Thursday, June 17, 2010

Indians succeed at home just as well as they do abroad !!

Yesterday I once again received a chain email which has been making the rounds for the last seven years or longer, about how well Indians do overseas. It mentioned about Rajat Gupta(ex-Mckinsey) Victor Menezes( ex-Citibank) Rana Talwar(ex-Citi,ex-Standard Chartered ) and so on. I think it was originally written by a journalist and has been picked up and circulated since then. The point being made was that Indians only succeeded when they are out of India and freed of restraints, they suddenly blossom.I am sure the latest version will probably include Nikki Haley and Bobby Jindal, who are Americans of Indian parentage, but as a friend in marketing once said " why let facts spoil a good story ".

Obviously these people have not been visiting India to see the changes which have been happening. If you compare the list of 50 industrialists and the industries they were from ninety sixties to that of now you will find a tremendous change. My guess would be that only 25% (if that) of the names remain the same. The others are new and most of the industries they are new as well. It used to be textiles, tea, some heavy engineering. Now its real estate , software, entertainment, petroleum, telecoms.The majority of these new generations are self made or perhaps second generation like the Amabani's but who contributed to the accumulation of the family wealth.

Yes we all know how difficult it is to operate in India, but these new generation of business men work within the same system and know which buttons to press and which politician and bureaucrat to "lobby" and have succeeded and are now among the richest families in the world. In the past they would have been labeled as beneficiaries of the the License Raj, but this is no longer the case. This new generation is no longer confined to the Indian borders. They are spreading their wings both to the east and west.

Even among professionals who have done well are not just those who remained abroad after completing their studies. A lot of them got their initial boost while still working in India, stood out and were then sent overseas by their employers. These include, Victor and Rana. In addition you have V Shankar and Jaspal Bindra from Standard Chartered, Haresh Manwani and Manvinder Banga of Unilever, Ajay Banga of Master Card and the list goes on and on.

The common complaint about why things in India don't work ( Infrastructure) is because " we are a democracy" does not apply to these people.They have succeeded in spite of us being a democracy.

What these critics fail to understand is that every country goes through a transition. The UK went through it during the late seventeen hundreds and early eighteen hundreds and the United States in the late eighteen hundreds and early nineteen hundreds.Read Charles Dickens and about Tammany Hall politics in New York to find out how rampant corruption was among politicians and the judiciary.

Where I do agree with the critics is that with the flow of information and with the level of education and an active media,the pace of change for the better is way too slow. It should be faster.

Fortunately India is in the sweet spot, which happens not just once in a lifetime but probably once every few centuries. There are so many opportunities to make money that people who are in a hurry will cut corners and seek an easy solution as they did in London and New York. Unfortunately when you are making 100 percent, you don't mind parting with 10-15 percent to move things along faster.I am not condoning it.I am merely stating a fact.

Regardless of what we wish for, I would argue that there is not a single country in the world which is totally free of corruption. Its a matter of degrees and form. One is sometime amazed at the level of petty corruption ( in India we are desensitized to this ) which you see in other countries.Members of Parliament in our former colonial masters have been to known to raise questions on your behalf for a few hundred quid. Also a large number of them have been caught out fudging their expense claims for petty amounts.Yet most of these MP's have gotten off scot free or or a mild rap on the knuckle. Compare that against a corrupt policeman in Bihar or Delhi with a family of five who probably earns a few thousand rupees a month .Who would you sympathize with ?

In the United States significant election campaign donors get rewarded with plum ambassadorial posts or political appointments. Lets not even go into the pork barrel projects in the United States of the Senators and Congressmen which ensure their re-election. Is Mamta Banerjee doing any thing different when she locates projects in West Bengal? Its all about the vote bank honey!!

See http://www.economist.com/node/16380025
If you are unable to access it , read the Economist June 19th-25th, Page 38th, Column " Money from Wall Street "

The only difference between India and other countries is that some of these process are formalized. Also once the wheels are greased you achieve your objectives. In India that might not be the case and might require the equivalent of a couple of " Patiala Pegs" .

Sunday, May 30, 2010

Shampoos , Deodrants & Skin Whiteners

Every day when I switch on the television,the majority of the advertisements seem to about three products, shampoos,deodorants and skin whiteners.

Each of these products seem to have a common theme and appear to make claims which on the face of it, appear to have no basis. Perhaps they have done studies to back their claims ?

The shampoos all focus on the hair being long & strong or on dandruff. I can understand the dandruff advertisements but the I am skeptical about the other claims - five or ten time stronger - against what ? What is their benchmark ?

The advertisements show the models constantly tugging their hair to prove how the shampoos have made their hair strong. There is even one extreme where a friend of a young woman ties her hair to a huge stone block which forms part of a drinks counter. When she moves the stone block gets dislodged and falls down. Now we all know Samson's secret. Perhaps Delilah just had to hide his shampoo rather than cutting his hair and blinding him. Also they could increase their market share in Punjab by using the tall good looking Sikh guys for these advertisements and make them do feats to prove their long and strong hair.


The other interesting advertisements are about deodorants.All you have to do is is spray it and girls fall all over you.The guys have trouble pushing away the girls. Incredible !!! Does it works on older men without the six packs ? I guess my wife does not want me to find out and makes sure that that I never run short of my Gillette gel deodorant !!

The skin whiteners are not just limited to India, I have seen advertisements for these creams all over Asia, but in my view India is probably the largest market. All the matrimonial advertisements here want girls with wheatish complexions. Maybe an opportunity here for a new series for a long term use ad-campaign. Just like the advertisements for educational loans or for marriages, there could be one -if you start using xxx brand skin whitener at an early age and you will become Snow White.It will help you get a rich, handsome prince when you grow up.

Among all the different NGO's which exist there is perhaps an opportunity for a "Truth in Advertising " NGO. They will have their hands full.

Thursday, May 27, 2010

Why dont our politicians say sorry ?

Is it just my imagination or is it that Indians generally don’t like to say they are sorry if they have made a mistake or done something wrong. I am not talking here about children. I am talking about adults and particularly politicians who are always in the public eye.

In America whenever a politician or a bureaucrat or a public figure ( Elliot Spitzer or Tiger Woods and even President of Obama,who said " he screwed up " in one of his appointments) does something wrong and I don’t mean just their sex lives.They dutifully appear on television generally supported by their families and teary eyed say how they are sorry that they have let everybody down. It is a public version of a Catholic confession, but instead of a hidden priest listening in, it is the world media. The American public generally is very forgiving and the individual is given a second chance, without the " Hail Mary's". There are numerous instances of that. As you will notice Elliot Spitzer is now slowly creeping back into the media.

In India the politician will first try to brazen it out, even where there is photographic or other recorded evidence. They will claim these were all doctored or that it was a part of a conspiracy against them, even when they are seen in the photographs with bundles of cash in front of them ala the Duchess of York.She at least had the grace to plead poverty as the reason for influence peddling. To claim poverty might be difficult for some of our politicians – might not get a ticket to stand for election next time.

Perhaps it might be easier for them to do it the American way and go public and acknowledge it. Recently a senior politician was filmed in bed with three women one of whom was reportedly pregnant. He did what all Indian politicians do. Denied it, said the photographs were doctored and so on.

Instead he should have admitted it. He should have said " even though I am eighty five years old, I have needs which one women cannot satisfy and hence I was in bed with three women or a holy man said that I needed to go to bed with three women and one of them had to be pregnant because of my health ".

He could have become the male icon and probably be forgiven. George Clooney, Brad Pitt, Hritik Roshan would all have to stand aside. He could probably even get advertising endorsements from Viagra with the slogan " You keep going when everyone stops " like the Eveready battery operated bunny who still keeps going when bunnies with other batteries stop.

Friday, May 21, 2010

Fascination with Japan

My fascination with Japan began in the nineteen fifties, when my father's company was the distributor for some Japanese electronic companies for Burma or (Myanmar). Japan had just started exporting. He used to go there quite frequently and every time he went there he would return with toys. Remote control cars, robots and of course pocket transistor radios. They were the first Asian country to manufacture sophisticated products. One particular incident sticks to mind. While he was there he had ordered a mail delivery of a remote controlled car. It did not arrive for a few months. He wrote to them. Within a few weeks we received two of them. It showed their commitment to customers.

The interest in Japan was revived when I arrived in Hong Kong in 1975 to start working with Citibank. While browsing in Ocean Terminal, I entered a shop called Mountain Folk Art. Among the many interesting things was what looked like a water color painting, nicely framed in a black oriental frame. I asked the sales person about it.He explained that it was a Japanese wood block print. Fortunately it was within my meager budget and it livened up my tiny apartment. Many years later I found out that my first purchase turned out to be a print by Hiroshige one of the best known wood block artist’s in the 1800’s.

Over the years my interest in Japanese arts and crafts increased , particularly in wood block prints and Japanese export silver where I think the craftsmanship is better than Chinese export silver but the production was limited. You will find numerous books about Chinese export silver but none on Japanese export silver.

I purchased prints by different artists including a French Japanese artist Paul Jacoulet and some prints by Okamoto and others.The purchases were from Hong Kong , Tokyo, London & New York.It might sound difficult to accept but in opinion I paid less for Japanese silver in Tokyo than I did in the other cities. Perhaps it is not appreciated there as much ? Not knowing enough I probably over paid in some instances, but I have no regrets.

I discovered that ukiyo-e by artists such as Hiroshige and Hokusai with their vivid colors have had such a strong influence on Western painters , particularly French impressionists ( “Japonism”) painters such as Van Gough and Gauguin or even lithographic artists such as Henri de Toulouse-Lautrec. Perhaps because of the connection, during the peak of Japan’s economic boom, Japanese companies and collectors were paying over the top for Impressionist paintings.Even in India in the early 1900’s, the emerging modern painters particularly from the Bengal School tried to paint in the same style.

In addition to the wood block prints,I am fascinated by traditional Japanese architecture and Japanese gardens. With their minimalist approach and their harmony with nature, I have always wanted to have some elements of Japanese architecture and gardens in a house I was planning to build ( that's another story). Unfortunately with Delhi's security, its harsh summer and not having Larry Ellison's billions, I have had to settle for the local version of Shoji panel sliding doors in my apartment. The closest I have come to blending the two is purchasing some Yoshida Hiroshi's woodblock prints which were made when he visited India during the nineteen thirties.

Even now when I visit Japan I am fascinated by Japanese arts and crafts. While Chinese arts and crafts are exquisite, the Japanese take it a step further – whether it is netsuke or samurai swords, porcelain or any other crafts. No other citizen takes as much pride or as disciplined in what they do as the Japanese. A small example. When you go to a Department Store – Takashimiya or Mitsukoshi or any of the others which are still around, no matter how small the purchase, the sales girl ( or two) will go to great lengths to wrap it by folding in a series of complex “origami” type folds.


The question in my mind is that with the urbanization of the country and the graying of the population , will these skills be passed on to the next generation.Will the younger generation have the patience to go through the apprentice which would normally be required ?

Certainly on the print side, it still seems to to be the case, with prints being modernized and foreigners now getting involved,but what about the other master craftsmen.I am probably not aware or know enough about what is being done, but it would be a pity if a hundred years from now the only Japanese crafts you see would be in the museums.

Wednesday, May 19, 2010

Change the Rules When They Don’t Suit You

In my blogs of April 29th, I commented on The Volcker Rule and The Unraveling of the EU ?

I notice from recent news items that the German Government now wants to put limitations on hedge funds, naked short selling to limit so called speculators or speculative instruments.

It is ironical. In the 80’s and the 90’s when Asia went through their financial crises, the regulators and politicians from the European countries and the United States would visit and preach the free market gospel.Governments should not interfere in the free markets. Regulators should not control foreign exchange rates and the stock markets. They should allow the free flow of capital.

Hong Kong was berated when it closed down its stock market for a couple of days. Malaysia’s President Mahatir was cast as the villain who was taking Malaysia backwards when he imposed exchange controls. Also who can forgot the humiliating picture of IMF’s Michel Camdessus towering over President Suharto of Indonesia while signing the strict conditions imposed by IMF under the bail out. It brought to mind pictures of surrender documents being signed by the losing side during World War II. This when Indonesia’s currency had already devalued by over 500 percent. They insisted that countries should allow their banks to fail and that they had to swallow their bitter medicine if they wanted to seek the help of IMF (which the Koreans with their sense of humor, put signs as being short for “I am f****d “ ).

Now these very countries are doing exactly what they said should not be done. They are bailing out banks and corporates, placing restrictions on free flow of capital and controlling derivatives.

The Europeans are being optimistic if they think that by imposing such restrictions they will be able to able to control the behavior of sovereign nations, who while sharing a common currency will forgo their national interests.At the end of the day,the market players zero in on areas of weakness, like hyenas feeding on a wounded buck. If the politicians had managed their economies as they should have, there would be no opportunities for speculators. You might close one window, but in today's world other windows will be opened and fund managers will do what they are paid to do, if necessary by creating synthetic instruments aided by the banks.

Politicians in Greece and Spain are no different than politicians in Germany, France and the United States. They will do what they need to do to get elected. Look at the track record of countries in South America who have defaulted more than once . If two or three countries in the EU default simultaneously, do you see Chancellor Markel and President Sarkozy asking their voters to sacrifice their social benefits and health care programs to enable them to contribute a larger sum to the bail out fund ? That would be an end not just to their own political career but to their party’s chances of retaining power and perhaps the end of the Euro.

By contrast this time perhaps the Asians were smarter. The Asean market countries have not rushed to have a common currency and to open their borders. They are getting there step by step , initially by working out trade agreements and other confidence building measures. The Asian tortoise will eventually build its own structure which suits their political and economic needs and at its own pace.

The Greek crisis is just Act One,Scene One in the unfolding of the Great European Family drama which will unfold over many years. Will the German Bürgermeister, make the necessary sacrifices needed to keep Zorba dancing ? Keep watching this space....

Tuesday, May 18, 2010

South African Safari

Just returned from a relaxing holiday in Lesotho and South Africa with the family.

Highlights of the trip were the visits to two lodges and Cape Town.

The first was about a two hour drive from Maseru in Lesotho - Maliba lodge nestled amidst the mountains. Extremely peaceful. Great for hikers, but even for me it was wonderful. Unfortunately we were able to spend only one night
http://www.maliba-lodge.com/


The second was Ulusaba - an hours flight from Johannesburg. Situated in the heart of bush country. Had all the trappings of a safari with rangers and rifles mounted on the dashboard of their Land Rovers. Over all a bit disappointing. Had visions of seeing herds of zebras,wildebeest, lions and cheetah stalking impalas ala National Geographic television shows.When asked if they ever used the rifle , the ranger joked " only to shoot the guests".

Yes we did see lions,leopards, hippos, rhinos etc, walking alongside our Land Rover, as if going for an evening stroll. One felt sorry for the animals, because there were about 10 lodges or more in the 66,000 hectare game reserve and whenever a ranger spotted a "big five" he would radio the others and soon you would have two or three cars surrounding the poor animal, often in the glare of floodlights at dusk.Have seen bigger elephants and buffaloes on the streets of India.

The Stellenbosch wine country at Cape Town was beautiful and we are now fans of South African wine.

Over all the weather was beautiful cool and pleasant. It all ended when we landed in Delhi with temperatures hitting the mid-40's.

Saturday, May 1, 2010

Punjabi Music Videos

Since I have been back, while watching television I get drawn occasionally to channels showing Punjabi music videos. They seem to be two different kinds.

The first kind which is likely produced in the United Kingdom and you have a combination of Punjabi and English lyrics. The male performers invariably wear dark glasses, have shirts open to their belly buttons, showing lots of gold chains. The women tend to wear short skirts and low cut tops. The style seems to be the bhangra ragamuffin ( fusion of reggae and bhangra) sung in Jamaican patios first popularized by Apache Indian. The singer's actions tend to be rap style index fingers pointing downwards, lots of zoom shoots particularly of women draped over
expensive cars and other accessories.

The home grown ones tend to be generally in rural settings, with a good looking guy supported by a group dressed in the tradition punjabi lungi and bright kurta's and hurt your eyes bright turbans with a roosters plume. The girl is dressed in a traditional salwar kameez with long hair and curls on her forehead acting coy with her group of friends. The music is provided by the dholak. While the lyrics might vary if you have heard one, you have heard them all as they all appear to be the same.

The interesting fact about the latter and which reflects the changes in traditional Punjab is that very few of them, if any, have full grown beards or long hair. Reflects the changing face of the Sikhs in the Punjab villages.The men want to be "modern" but they want their women to be traditional.

Bhale Bhale !!!Chak de Phate !!!