent. That figure may well be the going rental. But does the private sector also not offer its CEOs and MDs large, furnished flats in Malabar Hills or Carmichael Road in Mumbai? In both cases, the key point being missed is that most of these properties were leased or purchased years ago, at a fraction of the current market value.

The other point that I thought the media missed is the fact that annual compensation increases in the private sector can be as high as 100% (if you also consider bonuses, profit-sharing etc.), while the government pre-specifies the “salary scale” and thus caps annual increments. Of course, government servants enjoy DA, free use of a car and driver, telephone etc. And the “status” or “power” and pelf they enjoy just cannot be monetized. Who else can keep an Ambani or Birla waiting but a senior government official? But do not forget that the private sector is free to revise its C&B even more often than once a year, whereas the Pay Commissions present their recommendations only once every 5 years or so- during which time, the gap between private sector and government salaries keeps widening. There is also, of course, the reality of inflation.

Personally, I think the government must accept these recommendations, if only to attract and retain talent. An exodus, especially of mid-level bureuacrats, can cripple the entire administrative machinery and hence hamper policy formulation and implementation. It is also important that the government sector attracts talent so that we as a nation benefit from good governance, innovation in policy-making and so on. Finally, if the “legal “compensation offered is attractive, one hopes that the bureaucracy’s tendency to seek bribes will also diminish.

Of course, the question of a “secure job” in the government vis-a-vis the “hire-and-fire” culture of the private sector, given its “peformance” expectations is a completely different story altogether. And let me also add that government salaries are paid at least in part by taxes collected from the private sector!

More on what ails Indian hockey

If we are serious about getting our hockey back on track, we need to design and implement a program that will start with 10 year olds, nurture their talent and coach them for the next 15 years or so. District level talent spotting efforts need to be supported with physical and mental conditioning, adequate nutrition and of course, fitness regimes.

The question is not whether a foreign coach can do the job better than an Indian coach. What matters is that whoever is selected to coach the team should know the way the modern game is played- not just in India but also in strong hockey-playing nations like Australia, Germany, Holland and so on. He should be able to meld the individuals (from different parts of the country) into a coherent fighting force.

The recent controversy around Ric Charlesworth’s role in rejuvenating Indian hockey is another example of India’s  hockey establishment being either unable to take the right steps or unwilling to. Either way, it does not bode well for Indian hockey. It should not be about finger-pointing either by former hockey players or current administrators of the game. All sides must put aside their personal differences and work together for Indian hockey- if they are serious about raising the standards. If not, let the Sports Ministry write a requiem for Indian hockey. Let even the limited resources currently being spent on hockey be re-directed to other sports.

Charlesworth was a formidable opponent on the field in his playing days during the seventies and eighties and Indian hockey teams from those periods have often been drubbed by Aussie teams playing under Ric. He probably does have quite a bit to offer Indian hockey, provided we are willing to accept it. However, if Indian talent is uncovered from rural India, and these players are not comfortable with English, we are adding another communication layer/overhead betwen the coach (Ric) and the team. And how well the interpreters do their job will be key. Speaking through interpreters may also inhibit free and frank interactions.

But at this time, we have to start somewhere and I am sure we can do worse than Ric. But the IHF should empower him adequately; else it will only be setting Ric up for failure and after one year, there will be calls for his ouster.

I wonder why corporate India is not more active in supporting hockey. It may be an investment with a 3 year gestation period. But if things go well, the ROI will be manifold. Is any CEO from India Inc. listening? Or should I say, reading this piece?

Eliot Spitzer and Ashley Dupre

Last week, Eliot Spitzer, the Governor of New York state, resigned because his romps with Ashley Alexandra Dupré, reportedly a “high class hooker”, became public. According to reports, Spitzer paid close to $4500 for the pleasure of her company. For the record, she was called “Kristen” and he was just “Client 9″. Of course, all hell broke loose when Ashley discovered who she was “doing” and announced her discovery at the agency she worked through.

Spitzer, who went after Wall Street firms a couple of years ago and is credited with quite a bit of cleaning up in the world of high finance, was spoken of as a potential presidential candidate. Sexcapades per se are not uncommon among public figures; in this case, the fact that he was a married man and had painstakingly built a facade of being clean and above board is what led to his undoing. Another example of momentary lapses in judgment destroying a promising career.

While Spitzer’s career might go down in flames, Ashley’s career seems to be on the ascent. Her album sales have gone through the roof and reportedly, she has a $1M offer from Hustler magazine.

For lots more of the gory details, visit:

http://www.huffingtonpost.com/2008/03/12/eliot-spitzers-kristen-_n_91162.html

Bangalore’s new airport- much ado about nothing

The chaos surrounding Bangalore’s new airport would have been amusing, but for the fact that I am a Bangalorean and have to suffer the consequences. With less than a couple of months to go before its scheduled inauguration, various people suddenly realized that the road connectivity to Devanahalli is inadequate and a lot of time would be wasted in travelling to and from the airport.  Oh really?!  After years of dilly-dallying, the location of the new airport was frozen several years ago. Construction has been on for over 3 years. And the so-called intelligentsia realizes just now that the new airport is not easily accessible? For God’s sake!

Not that the state government is innocent- for years, it has dragged its feet on improving road conectivity, knowing fully well that the airport is scheduled to “go live” in March/April 2008. And now, the road will be constructed in a hurry, with scant regard for quality. In less than 3 months, the carriageway will be pockmarked with potholes (a la the rest of Bangalore). So much for making Bangalore an international city.

Bangalore has grown so rapidly that the existing airport is not adequate to meet demand. Which is why the need for a new airport was felt in the first place. I agree that the move to a new airport will not be easy. We will all pay the price. Hundreds of thousands of litres of fuel will be wasted in travelling to & from Devanahalli. Thousands of productive person-hours will be irretrievably lost. Tempers will fly as vehicles jostle to reach the airport on time and even citizens who do not need to go to the new airport will be inconvenienced because of the traffic restrictions imposed.

But even with all these drawbacks, is it even worth debating whether the existing airport should continue- whether for short haul flights, domestic flights etc.? What about Bangalore’s aspirations (or should I say, pretensions?) of becoming a world-class city? Or is it that “world-class” should only start outside the airport? What about the legally binding agreements that the State & Central governments are signatories to? If BIAL decides to file a case, it could well win, for the time to think about “public interest” was before signing the agreements, and not weeks before the new airport is scheduled to open. And think of what the news of the government reneging on a concession agreement could do to future investments by the private sector- not just in Karnataka bu across the country? And would we be OK losing investments to Andhra Pradesh just because Hyderabad has a better airport? Should any of these happen, I can guarantee that these very same members of the intelligentsia will carp about Bangalore not living up to its expectations and the sad state of “infrastructure”. And may I point out that even though the HAL airport is closer to the city centre, during peak hours, it can take upto 1.5 hours to get to/from the airport to many parts of Bangalore.

The last few weeks have already seen discussions about a high-speed rail link, extension of the regular railway line, etc etc. I think the debate should focus on how best to improve connectivity to the new airport and force the government to act quickly. Bangalore needs an international airport quickly.

The strike, Standing Committee directive, cries by industry leaders to continue with the HAL airport- frankly, it’s all much ado about nothing.

PS: I do not own any real estate at or near Devanahalli!

Indians on the Forbes list of billionaires

L N Mittal, Mukesh Ambani, Anil Ambani and K P Singh of DLF are on Forbes magazine’s list of global billionaires. Mexican telecom magnate Carlos Slim has overtaken Bill Gates, I believe. Another piece of evidence of the emerging new world economic order…. chak de India!

Killing of Indians in the US

In the last year or so, I have read of at least 7 Indian students in the US being killed- whether stabbed, shot or as victims of the shoot-out at Virginia Tech. And several other non-students have also been targeted- the most recent was a Gujarati emigre who had a grocery store in Roanoke, Virginia. I wonder if this sudden upsurge in violence against Indians in the US is motivated by jealousy caused by the fact that Indians emerging as the most affluent segment of US society.

Goodbye, jungle cats…

A tiger census in 2002 estimated that India had over 3500 tigers. Sadly, that number seems to have been over-estimated and a recent report suggests that only 40% of that number- a tad over 1400- may actually exist in the wild. Poachers continue to indiscriminately hunt down the majestic jungle cats in the wild. And if that is not enough, animals that come close to human habitats are also killed.

Would it not be a tragedy if our kids and grandkids had to rely only on photographs of the majestic tiger to get to know what they looked like?

Your privacy may be at risk!

As I was watching people use their fancy mobile phones-with-cameras to take pictures of their friends in public places like malls and airports, it struck me that the very same cameras can easily be used by unscrupulous people to take pictures that can then be sold to sleazy web sites. Yikes! Another example of how technology can be misused with potentially devastating effects on our society. Hint: Raj Kapoor’s film “Ram Teri Ganga Maili” (”RTGM”) perhaps became a hit as much for the scenes showing the protagonist (played by Mandakini) breast-feeding a baby as for the core storyline. If you want another example, think back to the infamous MMS clip from a school in Delhi that spread like wildfire a couple of years ago. See what I mean? All I can say is “please be careful”.