If the leaders of BRICS came to Delhi in search of some mortar to glue them together, they came to a very wrong place.
And they came at a very wrong time, too. New Delhi is, at this time, a place in the midst of scams or at least where everything is dubbed as a scam. Right now, it is the minerals that are in fashion – not only major minerals like coal and iron ore but also the lowly sand and pebbles, the basic building blocs of any kind of mortar. It is also a time when the regional strongmen are accusing the center of diluting the federal character of the country. If, indeed, the BRICS are seriously interested in welding themselves together as a strong counter-weight to the prevailing US-European hegemony over world affairs, they can start by meeting more often in any of the four countries other than the noisy, garrulous democracy that is India.
Are BRICS seriously interested in such an outcome? Unlike the Western powers, the five nations – Brazil, Russia, India, China and South Africa represent different historical and cultural experiences and different geographies. Even the economic models and the development strategies followed by them are widely divergent, ranging from the Chinese statism at one end to the mixed economy of India and the relative free market capitalism of Brazil.
Their political interests diverge, too. China, currently the strongest nation in the group, would like to use the platform provided by BRICS to challenge the US supremacy of the world even faster than it might be able to do it on its own. Russia, under Putin, has a single point agenda of regaining the position it held as a world super power before the dismemberment of the Soviet Union in the 1990s. Brazil, India and South Africa, in turn, have a more modest ambition of acquiring the permanent membership of the United Nations Security Council and would like BRICS to assist them in climbing this first step on the ladder to a collective global leadership.
These differences in nuances were visible even to the naked eye in the New Delhi deliberations as well. With the aim of demolishing the US dollar as a reference currency, Hu Jintao pushed for intra-BRICS trade in local currencies and the setting up of a separate development bank for BRICS nations as well as other emerging economies. Prime Minister Manmohan Singh, on the other hand, wanted reform and recapitalization of the existing Bretton Woods institutions like the IMF and the World Bank by providing greater representation to BRICS nations. The outcome was a compromise in the form of an agreement on intra-BRICS trade in local currencies and a direction to the Finance Ministers of BRICS nations to examine the feasibility setting up a multilateral agency on the lines of the World Bank or the Asian Development Bank to generate resources for funding infrastructure and core sector projects in these countries.
The Summit also set up a target of US$ 500 billion trade by 2015 though all the other countries stressed on China the need to alter the quality of trade amongst nations within the group. The reference was obviously to the value of the Yuan and China’s reluctance to import things other than minerals and raw materials through one mechanism or the other. Outwardly, though, China did succeed in persuading BRICS leaders to put the blame for excess liquidity in the current international financial system on the United States and Europe to divert the accusation against it of manipulating its currency.
The summit was liberal on words when it came to criticizing the west. US and Europe were urged to handle their current crises differently by undertaking structural reforms rather than printing notes and jeopardizing the world. On the political front, the Summit welcomed the joint efforts of the United Nations and the Arab league for ending all violence in Syria and the appointment of Kofi Annan as the joint special envoy for the Syrian crisis. On Iran, the Summit recognized Iran’s right to peaceful use of nuclear energy consistent with its international obligations under the Non-Proliferation Treaty. Essentially in the nature of motherhood statements, they do indicate the group’s desire to play a greater role in international affairs by presenting an alternative, non-western world view.
There was, nonetheless, a marked reluctance to spell out the details or even the cantours of alternative solutions advocated by the group. The countries aspiring for international leadership have to get down to soiling their hands by taking realistic positions rather than merely giving distant calls for peace and amity and good behaviour. The Western nations have been able to forge a unified approach because of their having waged the two World Wars together and because of their shared commitment to universal values like individualism, liberty, equality and human rights and an abiding faith in free markets. Coming as they do from different continents without any shared historical experiences and without any significant past interactions with each other, the BRICS nations are going to take a long time in forging any alternative value systems. Promoting such alternative world vision on the international scale would be even further away.
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That, the fixers and brokers keep crawling up and down each and every corridor of power in the national and state capitals, is the worst guarded secret of the Indian nation.
Then, why this outrage? Why this kolaveri? Why this pretense of injured innocence? The Chief of the Army staff, General V.K. Singh, says that the retired Chief of the Defense Intelligence Agency, Lt. General Tajinder Singh, offered him a bribe of Rs.14 crore for pushing the proposal of buying 600 Tetra-Vectra trucks for the Indian army. He says he was shocked and he went and told the Defense Minister, A.K. Antony, about it. A.K. Antony says he was shocked, too and that he asked the army chief to keep such people away and to lodge a formal complaint against Lt. General Tejinder Singh. The Defense Minster says the army chief told him that he did not wish to pursue the matter.
Two questions arise. Firstly, why were they both shocked? They were not born yesterday. A.K. Antony has been in politics all his life. General V.K. Singh has similarly spent his entire career in the armed services. Surely, they had heard of such things happening around them all the time even if they did not happen personally to them. One can give them the benefit of doubt on the second part, though, it is difficult to believe so. Secondly, why did they not pursue the matter further? The very fact that the army chief decided not to press the issue and the Defense minister did not insist on his doing so does lead to the inference that they were fully aware that these things were routinely happening all around them and that no real public purpose would be served by pressing the matter further.
General V.K. Singh has an impeccable reputation for honesty and integrity. So does Defense Minister, A.K. Anthony. In fact, both of them make a fetish of their honesty and integrity which they wear on their sleeves. That is the reason Delhi’s cocktail circuits have been rubbishing and ridiculing them for being “indecisive”. This whispering campaign has mostly been funded and fuelled by
the foreign defense suppliers through their local agents operating in the respectable garb of international consultancy companies.
But, when they are both that honest, why did they not use this opportunity to crack down on this corrupt environment by making an example of Lt. General Tejinder Singh? The obvious answer is that they did not believe that they would succeed in getting the guilty punished.
The government manuals say that if a government servant receives an offer of bribe, he should not turn it down and should lure the bribe giver into getting him trapped.
Why did General V.K. Singh not follow these instructions? The answer is simple. There are innumerable cases in the country where the public servants trying to follow these instructions have themselves got into trouble because of the counter complaints filed against them by the bribe givers. That breed is so powerful and so well-connected and the police and the criminal justice system in the country so hide bound and inefficient and the people of India so credulous and cynical that the honest public servants following these instructions have spent their lives clearing their own names.
It is well known that agents and fixers and lobbyists are active in Delhi and that procurement through a PSU, in this case the BEML, is often a fig leaf for corruption. The PSU supplier in such cases just provides a cover, of course at a price, and it is the private sector vendors who really lobby for these contracts. None of this is unknown to the powers that be. Are they all corrupt, then, receiving a part of the commissions involved?
Not necessarily, in fact, mostly no.. Why do they remain silent then? That is because the show has to go on and because, otherwise, there would be a complete stalemate in government procurement to the great detriment of the country. If whispers are to be believed, that stalemate, indeed, has been in evidence in defense purchases for the last couple of years. If silence can keep things moving, why not?
General V.K. Singh has broken this golden rule. He may yet repent having done so. Nobody knows.
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The great Indian budget this year is nothing more than band-aid on the festering sores of the Indian economy. It is a holding operation, at best, until the political climate turns more congenial.
The last couple of years haven’t been the best for the economy. Declining growth and output, political uncertainty, and a moribund stock market have all called into question our future economic trajectory. While it is, indeed, true that India’s growth rates still exceed those of the West, and don’t look terribly out of place considering the worldwide slowdown, the growing consensus is that the government has failed to get a grip on the economy.
It is, perhaps, keeping this in mind that Finance Minister, Pranab Mukherjee, quoted Hamlet in his Budget speech. Warning that his measures could prove to be painful, but were required to keep the Indian success story going in the long run, Mukherjee laid out the 2012-13 proposals – which, at face value, seem aimed at balancing revenue collection with growth.
Juggling the variables
However, looking at the proposals in detail, what comes through is a feeling that Mukherjee opted for a band-aid budget that would only tide things over till next year. While the industry and the common man were expecting a strong, growth-oriented budget, what India seems to have received is a stop-gap budget that tries too hard not to directly displease any particular segment of the economy. The danger is that, in the process, it may end up hurting the economy as a whole.
Many had been hoping that last year’s turnaround on retail FDI would be forgotten once the state elections were over and done with. However, the Congress’ dismal show, particularly, in UP and its erstwhile stronghold of Goa, seems to have put paid to those hopes. The Congress’s electoral setbacks have seen its UPA allies emerge stronger, and as can be seen from the Railway Budget fiasco, they can be expected to not shy away from making their demands loud and clear.
The Railway Budget controversy, in particular, illustrates the quagmire of indecision the government seems to be caught in. Then Railway Minister Dinesh Trivedi’s reform-minded Budget was just what the Railways needed. Falling revenues, safety woes, and a high operating ratio all pointed towards an organisation in crisis. However, political compulsions once again put paid to the reformist agenda.
The job of a finance minister is perhaps the toughest in the government. Unlike other ministries where the impact can be limited, the finance ministry, in many ways, controls India’s destiny. A balancing act is what the Budget usually boils down to, and this year, that seems to have been the guiding philosophy during the preparation of the budget: Industry has been thrown some sops, limited reforms, essentially procedural, have been attempted. Yet, political compulsions and coalition pressures seem to have ruled out any major steps that would have infused new life into our flagging growth.
With General Elections coming up in two years, this Budget also represents a lost opportunity. The UPA government had the chance to push ahead with long-overdue reforms – reforms that would have been more palatable with no elections around. However, this chance has been lost, and it remains to be seen what the future portends for India. An in-depth look at the proposals will show that beyond the balancing act lies a seemingly-muddled approach to the economy: The biggest problem at the moment for India is the massive fiscal deficit, price rise, and slow growth; while Mukherjee has promised these will be tackled, there are hardly any concrete proposals in that direction.
Indirect tax proposals
Real economic progress and poverty reduction can only take place by increasing agricultural and industrial output. Unfortunately, the across-the-board Excise and Service Tax hike will only depress the demand for industrial goods and services by increasing their prices. While the order of the day would have been to encourage growth and employment, what we have got, instead, is a short-sighted attempt to increase the government’s collections. The Finance Minister should have waited for the economy to acquire some buoyancy before taking a step like that.
But how would he manage the deficit which everyone wants him to without raising the tax rates, he would ask. Well, curtailing wasteful expenditure is one way. Reforming subsidies is another. Encouraging private investment, both domestic and foreign by tweaking policies is the third way. There are any number of ways of doing these things and the Finance Ministry has expert advisors on each of these aspects. The problem is really political decision-making. And, even there, the Congress party is not short of people who are experts at managing the political fall-out of hard economic decisions.
Another policy decision that will play a major role in the economy is the reduction in petroleum subsidy. Petroleum prices have been deregulated and with the Middle East constantly on the boil, it could take a minor incident to throw all fiscal calculations out of whack. The lower subsidy buffer might just come back to haunt the government. Add to this the cutbacks in fertiliser subsidy (even if access has been simplified), and what we have is a recipe for price rise.
Direct taxes
The middle classes have been thrown the sop of a slightly-higher Income Tax exemption limit – from Rs 1,80,000 to Rs 2,00,000. With the base IT rate at 10%, this translates to a saving of just Rs 2,000. On the other hand, with almost everything going up in costs, the average middle class family – which has been credited with having been a key factor driving India’s growth – will actually end up losing much more thanks to the rise in indirect taxes. The government might be losing around Rs 4,500 crore due to the higher limit, but this is more than made up by the net gain of approximately Rs 45,000 crore from indirect taxes. And what about the effect a rise in indirect taxes will have on purchasing power, and hence, industrial output and employment?
The changes in the Income Tax are, thus, nothing more than mere tinkering. These are too timid to impact the economy by way of boosting demand by augmenting the purchasing power of the middle class. At best, these are in the nature of a small relief against the raging inflation with the political objective of cooling off middle class anger against inflation.
Tax reform, in fact, could have been the main focus for FY 2012-13: The government has said that it would act on the Direct Taxes Code once it examines the Parliamentary Standing Committee’s report. The order of the day, however, is indirect tax reform. The Finance Ministry also said that it would be expediting the implementation of Goods and Service Tax (GST). But it has been saying that in exactly the same words for the last so many years. There is still no roadmap? A mere mention in the budget speech will not get us the GST unless the centre can cobble together a consensus on this issue. Here, analysts warn that continuing centre-state disputes over compensation could derail the entire attempt.
In recent years, one of the best-performing sectors of the economy has been services. And, once again, the government, in its haste to increase revenues, has targeted this with a hike in Service Tax. While the exemption limit has been raised, the higher rates may have a serious effect.
Retrospective taxation
The decision to revamp tax rules – allowing for retrospective taxation – has also left the industry aghast. While the government says it was required to remove discrepancies and forestall tax avoidance by unifying the tax code, the feeling in the industry is that the government’s steps have only made India a less attractive destination for foreign investors. Sidestepping the Supreme Court’s ruling in favour of Vodafone to legalise the $2.1 billion Capital Gains tax demand might just end up making other investors wary.
The Finance Minister had taken a similar step last year by re-introducing Minimum Alternate Tax (MAT ) on SEZs despite a clear-cut exemption in the SEZ Act, also enacted by the Parliament of India just a few years ago. This single step upset all calculations of the developers and brought the progress on setting up SEZs to a grinding halt. Several renowned promoters have surrendered the permissions they had obtained from the Board of Approvals.
Add to that the recent decision of the Supreme Court of India cancelling all the 122 licences granted by the then Telecom Minister, A Raja. And you have a terrible, terrible scenario to scare away every investor, howsoever bullish he may be on the India story. No one relishes even the possibility of being told ten, twenty or fifty years down the line to shell out billions because the law has been changed or because it is now being differently interpreted or because some public functionary had then indulged in corrupt practices.
The country has to realise that investment is critical to growth, any kind of growth, inclusive or otherwise and indigenous capital has to be augmented by FDI. While the domestic entrepreneurs may be able to live with such systemic flip-flops because they may not have many other options and also because they are more skilled at finding a way out, the foreign investors rightly want a stable, long-term, transparent policy regime and irrevocable commitments from the authorities. On that count, the budget is extremely regressive.
The FIIs have already reacted with the inflows recording a minus Rs.3000 cr. during the post-budget period, March 16-31 as compared to the net inflow of Rs.5000 cr. during the pre-budget period of March 1-15. Most international chambers of commerce and industry have drawn the Prime Minister’s attention to the likely consequences of such steps.
Deficit
Finally, the deficit remains a pressing matter. While a target of 5.1% has been announced and the rise in indirect collections is essentially aimed at achieving this, a growth rate of 7.6% and inflation of 6.4% form the bedrock of these calculations. Given that the government has found it always difficult to achieve its inflation and growth estimates, that seems unlikely. On the other hand, if the cascading effect from the higher excise and service tax rates makes inflation and industrial costs shoot up, what we may actually get could be a completely different picture.
Bright spots
Of course, there are some bright spots, too. The increased emphasis on infrastructure is vital. What has been dragging India down, especially compared to our ‘competitor, China, is the paucity of world-class highways, ports, cargo terminals, and communication links and, of course, the endemic shortage of power. Even here, the effort is, at best, half-hearted.
The extra funding given for various social welfare schemes is also welcome, though, still nowhere near requirements. While social welfare expenses receive criticism for being a political tool, given the poverty levels in India, these are essential. While we are a long, long way off from providing a modern social net to our citizens, the 17% higher outlay for education – especially at the primary level – will yield several benefits. Skills development, focus on deprived areas, and expanding the National Rural Health Mission to urban areas, are all commendable proposals. One only wishes at least a beginning had been made in the direction of direct transfers so as to minimise corruption and shorten the delivery chain.
Back into the past?
Reactions to the budget have been muted. On the political side, the divide is along expected lines – opposition parties have slammed the proposals, while the UPA and most of its allies have backed it for being growth-oriented. Industry reaction has been mixed. While some have admitted that given the past year’s political uncertainty, the budget can be considered progressive, others have criticised the government for having missed out on the opportunity to go ahead with far-reaching reforms. The hike in excise duty and service tax, in particular, has come in for major criticism over fears that most products may end up becoming more expensive. Experts say that fuel prices may also be hiked soon. The two, taken together, could prove to be a deadly recipe for another round of cost- push inflation.
Some analysts have gone to the extent of saying that the Budget represents a return to the pre-liberalisation days – which were marked by high taxation and expenditure. According to former Finance Minister and BJP leader, Yashwant Sinha, the Budget is a case of missed opportunities. Pointing to the high fiscal deficit, Sinha also said that the hike in taxes was a step in the wrong direction.
Another of the government’s critics is Bajaj Auto Chairman Rahul Bajaj, who claimed that the Budget had no major offerings for the industry and could even indicate a mid-term election. IT major Infosys, meanwhile, backed the proposals, with CFO V Balakrishnan describing it as ‘pragmatic and realistic’. The stock markets also gave a muted response to the Budget. The Sensex ended 1.01% lower on 16 March. According to analysts, the main disappointment – apart from the hike in excise and service tax – was the absence of major policy decisions.
At the end of the day, what can the country expect? Will we really see economic growth as the finance minister has promised? Or will the problems of last year continue, and in some cases, worsen? At this point of time, it seems that inflation and high interest rates will remain a matter of concern in the year ahead, with the continuing instability in West Asia contributing to higher petroleum prices. The US and EU’s economic recovery will also play a major role in our economic performance over the next year. These may be factors beyond our control but the increased indirect taxes and the delay in tax reform might just throw a further spanner in the works. The government’s prediction of 7.6% GDP growth might also seem difficult to achieve, along with the target for a lower deficit.
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Sectoral analysis
Agriculture: Agriculture’s importance in the grand scheme of the Indian economy may have declined, but it remains a critical issue. The farming sector received special care from Mukherjee: Allocation has gone up by 18% – to Rs 20,208 crore, while farmers are in line for higher interest subvention if they pay their loans back on time. The ‘Green India’ mission gets an additional Rs 600 crore, while several other agricultural and food focus areas will receive special status under the 12th Plan. Private-Public Partnerships will be encouraged in several areas, including irrigation and post-harvest storage. Farmers can also avail of direct subsidy payments from fertiliser retailers.
Aviation: The airline industry is in the doldrums: Air India is raking up losses, while Kingfisher seems to be on the verge of collapsing. Fuel hikes – aviation fuel prices in India remain the world’s highest – have led to fare spurts that have dismayed passengers. This year’s budget has a mixed bag for India’s struggling airlines. They have been granted permission to raise external commercial borrowings to the tune of $1 billion. Air India has also been handed Rs 4,000 crore. Customs and countervailing duties will be scrapped on essential spares, parts, and testing and safety equipment. According to the Finance Minister, the government was also considering allowing foreign carriers to acquire up to a 49% stake in Indian carriers. Airlines have also been granted the right to directly import Aviaton Turbine Fuel (ATF)
Automobiles: One of the robust segments of the Indian economy for several years now, the auto industry has been left with mixed emotions with the budget. While the dreaded tax on diesel vehicles failed to materialise, the hike in excise duty has led to manufacturers passing on the cost to consumers. Large cars will attract Excise of 27% and smaller cars, 24%. Two-wheelers will be paying a 12% Excise duty, while imported vehicles see a rise in customs duty to 75%. Most car-makers have already hiked prices. It now remains to be seen whether the upcoming fuel hikes will add to the car-makers’ and consumers’ dismay.
Banking & Finance: The (marginal) rise in disposable incomes, thanks to higher IT slabs, along with the continuing 1% interest subvention on home loans is cause for cheer. The Securities Transaction Tax has, on delivery transactions, been lowered to 0.125%, from the earlier 0.1%.
Cement: The Finance Ministry has announced a reduction in specific duties for non-mini cement manufacturers. Customs Duty exemption for non-coking coal is also expected to help the industry. However, worldwide coal prices and the increase in Excise to 12% may reverse the other benefits.
Education: Rs 25,555 crore has been allocated for the RTE-SSA scheme, with 6,000 new schools to be set up at the block level. The RMSA scheme has been handed a 29% hike in its budget, and will now receive Rs 3,124 crore. Skill development continues to receive importance: Rs 1,000 crore has been allocated for this, while the Centre will fund an employment generation scheme for Jammu and Kashmir.
FMCG: Consumers can expect to shell out more for FMCG goods. The hike in excise duty is expected to be the major factor behind this. However, some say that the benefits and focus on the agriculture sector could eventually lead to gains for FMCG majors. Taxes on cigarettes have gone up, with liquor manufacturers hit as well. However, imported spirits may soon become cheaper, thanks to the removal of additional duties.
Governance: The UID-Adhaar project will be expanded to include another 40 crore Indians, while the government has pledged to issue a white paper on the issue of black money.
Infrastructure: Infrastructure received a boost this year. New tax-saving infrastructure bonds will be issued. Ports, airports, highway construction, irrigation, amongst others, could be receiving up to Rs 50,00,000 crore. Mukherjee has also laid emphasis on garnering more funds through the bonds route; Public-Private Partnership will also be under the spotlight. External Commercial Borrowings have been allowed for the capital expenditure required in highways and toll systems.
Petroleum: With rising inflation one of the biggest concerns for the finance minister, the petroleum sector was certain to receive special attention. While oil and gas majors might feel that the sector’s expectations have not been met, there are some significant announcements. Coal used in power generation has been exempted from Basic Customs duty, with additional duties lowered to 1%. The excise structure for most products has been pegged at 14%. The cess on additional duties has also been withdrawn. However, the new cess of Rs 2,000 crore on the import of crude oil has led to fears that prices may soon be hiked, after all. LNG imports, meanwhile, have been exempted from customs duty.
Pharma and Health: There’s mixed news for the pharma sector. Though industry has been left disappointed after not having received infrastructure status, R&D efforts have admittedly been given a boost – the 200% weighted average deduction is set to continue for another year. Six life-saving drugs have been given excise exemption, while the National Rural Health Mission will be expanded in scope to include urban areas, and has been handed an 18% bonanza. Duties have also been reduced on soya products, iodine, and probiotics
Power: The power sector will be pleased with the finance minister. Mukherjee has taken special note of power’s relevance to overall development and growth, and has made concessions such as – no duties on imported fuel; external commercial borrowings may be used for part financing of existing projects; tax-free bonds limit doubled to Rs 10,000 crore; and the existing profit-based deduction has been extended by another year. However, power equipment manufacturers have expressed dismay at the government’s failure to address cheap imports from China.
Steel: Another sector with some cause for cheer; steel makers’ wish of increased import duties has been granted. Flat-rolled steel will now attract 7.5% Customs Duty (up from 5%). Raw material, meanwhile, will be cheaper thanks to lowered duties, while export duties on chromium and iron ore have been hiked.
Telecom: The beleaguered telecom sector hasn’t received a break in Budget 2012. The hike in Service Tax is bound to lead to higher costs for the consumer, while the retrospective tax on cross-border mergers and acquisitions will hit Vodafone hard and could also slow down investment.
Textiles: The reduction in excise on readymade garments will provide a fillip to the textile industry. The government has also backed the continuation of the Technology Upgradation Funds Scheme, although at a lower level. A Rs 500 crore pilot scheme has been announced for the North East, with a powerloom cluster planned for Maharashtra.
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For the kind of work they do and the responsibilities they shoulder, it would be almost impossible to assess their worth. Meet India’s top CEOs and see for yourself how they compare with the world’s top 10.
1. Naveen Jindal
Company: Chairman and Managing Director of Jindal Steel and Power Ltd
Salary: 69.7 crore per annum
Entrepreneur, MP, Patriot, Sports enthusiast—this 42 year old youngest son of steel magnate turned Haryana Power Minister — late Om Prakash Jindal – has done things that others might take more than a life-time. As a rare mark of honor, the University of Texas, USA, has renamed its school of management as Naveen Jindal School of Management, besides launching the Naveen Jindal Institute for Indo-American Business Studies. Naveen Jindal’s greatest achievement has been to transform Jindal Steel & Power Limited (JSPL), into a star performer. Today JSPL is part of US$ 15 billion O.P. Jindal Group — the fourth largest business entity in India. Close to 5.8 crore per month—he draws the highest salary for any CEO in India.
2. Kalanidhi Maran
Company: Chairman and Managing Director of Sun TV Network and SpiceJet Airlines.
Salary: 64.4 crore per annum
Kalanidhi Maran with a net worth of $2.3 billion is rightfully called the Television king of South India. Ranked no. 20 amongst the richest Indians by the Forbes magazine—his Sun Networks- is amongst the most profitable broadcasters in Asia – with over 20 TV channels, 46 FM Radio Stations and a range of news papers, magazines, DTH, film production and distribution companies. No wonder this son of Former Union commerce Minister Murasoli Maran, grandnephew of DMK president M Karunanidhi, and brother of Dayanidhi Maran—is the second highest paid CEO in India.
3. Kavery Maran
Company: Joint Managing Director of Sun TV Network and Director Spicejet Limited
Salary: 64.4 crore per annum
An ordinary BA in Arts from Madras University – she might have remained just another Brahmin girl from Coorg in Karnataka but for a chance meeting with Kalanidhi at a friend’s place. What followed is history. Besides being the mother of Kalanidhi’s two daughters – she helps him manage his business. Kaveri’s word is the law not only in Sun TV but even Spicejet Airways.
4. Sunil Mittal
Company: founder-MD of Bharti Telecom Limited (BTL)
Salary: 27.5 crore per annum
Hailed as one of the pioneers of mobile revolution in India and the man behind Airtel — Sunil Mittal is among the sixth richest man in India. And the world’s fifth largest wireless company with over 190 million customers across 19 countries in Asia and Africa.
5. Brijmohan Lall Munjal
Company: Chairman, Hero Group
Salary: 26.75 crore per annum
The founder of Hero empire B M Munjal had to struggle really hard to be one of the richest Indians and the fifth highest paid CEO. A first generation entrepreneur from Toba Tek Singh District in undivided Punjab, he migrated to Ludhiana with his family to start a small business of bicycle parts before manufacturing his own brand of bicycles under the name Hero. Over the next three decades the business started by the four brothers flourished so much that even the Guinness Book of World acknowledged their existence as the largest bicycle manufacturer in the world. Today, the group has over 20 firms and proudly claims to be the largest manufacturer of motorcycles in the world.
6.Pawan Munjal
Company: Managing Director and Chief Executive Officer of Hero MotoCorp Limited
Salary: 26.47 crore per annum
A graduate in mechanical engineering, 57 year-old Pawan Munjal– the eldest son of B M Munjal is one of the key architects behind its transformation into the world’s largest two-wheeler manufacturer. Today a Hero motorcycle is sold every second and a Splendor is sold every 30 second—somewhere in India. This makes him eligible to get the sixth highest salary in India.
7. B.G Raghupathy
Company: Chairman and Managing Director of BGR Energy Systems Ltd.
Salary: 25.92 crore per annum
Till two decades back — B. G. Raghupathy was as just a marketing executive, struggling to sell industrial equipment, instruments and control systems in Madras. That was till he founded a Company in 1985 which in a short span of time has become a dominant player in almost all facets of the Power Sector not just in India but across 74 countries worldwide.
8. Pankaj Patel
Company: Chairman and Managing Director of Cadila Healthcare
Salary: 25 crore per annum
Son of late pharmacy professor and of Cadila founder Ramanbhai Patel— 59-year old Pankaj Patel seems to have inherited not just the Company but even the secret formula of success from his father. Everything he touches turns into gold. No wonder Cadila, is the fifth largest pharmaceutical company in India and his name figures at no 26 on the Forbes list of 40 richest Indians with an estimated net worth of $510 million. The various USPs of Cadila include a wide range of pharmaceutical, diagnostic, herbal, OTC and skin care products The Company also produces Sugar Free, – popular sweetener and Nutralite, popular cholesterol-free margarine. The product portfolio includes India’s first for H1N1 and Risorin a drug which reduces the cost of curing TB by 33%.
9. Sajjan Jindal
Company: Managing Director of JSW Energy Ltd and JSW Steel Ltd.
Salary: 20.80 crore per annum
Armed with a Mechanical Engineering degree from Bangalore University and over 25 years of experience in Steel Industry — this and low-profile elder brother of Congress MP Naveen Jindal is today worth over US $ 2.7 Billion. Sajjan has been largely instrumental behind JSW’s growth as India’s second-largest steel maker. A deal with Japan’s second-largest steel maker takes him one step closer to his ambition to create a diversified Rs 60,000-cr conglomerate over the next five years.
10. Debnarayan Bhattacharya:
Company: Managing Director of Hindalco Industries a global leader in aluminum and copper and Director-in-charge of Indian Aluminium Company, Ltd. (INDAL)
Salary: 17.31 crore per annum
As the backbone of Aditya Birla Group, 64 year old Debu’s agenda is to ensure that thegroup’s revenue reach $65 billion by 2015. About six years ago, desplaying enormous courage he managed to pull off the unbelievable – takeover ofNovelis by Hindalco – which was four smaller than the Novelis. Not a mean task considering the fact that Novelis has a global presence with 31 manufacturing plants in 11 countries and 11,600 employees.
Highest Paid CEOs World-wide
No. 1: Philippe P. DaumanDesignation : President & CEOCompany: Viacom- world’s leading entertainment content company, with brands like MTV, Nickelodeon, Comedy Central, BET, Paramount Pictures and Colours TV
Salary: USD 84.3 million
A longtime associate of Viacom chairman Sumner Redstone – a corporate lawyer by profession Philippe Dauman, who started off originally as a partner in the New York law firm of Shearman & Sterling—has been deeply involved in shaping the destiny of Viacom since the mid 90s.
No. 2: Lawrence Joseph EllisonDesignation : Founder and CEOCompany: Oracle- the world’s largest business software company
Salary: USD 68.6 million
Better known as Larry Ellison – this American billionaire also happens to be the third wealthiest American citizen, with an estimated worth of $36 billion. In addition to Oracle—he races sailboats, flies planes, plays tennis and strums the guitar.
No. 3: Leslie Moonves Designation : President and Chief Executive OfficerCompany: CBS Corporation
Salary: 53.9 million
A great-nephew of David Ben-Gurion, the first Prime Minister of Israel, Moonves started his career playing the “badguy” in movies like Six Million Dollar Man but soon found himself playing the good guy on the corporate hot seat in real life. Today he is credited to have transformed CBS Television into the Number One network.
No. 4: Martin Ellis FranklinDesignation : Chairman & CEOCompany: Jarden Corporation– a global fortune 500 consumer-product conglomerate,
Salary: 45.2 million
Forty six year old Franklin – a father of four children isthe brain behind manufacturer of a wide range ofcamping and outdoor, fishing equipment; water sports , home environment and consumer products like electric blankets, blenders, coffeemakers, toasters and ovens to name a few
No. 5: Michael WhiteDesignation : Chairman, President & CEOCompany: DIRECTV- the world’s leading provider of digital television entertainment services to 19.88 million customers in the United States and 11.88 million customers in Latin America
Salary: 32.6 million
Though new to Television business, the 58-year-old bossof DirecTV – an American direct broadcast satellite service provider is former Chairman and CEO of PepsiCo International and Frito-Lays.
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The Argentine writer and poet, Jorge Luis Borges had described the 1982 war between Argentina and England over Falklands as “two bald men fighting over a comb”.
After a lull of thirty years, the Falklands have once again come under the spotlight following revelations that British oil companies would start prospecting in the South Atlantic. While national pride may have contributed to the 1982 conflict, this time around, the promise of undersea mineral wealth has added a new dimension: Latest estimates suggest that the establishment of an oil industry in the Falklands could eventually contribute $180 billion to the UK’s economy. Some even say that the seabed around the Falklands could hold more mineral wealth than even the North Sea.
Taking note of the stakes involved, Argentina has stepped up efforts to garner support from its neighbours. In December 2011, the Mercosur regional grouping of South American nations agreed to ban Falkands-flagged vessels from their ports. Argentine President Cristina Fernandez de Kirchner has also attacked theUK for “taking Argentine resources” from the islands and over the ‘militarization’ of theSouth Atlantic. According to Kirchner, the UK had deployed nuclear weapons in the region. Argentine Foreign Minister Hector Timerman also lodged a formal complaint to this effect at the UN General Assembly.
Britainhas responded by dispatching a destroyer, the HMS Dauntless, to the region on manoeuvres. Several British MPs and ministers are also expected to visit the islands for a ceremony to mark the 30th anniversary of the war. “We are not looking to increase the war of words, but clearly if there is an attempt to take advantage of the 30th anniversary of the Falklands war by Argentina, then we will obviously defend our position and defend it robustly,” Britain’s Ambassador to the UN, Mark Lyall-Grant, told reporters this month.
The 'prized assets' of Falkland Islands. Is this what the Argentinas and the British are Fighting for?
The genesis of the dispute can be traced back to the initial settlement of the islands. After several years that saw control shuttling between Spain,France,Great Britain, and theUS, the islands were formally claimed by the Argentine Confederation in 1832. However,Great Britain seized control the very next year, and a British colonial administration was set up in 1842.
The dispute was then revived by Argentina in 1945, which filed a claim at the United Nations. The issue lay festering for a while, but flared up in the years preceding the 1982 war. At that time, Argentina had been facing political uncertainty and was ruled by a military junta. Under the impression that if presented with a fait accompli, the global community would acquiesce in Buenos Aires’ actions, Argentine President, General Leopoldo Galtieri, ordered an invasion.
On 2 April 1982, Argentine amphibious forces stormed the islands and raised the Argentine flag. However, British Prime Minister, Margaret Thatcher responded with a vow to retake the islands – by force, if necessary. A task force headed by Rear Admiral J ‘Sandy’ Woodward was sent to the region. With HMS Hermes (later, INS Viraat) as the flagship, the combined air, naval, and ground operation eventually resulted in a British victory. Over 250 British combatants were killed during the war, while Argentina lost 649. Following the Argentine surrender on 14 June 1982, the islands, once again, came under British control and have remained a UK Overseas Territory ever since.
However, 2012 is not 1982:Argentina is a democracy and a regional power trying to shore up a sagging economy, while Britain’s military is already overstretched due to commitments in Afghanistan. Although the issue is an emotive one, especially inArgentina, and their respective stances enjoy broad support in both nations, a confrontation seems unlikely and neither country would like the situation to escalate into armed conflict. UN Secretary-General, Ban Ki-moon, has urged both sides to “avoid an escalation of the dispute and resolve differences peacefully and through dialogue.”
However, even though a military conflict seems unlikely this time, and it is likely that the old adversaries will merely continue the shadow-boxing they have so far indulged in, the issue is a highly emotive one in Latin America. Any tensions withEuroperevive bitter memories of the past in the entire South American continent. That explains the ease with which Argentina has been able to rally the Mercosur grouping behind its claims.
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They say Indians have a unique way of doing things and Google (India) is no different. I recieved a promotional letter from their Country Marketing Head – Google India offering me an Adwords Coupon for Google Adwords.
Considering that I was advertising with other reputed websites, I thought it to be a good idea to try Google Adwords.
So I followed the instructions on their website, set up and account and provided my Master Card details -( The same one I use for other websites. )
My credit card was duly verified by Google and they withdrew some token amount for validating the credit card. Thereafter , I clicked on the ” make payment ” option , only to get a message that the payment was declined and no reason was being provided by my bank.
When I called up my bank, i was informed that the Google website was not conducting a “secure ” transaction and hence the bank was forced to decline it. There was no fund problem.
I called up Google helpline number 1800 120 3000 to inform them to rectify their problem. This is basically how the conversation went with the Google guy, lets call him K :
K (Google) : How can I help?
Me: My payment has been declined. My bank informed me that your website is not using a secure method of transaction.
K : Which card are you using?Master Card or Visa
Me: Master Card
K: Master Card is a debit card!!!!. You need to use a Credit Card.
Me : I am sure its a credit card. Please correct the problem at your end
K : We are having thousands of customers who use credit card. They never have a problem!!!
Me : There was no problem when Google was validating my credit card and charged me a token amount. How come there is a problem when i clicked the ” make payment ” button?
K: Hmmm you have a point. Let me check with my technical team and I will revert back to you by today evening or tomorrow morning.
Me: Ok
No call came. After 2 days, I recieved an email asking me how my tele conversation was with Google. I sent them a stinker . The next day, another call from Google, lets call her Ms. N:
Ms.N (Google) : Sir, I believe you were not satisfied with the response you got?
I repeated the whole story and expressed my dissatisfaction with Mr.K
Ms N.: Please check your bank and card sir
Me: Madam I have made so many payments with the same card.
Ms. N. after a lot of arguing : Our technical team has resolved the problem. Please try making the payment again.
Me: Thankyou
I click the ” make payment ” button the next day.
I get a message this time that my payment is being processed and that it would reflect in my bill.
I am relieved
I get a phone call from Google after 2 -3 hours. Let’s call this guy Mr. S:
Mr.S(Google) : Sir, I am from Google. Your card has been declined again. I have sent you an email with some questions about your name, address and monthly bidding etc.. Please answer them so I can fast-track the solution to your problem with my technical team.
Me: Why am i being required to answer questions? The problem is at your end. Please solve it.
Mr. S : Sir we cannot do so till you reply to the email.
Me: I am out of office, let me get to a computer by evening an i will reply
I login to find that my Adwords account is not displaying any ads. The email sent by Mr. S asked me some basic information. I reply and call back the number Mr. S had called from to confirm if he has received the email. The number does not work. After a few seconds, the email also bounces!! I suspect some fraud and immediately contact Google India support. Guess who is on the line ? Its the dreaded Mr. K. !!!!
I hang up the phone in frustration and panic .Luckily I get an incoming call from Mr. S
He informs me that Google customer support company had changed and that I needed to send the information to a different email id.
I wanted to ask him why he had not provided this information in the first place, but seeing the way they were running things at Google India, I let it be.
I did however, ask him that in the email he had sent me, he had mentioned that another message would be send to me after i replied to the email What was that about ?
To this Mr.S . replied that he had no clue what he had asked for and he had to read the email (composed by him) again to understand his own message !!!! How crazy is that ???
After having read the message he said that was just some procedural email , nothing much.
He has assured me of “fast-tracking” the action to resolve the problem with the billing.
I am currently waiting to see what further absurdities unfold.
I tried finding a link to report this to Google Worldwide Headquarters, in the desperate hope that someone will take charge of the sad situation at Google India, but I couldn’t find any links to that. Maybe they are not interested too ? I am convinced that Google India is being managed by an incompetent and casual team which believes that problems sort themselves out and if they don’t, its fine as long as its not their problem.
In Indian cricket, a ball thrown at the batsman which he is not able to read or understand is called a “Googly”. In common parlance, in India, actions by individuals to confuse the other person is often called the same – Googly. In the past few days Google India has thrown so many “Googly’s” at me that I am completely bowled over.
Out of sheer frustration I am posting this here. I hope against hope that someone at Google is listening or reading this.
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Before their style flowered at the court of Gwalior during the time of the Scindias, the practitioners of the Gwalior style lived in and around the Hindu temples, singing ashtapadis, or eight-line devotional verses or songs which formed a part of the earliest repertoire of the gharana. As is well-known, the ashtapadis of the great Gita Govinda were written in the 12th century by the poet Jayadeva, and remain, to this day, the most loved verses on Radha andKrishna.
The ashtapadis were, at the time, sung in different ragas in dhrupad style, the centuries-old form of singing in North India. And it is from this tradition of bhakti or devotion that the musicians of the Gwalior gharana came, and from here that their fame spread to the court.
It was not long before these dhrupadiyas slowly turned to singing the khayal form, influenced by the Mughal darbar, not far away. The khayal’s period of renaissance begins with the 18th century, at the court of the last Mughal emperor, Mohammad Shah Rangile, although its seed was sown centuries earlier, at the time of Amir Khusrau and the Sufis who had come to India from Persian and Arabic soils.
The Scindia maharajas were great patrons of music, and patronized the musicians of the Gwalior gharana in great style. The story begins with the masters Haddu and Hassu Khan who arrived from Lucknow at the court of Gwalior. And they sang so well there that the day was not so far when they came to ride elephants, and receive their pay packets in large bags of jingling asharfis or gold coins. But they also practiced hard in the ‘tehkhanas’ or basements of their homes–although, first to last, they were owned by the maharajas, and their work was to please.
Their styles developed likewise. There was embellish and ornateness in the melodic lines of their khayal, there was variety in the compositions, and the taans or fast movements were meant to impress all the way through. They sang khayal, tappa, ashtapadi. Not a wide range of ragas, but a wide variety of compositions in the common ragas, and to this day, you will find the Gwalior musician open his copy-book and show you the hundred or so compositions he knows in the single raga, Yaman, and ask you which you would like to hear. This also goes to prove that the approach to the raga was poetic rather than melodic.
One of the oldest recordings available of the Gwalior musicians is that of Ustad Rehmat Khan, son of Ustad Haddu Khan–his famous Malkauns, ‘Pir na jani’. Rehmat Khan ‘Bawle’, as he was called, fell to bad days after the death of his father, and he had to go on to join a circus company as a musician. He became so well-known for his Malkauns—he was one of the finest musicians of the Gwalior gharana—that Maharaja Siyaji Rao Gaekwad of Baroda actually bought the entire circus company, only to be able to hear Rehmat Khan sing the raga. But even so, the Maharajah could not ask him to sing it—he had to wait for him to be in the mood. The story of patronage had reversed.
And so it was that one day, he hid by the river at whose banks Rehmat Khan used to sit in the evenings smoking ganja–he was, of course, a ‘Bawla’. As Rehmat Khan stooped to fill his ‘lota’ or pot with water, it fell into the river, hitting a stone. That sound sounded to him like the note ‘Ma,’ and triggered him on to sing, and it was then that the maharajah heard the Malkauns, saying “Gar Khuda na bhi aate, to yeh Malkauns kafi tha”. “Even if the Lord did not come, this Malkauns was enough”.
The ‘Pir na jani’ remains the single most profound paen of the gharana of Gwalior.
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Humility has always been the hallmark of Sachin Tendulkar’s persona. He was extremely ill-advised to have taken a combative stand on his retirement at his latest press conference.
At the very least, he could have phrased it differently. All he needed to say that he was still enjoying his cricket and that it was for the selectors to take a call on whether he was good enough to represent India. Perhaps, he meant that though what came out was a Sachin extremely angry at any suggestions about his retirement plans. He even seemed to be dismissing people, mostly journalists, making such suggestions as a bunch of ignoramuses commenting on his performances without any deep knowledge of the game.
Sachin forgot that it is the same tribe of ignoramuses that has used up tons and tons of newsprint and hours and days and months of TV time praising his game and raising him to the status of a demi-god in public esteem. But, perhaps, he did not forget that. He thinks it is a tribute that the country and the media owe to him. And whom does he himself owe his achievements to? He was ready with his answer. He owes it to his coaches, to his family and to his fans. What about the selectors? Well, they did not have a choice, did they? Ditto with the commentators, the reporters and the critics.
Well, Sachin being Sachin, can, perhaps, be forgiven all this. He has done enough for the country and for the game of cricket to assume such haughty tones. Sitting at the top of a heap of one hundred centuries in international cricket is no small matter. He has reached where no one has reached before and no one is likely to in the foreseeable future.
And it is not as if these centuries have come playing only against relatively weaker teams or playing mostly on familiar home grounds. Indeed, he has scored them at all venues against all teams and facing all kinds of bowling. That he is a cricketing genius has never been and never shall be in doubt. The best testimonial for that was provided by none else than Sir Donald Bradman, saying, “that little fella has my batting style.” And that was saying a lot, coming as it did from the all-time great cricketer with an average of 99.9.
No wonder the country erupted into joy as its ‘God’ of cricket finally climbed the highest peak in the game at Mirpur against Bangladesh on March.19. Ironically, Tendulkar’s epoch-making 100 went in vain, like several others before, as India lost to Bangladesh in the Asia Cup match by five wickets. But India and the entire cricketing world stood up and saluted the complete batsman ever to walk on this planet.
The 100th 100 took exactly 370 days after he had scored 99 with his brilliant 111 against South Africa at Nagpur in the World Cup match of 2011. Thereafter began what seemed like a perennial wait. He came pretty close to scoring a century in the Delhi Test against the West Indies this year, but fell four runs short. England and Australia tours did not yield the elusive 100th 100 either.
Finally, the monkey was off his, or rather the country’s, back at Mirpur this month. But what on earth was so great about a 100th 100? Sachin himself has always claimed that he never bothers about records. But, during the span of 370 days since his 99th at Nagpur, a billion hearts fluttered faster every time he went out to bat. So much has the country identified itself with him.
For him now to say that he will play as long as he wants to and that nobody else has a right to tell him to retire sounds rather egoistic.
His argument that nobody got him into the game and nobody can push him out of it is arrogance which is particularly jarring from a man at the pinnacle of his glory. The country that has traveled the distance with him, at least emotionally, has a right to think about the best team it should be fielding in the 2015 World Cup and beyond. And the preparations have to begin now.
At the end of the day, no one is bigger than the game and the country he represents.
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After the cricket debacle in Australia, it was good old hockey that provided some cheer to India’s sports fans. The team, with a clinical display, demolished France 8-1 in the final of the Olympic qualifying tournament in Delhi on February26 and qualified for the London Olympics in style. A day earlier, the women’s team just fell short of the same objective after a heroic effort when it lost to South Africa in the finals.
It was, indeed, a major boost for Indian hockey as the team had missed the Olympic bus in 2008 for the Beijing Olympics. But this time, they made no mistakes as they dominated the Olympic qualifying tournament and won the finals against France in a resounding manner. Penalty corner expert, Sandeep Singh, was in a menacing form as he slammed five goals, including a hat-trick for India, who led 3-1 at half-time. The other three Indian goals were scored by Birendra Lakra, S.V.Sunil and V.R.Raghunath. France’s lone goal came through Simon Martin Brisac.
The triumph fetched the team rich rewards from their sponsors, Sahara Group. Chairman of Sahara, Subrata Roy announced a whopping Rs.1.2 crore prize for the team, which included Rs 12 lakhs to skipper, Sardar Singh and star of the show, Sandeep Singh. The other players received Rs.5 lakhs each and the support staff got Rs.1 lakh each for their efforts. The Union Sports Ministry also hiked the salary of the team’s Australian coach, Michael Nobbs, by $ 1000.
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There is need to address the issue of efficacy of the liberalization, privatization, globalization, popularly called the LPG regime
A recent report by the Asian Development Bank (ADB) says thatIndiais not faring too well on achieving the Millennium Development Goals. Of the 22 parameters that the ADB studied, it was found that, only on six counts India had made significant improvements while being on track on another three and falling behind in the remaining.
It is against this backdrop that there is need to address the issue of efficacy of liberalization, privatization, globalization popularly called the LPG regime. Ever since these terms gained currency, there have been advocates and adversaries, both equally vehement in their loyalty to the cause. Without entering into the debate as to which side is right and which side wrong, it is prudent to dwell upon facts.
It is one thing to say the LPG regime can work and an entirely different proposition to make it work. While the protagonists say that LPG regime has resulted in economic growth, the antagonists aver that it has increased poverty. The paradox is that both these views are not too wide off the mark.
Considering that Indiahas registered economic growth rates in the past several years, it has to be accepted that the LPG regime did work. But the fact remains that poverty persists and there is a resulting rise in disparity in the society. And the ADB study cites facts in support of these.India has one of the largest numbers of underweight children below five years and, on this count, it fares even worse than its much poorer counterparts like Bangladesh and Afghanistan.
The position regarding child mortality is not much different.India is a laggard compared to much less developed countries like Maldives and Mongolia.Indiais also behind many countries on maternal mortality where even Bhutan has a better record. The cause, as identified, could be income disparity as we have a very high proportion of poor living below $1.25 per day. Our per capita expenditure on health is also quite low in comparison to most countries.
The all important questions, then, are why this is so and what to do. The basic reason is the flaws in our delivery mechanism which is a direct concomitant of our governance systems. Despite all that hullabaloo about inclusive growth, the poor are still out side the safety net.
Consider the following statistics that reflect the state of financial exclusion. 64 percent of our people have no savings account;. 87 percent have no access to ATMs and 73 percent of households lack access to institutional credit. These facts point at two things. One, that financial inclusion is still a far cry, and two there is need for a complete paradigm shift. There may be many other sets of statistics which may further substantiate that the LPG regime has not been effective in attaining its proclaimed objectives. But that is not the issue. The purpose is to find out how to make the LPG regime work.
It is in this regard that we need to look at the concept of frugal innovation. We need to create a new model of inclusion for Indiawhich can provide solutions for the people who are at the bottom of the pyramid (BOP). Taking a cue from C K Prahalad, the legendary management guru, the answer lies in revolutionizing the way business is carried out, including the business of governance.
We have to look at the bottom of the pyramid. Poverty is not only a problem. Rather it is the root cause of many other problems. And the sooner this is realized the better it is. Based on this idea, a recent seminar on Creativity and Innovation was organized inNew Delhi under the aegis of J K education foundation. There is a need for many more such seminars that emphasize the need for producing more ‘frugal cost’ products and services. It is time we look at the frugal cost model for India which should be based on ‘glocalisation’, that is, ‘think global, act local.’
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These differences in nuances were visible even to the naked eye in the New Delhi deliberations as well. With the aim of demolishing the US dollar as a reference currency, Hu Jintao pushed for intra-BRICS trade in local currencies and the setting up of a separate development bank for BRICS nations as well as other emerging economies. Prime Minister Manmohan Singh, on the other hand, wanted reform and recapitalization of the existing Bretton Woods institutions like the IMF and the World Bank by providing greater representation to BRICS nations. The outcome was a compromise in the form of an agreement on intra-BRICS trade in local currencies and a direction to the Finance Ministers of BRICS nations to examine the feasibility setting up a multilateral agency on the lines of the World Bank or the Asian Development Bank to generate resources for funding infrastructure and core sector projects in these countries.
There was, nonetheless, a marked reluctance to spell out the details or even the cantours of alternative solutions advocated by the group. The countries aspiring for international leadership have to get down to soiling their hands by taking realistic positions rather than merely giving distant calls for peace and amity and good behaviour. The Western nations have been able to forge a unified approach because of their having waged the two World Wars together and because of their shared commitment to universal values like individualism, liberty, equality and human rights and an abiding faith in free markets. Coming as they do from different continents without any shared historical experiences and without any significant past interactions with each other, the BRICS nations are going to take a long time in forging any alternative value systems. Promoting such alternative world vision on the international scale would be even further away.
