The Isms.

Monday, October 27, 2008

I was going through my book in which I recorded quotes of various authors that interested me as I read their books. I call the book collection of thoughts. This I have been maintaining for close to four decades.

Following the recent financial melt down, as they call it, there have been talks of capitalism coming to an end, and socialism being revived etc., etc., my friend Bobster posted an interesting blog- We have always been a socialist nation - (referring to America) in the Austin American-Statesman. His blog received as many as 27 comments as of writing this blog of mine. They were all interesting to read.

This reminded me the quotes of famous trial Lawyer, Late Louis Nizer, who summed up all the Isms in a humourous way in his book - Between you and me. Here they go:

Socialism: If you have two cows, you give one to your neighbour.

Communism: If you have two cows, you give them to the Government, and the government then gives you some milk.

Fascism: If you have two cows, you keep the cows; give the milk to the government, and then the government sells you some milk.

Nazism: If you have two cows, the government shoots you and keeps the cows.

Capitalism: If you have two cows, you sell one and buy a bull.

That BULL took a beating at the Wall Street, and similar ilk tumbled the world over.

Here is a lesson to be learnt. No one ISM lasts longer. Since World War II, the above mentioned Isms hitherto followed by different countries fell down as each surged ahead with its own developmental plans that did not stand with the passage of time.

As we all know that in modern times, the economy of a country determines its status as a developed or a developing country. That course of economy is largely influenced by the type of governance a country adopts. In other words, there is always a remote control that steers the economy. We have all seen the chaotic conditions the American economy is now in due to forces of market economy that went unregulated. The government had to step in with a bail out package.

The HINDU in its print edition of 25^th October, 2008 reported that Alan Greenspan, The former U.S. Federal Reserve Chairman opined that the global financial crisis has exposed a mistake in the free market ideology. He admitted to a congressional committee saying I made a mistake in presuming that the self-interests of organizations, specifically banks and others, were such that they were best capable of protecting their own shareholders and their equity in the firms.

I still feel free market ideology is preferable as it brings forth innovation, competitiveness, entrepreneurship and efficiency. But, it needs constant supervision and periodical checks in the form of regulations with government assuming the role of a watchdog. In other words Systems have to be strong.

So, a combination of Isms is required to make a strong economy. What Ism is to be applied depends upon each segment of the economy. The finance sector needs to be operated under strict supervision and regulations. I would call this tightfistism.

Viewed at a micro level, we all run our house affairs with those well defined isms. Think calmly, and I hope you agree with my views.

Removal of Employees.

A couple of days back, Jet Airways removed 1900 employees, some of whom were on probation and some yet to be confirmed. All of them were in their early twenties. This came as a rude shock to them as they were handed over pink slips without any formal notice. Most of them were seen crying, and did not have words to explain. It was a pathetic scene.

Mustering courage a while later, they staged demonstration at Mumbai and Kolkata airports demanding their re-instatement. Some of them prevented transactions at the counters. Political leaders were quick to support them and threatened the Management that they would not permit the airlines to take off. The Civil Aviation Minister was taken by surprise and assured the employees that he would speak to the Management.

A report in THE HINDU dated October 16th, writes that according to the airlines Executive Director “These measures are to ensure that the airline remains economically viable in the future. The 1900 employees have to go to ensure the jobs of the remaining 11,000 jobs at jet.” Its CEO Wolfgang Prock-Schauer further states “The aviation Industry in India, a $6 billion turnover industry, is expected to lose $2 billion in 2008-2009. Its economic viability has been severely affected by the record high fuel prices and most recently due to the crisis of the financial markets globally and the downturn in traffic”.

This chunk removal came after Jet Airways forged an alliance with Kingfisher Airlines, its competitor. This added further fuel to the minds of the employees.

With pressure building all around for their reinstatement, Mr.Naresh Goyal, Chairman of the Jet Airways, withdrew the order saying they are “my family and can join work”. He said he is unaware of his management’s decision! If the Chairman is unaware of this decision, Its Management Information Systems are not in proper shape, and its decision making process appears defective. To hear this, is all funny and reveals how these Corporates work and take decisions.

In the wake of this Air India, the public sector airline and once the pride of India, offered a voluntary scheme to about 15,000 employees to go on leave for three to five years without pay. Where will they go? It is not only impetuous, but an insensitive decision.

It is a fact that the aviation Industry in India is passing through a crisis. Are the employees responsible for this?

It is shocking to learn that airline industry in India has approached the Civil Aviation Ministry for a staggering amount of Rs.5000 crores as relief to come out of the rut. It is reported that Jet airways and Kingfisher owe the oil companies Rs.2000 crores, and “all the airlines together owe Rs. 1000 crores to Airports Authority of India”. That is their credit worthiness!! They certainly need to look into themselves and their entire operations. There would be many areas where costs could be certainly pruned. Businesses could be run without indulging in extravaganzas, yet remain in competition with quality products and services. I was a Cost Accountant, and I say this out of experience.

A vast majority of urban middle class in India think twice before taking a flight on personal grounds. The air fare structure is still prohibitive, though of late passenger traffic is increasing steadily. The government and the airline industry need to sit together to revise the fare structure if they wish to make it competitive and affordable.

It is often observed that these Corporates, no matter to which industry they belong, they sack the employees first whenever they are faced with a financial crisis. Their salaries do not constitute a major part of the expenses. The middle management and the lower staff become victims to reckless business strategies of the top management, whose salaries are astronomical and NOT commensurate either with their intellectual abilities or decision making prowess.

The evidence is very much visible about the Chief Executives of top companies involved in the Finance melt down in America. They do not get sacked, and instead rewarded with “bail out package” out of tax payer’s money.

Many economic issues emanate from employees within the company, and as citizens outside the company. Many management gurus have stressed the importance of human resource as being the strength of a company. If it is true, then why fire the employees? Does not the top management have moral responsibility towards its employees who have contributed to the profits of the company? Where are the ethical practices?

In my opinion, the foreclosures to housing mortgage loans, which triggered the financial crisis in USA, could be attributed to the job cuts, job losses and employee removals. If their jobs are secured, the repayment could have been steady, and perhaps the crisis could not have taken place. A similar situation seems to be on the anvil in India.

The hire and fire policy en masse sometimes followed in the private sector needs to be reviewed. It is a different issue altogether if the company declares bankruptcy and close its business. Even then, the compensation package to the employees should be reasonable, just and adequate.

Political Views and Comments.

Tuesday 14^th October, 2008.

I posted a blog on politics related topic about two years back on this site. I am touching upon it once again from a different perspective.

Politicians, political behaviour, political parties form an integral part of top governance of any country. They take up the role and occupy that seat of governance as per that country’s constitution. We may call the process as elections, or coup.

To remain in power, or to seek that seat of power, they set their own rules to follow in that game of politics. Once in power, their decisions affect the populace at macro and micro levels within their country and outside as well. They justify their actions with catchy words like being a ‘Super Power’ and for ‘Global well being’.

Their subjects- the powerless, the hapless citizens- use the only tool available to them, their own voice to express views orally and better through their pen. Using the electronic media, and the internet, the citizens react immediately to outpour views instantly.

As the decisions of the political leadership affect us, politics is one topic that attracts all. Like commercials in the TV channels, Politics engulfs us. So, we express our views. In expressing those views, we get emotional, take sides, and hurl abuses without any control. In this process, friction develops followed by more friction. What trigger’s our anger is the unscrupulous words and actions of these political leaders who do not walk their talk. Their behaviour has spread to their cronies and bureaucrats as well. Their combined actions result in crisis in every walk of life.

Certainly, our blood pressure shoots up, hearing and watching them. Is it worthwhile to lose our temper and spoil our health? To lose temper is fine, but allowing it to spoil our health-No. They are not going to come to our rescue.

All of us must exercise our right to express views and comment upon the views of others as well. Nothing wrong in this, and in fact a healthy debate could emerge that could become a force to reckon with. However, before expressing views and offering comments, if only we could see others viewpoint from their vision, that would only help understand the subject better.

Here is a classic example of how politicians, or shall I say National leaders accuse each other for the spurt in communal violence across the states in India in recent times.

The under mentioned report and extracts were published in the national newspaper- THE HINDU in its print edition of October 14^th, 2008.

At a meeting on 13^th October, 2008 in New Delhi, inaugurating the 14^th National Integration Council (NIC), India’s Prime Minister Manmohan Singh addressed Cabinet Ministers, Chief Ministers of states, leaders of National and state parties stating that terror attacks in Ahmedabad, Bangalore, Delhi and Jaipur and communal violence that erupted in Orissa and Karnataka need to be dealt with firmly, and there should be no compromise with terrorism and terrorists.

Dr. Singh said “Recent tragic events in Orissa, Karnataka, and Assam have pained all right-thinking persons. There are clashes between Hindus, Christians, Muslims, and tribal groups. An atmosphere of hatred and violence is being artificially generated. There are forces deliberately encouraging such tendencies and also spawning militant outfits who are engaged in irrational violence. These need to be firmly dealt with. At the same time, it is important that in trying to counter terrorism, wrong methods and means are not adopted. Any impression that any community or sections amongst them are being targeted or that some kind of profiling is being attempted should be avoided. This is vital, as otherwise it could lead a major polarization in society”.

The Newspaper further reported with a headline: Centre flayed for spurt in violence.

The report elaborates “The Bharatiya Janata Party (BJP) and the Communist Party of India (Marxist)- CPI(M) led the charge against the government at the NIC meeting, citing entirely different reasons for the spurt in communal and caste violence in the country. While the BJP blamed the increasing violence on “vote bank politics” and “lack of political will” to tackle terrorism, the CPI (M) said lack of land reforms, regional imbalances, majoritarian communalism giving rise to minority communalism and neo- liberal economic policies were responsible for socio-economic conditions that led to strife and conflict between various groups of people.”

Well, what is the public view? All those in governance used choice words in the blame game. However, the fact remains, that terrorism and communal violence has been happening in parts of this country for decades.

As most situations are beyond our control, we, as peace loving citizens are justified in getting angry, but we should choose to express our anger in moderate terms rather than use abusive or intemperate language. This would be healthy for our mind and body.

Though I keep myself updated with news and events reading newspapers, magazines through print and online editions, I thought it wise NOT to dwell too much on the political scenario that keeps unfolding nationally and globally.

Watching Cartoon shows are fun and enjoyable with chuckles than getting irritated with the gimmicks of political stars.

Back To Blogging.

Sunday 12^th October, 2008.

It is more than five months since I posted a blog. For no apparent reason, the practice stopped. Neither I had a mental block nor did I lose interest in blogging. These things do happen as there are no compulsions or pressure to write. Whenever there is a respite, it gets stretched. I believe that is what happened.

I did ponder on this gap for the sake of analysis. I think the onset of summer then, and the high temperatures that prolonged well into a normal rainy season dampened my urge. Al Gore’s lectures on Global warming were on my mind. The weather then affected other habits too. Summer in the tropical regions is never pleasant. There are problems all around. Drought in some places, dip in power generation resulting in frequent power cuts, spiraling prices, add to our misery. There is a lack of interest in whatever we do. I felt that this summer season affected my mind and body as well. The disease- ALS - I am afflicted with was however progressing slowly and steadily. I knew this was god’s way, and I had no part in it. All I did was to hope for the best, and let the period pass away.

To keep my spirits up, my family members, my siblings, close relatives and friends were ever helpful in giving me advice and support. I took refuge in reading spiritual, and self help books. The inspirational messages that my friend was constantly sending through the net, and which in turn I shared with others helped me enormously from slipping into inertia.

Well, that was all about airing my inner feelings.

Be all that as they may be, I was keeping abreast of the news.

The events around the world keep happening. Nothing seems to stop them. Nature’s calmness and fury; men and women creating and making the news keep the people’s interests active and alive.

Barack Obama’s nomination for the Presidential Post by the Democratic Party, his speech in Denver; Choosing Senator Joe Biden as his running mate for Vice-President; senator Hillary Clinton’s unstinted support for Obama all seem to augur well for future of America.

The Texas administration’s steps in meeting the fury of the hurricane Ike is certainly praiseworthy. Evacuation of people from Galveston, reminded me of my visit to that small town way back in 2004, kindled my interest that much more. The photos - more than 300- placed by The Austin-American Statesman brought out the fury of the hurricane; the triumphs of the human spirit in a natural calamity, and the orderliness of the evacuation.

The current financial crisis that was brewing and originating from America was shocking. It unfolded the greed of some of the Wall Street’s Investment Bankers, undermined the banking system, and exposed the unregulated system. Despite protests from the American public, the bail out plan was passed, as if to reward those who were responsible for ruining the lives, careers and lifestyles of ordinary people.

In the name of innovation, schemes with fancy names were introduced luring the investors for speculative gains. American home loans and the EMI’s (Equated monthly installments paid by the people who took the loan) formed the source funds for these investment bankers to float in the market. The actions of these so called “Financial wizards” can be called “recklessness in the name of dynamism”. As of now, they are Scot free.

Finance and accounting is a fascinating subject that needs to be kept simple and understandable to a layman. Basic rules are to be followed with a conservative outlook. After all the banks are dealing with others’ money and those small investors part their money reposing TRUST. And that needs to be repaid by all means. Hopefully I aim to write more on this topic.

India and America signed the nuclear deal after lot of lobbying. In India, opinion is divided on the need for the n-power now. Much can be said on either side. What remains a scene in India is that many projects go lethargic after initial euphoria due to lax work ethics. This sweeping statement could sound cynical. If pondered, many would sigh with a remark that “nothing works in India satisfactorily”. Why so?

Many major decisions taken are political in nature, and there are always forces opposing them, just to be recognised. In every act of living, hurdles are placed for pecuniary benefits. The Indian psyche is to violate a rule. We lack self-discipline, be it at home or in Parliament. I say this with profound sadness.

A classic example in recent days is the shifting of Nano car project by the most respected corporate giant -The Tatas- from Singur, a place 20 miles north of kolkatta in the state of West Bengal to Sanand, a city 10 miles west of Ahmedabad, in the state of Gujarat i.e., from east to west. This is due to the protests by the principal opposition party- the trinamool congress. It is a pity that it had to be shifted at a time when the much awaited car was to roll out soon. The concerned opposition leaders are insensitive to the loss incurred by many associated with the project. Much can be written on this issue. That would only highlight the disgusting scenario.

Amidst all this, Asian Indians are god fearing and resilient. Belief in Hindu Philosophy, its religion, its scriptures keep us binding despite upheavals. All Hindu festivals are celebrated with fervour and gaiety. People visit temples as often as they can, and more so during festivals. One such festival- Dasara is celebrated all over India, for ten days. This year, 2008, it began on September 30^th and ended on 9^th October. Shankar Math, named after Philosopher saint Adi Shankara, is one of the branches located about 5 miles from my house, which has the divinity of knowledge, Goddess Sharada as the deity. Visiting this temple and worshiping the goddess all these ten days is an integral part of our life. It is a matter of pride that my wife and her elder sisters have been offering worship for over 35 years continuously for all round welfare. Every year the number of devotees is increasing. During the festival period, the temple authorities feed thousands in a well organized way, besides performing the daily rituals.

I am dedicating this blog to my daughters, close relatives and friends, who have been constantly reminding me to get back into the habit of posting blogs regularly to keep my mind active- usefully!!

I hope to maintain the habit despite progression of ALS- Amyotrophic Lateral Sclerosis.