Shriveling of the Congress Party meant that Gandhi had to use other means to get re-elected: crushing political opposition, pandering to special inter

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She moved very far to replace federalism with her own centralised rule. The cumulative effect of Gandhi’s actions is that the Indian political system

Patronage became her electoral strategy, as she undermined a vital institution in a functioning democracy – the party system. Gandhi weakened the Congress Party by sidestepping many of its well-established procedures, reducing its grass-roots reach in the states, and appointing party officials rather than allowing rank-and-file members to elect them. Shriveling of the Congress Party meant that Gandhi had to use other means to get re-elected: crushing political opposition, pandering to special interests, or offering political handouts or cancellations of elections altogether. Indira Gandhi imposed emergency rule in June 1975 and cancelled the general election scheduled for the following year. And as early as 1970, she postponed or cancelled Congress Party elections. She moved very far to replace federalism with her own centralised rule. The cumulative effect of Gandhi’s actions is that the Indian political system, though still retaining some essential features of a democracy, became unaccountable, corrupt, and unhinged from the normal benchmarks voters use to assess their leaders. In a functioning democracy, voters punish those politicians who fail to deliver at the ballot box. Not in India. Both the 1967 & 1971 reelections of the Congress Party followed a decline of per capita GDP the year before. It was not democracy that failed India; it was India that failed democracy.

The economic consequences of this period of illiberalism were long lasting. Because Gandhi’s political fortunes depended on patronage, she felt no compulsion to invest in real drivers of economic growth – education and health. The ratio of teachers to primary-school students throughout the long Gandhi years stubbornly hovered around 2%. After her rule, in 1985, only 18% of Indian children were immunised against diphtheria, pertussis, and tetanus (DPT), and only 1% were immunised against measles. Even today, India is still paying for her neglect. The low level of human capital remains the single largest obstacle to India’s developmental prospects.


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Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


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Dam’d if you do; dam’d if you don’t!

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Governments rarely consider rehabilitation while drafting dam projects

Dam’n it! We’ll jump directly to the point. There are over 50 million people displaced in the country so far since 50s. Land owners or tenants who occupy the land were compensated monetarily which was never enough to resettle.

The example of Hirakud dam (1957) is a case to point. The government acquired over 727 sq. km of land under the imperialistic Land Acquisition Law, which displaced over 1.8 lakh people. Though later, experiencing the severity of displacement and sufferance of affected families, a policy was finally adopted for rehabilitation and resettlement of displaced people; but as always, it remained on paper only. On another front, after the uproar of the Narmada project, a special World Bank team, Morse Committee, concluded in 1992 that relocating displaced people is impossible (unless resettlement plans have been made in advance); but Indian governments continued with the projects without any such plan.

The problem is that such rehabilitation moves are completely subject to political deviancies, wherein one government might be appreciative of the same – to earn brownie points – but another government, from another political camp, might be totally against the implementation of the same. Sadly, even celebrities lose no time in jumping on the media bandwagon to cry hoarse about their support (or lack of it) to the ‘movement’.

Can’t an Indian government just face up to the current reality and do something about such problems in relocation and resettlement. For crying shame, a formal Rehabilitation & Resettlement Bill was passed finally only in the year 2007, a full sixty years after Independence. We suspect it’ll take another sixty before they put the Bill into action...


For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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Craving for more...

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Cray partners Intel to develop ultra high performance computers

In layman’s words, Moore’s law states that every two years, the size of the chips decreases whereas their capacity doubles followed by a reduction in cost. The computing industry worldwide has been religiously following this law since the inception of computing decades ago. But as far as high performance computing (HPC) machines or supercomputers are concerned, they are an exception. Recently, two HPC giants Cray Inc. and Intel Corp. signed a multiyear agreement to take this niche segment to a new level.

“We’re excited at the potential of bringing together Intel’s powerful silicon expertise and Cray’s industry leadership in HPC systems,” said Peter Ungaro, president and CEO of Cray. HPC machines have usage primarily in the fields of aerospace, weather forecasting, engineering, simulations and Finance. However, considering the nature of application and costs involved with HPC machines, these have mostly remained confined to governments and large corporations. Recent trends indicate that the present generation supercomputers cost at least $15 million and the price may go up to a whooping $50 million, says Top500, an organisation dedicated to supercomputing. So can this strategic partnership between Cray and Intel help in bringing down the overall cost of owning a high performance computer in the near future?

According to Cray’s spokesperson, “The question is tricky. First a HPC machine cannot be mass produced as every machine is tailor made as per the area of its application. Contrarily PCs are general purpose and can be commoditised. Secondly a lot depends on how powerful the machine is. Try configuring a high-end machine and you will realise how the addition of components increases the price of your PC.”

Though the prospect of Cray partnering with Intel in the field of HPC seems to be very interesting, the partnership is not expected to yield any result until 2012. However, in the mean while, long term rivalry between IBM and Cray in the field of HPC is expected to go beyond further and with Intel’s well known expertise on Cray’s side, the balance of power is definitely expected to shift in its favour.


Vishal Ingole


For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


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Daimler-Chrysler has always been heralded as a champion on the ‘premium’ platform, in India & globally. But can it stand the test of time? B&E investi

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“a larger variety of engines was rather uncalled for at this stage!”

The company also counts largely on its enviably widespread dealer & service network across the country, aimed at giving its esteemed customers a ‘global experience’. Hence, DC should capitalise on its first mover advantage, and focus increasingly on its distribution network and further increase penetration. The competition is however aware of its shortcomings in India and therefore wants to build a market on the ‘novelty factor’ alone. BMW, for instance, offers three-engine options for its volume product – the ‘3-Series’. Mercedes for that matter offers no more than just two! Even CBU dependent Porsche offers four options on its highly successful Cayenne SUV. When B&E inquired into the matter, the company officials told us that, “a larger variety of engines was rather uncalled for at this stage!” The danger however is that this could lead to the same rejection situation faced by DC back in 1995, when the company entered India with the Mercedes Benz E-Class (W124 version) which was rejected by the market and had to be replaced with the newer W210 version.

...but loves the world!

Surprising it is, for seven decades back, this German machine was feared by rivals and loved by speedsters for possessing the capacity to achieve on-road velocity in excess of a blinding 400 km per hour – considered a ‘superior motoring benchmark speed level’ during those days. You couldn’t have imagined so, could you? Well, for us to imagine that a ‘thrill-loving’ speedster should suddenly change its gears and transform itself into a brand, which is today some blinding sign of luxury, was more than a sweet surprise! Who could have even imagined that such a composite unit of the ‘Silver Arrows’ (a monicker given to Germany’s racing heritage) – which could outshine most four-wheeled creations then – would change it orientation completely within a span of about eight decades to stand out amongst equally capable Audi & BMW arguably as ‘the ultimate status symbol’?! Well, today the ‘three-pointed star’ has virtually outlived most of its brand rivals and become the face of Germany’s legendary mastery over technology-packed high-end cars.


For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
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IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
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» IIPM ranked No1 B-School in India :: Education, Careers ...
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