Wednesday, December 12, 2012

Yahoo! to Boohoo!

Yahoo! had a chance to grow & survive. It ‘had’!

So what’s the biggest mistake that Yahoo! ever made? Well, allow us to rephrase that... what are the biggest mistakes made by Terry Semel and his successor Jerry Yang? Allow us to reflect back on what happened in 2001. That year, Yahoo’s chief, Terry Semel met the co-founders & co-Presidents of Google – Larry Page and Sergey Brin – to discuss the acquisition of Google. Semel offered them much lower than the $5 billion, that the co-founders asked for. As a justification, Semel stated that “no one could truly value Google,” and that there was “no way he would shell out such a hefty amount” for the search-engine start-up. Eight years later, Google commands a market value of $121.1 billion, while Yahoo!, a lamentable $19 billion! Then there was Semel’s successor, Jerry Yang, who in 2007 brushed aside Microsoft’s bid for Yahoo! for a mind-blowing $46 billion.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

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Monday, December 10, 2012

MILITARY: AFGHANISTAN

Iran may be involved if the US opted for drone attacks in Balochistan and this is bad news for Pakistan

Balochistan, the largest province of Pakistan with sparse population, is already in a state of war. Discontent is rife there against the federation and hundreds of Baloch activists have gone 'missing'. “The drone attacks in Balochistan will further strengthen Taliban and they will gain sympathy. It will further intensify hatred against the US,” says Tahir Bizenjo, ex-Senator and General Secretary, National Party. “Balochistan Assembly has already passed a resolution against drone attacks,” he further adds. Dr. Syed Jaffar Ahmed, leading Political Analyst and Director, Pakistan Study Centre, University of Karachi asserts, “I think the drone attack in Balochistan will have far reaching consequences, which one may not comprehend at the moment. In the first place I would say this adventure would involve Iran, since the Iranian Balochistan will also feel the heat. Within Pakistan too, this will further heighten the resistance against Americans and will escalate extremism. Moreover, the control of Pakistani federal centre over Balochistan will further weaken.”

During Bush administration, the Americans provided military aide worth $5.6 billion to Pakistan and now it is expected to increase. One is not sure to what extent this would help to eradicate Al-Qaeda and Taliban, but one thing is certain that the democratic movement of Pakistan would be at great risk.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

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Saturday, December 08, 2012

Some top global and Indian M&As...

Are companies strategising their inorganic growth any better amid global turmoil? B&E presents an in-depth analyses of some top global and Indian M&As...

pfizer: wyeth
Pfizer’s been lucky so far…
...but will it keep the flame burning with Wyeth is still a mystery

Combine the two and there you have your eyes opened, and wide! Perhaps Pfizer’s decision to acquire Wyeth for a whopping $68 billion could not have been more timely. But is there sound logic behind it?

No doubt, in the name of cost synergies, Pfizer hopes to save $4 billion annually in operational costs via streamlining of activities. But then that’s not the real reason for the merger! In fact, it’s all about finding a new source of revenue that can replace Pfizer’s blockbuster Lipitor (that contributed $6 billion in FY 2008), the patent for which is set to expire in November 2011. But then one shouldn’t forget that Wyeth, too, will lose its patent on two drugs, Effexor (anti-depressionary) and Protonix (for treating heartburn) in 2010 and 2011 respectively. “This acquisition doesn’t reduce the ‘overall’ exposure to patent expirations... what it needs is a couple of good new patents,” agrees David Lugg, Credit Analyst, S&P.

Even the vehicle that the company is using to finance the deal may prove expensive. The $22.5 billion short-term debt through which Pfizer plans to part finance the deal will surely have to be repaid. And in the current downturn, this actually doesn’t sound easy as Brian Tempest, Chairman, Hale & Tempest Co. states, “This funding is certainly surprising keeping the present financial environment in mind.” Even Moody’s Senior Vice President Michael Levesque argues that “Pfizer’s key credit ratios would initially erode from “Aaa” ranges to “Baa” ranges, and the combined Pfizer-Wyeth entity would still have relatively weak scores in patent exposures and late-stage pipeline quality.” Though Pfizer gets a well managed company in Wyeth with a sizeable sales base and tightened cost base; the restructuring and termination of 20,000 staff will definitely be another aspect that will be hard to manage.

No doubt, Pfizer has done some great work with previous big-ticket acquisitions like Warner Lambert and Pharmacia, but whether this will prove to be the third medal for it is still a mystery!

Read more......

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

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Friday, December 07, 2012

The web is where the heart is?!

Link-ups and break-ups… it’s all happening on the Internet.

With easy access to the Internet, it is said that people are coming closer. I’d say that with easy access to the Internet, people are becoming intimate! Activities like sports, music, dancing and painting have been substituted by chatting; and incase you assumed that this cyber addiction was limited to only youngsters, let me tell you that it is not. The reality is that it is not just kids or young adults who are obsessed with on-line friendships and cyber dating. Grown-up adults – including married men and women – are spending a great deal of time on sites like Orkut and Facebook, not just to keep in touch with long lost friends but to forge new relationships… and much more!

Shyla’s parents couldn’t have been more shocked on learning that their daughter wanted to marry a boy whom she hadn’t been dating, but had been chatting with. “How could I ever trust anyone who Shyla had met on-line where the scope of being pretentious is thoroughly explored for the sake of fun? How can one claim to have faith in a person you’ve only chatted with and not met?” squealed Shyla’s mom, while Shyla had a different argument. “I accidentally met Bhagat on-line. He was quite interesting and so we were constantly in touch. After a year of chatting we decided to meet. We continued to stay in touch on-line. Although we had met only thrice in three years, we grew fond of each other. Now, after three years of knowing each other, we have decided to get married”, said Shyla. Due to their unrelenting stand, the families had to meet and eventually, happily agreed with their decision. “On-line dating is a risky affair because there are little chances of one being serious about it. But on the other hand, it gives a huge scope of getting in touch with and meeting different people, especially for those who are looking out for a partner. Frankly speaking, I never trusted on-line relationships but there are always exceptions, like in our case!” exclaimed Bhagat.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

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Thursday, December 06, 2012

You’d do ‘Neutron’ Jack proud!

Jobs cuts, during recession become a ‘necessary’ evil; and this is the only quick solution for companies...

The thrice-marrried, former GE CEO, Jack Welch could never find another reason to be happier. Excuse us here; we’re not talking about Jack becoming a father again (he has already celebrated 73 years glorious years on the planet for Chrissake!); but about others preaching the layoff culture at GE, many years after he quit GE (strict reference to his act of firing about 120,000 ‘bottom 10%’ employees). And it is his two ‘action-packed’ decades long terrific tenure at GE that on one hand deserves all the credit for a tub-thumping appreciation of 4,100% in GE’s market value (making it the most valuable company by 2001!) and on the other, seems to have created a model of leadership that fellow-American MNCs and those from the Eurozone & First World have begun to emulate. Yes, we’re talking about the lay-off announcements that were made in the past week; there was GM confirming 2,000 cuts, Caterpillar – 12,000; Pfizer – 19,500; Sprint-Nextel – 8,000; Intel– 6,000; Philips – 6,000; Corus – 5,500; Corning Inc. – 3,500; ING – 7,000; Texas Instruments – 3,500; Home Depot – 7,000; Microsoft – 5,500; Hitachi – 27,000; Ford – 1,200, UAL – 1,000… and the list continues.

Reacting to these announcements, an emotional US President, Barack Obama said, “These are not just numbers on a page... these are working men & women whose families have been disrupted and whose dreams have been put on hold…” Indeed, Obama puts his emotions in good light here, but are not these actions mere rampages sans rationale?

We need to question the very ‘fundamental necessity’ of job-cuts, especially with unemployment rates having grown meteorically from 4.7% in December 2007 to 7.2% in December (a 15-year high!) as per a January 2009 report by IHS Global Insight The report further suggests how during just the last four months, 2 million jobs were slashed – representing 80% of total cut during the current downturn. Worst, the report proves how, we are “just halfway to the total job loss anticipated during this cycle,” thereby forecasting the unemployment rate to rise above 9% by early-2010 (highest in 30 years). Surely, we are on the verge of making some ‘bitterly forgettable’ history! 
 
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

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Tuesday, December 04, 2012

A piece on Israeli grandmothers!

And on why mothers and grandmothers of this great nation play a critical role in the Israeli-Russia spar

Since August 28, 2008, almost all western media in some or the other form, are criticising Russia’s decision of recognising the independence of Abkhazia and South Ossetia [once considered part of Georgian influence] by considering it Russian-occupied territories. Not only have both Fortune and Economist featured Russia’s growing influence on their cover stories in the last few weeks, even global leaders have suddenly started recognising that Russia still exists. In sarcastic criticism, US Secretary of State Condoleezza Rice expectably showed her support to Georgia and warned Russia, “In contrast to Georgia’s position, Russia’s international standing is worse now than at any time since 1991...” How interesting dear Ms. Rice that you use that year as an example, for we believe that for the first time since 1991, Russia is finally regaining its rightful position on the world platform. And please Ms. Rice, neither you nor your favourite ‘Kiss Army’, of whom you are a self-confessed die-hard fan, are even an iota interested in what happens in Georgia, are you ma’am?

But what we wish to impetuously implicate out here, and what has been missed out by a majority of media in the process has been the emergence of a strange spar between Israel and Russia over the Georgian war! Analysts and experts in both Israel and Russia are bombarding each other with anti-Russian and anti-Israel statements respectively. Even in the media, while on one hand, Israeli press is accusing Russia of increasing its arm trade with the Middle East, on the other hand, the Russian media is leaving no stone unturned to prove the presence of arms and Israeli training hubs in Georgian land. And now, gravely serious political leaders allege that Russia’s nuclear fuel supply to Iran’s Bushehr nuclear plant is an initiative against Israel and Georgia. The question is, why is Israel suddenly getting into the benign act of protecting Georgia?


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

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Monday, December 03, 2012

Now for some ‘Healthistaan’

Pepsi’s new initiative in rural markets faces a branding challenge

Phew! For a change, this is a refreshingly different story. At a time when companies are actually turning enemies of scale, PepsiCo India is actually continuing its untethered initiatives to achieve it in India. Claiming that the FMCG sector remains barely moved by the global slowdown otherwise troubling various industrial sectors of the world, Indra Nooyi, Global Chairman & CEO recently spoke with B&E to inform, “Irrespective of the recession, our sectoral volume growth has been not affected.”

Nooyi has just propagated the ‘Power of one’ strategy globally, and restructuring in India is on track with respect to this strategic direction. PepsiCo India and Frito-Lay will now come under Sanjeev Chadha as one entity and exploit mutual synergies. The company has earmarked another $500 million for expansion in India, hoping to triple its business in the Indian market. It’s a different matter that the company has also announced investments of $3 billion in Mexico and $1 billion in China recently!


Source : IIPM Editorial, 2012.An Initiative of IIPM, Malay Chaudhuri

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Saturday, December 01, 2012

FAFA ISLAND RESORT

On a palm covered, uninhabited island, Fafa Island Resort is a pearl in the off-shore islands north of Nuku’alofa. The white sandy beaches, the turquoise lagoon surrounded by a coral reef and colourful fishes keep the natural beauty of this place alive. The stunning resort is a perfect blend of the natural environment and the modern requirements of it’s demanding clientele.

THE VIEW: Spread on an 18-acre palm covered atoll, the Fafa Island Resort is setup on an uninhabited coral island in Tongatapu Lagoon. The resort gives its customers a spectacular view of the beach from their bungalows, and yes, if you’re bored then just step out of your bungalow and simply enjoy the soothing sound of the waves hitting the shore.

ARCHI TYPE: The resort is confined to 13 bungalows, each constructed with bamboo to give your bungalow a perfect beach house look. Also, your bedroom – which has been made just a step away from the beach – faces the sea for you to enjoy the beautiful scenery while you spend quality time with your loved one.

BON APPÉTIT: The resort is known for its unique contemporary Polynesian European Gourmet and especially for its seafood. And well, you needn't worry about the food menu. The menu, in fact, changes everyday and the food is prepared from the fresh products of the market giving you a delicious meal which is worth its price. Also, the perfect way to unwind is with some tropical cocktails which are served in the open-air bar just outside the resort.

AROUND THE CORNER: In-case you are looking for some souvenirs, especially the famous carvings and weaved products of Tonga, the shops outside the resort are a must visit as they not only give you the best of the products but also at prices hard to resist.


Source : IIPM Editorial, 2012.

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Friday, November 30, 2012

Around the world in 10 days...

Indian festivals celebrated globally may help repositioning brand ‘India’

It would be an understatement and in fact a sin of sorts to just say that Durga Puja, Dusshera, Eid and Diwali [Indian religious festivals] are festive occasions for India and the sub-continent. Clearly, though the magnificent cities of Kolkata, Delhi, Mumbai and similar others grandiosely celebrate any occasion worth its time, the bigger festivals are celebrated with just about the same pomp and grandeur by large pockets of Indians across the globe too.

Interestingly, a bunch of students in Chicago organised a notable event of Durga Puja in the downtown area. Though the even was attended by only around 300 people, the related media and publicity hype that it generated out-beat some of the strongest tourism drives of the Indian Ministry of Tourism in the Chicago state. How important can a state like Chicago be, huh? Chicago’s GDP tops $475 billion as per various estimates, almost half of India’s GDP! Similarly, the Houston Durga Bari saw around 3,000 devotees assembling for the function. At the same level, the Frankfurt Sarbojanin Adi Durgotsav has been a constant since 1981. Places like Perth and Sydney, Africa, Hong Kong, China, Dubai, Malaysia, Tokyo, Britain, Mauritius, Fiji [where Diwali is a public holiday], Singapore and Jakarta also have Indians doing their tremendous mite to not only add to the religious fervour, but also ensuring that ‘mystical India, a land of snakes and elephants’, attracts many more tourists than what the Indian government could achieve in a lifetime. There clearly is a huge amount of learning. Rather than investing millions of dollars in organising events through typical event-management firms, the Indian government should necessarily have alliances with foreign based organisations set up by NRIs and people of ‘desi’ origin to have a tremendously better impact.


Source : IIPM Editorial, 2012.

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‘Litereal’ truth

Sarah’s effect; news is followed

The focus of the entire world shifts to arguably the greatest show on earth- the US presidential election. Depressingly, while a survey conducted last December on viewership of election campaign in the US showed only 25% of respondents below the age of 30 watching political news regularly, the figure in the age group of 30 to 49 years was 39%. But now, in the US, the pleasant surprise is that there is a significant jump in news ‘followership’, where surveys have shown 43% are following the news now compared to 36% in the last presidential election. Another survey by New York Times indicates that more than two third of the population is showing ‘some interest’ for the election. The American youths are interested in politics like never before, where 65% of them are glued to their TV sets compared to 36% in the last election. The survey also signifies an interesting side of the story, where there is more viewership among Democrat supporters than Republican ones. Amusingly, though the Canadian Federal elections are also around the corner, there is more interest in Canada for US elections than for their own. It was also found that 15% of Canada’s population would want to vote in the US election than have the right to vote in their own country.


Source : IIPM Editorial, 2012.

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Wednesday, November 28, 2012

HOW ECONOMICS CAN

What’s the dirtiest secret about corruption? Just how little we know about it. Treasuries are plundered and kickbacks are paid, but the nature and scale of the world’s shady transactions largely remain a mystery to us. Luckily, a little economic detective work is all that is needed to expose the smuggling, cheating and bribing that is hiding in plain sight.

 What little systematic evidence we do have comes from surveys by groups such as the World Bank and Transparency International. But we economists are skeptical of what people say about corruption. It’s called “cheap talk” for a reason. And we’re especially suspicious of what people say when surveyed on sensitive topics such as bribery and embezzlement. It’s obvious that responses to the question, “How much did you receive or pay last year in bribes?” are of questionable accuracy. So it’s hard to know where it’s really thriving, let alone figure out what to do about it. But all is not lost. The hidden underworld of corruption often reveals itself in unexpected ways – and in situations that allow us not only to measure actual corruption but to test different methods of preventing it. All that’s required, it turns out, is a little economics and a dash of ingenuity. To truly understand corruption, we must watch what people do, rather than just listen to what they say. And as we’ll see, damning evidence, like cash-filled suitcases, often leaves footprints in the data for those who know where to look.

Economics is fundamentally about how people respond to incentives. So, if we forensic economists want to unearth corruption, we must look for situations where incentives for crooked rewards somehow translate into actions that everyone can see.

Price of political connections

Whether through hefty campaign contributions or cushy jobs for former politicians, corporations are constantly accused of trying to profit through political ties. (just think Halliburton or Russia’s Gazprom). But what’s the real value of these companies’ connections? If you ask politicians or investors, you’re likely to hear lots of denials. To get the truth, we could ask insiders to put some money where their mouths are, making them bet some of their own cash on whether particular companies are making back-alley deals with politicians to increase their profits. Raw financial self-interest would lead bettors in the know to reveal their true beliefs about corruption.

Source : IIPM Editorial, 2012.

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Acid test for Yeddyurappa

Karnataka Chief Minister needs to quell Bajrangi hate mongers and ensure safety to minorities

Since leading the BJP to power for the first time in Karnataka, B. S. Yeddyurappa has faced a volley of accusations. Attack on churches is the latest in the list. The attack coincides with BJP’s 100 days celebration of power in Karnataka. It started in a church of Dakshina Kannada district and took little time to spread to neighbouring districts of Udupi & Chickamagalur. The attacks were triggered by Orissa incidents and the allegations of conversion. The peg for the attack was the alleged distribution of ‘Satya Darshini’, a write-up in which Hindu gods were shown in disrespect. Even Bangalore was not spared; two churches were attacked in India's IT capital; this, after Chief Minister, Yeddyurappa’s assurance of taking strict action to control the situation. In a span of a week, more than 22 churches were desecrated. According to the opposition party leaders Yeddyurappa has completely failed in his duties. Minorities in Karnataka continue to reel under threat.

The CM is under attack from opposition parties. R. V. Deshapande, KPCC President & a former Minister told B&E, “It was unfortunate that the BJP government failed in handling the situation. Bajrang Dal and VHP are trying to disturb the communal harmony in the peace loving state. Continuation of such a situation was sure to discourage prospective investors in the state.” Opposition leader Mallikarjuna Kharge too seconded Deshpande's views.


Source : IIPM Editorial, 2012.

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Tuesday, November 27, 2012

Acid test for Patnaik Jr.

It’s time for Naveen Patnaik to prove his ability as a mentor

When Naveen Patnaik entered Orissa politics a decade ago, leaving a rosy career as a writer, analysts discarded him as a person without any political experience. They also predicted that he would be a lame duck controlled by others. But he proved everybody wrong and became the Orissa CM twice, and that too consecutively. He also proved his mettle by kicking out 10 of his key ministers when they were charged with corruption. However, as the state goes for another round of assembly elections next year the question that emerges is, has Naveen proved himself as a good administrator? Does he have the true characteristics to lead the state to new heights? Will he be able to give a bright future to a poor state like Orissa?

Well, going through the series of past events, the answer definitely sounds negative. Be it the case of handling the recent violence that has erupted in the state after the murder of Swami Laxmanananda Saraswati, a Vishwa Hindu Parishad leader or enabling POSCO to go ahead with its huge investment plans for the state. That’s not all. While health problems have been an area of concern for the state; it has become a huge market for counterfeit medicines.


Source : IIPM Editorial, 2012.

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Monday, November 26, 2012

Fractured infrastructure?

Only an efficient public transport system can reduce the usage of personal vehicles

Statistics have been conspicuously crowned as the king of lies. But the fact is that there is no other logical way to prove truth other than the damn statistics. Figures don’t lie and they definitely don’t when we say that lack of proper public transit systems and infrastructure leads to high usage of private cars in India.

This trend is most visible in urban areas. For instance, Delhi has a very high rate of migration. While the population continues to rise, the city has seen a marginal rise in the number of buses in the last four years. Result: the rise in personal vehicles has been 100%. China was facing the same problem till 2006. To solve this, they came up with Bus Rapid Transit (BRT) lines in 2006. The system has been a run away hit and presently 50% of the all the trips in Chinese cities are done through public transport, majority of which are through buses. On the same lines, BRT has been started in India but is still in the trial phase and its future remains uncertain. Japan is another classic case of this trend. The market for new cars in Japan has shrunk from 7.78 million in 1990 to just 4.13 million in 2007. The reason for this is lack of proper parking facilities and the efficient public transportation in Japanese cities.

Not that high number of cars is a bad thing, but too many of them create problems. Pollution, accidents, jams are just to name a few. Indian city roads on an average occupy 12-14% of total land area. It’s 10% in Mumbai and 6% in Kolkata. The same roads carry more and more vehicles which lead to jams and accidents.


Source : IIPM Editorial, 2012.

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Saturday, November 24, 2012

The Dark Knight!

Of all the July 4ths that Bennett hates, he’ll hate July 4, 2008, the most. While the nation rejoiced on this day, he had already been sentenced to 16 years in Federal prison the day before... all thanks to his Dark Knight acts at Refco

“I knew failing to disclose these filings was wrong. I know I was wrong. I deeply regret it,” is how Phillip R. Bennett pleaded guilty, with eyes full of tears, before the US District Judge Naomi Reice Buchwald, on February 15, 2008. And what was his crime? Well he literally killed a company!!! Bennett, the former CEO of Refco Inc., a New York-based leading financial services company, earned fame having made millions for thousands of his clients (even US Senator Hillary Clinton was one!). But there was the dark side to this knight... he mismanaged Refco’s clients’ equity and disguised $430 million of bad debts. During its heydays, Refco was known as the largest non-bank US futures commission merchant of commodities and futures. The company was founded in 1969 by Lt. Thomas Dittmer and his stepfather Ray Freidman (who also had a criminal record!) as ‘Ray Freidman & Co.’ in Chicago. It was eventually relocated to New York. Its base had swelled to 200,000 customers and $4 billion in assets by October 2005. Then doomsday occurred. Many experts claim that Refco’s flameout was one of the most spectacular financial failures in US history amid civil and criminal investigations. Between its IPO in August 2005 and its October 18, 2005 bankruptcy filing, more than $1 billion in investor capital evaporated from Refco’s coffers. Beat this, it took just four days for Refco to transform from being the world’s largest commodities and futures brokerage to a company worth nothing, making it the fastest crash of a publicly listed company ever!

Born in 1948 in Britain, Bennett graduated from Cambridge University and joined Refco in 1981. He became its CFO in 1983 & subsequently its CEO in 1998. Under Bennett’s guidance, Refco advanced into the fast-growing unregulated markets and drifted away from its traditional business of dealing with agricultural commodities. Under him, the company acquired 16 smaller competitors and grew its revenue base by an incredible 24% annually through 2004. What followed however proved him a ‘dark knight’ for his stakeholders.


Source : IIPM Editorial, 2012.

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Friday, November 23, 2012

Democracies are peaceful

Democracies are peaceful, representative – and terrible at boosting an economy. Or at least that’s the conventional wisdom in Asia, where for years growth in India’s sprawling democracy has been humbled by China’s efficient, state-led boom.

The idea that there is a trade-off between economics & politics is ingrained in the minds of many policy-makers and business executives in Asia, as well as the West. But that idea has never been systematically proven. If India, with its noisy, chaotic, and lumbering political arrangements, can grow, then no other poor country must face a Faustian choice between growth & democracy. A deeper look at the two countries shows that they have succeeded and failed at different times for remarkably similar reasons. Their economies performed when their politics turned liberal; their performances faltered when their politics slid backward. Now, as many poor countries grapple with similar political & economic choices, we must understand this dynamic. It is high time to get the China-India story right.

India’s untold history

That story doesn’t begin in 2008. It’s a horse race that goes back decades, and one that tells us much about the relationship between democracy & growth, governance & prosperity. From an economic perspective, it is not the static state of a political system that matters, but how it has evolved. The growth India enjoys today sped up in the 1990s as the country privatised TV stations, introduced political decentralisation, and improved governance. Contrary to conventional wisdom, India stagnated historically not because it was a democracy, but because, in the 1970s & 1980s, it was less democratic than it appeared.

Many scholars blame India’s first PM, Jawaharlal Nehru, for adopting a development strategy that caused India to stagnate from 1950 to 1990. But this view is unfair to Nehru, and it shifts the blame from the real culprit – Indira Gandhi, PM during much of the period from 1966 to 1984. Nehru’s commanding-heights approach was the reigning ideology in many developing countries, some of which, like South Korea, were quite successful. The issue is not how harmful Nehru’s economic policies were, but why India intensified and persisted in this model when it was clearly not working. To answer this question we have to understand the lasting damage that Indira Gandhi inflicted on Indian democracy.


Source : IIPM Editorial, 2012.

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