The Edge

Vol-III, No. 3,

July 2006

FROM THE DIRECTOR’S DESK Twenty first century is the century of knowledge.

The post-industrial society has receded to pave the way for the knowledge society. The key input for productivity growth is now creation of new knowledge and its business applications.

Innovation, for quite some time now, is regarded as the key driver to a firm's growth strategy. However, quite often, innovations are thought of in a strictly technological paradigm.

We have to now recognize that innovations are infact comprehensive and cover all elements of an institution's work systems and procedures. More importantly, it represents a way of life, of thinking. An innovative organization innovates on everything it does.

Innovations are basically responses to challenges. One of the attributes of the unfolding process of globalization is, despite its many desirable outcomes, it creates both foreseen and unforeseen challenges. Viewed in this context, innovating capacity will be required even for survival in the coming years.

This is true not only for business but also for BSchools. Today B-Schools operate in a highly competitive environment, where you have to run faster to stand in the same place.

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EXPORTING EDUCATION

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CATALOGUING A PARADIGM SHIFT

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SIGHT AND SOUND

At IILM, we appreciate this challenge. And therefore, have embarked on several new initiatives. Principal among them is a Two year Diploma Programme on Retail Management with the Pantaloon group as the strategic partner. The programme is designed to cater to the burgeoning manpower needs of the retail sector.

Several such new initiatives are on the drawing board. I will come back to you when these get concretized.

B. Bhattacharyya

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CONTENTS

IILM’s INHOUSE MAGAZINE FOR LIMITED CIRCULATION Vol-III No. 3 July 2006

04

MANUAL FOR A COMPLETE LEADER Convocation Address by Mr. Hari Shankar Singhania

12 18 20 25

THE ROAD TO NALANDAS AIM TOWARDS SELFKNOWLEDGE A QUOTA OF TROUBLES CONVERTIBILITY: LESSONS FROM THE INTERNATIONAL CRISIS EDITORIAL BOARD Mrs Malvika Rai Prof. B. Bhattacharya Shree Dina Nath Mishra Pradip Chakrabarty Disha Dubey

28 32 34 37

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HIGHER EDUCATION ON COURSE

40 42 46 52 56

QUOTE UNQUOTE READING MATERIAL RICH INDIAN ICONS STUDENT CORNER CAMPUS NEWS

DETARIFFING WHICH WAY TO GO? ENTER THE DRAGON EVOLUTION OF EDUCATION THE PILLARS OF RURAL MARKETING EDIFICE

EDITORIAL TEAM Vishal Goyal Moindeepa Roy

Published by IILM, 3- Lodhi Institutional Area, Lodhi Road, New Delhi - 110003 Phone: 91-11-24647820/21 Fax: 91-11-24647796

Harleen kaur Bhatia Saheb Sahni

Design: SUNIL KUMAR

Printed by Avantika Printers Pvt.Ltd. 194/2, Ramesh Market, Garhi, East of Kailash, New Delhi - 110065

PLAINSPEAK

MANUAL FOR A COMPLETE LEADER We can propel India to become a global economic powerhouse and a truly developed country with a good standard of living and better quality of life. The task ahead is to transform this potential into reality

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his is the vision our distinguished Chief Guest, Mr. Hari Shankar Singhania, President, J. K. Group who delivered the Eleventh Annual Convocation address to recipients of the postgraduate diplomas in Business Management.

The commencement ceremony started with great enthusiasm at the IILM auditorium on May 13, 2006. After completing two years at the IILM, 142 graduating students saw their efforts translating into reality.

Professor B Bhattacharya, Director, IILM, welcomed invitees and the distinguished chief guest. He expressed his gratitude to Mr Singhania and said he felt privileged that a legend of the corporate world who has left an inimitable mark in higher education, had graced the occasion.

Prof Bhattacharya advised students on this big day to keep an open mind to go on imbibing the ever-increasing flow of ideas, information and skills.

He said this could be done only if one kept the fire of curiosity burning.

Quoting Anatole France, he said: "The art of teaching is only the art of awakening the natural curiosity of yours for the purpose of satisfying it afterwards." He felt that the faculty at IILM had done so.

Ms Sapna Popli, Dean, PGDBM, set the honours rolling by announcing the names of successful students.

With their heads held high, students walked up to Mr. Singhania to receive their

Eleventh Annual P.G. Convocation

awards. They were greeted with a warm hand shake from chairperson Malvika Rai who was there to felicitate them in their moment of glory.

The concluding part of the award presentation was a proud moment when names of meritorious recipients of the Dr Kulwant Rai Gold and Silver Medals for excellence in academic and co-curricular activities and securing first position in Marketing, Finance, Human Resource, International Business and Co-curricular Activities, were announced to a thumping ovation.

The Dr Kulwant Rai Gold Medal for securing the overall first position went to Ms. Shielaza Dhingra The Dr Kulwant Rai Silver Medals for outstanding performance in respective branches of Management were given to: Marketing: Ms. Shweta Berry Finance: Ms. Nisha Mary John Human Resource Management: Ms. Shielaza Dhingra International Business: Mr. Manoj Gunwant The Dr Kulwant Rai Silver Medal for Co-curricular Performance went to Mr. Manish Kumar.

In his convocation address, Mr. Singhania said managers of today have to tackle the rapidity and uncertainty of changes which are enormous and if a

bit of confusion was to be added to the Indian scene, the task would be formidable. On the one hand, one has to be a specialist and on the other, multiskilling qualities are essential for success, he said.

Innovation, the ability to learn the art of thinking "out of the box", agility and adaptability to the ever-changing and demanding situations are some of the traits increasingly called for.

Quoting 20th century genius Albert Einstein, Mr. Singhania was of the view that to become an effective leader one should appreciate the pain and suffering of others as their own. One should feel happy, to help others, to be successful and, make a difference in their lives. Eventually, love for one’s people, organisation and country are the key to success, he added.

To the rapt attention of everyone in the auditorium, the students, their parents and the faculty of IILM, Mr Singhania called for more involvement in the rural sector. He also laid great stress on a strong value system and on not shying away from responsibility.

His view that one learns from failures as these are part of life was echoed in his speech. He also cautioned that failures should not dishearten and deter one from achieving one's goals and dreams.

A date that would be etched in the

Innovation, the ability to learn the art of thinking out of the box, agility and adaptability to the everchanging and demanding situations are traits which are essential for success

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March for enlightenment

You have brains in your head. You have feet in your shoes. You can steer yourself in any direction you choose. You're on your own. And you know what you know. You are the one who'll decide where to go

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minds of the graduating students — May 13 — proved to be a lucky number for them. As they embark on a journey of self actualisation and realisation of their dreams, they will also be celebrating their achievements and promises, fashioned on values that will enable them to contribute and thrive in a world which is extremely competitive.

The creative abilities of this graduating class and those of their contemporaries will determine the magnitude and extent of Indian prosperity in this century. And the ideas and values that they employ in these creative endeavours will shape the future state of our cultural, legal, and economic institutions.

As someone aptly put it to each graduating student: "You have brains in your head. You have feet in your shoes. You can steer yourself in any direction you choose. You're on your own. And you know what you know. You are the one who'll decide where to go.”

Armed with the talisman "If opportunity doesn't knock, build a door" and afire with ideas, the students are bound to go places.

PGDBM Programme: The Post Graduate Diploma in Business Management (PGDBM) is a two-year course which focuses on developing business leaders who would act as ambassadors of change in this rapidly changing economic environment.

The programme was launched in 1993 to cater to the demand of management professionals and prepare its graduating students for challenging careers through an intensive and rigorous curriculum. � The programme imparts the right mix of knowledge, skills and attitudes to successfully meet the challenges of the dynamic business environment. � Intensive interface with the industry is used to bridge the gap between theory and practice. � The programme helps students evolve and take initiative in seeking knowledge based applications to real life situations, challenging them to think about issues beyond the text books.

Inputs from : Ms. Fatima Khader Dr. Surabhi Goyal Ms. Disha Dubey

Convocation Address by MR. HARI SHANKAR SINGHANIA

at the Institute for Integrated Learning in Management (IILM), New Delhi, Saturday, May 13, 2006 Dr Kulwant Rai, Chairman, Members of Board of Governors, Smt Malvika Rai, Chairperson, Prof. B Bhattacharyya, Director Graduating Students and distinguished ladies and gentlemen

Let me offer my heartiest congratulations to all those, who have successfully completed the PG Diploma in Business Management. You are now ready to embark on a new and challenging phase of your life. My heartiest good wishes to each one of you as you begin this exciting journey.

future lies in the integration of urban & rural economies, industry & agriculture, manufacturing & services and indeed India becoming an important player in the global economy.

We can propel India to become a global economic powerhouse and a truly developed country with good standard of living and better quality of life. The task ahead is to

It gives me great pleasure to be with you on the occasion of the Eleventh Annual Convocation of the Institute for Integrated Learning in Management (IILM). I thank IILM for providing me We are in India's an opportunity of meeting the young leaders of 'Golden Era of Growth and tomorrow. Dr. Kulwant Confidence'. This is an era full of Rai has been my longtime friend and I would opportunities and challenges. Every like to sincerely conday, I watch with awe the tremendous gratulate and compliment him for setting new opportunities that are emerging. up such a The future lies in the integration of urban M a n a g e m e n t Institute. & rural economies, industry & agriculThe IILM has made ture, manufacturing & services significant achievements since its incepand indeed India becoming tion in 1993 and has an important player in earned a reputation for its quality management educathe global tion, research and consultancy. economy I am glad to learn that the Institute is among the top 15 BSchools in India and a recent Survey (AIMA-IMRB Business We are in India's School) has ranked it, once again, 'Golden Era of as an A+ Business School. The Growth and Institute has also entered into for- Confidence'. This eign collaborations, strategic is an era full of alliances and exchange arrange- o p p o r t u n i t i e s ments with internationally and challenges. acclaimed institutions. These Every day, I should be a source of great satis- watch with awe faction and pride to Dr. Rai and all the tremendous those who have been associated in new opportunibuilding an Institution of this emi- ties that are nence. emerging.

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transform this potential into reality. I must confess that many a times I envy you for being fortunate to be young at this crucial juncture. I wish I were younger to take full part in this thrilling journey. Dr. Rai and I are of a generation who have had to struggle a lot to pursue our goals and achieve our objectives. We did not have the freedom of action and the enabling environment that you now have.

You not only have growing opportunities emanating from the rapid economic development of India but also from the integration of the world economy, which has opened up floodgates in many directions — unthinkable earlier. India is being seen as an emerging global power over the next 2-3 decades in manufacturing, agriculture and out-sourcing on an international scale.

In addition, skilled manpower shortages in many developed countries and their ageing population are some factors from which we can benefit. India is a young nation with 40 per cent population between the age of 20 and 45 years and 60 per cent in the working age group.

taught that. What I would like to emphasize is that the role of leaders for future will be similar to Trimurti — Brahma, Vishnu, and Mahesh. In simple terms, this means that leaders will have to effectively perform the role of �Brahma, The Creator: Entrepreneurship, Innovation and Experimentation. �Vishnu, The Protector: Nurturing, Empowering and Enabling. �Mahesh, The Creative Destructor: Continuous elimination of non-value adding activities and processes and one ready to face any crisis head on.

All these three roles are important for a leader and an entity.

We are all part of the world around us. An important part of life is love and giving. The success that we achieve in whatever we do comes not only from our own efforts but also due to the contribution of a large number of people around us.

One must acknowledge with all humility these contributions. To quote Albert Einstein, "I always think that so many people have contributed to my life and I am indebted to WAR FOR TALENT them. I also think We have a long history of entrepreneurship, The buzzword is that how can I con"War for Talent". tribute to make othmuch better than other countries. What we Competition for talers happy". need is to transform our society to ent is not restricted To become effecto India alone but is tive leaders you an entrepreneurial one rather than being indeed a global one. should appreciate merely of job seekers Indian entreprethe pain and sufferneurs are acquiring ing of others as your new companies in the overseas market. Indian man- own. You should feel happy to help others to be sucagers are occupying top positions of global compa- cessful and make difference in their lives. Eventually nies. Similarly, CEOs of some leading Indian compa- love for your people, your organisation and your nies are now foreigners. country are the key to your success.

I have always been of the view that the talent of I have always believed that the future of India lies Indian managers are second to none in the world. To in development of entrepreneurship. We have a long succeed and excel they have to sharpen their skills history of entrepreneur-ship, much better than many and adopt modern techniques and practices. other countries. What we need is to transform our Managers of today have to tackle the rapidity and society to an entrepreneurial one rather than being uncertainty of changes, which are enormous. If you merely of job seekers. Entrepreneurs are the job creadd a bit of confusion in the Indian scene, the task is ators and job providers. formidable. On the one hand, one has to be a speI am happy to share with you that in the last batch cialist and on the other multi-skilling qualities are which passed out at the IIM, Lucknow, quite a few essential for success. students including the batch topper opted out of Innovation, the ability to learn the art of thinking placement to start their own enterprises. I suggest to "out of the box", agility and adaptability to the ever all of you to let your creativity flourish and have the changing and demanding situations are some of the upper hand in your life. traits increasingly called for. We have to attune our You can draw inspiration not only from the great mindset to the demands of a highly competitive entrepreneurs of our country and other countries as world not only Indian but global as well. well. The success stories do not come only from When you grow in your profession, you will have to organized manufacturing or knowledge-based indusdevelop leadership qualities. You have no doubt been tries but also from ideas generated and experimentThe

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before given the competitive world we live in. There is no substitute for hard work and perseverance.

To move with the changing trends and needs, it becomes FOCUS ON INFRASTRUCTURE: imperative for us all to adopt new ideas and a way of life. While Fresh initiatives taken to develdoing so, it is important that we op long-neglected infrastructure do not ignore our traditions and is, indeed, most welcome. We cultural heritage. Let us not forget have to catch up a lot to be able to our moorings. Even as we become provide the basic inputs for global citizens, we should be growth and development as also proud of our nation, wherever we to compete in the global market. are.

The scope and dimension in this As future leaders of India, you area is mind boggling and we have lot of responsibilities in have to do this with speed. This making it a great nation. The calls for increasing an Publicguiding principle for you is to Private Partnership. This requires decide what sort of India you management talents like you. want to live in.

Another area to which I would There are a large number of like to draw your attention to is areas which need to the great opportunibe set right —like ties that have When you analyse opportunities, take various availability of clean emerged or are drinking water, air emerging in the facets into account. You have to be realistic and river pollution, rural and agriculturand not get carried away by emotions. You civic sense and disal India. An allcipline, lack of eduround development have to look not only at the present or the cational opportuniencompasses a near future but also have far-sightedness ties, public goverrange of activities for nance, corruption, providing the basic necessities of life to our rural pop- have clarity of vision and goal. Let falling moral standards etc.

The time has come for everyone ulation, connectivity of rural India nothing deter you from this path.

Often ideas and opportunities of us to stop expecting others, with the rest, modernisation of agriculture and increasing pro- are lost without appropriate and including the Government, to ductivity. You will agree with me timely action. You must learn the change first. You yourself have to that this is an enormous task and art of taking the first step, even if become the pivot of change and here again we need managers like it is a baby step. Once you take be the "change agent". Do not be this step, other steps will follow. afraid of being a drop in the you.

Let me now share some of my In other words, you should bridge ocean. Each one of you can and should contribute in building own experiences as a business- the 'Knowing-Doing' gap.

India of your dreams. man. Over the last five decades While concluding, let me once that I have been active in busi- VALUE SYSTEM VITAL: Do not forget the value of time. again compliment Dr Rai, Smt. ness, I have seen successes as well as setbacks and failures. I learnt We in India generally seem to be Rai, the Director and learned facand, indeed, everyone of you in "timelessness mode". This just ulty of IILM for the excellent work should learn that failures are a won't do. Time also has an eco- being done. I wish the institution continued growth and success. part and parcel of our lives. One nomic dimension to it.

The old dictum that success To the students my heartiest should not be deterred by failures.

One has to learn as much from comes with 10 per cent inspira- good wishes and best of luck. tion and 90 per cent perspiration failures as from successes.

Thank you, One needs to build a strong is relevant even today.

Indeed, it is more relevant than Hari Shankar Singhania value-based character to succeed.

ed by others by unconventional ways. For example: Lijjat Papad or SEWA (Self-Employed Women's Association) or even the Bombay Dabbawalas.

Integrity, honesty and fairness are the basic tenets of this value system. You will be respected and trusted if you have these qualities.

There may be occasions when one faces the dilemma of short-term gains versus taking a decision as per one's value system. My experience shows that whenever I faced such a dharma sankat, I could turn to my value system for the right decision. The end result has been positive.

When you analyse opportunities you have to take various facets and alternatives into account. You have to be realistic and not get carried away by emotions. You have to look not only at the present or the near future but also should have a far-sighted approach. Above all one has to

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GLOBAL CLASSROOMS

XPORTING DUCATION

E

B. Bhattacharyya Director, IILM

E

ducation had been a global business, though not in the modern sense, since the middle ages, as the emergence of centres like Nalanda, Taxshila, Cairo and Hidelburg indicates.

More importantly, trade in education, in the form of international students/faculty exchange, has expanded in the last few decades, despite the fact that hardly any liberalization in education services trade has taken place under the mandate of the WTO. There has been a major change in the way governments now look at cross-border education. Previously, it was essentially thought to have a positive impact through cross-cultural fertilisation of national cultures as well as spread of national cultures abroad, and making access to the kind of education which may not be available domestically.

The current motivation in some countries is to generate revenues and earn foreign exchange by export of education which primarily takes the form of having foreign students enrolled in domestic educational institutions.

Global data on cross-border component of education are not there. There are,

The current trend is to generate revenue and earn foreign by exchange by export of education. India, with its English medium instruction potential has a great opportunity here however, estimates for the OECD countries. International students are like highspending tourists. They incur large expenditures for their travel, educational fees and living expenses. It was estimated that the cross-border education trade in OECD countries amounted to $30 billion in 1998.

Assuming a growth rate of 10 per cent annually, this figure would be around $45 billion in 2005.

A recent OECD study (Education Policy Analysis 2002) has given data which shows how important education has become as a service export. In 1999, there were about 1.5 million foreign students in OECD countries, accounting for 4 per cent of total tertiary enrollment.

Four English-speaking countries — the US, UK, Canada and Australia — accounted for more than 50 per cent of the total reflecting both the quality of education provided as well as the global acceptance of English as the medium of instruction.

New Zealand, despite its small size, has done remarkably well as it launched an effective campaign to market its education services abroad.

Some relevant data are in Table 1.

It is, therefore, clear why Australia, New

Table - 1

EXPORT EARNINGS FROM FOREIGN STUDENTS, 2000 Australia Canada Mexico New Zealand United Kingdom United States Greece Italy

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USD Mn. % of Total Service Exports 2,155 796 29 199 3,758 10,280 80 1,170 Source: Education Policy Analysis 2002, OECD, Paris, 2002

11.8 2.1 0.2 4.7 3.2 3.5 0.4 2.1

and the US had been the first to submit formal proposals on liberalising education services under the WTO negotiations. But apart from these countries which have already established themselves, other countries are also eying this sector. In this region, Malaysia is one which appears to be keen to explore this market. It has been observed that the international supplydemand equation has changed drastically after the 9/11 disaster. Traditional suppliers of higher educational services, especially the US, are understandably nervous about hosting a large number of Muslim students of Middle-Eastern origin.

On the demand side, many Muslim parents are uneasy about sending their children to countries considered to be somewhat unfriendly or even hostile. This presents a golden opportunity to Malaysia which is widely recognized as a capable, modern and moderate Muslim nation to serve the Middle East market for education services. Malaysia may be a preferred nation given the desire on the part of most Muslim parents to send their children to places that are culturally compatible.

India can fruitfully use the Malaysian strategy. India, in fact, has a stronger base in English-medium instruction, throughout the vertical axis of education. It has also a vast network of not only internationally recognized brands, such as IIT & IIMs but also a much larger number of

institutions/Universities/Deemed Universities which are offering world class tertiary education in humanities, technical and other branches of education. There is already a fair number of foreign students population in India from countries in South Asia and Africa.

However, the earning potential of foreign students has hardly been recognized, except to the extent that in some professional courses, a certain percentage (usually 10 per cent) has been reserved for students coming from abroad. However, most of these seats are taken up by NRI/NRIsponsored candidates, rather than students of foreign nationalities.

UGC visualizes a greater internationalization of Indian education. This is partly to help Indian Universities generate more resources as well as to make Indian education a viable exportable service. UGC plans to help Indian Universities to set up campuses abroad UGC has put in place a marketing programme Promotion of Indian Higher Education abroad (PIHEAD) aimed at attracting overseas students to Indian campuses. It has identified target countries in the Middle East, Africa, South East Asia and CIS Countries.

Several Indian leading educational institutions have set up or have plans to set up campuses abroad. Simultaneously, efforts on the part of private institutions to bring more students to India are also required.

UGC visualizes a greater globalisation of Indian education.

This is partly to help Indian universities generate more resources as well as to make Indian education a viable exportable service. UGC plans to help Indian Universities to set up campuses abroad UGC has put in place a marketing programme Promotion of Indian Higher Education abroad (PIHEAD) aimed at attracting overseas students to Indian campuses

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LITERACY QUOTIENT

THE ROAD TO NALANDAS I

n line with the Millennium ines the trends in rural-urban, Development Declaration gender and regional disparities in adopted by the UN in 2000, the literacy levels as well as India has begun to work towards improvement in literacy levels in Millennium Development Goals the last five censuses. It is note(MDGs). worthy that disparities Achieving universal also exist on the other primary education is the lines, like caste and second (MDG-2) among communities, though the eight MDGs. The these have not been other goals like eraditaken up in this article. cating extreme poverty Where do we stand and hunger (MDG-1) vis-Ă -vis MDG-2? and promoting gender Graph 1 presents equality and India's perforempowering Sachchidanand Karna mance in key indiwomen (MDG-3) cators relating to Assistant Professor (Economics) are greatly impactthe target of ensured by the progress made in ing that all children, boys or girls, achieving MDG-2. This article all over India complete full course looks at some statistics relating to of primary education. The gross literacy rates in India and exam- enrolment ratio (GER) for primary The

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education (Class I to V, aged 6-11 years) has remained about 100% among boys and has increased by about 2 20 per cent among girls in the preceding decade to cross the 90 per cent mark in 2002-03. GER as an indicator could be misleading and at times may cross 100 per cent because of enrolment for age beyond 611 years. What is unsettling and challenging is the poor survival rate (high drop out rate) from grade I to grade V. The survival rate of 65 per cent or dropout rate of 35 per cent in 2002-03 is alarming in spite of the improvement of about 10% over the preceding decade.

The literacy rate - percentage of people who can both read and write in any language - is computed every 10 years through all

India censuses. For the people aged 7 years or above, the literacy rate between last two censuses (1991 to 2001) has improved from 52.2% to 64.84% - an increase by 12.64% in the intervening decade.

Literacy among females at 53.67% in 2002 is considerably lower than that among males at 75.26% though the increase in the decade is 14.37% among females, much higher compared to 11.16% among males.

Trends in Rural-Urban and Gender Disparity in Literacy Levels: The rural-urban and gender disparity are quiet evident from the

Graph 2 showing literacy rate figures including rural-urban and gender wise break-up for the last five censuses — 1961, 1971, 1981, 1991 and 2001. Following trends emerge: � The gap in literacy rate between rural and urban populations was around 28-32% in the censuses of 1961 to 1991 but dropped to about 21% in 2001. � The gap in urban-rural literacy rates is wider among females - was around 30% to 34% in the 1961 to 1991 censuses and dropped to 26.5% in 2001. � The urban-rural literacy gap is now a little less staggering

among males was around in thirties or high twenties in the 1961 to 1991 censuses but dropped much impressively to 15.3% in 2001. · The overall male-female gap in literacy rate held its ground at about 24% to 26% in the censuses of 1961 to 1991 but dropped to 21.7% in 2001 census. � The male-female literacy gap in rural areas was 24.2% in 1961 census, increased to 33% in 1971, stayed over 27% in 1981 and 1991 and dropped to 24.7% in 2001. � The male-female gap in literacy rates in the urban population

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has been consistently dropping from 25.5% in 1961 to 17% in 1991 and then further to 13.5% in 2001 census.

To sum up, the literacy rate in urban population is approaching a 90% level but the task to push it up to this level in the rural population gap is daunting. Special

age points from say 40% to 50% is much easier than from 85% to 95%. Relative Improvement has been calculated as following: Graph 3 plots the relative improvement for censuses between 1961 and 1971, 1981 and 1991 and 1991 and 2001.

Since the literacy rate for 3 cen-

drive and attention is needed towards getting the girlchild to attend and complete full course of elementary education.

Trends in Rural-Urban and Gender Disparity in Improvement of Literacy Levels: Literacy rates are improving among all gender / rural-urban sections and cross sections. It will be interesting to compare whether the improvements have been the same across these sections and cross-sections.

To examine this, more robust way will be to look at the improvement in literacy level over the two consecutive censuses relative to the illiteracy in the former census (base year) instead of absolute improvements between the censuses. This makes sense because improving literacy by 10 percent-

suses up to 1961 was for the age group of 5 years and above while from 1971 it was changed to the age group of 7 years and above, the improvement index from 1961 to 1971 has not been computed.

Following are the main observations on the trends in relative improvement: ďż˝ Relative improvement in gen-

� After remaining behind by about 5% from that of urban population in periods 1961-71 and 1981-91, relative improvement in literacy rate of rural population has gone up impressively to come at par with that of urban population for period 1991 to 2001 census. This is primarily because for 1991 to 2001 censuses, rural males have shown better relative improvement (32.1%) than their urban counterparts (29.6%) — rural females at 23.2% lagged behind their urban counterparts at 25.6% though much less than other two periods (61 to 71 and 81 to 91). � Female population not only has lagged behind the male population in literacy rate but also in relative improvement for all three periods in both rural and urban

eral for all sections has become larger in consecutive periods except for rural-male for which we see a drop from 21.8 per cent for 1961-71 to 16.5 per cent for 1981-91.

populations except for 1961-71 in urban population. The difference in relative improvements of malefemale has been much larger for rural population than urban population but the male-female gap in

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both urban and rural populations have shown a downward trend.

Regional Disparity in Literacy Level and Improvement in Literacy Levels: To examine the disparity among states/ UTs in literacy, two parameters have been considered.

The Table 1 slots states and union territories (UTs) into a matrix based on the two parameters — literacy rate status as in 2001 census on one side and the relative improvement index on the other side. Table 1 slots states and union territories (UTs) into a grid based on these two parameters.

Relative Improvement Index (RII) for each state and UT for period 1991 to 2001 has been calculated by the following formula: Improvement in literacy rate has been made relative first by dividing the change in literacy rate from 1991 to 2001 by the illiteracy rate in 1991 census and to construct the index it has been divided by the same figure for India as a whole. Division by illit-

eracy rate makes sense because the scope for improvement for states having lower literacy (higher illiteracy) is as much higher.

For example, for a state like Kerela having literacy rate of 89.91 in 1991 had much less scope of improvement compared to state like Bihar having literacy of 37.49 in 1991.

The multiplication of literacy rate and RII in Table 1 describes the momentum of that State or UT on the literacy front.

Therefore, as we move in a diagonal direction from top left corner to bottom right corner (as shown by the arrow) it indicates increasing momentum.

For example, Bihar has the lowest momentum among states and on the other hand states like Himachal Pradesh and Mizoram and UTs like Daman & Diu* and Lakshadweep rank the highest.

This classification not only takes the literacy rate into account but the impetus generated by improvement measured relative to illiteracy (the job still to be done).

Kerela has achieved literacy rate of over 90 per cent and is practically considered a fully literate State. Therefore, it has not been included.

Jammu and Kashmir also does not figure in this classification because census was not held there in 1991 and, therefore, its improvement index could not be calculated.

So how far is Bihar from Nalanda … very far … much farther than other states and UTs in India… relatively speaking.

If Nalanda can be used as metaphor for a place where there is nearly full literacy and yet there is unrelenting drive to turn whoever still remains illiterate into literate, Nalanda should lie on the bottom right corner of the grid.

Convergence of States and UTs towards Nalanda corner is what is desired.

To do so, states and UTs, farther away from Nalanda corner needs to work harder, think innovatively and implement specific plans suited to their settings.

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THE ERP FACTOR

Rishikesh Patankar Fellow IT

HIGHER EDUCATION ON COURSE T he higher education sector is experiencing fast and uncontrolled growth. Enterprise Resource Planning (ERP), introduced in many higher education institutions in the Education and Research arena, supports the business operations and provides feedback for extensive teaching and research methodologies.

The status for all kinds of courses, be it higher learning, technological, academic or management in nature, would get nurtured mainly on two counts namely, admission and research which are amenable to all sorts of verification and proved to be error free.

The ERP, thus, facilitates in timetable handling, website interface, content management as well as requirements from the business point of view. It smoothens informationsharing between different departments that leads to better information management.

The main focus of technology at colleges/universities is to provide access to education and training The

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DOCUMENTED BENEFITS OF ERP IMPLEMENTATION

Description Reduction in paper forms Duration of monthly closing Duration of semi-annual closing Availability of budget reports Online Access Creation of account codes Alerts Approval process Online requisitions Paper requisitions Auto created purchase orders Online receipts Supply chain forms Performance metrics Procedures and policies

Before NA 10 days

After 15,200 fewer forms processed 4 days

4.5 months

2 months

Hard Copy Monthly

Available Online Daily

315 Users Manual 0 Manual 775 12,973 0

1645 users Automatic 16 Electronic 11,400 4323 11565

0 NA

6054 Eliminated 21 paper forms Weekly Desktop manuals and online 7

NA Inconsistent and un documented 30

Days between letter-of -credit draw downs Source: http:\\www.educause.edu

PeopleSoft proves user-friendly: methods as also access to adminiscontrol.

The ERP through its PeopleSoft trative, learning and teaching techCustomer Relationship nologies to meet the vision and mis- solution for educational institutions Management (CRM) includes alumni includes many role-based compo- relationship management, the call sion of a given institution.

The IT requirement analysis nents: Student Administration, center, and web access.

Capital Management, attempts to identify major informa- Human The SAP solution also includes the tion systems and technology goals for Contributor Relations, Customer Learning Solution, a lifelong learning, the balanced and planned operation Relationship Management, Financial distance learning, and curriculum Management, Supplier Relationship management system; Business of the entire university/institution.

Major Vendors in Higher Education Management, Grants Management, Intelligence, for reporting, data-minDomain: Asset Management, Real Estate (in ing, and strategic enterprise managedevelopment), and Analytics.

ORACLE ment; the Enterprise Portal, which Within the student administration comprises the student portal, univerOracle designed e-business to be a comprehensive, integrated set of suite there are other solutions for cre- sity portal, and employee portal for applications for a higher education ating a campus community, recruit- access to and integration of data; and market that automates and stream- ing, admissions, academic advising, Workflow, for seamless integration of lines every facet of campus opera- student records, financial aid and business process data and transactions and administration, including student financials. tional information.

Ambits of IBM in academic instituThe PeopleSoft portal helps institufinancial management, human resources, procurement, recruiting, tions build a virtual campus. On this tions: admissions, financial aid, grants portal, educational institutions can In conjunction with service of management, project management, integrate PeopleSoft applications, International Business Machines regulatory compliance, (IBM), academic instiportal development, can optimize Smaller varsities need to modify approach tutions and communication their daily operations to reduce the cost of an ERP implementa(integrated e-mail, with enhanced busivoice-mail, fax, schedulskills/processes, tion and tailor their needs accordingly. The ness ing and calendar). as IBM offers the abilnodal factor is custom modifications Oracle is the only ERP ity to deliver end-tovendor offering a calenend, cost-effective third-party applications and other solutions that are tailored to the daring solution.

Available easily in modules or as a institution-based applications. Using unique needs of the education sector, PeopleSoft Enterprise IBM also offers the experience and complete suite, Oracle Applications the are intended to help education insti- Performance Management system methodology necessary to offer effectutions achieve a high level of opera- (EPM), institutions can enhance tive solutions in strategy, planning, tional insight, facilitating informed financial and operational data for infrastructure and technical support. better overall efficiency and service. management decisions.

IBM boasts of an ERP success rate SAP Solution made it easier: Oracle also claims that the applicaat 90%, versus the industry standard The extensive usage of System of 30% as rated by Gartner. The cost tion creates a collaborative environment for teachers, learners and Applications & Products (SAP) in data and scope of ERP solutions impleresearchers, reducing operating costs processing as appropriate solution by mentation is proved to be costlier by streamlining processes across a institutions in the Education sector. It beyond the range of smaller consists of systems for campus and schools/colleges/universities. common architecture.

The Oracle Student System lessens financial management as well as Smaller universities/colleges need overall complexity and improves visi- management of human resources, to modify their approach to reduce bility by consolidating campus-wide grants, customer relationships, prod- the cost of an ERP implementation information to create a single chan- uct life cycle, and supplier relation- and tailor their needs. The first and nel of information for all applications. ships. foremost nodal factor to control is Campus Management under the custom modifications while streamFor example, the model maintains only one record for a person, general SAP System caters to the manage- line the scope of the project. Some ledger account, applicant and alum- ment of a student's "lifecycle" from ERP vendors now address the special nus etc. This capability means that a admissions to graduation and grants requirements of smaller change made to a record in one management component to under- colleges/institutions with "Phased" department will be available immedi- line and oversee post-award man- programs. Outsourcing will also lead agement, budgeting, and resource to saving in certain areas. ately to all other system users.

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CHOICE MATTERS

Merlin Mythili S Faculty Associate

Aim towards self-knowledge True wisdom wards off woes, A circling fortress high; Its inner strength man's eager foes Unshaken will defy — Thirukkural - 421 Wisdom is a weapon to ward off destruction; it is an inner fortress which enemies cannot destroy.

The history of mankind has always uncovered an amazing similarity in human nature that is thickly shrouded by disparate cultures of distinct civilizations with their myriad customs, traditions, languages, and religions.

The commonality lies in the fact that human nature across ages and geography, constantly fights to break from the very established patterns of social behaviour that it so assiduously builds for itself. The astonishing rate of evolution and advancement of mankind in both mind and body is The

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evident of this primordial human nature of making and breaking of customs.

Custom begins and gets imbibed easily in the formative years of every man's life and one such enduring custom is education. And as Francis Bacon says "the predominancy of custom is visible everywhere and let men by all means endeavor to obtain good customs‌" To consider and propagate it as a good custom, Education, in its true sense, must lead one to the understanding of oneself for it is in each one's self the whole of existence is gathered as J. Krishnamurthy puts it.

A commentary on education always ranges from praise to cynicism. It has bordered more on the latter because education's stated aims are supposedly so very nobly ambitious therefore euphoric and hardly

realizable.

Let us begin by first understanding whether the existing educational systems possess those noble ambitions at all. Education today is accumulation and assimilation of information and knowledge through a rigid convention that stresses on conformity.

This emphasis on conformity instills fear and hesitation in the individual that s/he deems it a risky preposition to think and feel different from the group. Therefore, it hinders free thinking and man is doomed to mediocrity.

Education today, serves the singular purpose of finding security by becoming an achiever and leading a comfortable life with as little thought as possible on the greater significance of life on this planet.

Of what value is education if it does not enable man to seek and discover

the greater truth of the struggle of have transformed themselves into or material comfort. human life? individuals of choice and have left an Through education or otherwise, Apparently, as J.K asserts, the edu- indelible mark on the collective they consciously inculcated in themcation system has degrees and exam- progress of peoples, nations and the selves a strong sense of commitment inations as the criteria of intelligence, world at large. Examples of scores of that saw them wade through the barmaking wo/men subservient and luminaries can be taken from politics, ricades of convention and liberate deeply thoughtless leaving him/her arts and literature and ordinary life. themselves and the society they lived with incomplete intelligence and neg- Albert Einstein was a dull head in in. ligible wisdom. As a result, wo/men history and was sent out of class Empathy served the key to their get trained for efficiency and profi- because he could not recall the date self-awareness. So when Gandhi was ciency in a particular branch of of the battle of Waterloo. Mahatma thrown out of the train in South knowledge.

Africa, this personal hurt of pride got The competency thus gained is transformed to hurt of a whole used rigorously to seek and attain nation's pride. That is precisely how personal gains. Therein lies the root they are able to look beyond self and cause of all misery, for efficiency become personalities of choice by inspired by ambition alone would be giving goodness in prosperity and a ruthless pursuit. It has to be seeking fortitude in adversity. Ideally inspired by love and charity for it to speaking, education should have be constructive and meaningful. helped them in the transformation.

What is true education?

But this they have achieved with, Education should primarily invoke without or inspite of education. And and heighten a sense of awakening for every few good men this world towards self-knowledge. Knowledge has seen there are many, many more of self means the ability to distinguish who vanquish in the shadows like the circumstantial Thomas Gray, said, individual from an many a gem of Einstein was a dullhead in history. Gandhi copied Full individual of choice. purest ray serene, Everybody has a perThe dark unfathin a spelling test and Gates was a high school sona of chance, caves of dropout. They failed at the altar of formal educa- omed because s/he is born ocean bear: Full in a given set of cirmany a flower is tion but walked far because they had the cumstances and born to blush courage to make the right choices brought up in an unseen, And waste environment its sweetness on described in terms of organized reli- Gandhi copied in a spelling test. the desert air. gion, social status, class, language, Abdul Kalam failed to become a fightMy argument is that the education race etc all owing to the chance of er pilot. Bill Gates was a high school system must endeavour to unearth birth. dropout. Helen Keller could not get a and polish such gems and re-plant Education should help in overcom- formal education. These are among such flowers of fragrance in more fering this persona of chance and lead thousands who failed at the altar of tile soils. The inclination to goodness one to find and develop oneself into a formal education. But they have is imprinted deeply in the nature of persona of choice. The higher the walked far because they had the man and education should further quality of education the nobler will be courage to seek and become person- impress that imprint that it gets practhe persona of choice. So it should alities of choice. tised with renewed commitment and not really matter whether one had What is similar about their human vigour throughout a worthy man's formal or informal, urban or rural, nature that was referred to in the life. private or public, professional or oth- opening lines of this essay?

Yes, Education should satiate hunerwise adjectives to her/his educaThese were people who sought gry minds and nurture heroic hearts tional process for one to transform education to test and refine the con- of one equal-temper as that of from an individual of circumstance to tent of their character. They sought Tennyson's Ulysses: that of choice. peculiar benefits out of education, Made weak by time and fate, but Throughout history, there are and one that of creativity and catharsis strong in will, To strive, to seek, to have been hundreds of people who not the ordinary benefits of security find, and not to yield.

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HAVING RESERVATIONS

A QUOTA OF TROUBLES Introducing 27% quota in institutions of higher learning would be disastrous at this juncture. The government needs to re-examine the quota policy and assess its implications before taking any step in this direction

I Dr Shruti Singh Assistant Professor ( OB& HR)

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ndia has been the seat of Learning since ancient times. Nalanda, Vikramshila, Taxshila were few of the oldest universities in the world and the most renowned seats of higher education. Students from far off countries came to study in these universities.

Today, India has one of the largest higher education systems in the world and has world class institutions for higher education. The IITs, IIMs are ranked the best institutions in the world.

Education has been the thrust sector in India. The 86th Amendment Act, 2002 seeks to make education free and compulsory and a fundamental right for all children in the age group of 6-14 years.

A new article in 21A in Part III ("Fundamental Rights") of the Constitution states that "The state shall provide free and compulsory education to all children of the age of 6-14years in such a manner as the state may by law determine".

After independence, several schemes and campaigns like Community Development Programmes and Sarva Shiksha Mohim were launched to accelerate the spread of literacy. A two-pronged approach for universal elementary education and universal adult literacy was adopted for achieving total literacy. The National Policy on Education has given an unqualified priority to programmes for eradication of illiteracy particularly among women. It aims to follow an integrated approach to literacy.

The main literacy schemes are National Literacy Mission, Sarva Shiksha Abhiyan,

and Mid Day Meal Schemes.

The National Literacy Mission was set up on May 5, 1988 to impart a new sense of urgency and seriousness to adult education.

The mission's goal is to achieve total literacy that is sustainable threshold literacy rate of 75% by 2007.

The mission seeks to obtain this goal by imparting functional literacy to non literates in the 15-35 age group. The goal of this mission is to acquire the skills of reading, writing and arithmetic and the ability to apply them to ones day to day life, its main implication being to achieve functional literacy.

The Sarva Shiksha Abhiyan is the Government’s flagship programme for achievement of universal elementary education. It is being implemented in partnership with state governments to cover the entire country. Its aim is to provide relevant and useful elementary education for all children in 6-14 age group by 2010. The other goal is bridge the social , regional and gender gap with the active participation of the community in the management of school.

The aim of this programme is to allow children to learn about and master their natural environment in a manner that allows he fullest harnessing of their human potential both spiritually and materially.

This quest must also be a process of value based learning that allows children an opportunity to work for each others well being rather than to pursue mere self interests.

The Mid Day Meal scheme was formally launched on August 15, 1995. The programme is intended to boost universalisation of primary education by increasing enrolment, retention, attendance and improving the nutritional levels in students in primary classes.

Foodgrains @100gm a child per school day where cooked/processed meals are served have been sanctioned and is provided free of cost through the Food Corporation of India, the cost of which is reimbursed at BPL rate. The cost of conversion of foodgrains into palatable meal is met by the implementing agencies.

Several policies and schemes have been implemented at the primary and secondary education levels. But at the level of higher education the policies have been fraught

with problems. Reservation at institutional and job levels has been the curse of the nation.

In 1989, former prime minister V P Singh announced the implementation of the Mandal Report that recommended reservation in Government jobs. In 1992, the Apex court upheld 27 per cent reservation for OBCs subject to expulsion of creamy layer.

The proposal was accepted in 1993. Now again in 2006, the HRD ministry proposes to raise reservation in educational institutions to 49.5 per cent.

Is it the right time to increase reservation?

It is quite a tricky situation as every political party wants to make the most of it. The question is also a very sensitive one as no one wants to hurt feelings. But the government needs to examine the situation in a pragmatic manner. The entire reservation issue needs to be examined and their implication needs to be studied, researchers from all areas need to examine this issue in an unbiased manner. The issue of creamy layer, the economic criterion, the inclusion and non-inclusion of specific castes or tribes, all these different dimensions must be examined before the government increases the reservation quota.

About 3.5 million people have benefited from reservations since independence. With access to reasonable education, healthcare and nourishment their children have formed a thick creamy layer blocking benefits for the poorest of SCs and STs. Could the nation now request the children of IAS and Class I Officers, Cabinet Ministers, the recipients of privileged distributorship and major business loans to please step out of the quota queue? Could we ask those who have used reservation to get admission in top professional courses to compete for jobs so that the policy is able to benefit more disadvantaged people?

Reservations have helped only 5% of SCs and STs in the past 55 years. Without a radical rethink, the constitutional commitment for compensating for historical disadvantages would take centuries. The need of the hour is examination of the issue of reservation, its policies need to be reviewed and on the basis of the review further steps taken up.

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FROM THE SHELF

CATALOGUING A PARADIGM SHIFT W

e come across professionals develop a several cateclose relationship with gories of them. Thus, they have or libraries depending upon should have a strong their shapes and sizes: focus on service and peoschool, public, academic, ple. special, and from the In addition, libraries one-person library to are organizations and, as those with number of such, must be manShantanu Ganguly aged. We will briefly employees.

They share to varyexplore some manAssociate Professor and Head ing degrees at least agement means Library & Information Centre two characteristics. being applied in both All manifest a core of specific special categories of libraries, such library values on the importance of as business or corporate libraries, gathering in information and shar- and academic circles, and study ing that information in various for- their impact on library managemats with actual and potential ment.

Probable questions: users community.

All the library and information What is management? While there have been many definitions, they seem to come down to the direction of human, financial and physical resources of an organization toward the achievement of specific goals.

Why should librarians be concerned with management theory?

There are two principal reasons: First, to better understand organizations in general and their specific requirements. Second, to use the knowledge acquired to make this organization more effective.

Who are these stakeholders? In the case of non-profits, the sponsoring institution is the primary concern but employees at all levels are obvious stakeholders as are vendors and suppliers. So are customers, or as termed more politely The

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for non-profits, users. And finally, society as a whole has an interest in any organization, including libraries.

Specific Management Ideas & Tools 1. "Reengineering", an approach which John Nirenberg, has characterized as the "mother of all contemporary fads." Essentially, it involves the fundamental rethinking and radical redesign of all processes in an organization, with a view to achieving major improvements in all areas of performance.

Thus, attention is paid to the speed and cost of operations as well as the cost and quality of products and services. It is about redesigning the organization around core processes rather than looking at functional and vertical hierarchies.

The radical nature of a true reengineering process is such that virtually everything in an organization is critically examined, including roles and responsibilities of positions, measures and incentives used, skills called for, shared values, organizational structure and use of technology, especially information technology.

Typically, there are five phases in a re-engineering process: initial planning, usually limited to top management; internal learning as individuals are educated to the reengineering process as perceived by management; external learning in more detail; the actual redesign of processes and finally, actually implementing proposed changes.

2. Total Quality Management (TQM) was a common feature on every business activity for many years and in fact continues to be. It has also been used in a number of academic institutions and libraries.

The origins in this approach can be found in the works of the statistician W. Edwards Deming. He stressed that quality is continuous improvement through reduced variation. Other writers, especially Philip Crosby and Joseph Juran, also achieved prominence with

Total Quality Management was a common feature on every business activity for many years and continues to be so. It has also been used in a number of academic institutions and libraries. TQM has been defined as a strategic, integrated management system for achieving customer satisfaction quality concepts, but with somewhat varying emphases.

TQM has been defined as a strategic, integrated management system for achieving customer satisfaction. It typically involves all managers and employees and uses human resource management and quantitative methods to continuously improve an organization's processes.

In TQM, the word "customer" has a special meaning, covering all involved in a process from beginning to end, including internal customers within the unit or the organization, and external customers

outside the unit or organization.

Within libraries, for example, cataloging staff are customers of acquisitions personnel. There is also a distinction between primary customers whose demands must be met first, and secondary customers whose needs are important but secondary.

Every effort should be made to meet the needs of all customers, but secondary customers may have to be deferred. In libraries, delays in re-shelving might be an example of a problem warranting a team approach. These teams, it must be noted, are always issue oriented i.e. specific processes — and usually of limited duration.

3. Marketing is another management trend coined by Philip Kotler has brought out a paradigm shift in the library environment. In today's economic climate, with costs rising and profits dwindling, it has become especially challenging for many organizations to turn a profit.

Competition in the marketplace is increasing the demand for information, while the budgets for information centers are decreasing.

The library and information sectors have to escalate their fight for every budget dollar, and some struggle to justify their very existence.

Therefore, institutions are developing different kinds of Marketing Tools and Techniques to promote their product and services to the users.

Proactive user's service and customer relationship marketing are the key components in today's environment.

5. Knowledge Management (KM) is a current trend in management which is playing a significant role in the field of library and information science.

KM did evolve from earlier programs for information management involving information technology to record, organize and disThe

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seminate data relating to an organization's activities and relationships.

KM incorporates this but goes further in stressing processes to facilitate the creation of knowledge and to manage the way people share and apply knowledge.

There are still two quite different approaches to KM. One looks at knowledge resources as basically a body of information and focuses on managing that resource, relying on innovative uses of information technology to increase the organization's knowledge assets. The other views knowledge as knowhow, residing in people, and focuses on managing the behavior that creates the resources. In this approach, KM is an organizational transformation process where relationships are redefined in terms of organizational learning.

As suggested earlier, these are just a few of the many currently popular approaches to management. There are a number of common themes in this literature and that of other management trends.

First and foremost is the fact that The

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The challenge to the library administrator is to know both their problems and the potential ways of dealing with them most are concerned with developing effective ways of dealing with change, a factor that is affecting all aspects of any organization including libraries: the nature of customers and employees, the technology that is available, globalization, government regulations, public pressures and increasingly complex legal challenges.

The choice then needs to be explained - indeed, sold - to the library organization and its personnel and to its sponsors. This is critical, as nothing will be effective if it is not widely accepted. So library managers need to devise a plan how and where the tool can potentially be utilized; then perform a

pilot study in a limited area; and the check the results by evaluating each and every component; and if the results are favorable then they need to act on broader scale.

Throughout this process, appropriate training for potential participants is important, as is constant communication to the organization generally.

Finally, honesty to both self and the organization is very important, and an administrator should never feel blindly bound to a particular tool. His or her commitment must always be to the organization, not to a tool.

In conclusion, these are just some of the theories and tools that can be used to address organizational problems in libraries. Among the many others are Just in Time, New Product Development, CRM, SCM, Kaizen Application, 5S, and Participative Management. All have their values, and their shortcomings.

The challenge to the library administrator is to know both their problems and the potential ways of dealing with them.

THE CONVERTIBLES While there is no doubt that steps need to be taken to move towards fuller capital account convertibility, it might be suicidal to rush into full convertibility in a scenario where resident individuals have unrestricted access to foriegn funds

CONVERTIBILITY: LESSONS FROM THE INTERNATIONAL CRISIS

I

ndian policy makers are appre- the Korean won by 18% against the hensive that an east-Asian-crisis dollar. like event may cause great harm Reportedly, what triggered the crito the Indian economy, if the rupee is sis were doubts raised by the intermade fully convertible. And for good national investor-speculator George reason. The 1997 east Soros and others about Asian crisis started when Thailand's capacity to the Thai Baht collapsed repay the rising interna17% against the US tional debts which had hit Dollar in a matter of record levels in 1996-97. hours on July 2, 1997, From the early 1990s, but quickly spread to sevThailand and several other eral other Asian counAsian nations had turned tries including the net importers from net Philippines, Malaysia, exporters, requiring great Indonesia and even additional amounts of Dr. N. L. Ahuja Korea. foreign exchange to Professor of Finance According to the meet their trade data published by the International deficits.

Monetary Fund, the currency meltAt the same time, the fast growing down between July to November economy of Thailand had attracted 1997 had eroded the value of the large amounts of foreign investments Thai baht by 38%, Indonesian rupi- in sectors ranging from manufacturah by 33%, Malaysian ringgit by ing to real estate and infrastructure, 29%, Phillipines peso by 21% and and Thai banks and companies had

gone on the foreign borrowings spree as they found the dollar loans cheaper as compared to the domestic debt.

With trade balance going deep into the negative zone and nation's indebtedness taking alarming proportions, the Thai currency came under sudden and heavy pressure when international lenders and analysts raised doubts about the economy's capacity to repay all the debts taken.

Pulling out of funds by FIIs and the games played by short-term speculators only made it worse and the Thai currency crisis quickly engulfed some other Asian nations noted above as well.

An interesting aspect of the East Asian crisis was that the Chinese currency renminbi did not seem to be affected by it, presumably due to factors such as heavy trade surplus and foreign exchange reserves and The

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continuation of the strong FDI inflows. Also, the role of the Chinese diaspora cannot be ignored who continued to pour dollars back into their country of origin.

The east Asian currency crisis is not the only one the world has seen during in the past decade. The Russian crisis of 1998 and the Brazilian crisis of 1999 are other reminders that developing countries should tread cautiously when dealing with full convertibility.

So, what could India learn from these crises? Should it go for full convertibility of the rupee and if yes, what are the pre-requisites to be satisfied before climbing the altar?

What is full convertibility?

International financial transactions require exchange of one currency for another. These financial transaction have been classified into current account and capital account.

Current account transactions are those that result from export-import of goods and services or relate to transfer of funds for travel, medical or educational expenses etc.

Capital account transactions involve foreign currency borrowing and investments, say acquisition of real estate or shares of foreign companies.

A common man would obviously want to ask: I pay for the foreign exchange in my own hard earned rupees. So why does the Government want to control how much and for what I spend abroad?

The answer lies in simple economics of demand and supply forces that determine the price of a currency just the way the prices of other commodities are determined. If there is too much flow of funds from India to the rest of the world, it would increase the demand of foreign exchange making foreign currencies dearer, resulting in the devaluation of the rupee.

The value of the rupee would decline and imports into the country would The

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become costlier in rupee terms.

Of course, limited devaluation of the rupee is not necessarily a bad thing, as it makes our exports more competitive globally that would, in turn, earn us higher amount of foreign exchange.

However, a runaway devaluation of the rupee in the event of an unrestricted flight of capital from the country would be disastrous, particularly when the incremental exports earnings in dollar terms do not rise by a sufficient margin, and the rate of rise in imports is faster than that of exports as has been experienced in India for some time.

Among items of imports, a major worry is the spiraling cost of imported crude oil which is likely to become worse in the future. Otherwise, an encouraging feature of the rising Indian imports is that much of the increase is due to the import of capital goods that would enhance capacity building in the country and normally should be expected to lead to more exports in the coming years.

Some experts say that the tide might turn over in about 5-7 years, after which the rise in imports would be slower than exports. If that comes

For the next few years, a cautious business-like approach would be advisable so that the emerging economy strengthens without fearing an east-Asian crisis

true and India could reach a situation of sustainable trade surplus, the risks of full convertibility would be mitigated to a large extent. The balance of trade is one of the important determinant of the value of a currency vis-Ă -vis the rest of the world.

India on Convertibility Highway The rupee became fully convertible on current account in August 1994 (however, some restrictions remained on items such as travel).

Whatever fears and apprehensions existed before the current account convertibility, they all disappeared as there was no great rush of funds out of the country.

This encouraging experience led the RBI to appoint the Tarapore committee to recommend whether the rupee should become fully convertible on capital account as well.

The Tarapore committee submitted its report in 1997 recommending a three-year time frame to make the rupee fully convertible by 1999-2000 subject to some pre-requisites.

These pre-requisites included keeping inflation rate at an average of 3-5% for the three year period, reducing the gross fiscal deficit to 3.5% of the GDP by 1999-2000, adopting appropriate external sector policies to increase the current account receipts to GDP ratio and bringing down the debt servicing ratio. It also suggested a drastic reduction in the non-performing assets (NPAs) of banks.

Following the Cherished Goal The east-Asian currency crisis occurred within months of the submission of the Tarapore committee's 1997 report, throwing cold water on any early hopes of rupee's full convertibility.

The RBI has since adopted a cautious approach, but full convertibility does remain a cherished goal.

The country has made definite progress towards convertibility on capital account and forex rules have been substantially relaxed.

India Inc.'s limit to go for external commercial borrowings has been raised from $50 million to $500 million.

The limits have been raised for Indian companies and mutual funds to invest abroad; while mutual funds can invest up to $500 million, Indian companies can invest abroad up to 200% of their net worth (raised from 50%). Individuals have also been allowed to invest abroad up to $25,000, and they can open forex accounts with the currency purchased for overseas travel but not utilized. Rules regarding foreign exchange for travel, education abroad and business trips etc have been made more liberal.

However, this is far from full convertibility which would imply removal of all controls on cross-border movement of capital, except for reasons such as the national security.

In the absence of full convertibility, businesses cannot take full advantage of the opportunities available world wide to borrow and invest funds. So full convertibility would increase the efficiency of raising and deploying capital and make our businesses more competitive internationally.

Further, it would most likely increase the FDI flows into the country as foreign investors would be assured that they can exit the economy when they want.

There is also the aspect of national pride; it is felt that full convertibility will announce the country's determination to become one of the leading economic powers in the world.

However, it is important to consider the flip side before one rushes to conclude that a full convertibility will have all roses but no thorns. A major future challenge will be to maintain and increase the attractiveness of the Indian economy to foreign as well as domestic investors.

If this attractiveness diminishes, there may be a rush to take capital

out of the country, which would bring the rupee under sudden and severe pressure resulting in high volatility in exchange rates and possibly a substantial devaluation of the rupee. The flight of capital may also result from non-business issues such the political scenario, social problems or even worse, a war! Of course, there has been considerable volatility in the rupee-dollar exchange rates in the past three years.

However, exchange rate fluctuations have mostly been contained within a range, thanks to RBI's active participation. Burgeoning forex reserves have also played a stabilizing role to some extent. So what role can the RBI and forex reserves play in a situation of full convertibility?

The RBI would have a much diluted control than at present, and even a very large amount of reserves may not help in reviving a currency if the fundamentals are not strong.

The Pre-Requisites Now that the RBI has once again appointed the Tarapore committee to recommend a roadmap towards full capital account convertibility of the rupee, the question of prerequisite conditions is bound to resurface.

As the above analysis indicates,

The flight of capital from the country may also result from non-business issues such the political scenario, social problems or even worse, a war

before making the rupee fully convertible, the country would have to strengthen the parameters that influence the exchange rates and promote macroeconomic and financial stability. Among other factors, controlling inflation and fiscal deficit would be particularly important.

According to experts, India's aggregate fiscal deficit (centre plus states) should reduce from the present around 8% to about 4%.

Our forex reserves have swollen to over $160 billion, but much of the capital inflows during are on account of hot money, i.e. FII's stock investments instead of the more stable FDI. Foreign borrowings by Indian companies and banks are likely to shoot up to unprecedented levels once the rupee is made fully convertible, which together with the hot-money might make the situation pretty risky.

So, efforts would need to be made to increase the proportion of stable FDI flows into the country, as well as to achieve a favourable trade-balance. Proper utilization of the foreign capital inflows for investment in productive assets would also have to be ensured. The rising propensity to higher consumption rather than investment do not augur well for the future macroeconomic stability.

Equally important would be to reform the financial and banking sectors to deepen the markets and create a resilient financial system.

Conclusion While there is no doubt that steps should be taken to move towards 'fuller' capital account convertibility, it might be suicidal to rush into full convertibility where resident individuals have an unrestricted access to foreign assets.

For the next few years, a cautious business-like approach would be advisable so that the just emerging Indian economy moves from strength to strength without fearing the likes of an east-Asian crisis.

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TAXING PROBLEM

DETARIFFING Which way to go?

T Navneet Saxena Fellow, Finance & Accounting

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he general insurance industry seems to be in two minds about detariffing.

On the one hand, it is a handy stick to beat with when profitability is low, while on the other, it is the great protector of the very same profitability in some important classes of business. As it stands tariff is a good thing for the industry and, hence, bad for the customer if we are speaking of Fire insurance.

The reverse is true for the motor insurance business, though it may not be uniformly good or bad for different segments of customers.

So, as far as the industry is concerned, it will fight tooth and nail for the retention of fire tariff as long as motor is also under tariff. For what is happening in its books resembles a house of cards of cross subsidies. At the core is Motor Third Party (TP) liability. This famously loss-making business is hemmed in on two sides - by fixed, very low, pricing and by galloping, very high claims payouts. The claims payouts are high only in part because there are many accidents, but we will come to that a bit later.

The TP portfolio, which accounted for Rs.

2,000 crore of the Rs. 16,000 crore general insurance premiums as per the provisional figures for 2003-04, has a claims ratio of 200 to 250 per cent. This is cross subsidised by the Motor Own Damage (OD) premiums (which business has a better claims ratio of about 80 per cent, which is not very heartening either,) on premiums of about Rs. 4,300 crores. Health insurance is the only other Rs. 1,000 crore plus portfolio (Rs. 1,200 crores last year), but it is a basket case in many ways.

The breadwinner, of course, is the fire insurance business where claims have shrunk from 47 per cent in the previous year to about 30 per cent last year when the premiums were about Rs. 3,200 crore. The overall claims ratio for the general insurance business was about 70 per cent.

Before we think there is cause for celebration, let us remember that the industry works on management costs of around 36 per cent, thus wiping out any dreams of an underwriting surplus. It is investment income that keeps the bottom line black which too became precarious a few years

ago when the stock market was dull but is back to performing its messianic role!

Interestingly, these timeframes coincide with the clamour, or lack thereof, from the general insurance industry for detariffing.

In this confused state of things, it is the consumer who is forgotten. If he deserves equitable pricing that reflects the quality of his risk, he is not getting it. Not all consumers though. The transport lobby has proved itself to be a vigilant and good consumer, devoted to the cause of keeping costs down and demanding justifications for TP premium hikes. Large corporate customers — your typical fire insurance customer — choose a different route to maintain the cost-benefit ratio from insurance, and that is by demanding successfully that their unprofitable risks like Health and Marine Cargo get a most favoured pricing status, the subsidy being hidden by the fact that the latter two are non-tariff businesses.

While selective premium increases are generally resisted, a policy measure like detariffing is something that lobbies may not be able to reject wholesale even if simply because it falls in line with what is happening in other industries including banking. And by that same argument, if detariffing is inevitable in a liberalised environment the general insurance industry has to come together to find its route of choice to getting there with the least turbulence, and without losing more credibility than it already has.

The loss of credibility stems from two factors. One is that in spite of the well appreci-

ated argument that it is losing money on statutory businesses like Motor insurance it is unable (or unwilling, as some in the industry say) to prove it with numbers.

This issue if addressed (it has been dragging on for a decade after it was explicitly articulated by the then Regulator the Insurance Regulatory Authority in its position as a quasijudicial body deciding upon a planned upward revision of motor insurance rates challenged by the transport lobby) will go a considerable way in redeeming the image of the industry as lacking in technical foundations for pricing and hence the skills to translate them into premium rates.

That is not the only thing that is threatening the industry's reputation though. On top of arbitrary pricing, the industry is also a huge cost monster. If a close to loss making industry spends 36 per cent of its income on just managing the show, it is a pointer to its efficiencies.

Another pointer to inefficiencies in the system is the huge volume of outstanding claims of about Rs. 24,000 crore which is about 150 per cent of its annual premiums last year. A startling 65 per cent of that, about Rs. 15,000 crore worth claims, is pending in courts, implying lawyers' fees and gathering interest that will all add to its claims payouts. Without setting its house in order and making the price setting bases and logic transparent to the consumer, the industry will be hard put to establish its credibility in any meaningful way.

On top of arbitrary pricing, the industry is also a huge cost monster.

If a close to loss making industry spends 36 per cent of its income on just managing the show, it is a pointer to its efficiencies

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AUDIO-VISUAL

F

Sight & Sound

ilm and video post production value and one-stop shopping. If this solutions combine the indus- is your situation, making the move to try's most trusted editing and HD affords the opportunity to finishing systems — high-perfor- upgrade more than just the NLE. mance storage; real-time Larger facilities have difshared media networks ferent needs. Often, individand comprehensive supuals are specialists. One port from a single source. person might edit, while Handle anything that another handles color corwalks in. Work with HD rection, with a third takes as with SD. Cut rendering care of compression and from hours to minutes.

DVD authoring.

Take control of complex In situations like these it's media management. crucial that project S. R. SRIDHAR From independent data and media can production to collab- Teaching Associate, Film & Media be moved and shared. orative workflows.

Backward compatibilNon-Linear Editing: Today's modern ity with existing systems is imporNLEs serve a wide range of needs. tant. In facilities with multiple post For smaller shops and one-person production systems, media manageoperations, manufacturers have ment is a major concern. begun bundling studio solutions. Primetime TV: Production and postThese are post production bundles production houses rely on the refined that include video editing, audio media management of a Media sweetening, animation, Composer to meet tight deadlines effects, and DVD author- and stringent quality requirements. ing in a single package. Reality TV: The challenge of For the editor who "unscripted" reality television prodoes it all studio gramming is characterized by large suites offer teams of editors and assistants worka great ing at a breakneck pace on multiple Media Composer systems.

Independent Film: Affordable Media Composer editing tools from Avid put true professional creative power in the hands o f

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independent artists, and make it easy to take their work to the next level when opportunity knocks.

Feature Film: The process of going from film to digital intermediates and back to film requires airtight metadata management to ensure precise conform and final output.

Broadcast: Built for broadcast, NLEs world-class solutions comprise the industry's most complete, most thoroughly integrated, and most featurerich news, sports and entertainment production products from end to end.

Best-of-breed solutions for station branding and news graphics in addition to new opportunities for channel playout and live production mean that broadcasters can now realize a whole range of new workflow possibilities with increased productivity, higher on-air quality, and the rocksolid reliability and professional support they require.

Editing and Finishing Systems: These are the creative tools that revolutionized the way the world tells its stories. Whether you're looking for affordability, versatility, power, or a combination of all three, there's an NLE system designed to meet your needs. Make a powerful connection with the industry's most widely used editing and finishing solutions.

If you're planning on adding an HD system to your existing infrastructure, consider the bandwidth requirements of the system you plan on purchasing. Uncompressed HD

takes up nearly six times more disk space than uncompressed 601 video, and requires six times the bandwidth to play in real-time. Many NLEs on the market can handle uncompressed HD, but not all offer multiple compression options to fit various needs.

Whether adding a system or replacing one, backward compatibility with your previous data is crucial.

Many editors look at the move to HD as an opportunity to start fresh. You should consider all your options, but don't forget to factor the cost of purchasing a new system that can't read sequence data from archived projects. Even if you only have to retrieve an archived sequence once or twice a year, sacrificing backwards compatibility can cost several days as you rebuild sequences and effects from scratch.

Once video has been captured and edited, a master has to be created.

For most of us, that means outputting to videotape. While HDV and DVCPRO HD have become very popular acquisition formats, HDCAM and D5 HD remain the most common professional HD delivery formats.

At this stage, even when editing natively, transcoding from one codec to another is often inevitable. It can be done in software, rendering the sequence to the required output for-

mat (and waiting), or it can be done through hardware. Done correctly, transcoding need not have an adverse effect on image quality.

Since transcoding from the acquisition format is so often unavoidable, many facilities make the decision to transcode during capture rather than output. The advantages are numerous.

Codecs designed specifically for an editing environment can yield superior results. For example the Avid DNxHD codec, even at its highest compression rate, utilizes 4:2:2 sampling compared to HDV's native 4:2:0 and HDCAM's native 3:1:1, affording finer detail in color correction and keying.

This additional color space allows for 10-bit graphics to be composited with the original material and rendered to maintain pristine quality.

Editing natively in HDV would cause

such composites to be rendered in the highly compressed 25-megabit per second 4:2:0 space. The same holds true for color correction.

Rendering back to HDV could lead to the introduction of artifacts and banding within fine gradients.

Everything professionals need to do more and Film and Television industry's most advanced collaborative technology: The power and reliability of NLEs software solutions for film and video postproduction are proven every day in collaborative environments of all sizes, from boutiques to worldwide enterprises. No other company can match the range of integrated systems and software engineered for one purpose: to help creative teams rise above the demands and deadlines of their craft.

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CHINESE CHECKER

Enter the

Dragon C

hina, particularly the coastal brand cars affordable by any midpart, is nothing less than a dle class young couple, and everydeveloped country as far as thing one sees in prosperous capithe standard of living is concerned talist economies except street although in the economcrime. ic index it may be Streets are crimeless regarded as a developin China, although one ing one. In the whole of may often read about Beijing (and other big white collar crimes. cities), 30-40 storied priCommunism is now vate residential apartapparently restricted ments are just too many. only in their single party Every place you go to, democracy. In every you will see rows of priother aspect they are folvate shops, businesslowing capitalistic P. Chakrabarty es, hawkers, terribly ways, obviously after Professor,IILM crowded shopping ensuring that almost malls, very large mareveryone is assured of ket buildings, car loans, house a reasonable living. loans, very broad, clean roads, Language and communication is multitude of multi-lane fly-overs, a genuine problem. They study visibly high disposable income, English from age 5 right up to the restaurants galore, sizzling world- end of university. But their mediThe

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um of education is Chinese (Mandarin or some version). As a result, English remains unused and unspoken. A limited number of enterprising young people try to keep it alive with them with the ambition to make it to the West or to a multi-national job. Most of these fellows write good English even though they do not speak much, or speak in an accent difficult for Indians to follow. There are, however, exceptions too.

The next difficulty for an Indian is in food. If you cook yourself, no problem. If you depend on restaurants, most Indians will start crying within a few days. Their food is tasteless for us. They are averse to too much salt or sugar. They do not have desserts at the end of a dinner or lunch. Everything is in the form of soup. Noodles are all in

soup, and not the way we know They believe that every Indian is a In Mao Tze Dong's era, poverty them in India, fried and all. You very good singer/musician. was there, begging was not. The may also be surprised to see An economics graduate working other gift of free market, prostituchopsticks coming out of some- as a manager of my hotel in Zhen tion, is not uncommon anymore. one'e mouth making way straight Zhou city stayed back in the Night sleep in hotels are disturbed into the common foodbowl carry- evening to dine with us, sat next to by random calls from solicitors. ing food for everyone in the table! me because I was from India, One may choose to put the receivA man in the street is a nice per- asked many questions about India er off hook. son, eager to help you, make and finally said "You know, India There is a bit of a contradiction friends and perhaps leave a seat is a mystic country to us". too. for you ( if you are elderly) in the This sums up their feeling.

Mao's legacy of cycle travel bus. They have a positive outlook Amid all these influences, three exists very significantly. Huge towards India and Indians. May be number of workers, middle class that stems from Buddhism which people and seniors like professors is now reviving very openly. You too use bicycles regularly for their may notice some difference commuting upto 7/8 km. between their perception and our At the same time, a very large knowledge of Buddhism. Even the number of private cars are on the monks at monasteries believe road. Surprisingly, motorized twothere were some 32 Buddhas (not wheelers are hardly to be seen. the Jatakas). Probably they mix up Petrol is pretty cheap compared to the original Gautama Buddha India, and compared to their (who is not known to have travwages. elled to China) and the monks who Road crossing is very interestlanded in China from India at difing. It is something like in our ferent points of time. cities. Just block the traffic someThey have not had much how and cross. The car drivers Buddhist studies in the last 60/70 really have a lot of patience to bear years. So, they are in the process with that attitude of the pedestriof re-discovering the subject ans. afresh. In fact, they Shopping is an are learning it from interesting experiThey have a positive outlook towards India and ence. A seller asks Japan. All Buddhist temples are open, any price for Indians. Much of it stems from Buddhism which for along with many anything. They will is now reviving very openly. You may notice mosques and seldom tag the churches.

Large price.

Likewise, some difference between their perception and crowds offer obeiany customer can our knowledge of Buddhism. Even the monks at bargain to any sance freely, something unimaginable extent. A foreigner monasteries believe there were 32 Buddhas 20 years back. In should expect to be many places you told a price 3 or 4 may even be thronged by inter- things blink. Chinese people talk times higher. Then haggling starts preters for many of the statues, very loudly, decibel levels being far with all sorts of body language in stories etc. In temples and muse- more than Indians'. absence of a common understandums you would see a lot of statues Their civic sense in nonchalantly able language. like our Jagatdhatri (astride lion), spitting on the road, even from Finally, whoever wins in the tug Kali, Ganesha, Shiva and Nataraja running bus etc. — as bad as ours. of (price)war. apart from Buddha. This culture Cleanliness and toilet habits of Overall, China today is a lovely reached there with the ancient even educated people leave far too country. It will not be an exaggerscholars from India. much to be desired. ation to say that — if only allowed The Chinese love Hindi films and Reformed China has also created — people from many developing songs. Discos, music shops and a large number of beggars who countries would find it an attracmalls play Hindi tunes sometimes. have surfaced on the city streets. tive destination to migrate to.

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CLASSROOM HISTORY

EVOLUTION of EDUCATION India is the cradle of the human race, the birthplace of human speech, the mother of history, the grandmother of legend, and the greatgrand mother of tradition.

Our most valuable and most instructive materials in the history of man are treasured in India — Mark Twain

generation to generation. The dawn of Christian era brought the institutional form of imparting learning, a deviation from the gurukul form of learning.

The approach to learning was to study logic and epistemology by Hindus, Buddhists and Jains. One of the most important topics of Indian thoughts was The 21st century has pramana or means of reliwitnessed significant able knowledge. The study developments in the of logic largely dealt with field of education. analogy or comparison, These developword (shabda), proP. Malarvizhi ments can be nunciation and intutraced back to the ition.

Associate Professor pre-historical era.

Remarkable contriIndia has a rich tradition of learn- butions were made by Jains in epising and education since time temology. According to ancient immemorial. Indians had an Indian theory of education, training astounding knowledge of acoustics of mind and the process of thinking through which even the oldest are essential for acquisition of Vedas were passed on orally from knowledge. Hence, the primary The

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subject of education was the mind itself.

Development of centers of excellence in education Ancient Indian cities were popular for excellence in education, as they were cradles of renowned teachers.

To name a few which gained importance due to their teachers were Varanasi, Taxila from the Buddhist era and Kanchi in the beginning of the Christian era.

Varanasi was famous for its religious teachers while Taxila was known for its secular studies.

Among the famous men connected with Taxila were Panini, the grammarian in the 5th century BC: Kautilya, minister of Chandragupta Maurya, and Charaka, the leading authority of the Indian medical sciences.

The Taxila and Ujjain universities were renowned for learning medi-

cine, mathematics and astronomy respectively.

Kanchi, in southern India, gained legendary importance for its excellence in imparting education. A number of subjects were taught to students at Kanchi, other than religion, as part of their occupational or general study namely mathematics, medicine, metallurgy, magic, music, art of warfare, sculpting, temple construction, commerce, pottery, weaving and so on.

A glimpse of Nalanda Nalanda University was one of the earliest examples of residential cum-teaching institutions which housed thousands of monks devoted to learning, philosophy and meditation.

Though Nalanda was primarily a Buddhist university, its curricula included Hindu scriptures, philosophy and medicine as recorded by HiuenTsang.

Over 10,000 students including teachers lived and studied at the university. They came from various parts of the world apart from India, Central Asia, China and Korea.

There were three great libraries in Nalanda, as per Tibetan records.

The university had a succession of brilliant teachers like Dharmapala, a Tamil noble from Kanchi, Janamitra came from another country, Silabhadra, the guru of Hiuen-Tsang from Assam.

Gliding through the ancient wisdom and education The ruins of Harappa and Mohenjodaro depict the ancient knowledge we have town planning, water supply and urban facilities, sanitary drainage and granaries.

Gold used for ornaments in Harrapan culture from the Kolar goldmines stands as a testimony for gold mining as a flourishing indus-

try of ancient times.

Mauryan India achieved remarkable developments in the fields of Engineering, town planning, architecture and art. India's first irrigation dam belongs to this era.

The Ashoka Pillar, known for its aesthetic beauty, craftsmanship and religious declarations, depicts the knowledge of the science of polishing of stones.

Ancient wisdom on Medicine & Surgery During the first and third centuries AD, two important texts were composed on medical science, namely Charak Samhita and Sushrut Samhita, which shows the advancement of medical knowledge

in India. Susrut Samhita, a text of surgical science, describes more than 100 instruments of surgery. It also describes plastic surgery procedures, especially rebuilding of the nose, what we today call rhinoplasty.

The science of obstetrics and maternity surgery was well developed at the time of Sushrut. When none in the outside world could think of surgical instruments, Sushrut describes varous maternity operations with these instruments.

His advice about maternity are similar to modern ones as told by Dr. Satya Prakash.

Buddhist books mention that Jivaka operated on the brain of a merchant. Jivaka was appointed by

Emperor Bimbisara as a physician for Lord Buddha. He cured diseases of head, jaundice and performed surgery on brain & intestinal "entanglements" as per the Vinaya texts.

Jivaka was an expert in maternity science as well. He was called Kumar Bhrutya Jivaka. Ashoka had sent medical missions to five Hellenistic States of Europe for humanitarian service, with aushadha, mula and phala, as per Rock Edicts 2 and 13.

Education of medicine was compulsory in Nalanda. Up to seventh or eighth century AD, Indian physicians and surgeons were respectfully appointed in Baghdad. Indian medical books were popular in China. A Chinese work composed in 455 AD, is derived from Indian text. A number of medical books are found in Chinese Buddhist collection.

A text on Children's Diseases, Ravanakumara-charita was translated into Chinese as late as in 11th century. Indian Medical science and arithmetic was highly valued in the west. Greek and Iranian physicians knew Indian medical texts.

It is recorded that Barzouhych, a subject from Sassanid King Khusro I's court (531-579 AD), visited India for study of medicine. India was famous for medicine and surgery when Alexander invaded it.

Ancient Veterinary Science In the third & fourth centuries BC, during Emperor Asoka's rule, there were great advancements in the field of veterinary science. For treatment of elephants, Palkapya Samhita and for treatment of horses, Shalihotra Samhita were written. We find in his edicts, a mention of hospitals established by him for The

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men and animals even in far off places in south India.

It is clear from the dates that the age of progress of science in India was the age of glory of Buddhism.

Acharya Charak was the rajvaidya in the court of Buddhist emperor, Kanishka, of first century AD. Buddhist philosopher and famous physician Nagarjuna was also their contemporary. The contribution of Charak to Charak Samhita is as important as Nagarjuna's contribution to Sushrut Samhita. During the early centuries of Christian era, medical science was on zenith. In this development, the contribution of Buddhists was enormous. The traditional method of passing on knowledge and education orally from guru to sishyas were revised and reduced to writing during Buddhist period.

Through them, knowledge spread all over foreign countries.

Wisdom of Metallurgy The monumental Iron Pillar in the courtyard of Qutub Minar is of the 4th century AD. Not a spot of rust or corrosion on it till date has defied the ravages of times, for centuries. Its composition was examined by a committee of experts who held that it was beyond the capacity of any Iron foundry in the world of that time to manufacture such a masterpiece.

From Periplus we know that the sword made of Indian steel is proverbial in Arabic literature, showing the highest skills and knowledge of metallurgy. The famous Damascus blade was made from Indian steel. Ancient South Indian bronzes command universal recognition both for the intricate craftsmanship and for metallurgy.

Sultangunj’s colossal Buddha in copper is a metallurgical masterpiece and a marvel, still preserved The

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in Birmingham museum.

Ancient wisdom on varied fields India was also famous for paints and dyes, which were the products for export. The awesome pictures and paintings of Ajanta caves are adored not only for aesthetic beauty, art and history but also for quality of paints and pigments used.

The science and art of ship building were flourished by the seafaring people of south India who were great voyagers. They built ships of huge tonnage, traveled to far east, established settlements, colonies and even kingdoms.

Colonial and post-independence era of education India's British colonial rule

brought with it the concept of a modern state, a modern economy and a modern education system.

The education system during British rule was first developed and experimented in the three presidencies viz., Bombay, Calcutta and Madras. The colonial education system bridged the academicindustry interface by linking entrance and advancement in government service to academic education.

Since independence, successive Indian governments had to address key challenges with regard to education policy, which always formed a crucial part of development agenda. Following independence, edu-

cation is in the concurrent list of the Constitution of India after the 42nd amendment in 1976.

Education was made free and compulsory for children between the age group of 6-14 years as a fundamental right, through the constitution (86th Amendment) act notified on 13th December 2002.

India's premier education institutions like the IITs, IIMs and universities are producing globally competitive graduates. Subsidized quality higher education through IITs and IIMs has made a major contribution to the self-reliant and modern Indian state and they now rank amongst the best higher education institutions in the world.

Conclusion India's education system turns out millions of graduates each year, many skilled in varied fields. India has a competitive advantage of youthful population, (35 per cent of its population is under the age of 15) as compared to other countries which are perceived to have ageing population.

This manpower advantage underpins India's recent economic advances, but masks deep seated problems within India's education system. India's education system faces numerous challenges, since the education advantage is restricted to small, highly educated elite.

Many parts of rural India are deprived with qualified and competent teachers particularly for government run primary and secondary schools.

Indian education delivery system needs an improved new dimension which will help the Indian youth to shoulder future responsibilities based on the principles enshrined in our constitution of liberty, equality, justice and fraternity.

VILLAGE SHOPPING

THE PILLARS OF RURAL MARKETING EDIFICE M

arketing in India, for a long time, has meant urban marketing. However, the market potential of rural market is enormous with approximately 70 percent of the population still residing in rural areas and with 40 per cent of the Gross National Product emanating from agriculture.

At present, there are 93 million consumers classified as the rural middle class in India. In future, rural prosperity will be further fuelled through government policy, which has directed that half the plan outlay to urban areas, in rural areas, malebe available for rural development. dominance is very pronounced in the Hence, it has become inevitable for decision-making process as is comnew-age marketers to understand munity decision-making. the intricacies of rural marketing, Today, rural consumers are as critmore so as rural markets are fast ical, discriminating and variety seekbecoming the most sought ing as their urban counterafter destination for the parts. Companies that have companies like HLL, P&G, taken the trouble to underBritannia, and Coke. stand the rural consumers The Indian rural have been successful in the expanse is worth studyrural arena and market ing, not just because of its research comes in as a size and spread but also handy tool for this purpose. due to its cultural, dialecFew examples in this contic, political, religious text deserve a mention diversity. Rural conhere: Manika Jain 1. ITC's e-choupal inisumers are not always Fellow (Marketing) "distant cousins" of the tiative, which is looking urban folk. They have at raising its present their distinct personality and inde- reach of 9,000 villages to 1,00,000 pendent thinking based on a strong villages and some 1,500 kiosks to set of beliefs and values. In contrast 20,000 kiosks over the next 10 years,

uses a common model based on local language platforms.

2. LG's 'Sampoorna', a customized TV for the rural market launched in 1998, was a huge success; selling 1, 00,000 sets in the first year.

3. Coca Cola introduced Chota Coke for Rs.5 to cater to the demand for aerated drinks of the price sensitive rural consumer who considered soft drinks as a luxury.

Owing to its peculiarities, researching the rural market requires additional skills and tools as compared to the analysis to the urban market.

Hence, it calls for extensive involvement of NGO's, SHG's, Gram Panchayats or Municipal Bodies in analyzing demographic, geographic, physcographic, anthropological and behavioral characteristics of rural consumers.

The four factors, which affect marThe

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keting strategies directed towards rural India are access, attitude, awareness and influence. These factors can be taken care of by adapting the four Ps of marketing edifice, viz, product, price, place and promotion, to the rural markets.

PRODUCT DESIGN & BRANDING: Products meant for urban consumption do not elicit the same response from rural buyers, unless adapted, due to perceived differences in functionality. Coca-Cola does not command the same value from rural folks as it does from its urban counterparts.

On this realization, Coca-Cola repositioned itself as Thanda Matlab Coca Cola to induce trials in rural areas. Alike CocaCola, there are several other brands (Hero Cycles), which established their place in rural India because they were sensitive to the needs of the rural consumers.

The product should not only be needed but should also be according to the taste and likes of the rural customers. The design, color, shape, size, features, taste, brand and packaging of a product should be modified to make them acceptable to the rural consumers. For instance, the sachet culture has revolutionized the marketing of products in the rural areas.

Low priced one time use sachets have been well accepted by the Indian hinterland. The real challenge faced by the rural marketers, thus, is to make adaptations to the augmented products without disturbing the core products.

Another area where marketers have scope to tone their skills is that of branded products which constitute a low percentage of the market share in hinterland. Marketers need to break away from the myth that price is the single factor influencing The

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the buying decisions of rural folks.

The reality is that they are willing to go for branded products provided they perceive value.

In the durable products category also, rural consumption is way behind the urban consumption. It has been observed that electricity followed by income is biggest impediment in the durable product category.

The social and cultural variations in India's rural markets and prevailing literacy levels need to be understood for appropriate packaging decisions also. For instance, ITC sells its Gold Flake brand with a yellow cover in the south, where the color is associated with prosperity and purity. In the north the packaging color is golden as yellow

here represents ill health.

The lower literacy levels enhance the need to exercise care in packaging decisions for rural markets since in many cases brand identification is through visual patterns as is the case with lifebuoy soap where a 'red' soap cake signifies the brand. The size, shape and color are important ways that a rural marketer can use to communicate effectively and create a favorable attitude.

PRICING IN RURAL CONTEXT: The pricing issue is closely related to issues of positioning and packaging. As competition in rural markets is generally with the unorganized sector or against a product category,

price is a critical factor in consumer choice. The last two segments of SEC — middle and lower income groups — are characterized by low purchasing power and are sizeable in number. In Bangalore, 41.71 per cent of the population has income less than Rs 70, 000 per annum.

The challenge for rural marketers lies in making the products affordable. The options available to them in this context are manifold: �Reduce the number of extra features �Just market the basic offering �Build a separate brand for e.g.

Sampoorna TV from LG. For instance, Lux launched its Rs 5 soap cake and Godrej launched Rs 2 per cake in BIMARU states.

The presence of a very large price sensitive market does not imply the absence of willingness to pay higher for certain products or certain features.

The myth that only cheap products sell in the Indian hinterland needs to be challenged. Usha found that the sales of its economy model of sewing machine were falling sharply in rural areas since the farmers preferred Usha's premier century brand despite being priced 20 per cent higher.

The fact that farmers are willing to purchase high-priced brands when money was available after a good harvest, has important implications for product, pricing and promotion decisions, which are influenced not just by the income received by rural consumers but also by the time of its receipt and the way it is utilized.

Thus, it follows that pricing is influenced by income stream and consumption. This approach is referred to as 'income stream and consumption basket price'.

PROMOTION MIX FOR THE RURAL MARKET

Communication to the rural consumers poses several challenges to the rural marketers in the form of: �Large scattered population, majority of which is not tuned in to the mass media. �Non-homogeneity of the rural market in terms of geography, demography, selective perception, selective retention, level of involvement in the purchase decision and the state of buyer readiness. �Widely prevalent illiteracy.

In order to tackle the spread and diversity in rural markets, it is important for the marketers to: �Identify geographical locations with a larger concentration of rural consumers. �Locating potential consumers with a higher propensity to spend, and �Localizing decisions on media and message using region specific budgets. Haats, melas, folk dramas, nautankis, wall paintings, and delivery vans present such opportunities. With FM projecting to reach all the villages of India, this media will prove to be of immense help to marketers as it has been found that rural India has a very high ownership of transistor radios, which are run on batteries.

The opinion leader groups play a significant role in influencing the choice of a brand by the rural consumers. While for agri inputs, the opinion leader groups consists of progressive farmers, — extension workers and village leaders; for other product categories opinion leader group consists of friends, well informed relatives (particularly those working in nearby towns), educated youths and traditional village leaders.

Proper communication should include functional values and the "larger good" delivered by the brand to the society. Demonstration has been observed to lead to better learning and communication of key benefits and, hence, more convincing.

Automobile manufacturers encourage trial rides in small towns. The

most appropriate communication strategy for the rural market is wordof-mouth (WOM) communication.

Rural consumers always listen to the people whom they trust and purchase goods from. WOM is a tool, which yields result in the long run and has a positive impact on the brand equity especially in rural marketing. WOM can be used through haats, melas, folk media, demonstration, rural retailer, direct marketing and opinion leaders.

DISTRIBUTING DECISIONS AND THEIR IMPLICATIONS FOR THE RURAL MARKET Rural distribution is considered as a nightmare with 6 lakh odd villages in the country. The problems of physical distribution and channel management adversely affect the service as well as the cost aspects.

The existent market structure consists of primary rural market and retail sales outlet. But it is difficult to maintain the required service level in the delivery of the product at retail level.

One of the ways could be using

company delivery vans which can take the products to the customers in every nook and corner of the market and also enable the firm to establish direct contact with the customers.

However, only the bigwigs can adopt this channel. The companies with relatively fewer resources can go in for syndicated distribution where a tie-up between non-competitive marketers can be established to facilitate distribution.

The retail revolution in urban India has encouraged few companies to venture into the rural sector with large agri-stores. Mahindra and Mahindra's Shubh Labh, Rallis' kisan kendras, DSCL's Haryali Bazars and Tata Chemical's Kisan Kendras have made their mark in the retail activities in rural areas.

At present, however, all of them are on a learning spree and are juggling with high fixed cost, low revenues, channel conflict and credibility issues.

Some have already moved away from the company-owned franchise model. The one stop shop format will surely affect the buying habits of the rural consumers and present ample opportunity for the marketers to experiment.

A recent study on buying behavior of rural consumer indicates that the rural retailers influence 35% of purchase occasions.

Another unique way to extend availability in rural market is distribution through saleswomen network.

Company representatives reach individual homes to establish confidence among housewives and personally sell to them.

For example, HLL started a project called Shakti in partnership with 'Self Help' groups of rural women to enhance its distribution network.

Banks and other financial institutions are also opening their branches in rural areas to tap the rural customers by making financial services available at their doorsteps.

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QUOTE UNQUOTE

EDUCATION IS...

Hanging around until you've caught on — Robert Frost

One of the chief obstacles to intelligence and freedom of thought — Bertrand A Russell (1872-1970) English philosopher, mathematician, and writer

A form of self-delusion — Elbert Hubbard (1856-1915) American author, editor and printer

[A process] which makes one rogue cleverer than another — Oscar Wilde (1856-1900) British poet and dramatist

[Education] consists mainly in what we have unlearned — Mark Twain (1835-1910) American writer

Education is what remains when we have forgotten all that we have been taught.

— George Savile, Marquis of Halifax (1633-1695) English statesman and author.

Education is a progressive discovery of our ignorance — Will Durant (1885-1981) American author and historian

A succession of eye-openers each involving the repudiation of some previously held belief — George Bernard Shaw (1856-1950) British dramatist, critic, writer

Education … has produced a vast population able to read but unable to dis-

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tinguish what is worth reading — G M Trevelyan (1876-1962) British historian

We are shut up in schools and college recitation rooms for ten or fifteen years, and come out at last with a bellyful of words and do not know a thing — Ralph Waldo Emerson (1803-82) US essayist and poet

A man who has never gone to school may steal from a freight car; but if he has a university education he may steal the whole railroad — Theodore Roosevelt (1858-1919) American president

But, good gracious, you've got to educate him first. You can't expect a boy to be vicious till he’s been to a good school — Saki (H H Munro) (1870-1916) Scottish author

Education does not mean teaching people to know what they do not know; it means teaching them to behave as they do not behave

— John Ruskin (1819-1900) English critic

Men are born ignorant, not stupid; they are made stupid by education — Bertrand Russell (1872-1970) English philosopher, mathematician and writer.

Real education must ultimately be limited to men who insist on knowing-the rest is mere sheep-herding — Ezra Loomis Pound (1885-1972) US poet

True education makes for inequality; the inequality of individuality, the inequality of success, the glorious inequality of talent, of genius

Education is the ability to listen to almost anything without losing your temper or your self-confidence — Robert Frost

— Felix E Schelling (1858-1945) American educator

The principal goal of education is to create men who are capable of doing new things, not simply of repeating what other generations have done — Jean Piaget (1896-1980) Swiss cognitive psychologist

No man who worships education has got the best out of education...

Without a gentle contempt for education no man's education is complete — G K Chesterton (1874-1936) British author

Education is that which discloses to the wise and disguises from the foolish their lack of understanding

Education: Being able to differentiate between what you do know and what you don't. It's knowing where to go to find out what you need to know; and it's knowing how to use the information once you get it — William Feather

An educated man is one who can entertain a new idea, entertain another person and entertain himself. I am always ready to learn, but I do not always like being taught — Sir Winston Churchill

— Ambrose Bierce (1842-1914?)

US journalist and writer

Education is too important to be left solely to educators — Francis Keppel

Only the curious will learn and only the resolute will overcome the obstacles to learning. The quest quotient has always excited me more than the intelligence quotient — Edmund S Wilson (1895-1972) American author, literary and social critic

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READING MATERIAL

How media got am-Bushed

C

homsky is a prolific writer who has been an outspoken critic of the US’ involvement in Iraq. One of the most articulate spokesmen of the resistance against the Vietnam War, Chomsky has also earned a place in history for his political writings.

Chomsky’s Media Control: Spectacular Achievements of Propaganda is a short political book on wartime propaganda and opinion control written in a clear and concise style. It has been updated and expanded into a two-section book and redesigned. The new edition of Media Control includes The Journalist from Mars, Chomsky's talk on media coverage of America's war on terrorism.

In this book, the master political analyst looks at American propaganda efforts from the warmongering of Woodrow Wilson to the creation of popular support for the 1991 military intervention in Kuwait and beyond. He is relentless in tracking down official lies, exposing hypocrisy and moral indifference in high places.

Through fact after substantiated fact, he reveals how falsification of history, suppression of information and promotion of vapid, empty concepts have become standard operating procedure for US leaders in their efforts to prevent citizens from raising awkward queries on US policy.

Chomsky's Media Control is a good choice for people who would like to read a short, political book analyzing the current world order dispassionately and fairly.

It is good because it introduces some basics. For example, how did the modern public relations (PR) industry start? Who gave rise to the way propaganda is used in modern society?

Chomsky uses certain themes to The

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BOOK REVIEW Fatima Zarafshan Khader Fellow, IILM

MEDIA CONTROL: SPECTACULAR ACHIEVEMENTS OF PROPAGANDA Author: Noam Chomsky illustrate his points such as what happened in Nicaragua.

Chomsky touches on how the modern PR industry has been influenced by Walter Lippmann's theory of "spectator democracy," in which the public is seen as a "bewildered herd" that needs to be directed, not empowered; and how the PR industry in the US focuses on "controlling the public mind," not informing it.

Chomsky begins by asserting two models of democracy — one in which the public actively participates and the other in which the public is manipulated and controlled.

According to Chomsky "propaganda is to democracy what the bludgeon is to a totalitarian State," and the mass media is the primary vehicle for delivering propaganda in the US. From an examination of how

Woodrow Wilson's Creel Commission "succeeded, within six months, in turning a pacifist population into a hysterical, war-mongering population," to Bush Sr's war on Iraq, Chomsky examines how the mass media and public relations industries have been used as propaganda to generate public support for going to war.

"It is ... necessary to whip up the population in support of foreign adventures. Usually the population is pacifist, just like they were during the First World War. The public sees no reason to get involved in foreign adventures, killing and torture. So you have to whip them up. And to do so you have to frighten them".

Written in the immediate aftermath of the Gulf War, Media Control cites numerous examples of how Bush Sr pushed the American population into supporting an attack on Iraq, a particularly relevant analysis today as Bush Jr attempts to convince a reluctant population on the need for staying on in Iraq.

"Pick the topic you like: The Middle East, international terrorism, Central America, whatever it is — the picture of the world that's presented to the public has only the remotest relation to reality. The truth of the matter is buried under edifice after edifice of lies upon lies.

It's all been a marvelous success from the point of view in deterring the threat of democracy, achieved under conditions of freedom, which is extremely interesting".

After reading the book one understands why Chomsky refers to himself as a libertarian socialist or anarcho-syndicalist. Written in a simple style as compared to his other works, his analysis is controlled and while he may sound harsh toward his opponents, he is never unfair or arrogant. A must read.

A good account

F

inance is the lifeblood of a business and accounting is the language used to tell the business's story. Managers need to have a good grasp of the financial environment in which their business operates and to understand the concepts and principles involved in the preparation and use of financial information and reports externally and internally.

They also need to understand the significance of financial information as an input to decision making. Whatever responsibility a manger is undertaking in an organization, accounting skills are required to perform that responsibility at its best. Accounting, or money management, is the art of knowing where the money is and making the right decisions about what to do with it so that the business grows.

Accounting for Managers explains the critical accounting concepts any manager need to understand in the decision-making area, and then demonstrates their implementation and application in everyday business.

This newest addition to McGraw-Hill's popular, hands-on Briefcase Books series gives insights on how money fuels the organization. Before one understands a business and how to succeed in it, he must understand its cash flow.

Though managers don't need the knowledge of a chartered accountant, they must have a basic understanding of how money is tracked and accounted for in an organization. They will be able to learn enough from this book to be able to contribute in internal discussions about accounting issues and questions and use some of the many tips on making smarter deci-

BOOK REVIEW Meena Bhatia Fellow (Finance)

ACCOUNTING FOR MANAGERS Author: William H. Webster

In a simple style,

Accounting for Managers defines essential terms — from general ledger to chart of accounts — and, more importantly, discusses their applications in everyday business sions. This understanding increases a manager's productivity and value to both his organization and his career.

Financial accounting is known to be the language of business. And rightly so since it measures, translates and sums up the impact of all business activities into financial terms in the form of financial statements.

The first chapter of the book deals with how to speak accounting? It answers three basic questions here — how much money came in? Where did the money go? How much money is left?

Till Chapter IV, this book deals with financial accounting wherein the users of accounting information are external parties. From chapter five to chapter eight it discusses accounting for internal consumption i.e.

Management Accounting. Chapter nine discusses taxation in brief.

The final chapter is its unique selling proposition as it discusses accounting fraud. This chapter tells managers how to recognize and avoid accounting frauds which have become quite frequent these days.

The book is reader friendly. Its chapters are short, deal with tactical issues and include lots of examples. It is punctuated with ideas and strategies to help managers become more capable, efficient, effective and valuable to their organizations.

Using sidebars and in a simple style which has become the trademark of Briefcase Books, Accounting for Managers defines essential terms — from general ledger to chart of accounts — and, more importantly, discusses their applications in everyday business.

It also introduces managers to popular accounting software programs and their use in tracking and allocating funds in the organization.

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READING MATERIAL

How to Change the World

T

he dictionary meaning of ‘entrepreneur’ is "a person who sets up a business at considerable risk".

Through his book, David Bornstein has tried to convey the essence of social entrepreneurship. These are people who set up a new paradigm to solve major social issues without much support from society.

Before writing the book, Bornstein interviewed around 100 social entrepreneurs all over the world and then penned select stories. Most characters chosen by him are not famous; they are not politicians or big industrialists. They are professionals from various areas — doctors, lawyers, engineers, management consultant, social workers, teachers and journalists.

They are spread all over the globe, from developed countries like the US to developing countries like Bangladesh, Brazil, India, Poland and South Africa.

Almost every social entrepreneur he has talked to, started with scarce resources and faced institutional resistance in countries with conservative social attitudes. But with enthusiasm, persistence, business acumen and innovative ideas, they were able to introduce constructive models for social change.

His stories tackle social problems like inadequate education and health systems, environmental threats, declining trust in political institutions, entrenched poverty and high crime.

They are intended for a broad range of readers. To name a few, there is Javed Adibi who has worked for getting the physically challenged recognition from the Government of India, Fabio Rosa The

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BOOK REVIEW Sweta Gupta Faculty Associate, Finance

HOW TO CHANGE THE WORLD Author: David Bornstein

Today’s business world needs managers who can appreciate social dimensions of their work.

Bringing a change is society too can be a viable career option who has helped bring electricity to hundreds and thousands in remote areas of Brazil, JB Schramm, who has helped thousands of low-income high school students get into college in America.

These sound familiar issues, issues we have been reading in newspapers daily. Anyone who

has ever thought of solving a social problem can take inspiration from this book.

All of Bornstein’s subjects possess powerful ideas for attacking problems and they are unwilling and unable to rest until they have spread their ideas societywide.

Along the way, the book examines how they actually make change happen — analyzing strategies, organizational characteristics and personal qualities that explain the social entrepreneur's success. They are instructive for anyone who wants to participate in this sector. The author devotes an entire chapter to describing qualities needed in a successful social entrepreneur.

Social entrepreneurs have a profound impact on society. Yet, their corrective functions remain poorly understood and underappreciated. The author makes a significant point that every social change needs a leading entrepreneur and also thousands of grassroots entrepreneurs to work with him. Most of the focus is on how business and management skills can be applied to achieve social ends. For example, how non-profit organisations can operate forprofit ventures to generate revenues.

Today’s business needs managers who can appreciate social and environmental dimensions of their work and spot opportunities to collaborate with this "other" entrepreneurial sector. Bringing a change in society, the author says, can be a viable career option. The huge vision, ambition and external focus of a leading social entrepreneur is portrayed through the short stories in this book. The stories are inspiring and motivating.

The book is heart-touching.

Understanding Economic Change BOOK REVIEW Dimple Tresa Abraham Fellow

A

n ocean of material is available on what makes for successful economic development, but very little is known about how to reach there. Hence the need to read this book. It makes you understand the process of economic change.

Three fundamental factors are discussed by the author as sources of growth: Basic economic determinants, the institutional framework and the cultural heritage of societies. He also stresses on the importance of property rights and transaction costs.

A Nobel Laureate in Economics, North first examines the sources of successful growth and then explores the process of dynamic change of economies. Beginning his study from the roots, he points out that it is the institutional or organisational structure that is the basis of all poor performances.

Institutions set the formal and informal rules that constrains and determines human behaviour. The evolving human environment is discussed in detail.

Therefore, a clear understanding of the institutional framework and cultural heritage of a society is required for implementing a successful structural reform in any society.

According to the author, the global economy does not offer equal opportunities or a level playing field. Late entrants are at a disadvantage. North recommends that Government intervention may be required and even essential in

UNDERSTANDING THE PROCESS OF ECONOMIC CHANGE Author: Douglass C. North

Economic change depends a great deal on adaptive efficiency. That is, a society should be effective in creating institutions that are productive, stable and, most importantly, flexible to changes or even a rebuilding in response to a political or economic feedback

the short run to make countries competitive.

Drawing from history, he quotes the rise of a number of economies as well as the fall of some, like the Russian and the Argentine economy.

He stresses that economic performance is determined mainly by the kind and quality of institutions, chiefly political, that support markets. Only a viable political system can put in place an efficient economic system. The way to an efficient political system may even require an authoritarian ruler if the country is without the heritage of a proper political institution.

North stresses that economic change depends to a great extent on 'adaptive efficiency'. That is a society should be effective in creating institutions that are productive, stable and most importantly flexible to changes or even a rebuilding in response to a political or economic feedback. The message of the book is that it is imperative to understand the process of economic growth to improve it. Understanding economic change helps us comprehend the enormous improvements in economic wellbeing and accept the deep uncertainties that have characterized economic evolutions. These uncertainties hold true today too and would be integral even for future economies.

This work gives us valuable insight and is an essential guide to improving the performance of today’s economies.

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INDIAN RICHLIST

RICH INDIAN ICONS From textile to technology to construction, India’s enterpreneurs have risen from the dust to lord over the world. Be it Azim Premji who buiilt up a billion-dollar empire in technology from a small fat selling company he inherited from his father to Subhash Chandra Goel who revolutionised the television world of India, the success stories never ceaseto amaze

ADI GODREJ VETERAN INDUSTRIALIST If you thought billionaires are boring people interested only in hopping from one corporate strategy session to another, meet Adi Godrej. As we settle down at Kebabs & Curries at the ITC Grand Central Sheraton at Lower Parel, Godrej points at his jet black hair and says he uses products made by his companies only, as they give value for money. That includes the Godrej hair colour, which has a 40 per cent share in the domestic hair dye market. "We also have a fantastic hair restorer called Anoop. I use it every day," he says.

Sensing that we are keenly looking at his fast receding hairline, Godrej tells us that's his fault, not the product's.

At the age of 62, he spends his Sundays on the Arabian Sea alternately with a jet ski and a speedboat. His grandsons Aryaan and Azaar and close friend Anil Ambani's sons Anshul and Anmol usually accompany him, hitched behind his boat on water-skis. Two years ago, he went to Mount Kailash — a 42km trek up to 19,000 feet, within a day.

"It's good to listen to young people," he says. That's why he has institutionalized an event called the Chairman's Tea in the company where bright young managers are called to discuss with him issues before the company. "It's an enormous learning experience," Godrej says.

"Professionalism is not anybody's exclusive privilege," he says, adding that even some multinationals have hugely bureaucratic practices. What matters first is top quality education. That's why The

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Godrej, an MIT alumni, has given his children what he says is the best education possible.

AJAY PIRAMAL PHARMA GIANT He was 29 when his father died suddenly in New York. From owning what was then an almost defunct textile company, Piramal today is the chairman of a Rs 4,000-crore group, comprising Nicholas Piramal, the fourth-largest pharmaceutical company in India, Morarajee Weaving and Spinning and Gujarat Glass. Piramal is also Chairman of the group's retail operations, which are now looked after by his nephew.

Nicholas Piramal India Limited (NPIL) is India's second largest Pharmaceutical Healthcare company and a leader in the cardio-vascular segment. It has a strong presence in Antibiotics and Respiratory segments, pain management, neuropsychiatry and anti-diabetics segments.

ANIL AMBANI MASTER CEO As of 2005, Anil Dhirubhai Ambani was among the five richest Indians with a net worth of $ 5.5 billion, according to Forbes magazine.

He is also among the richest people in the world. At 46, he is Chairman of Reliance Capital, Reliance Infocomm and Chairman & Managing Director, Reliance Energy Limited. He was earlier Vice-Chairman

and Managing Director of Reliance Industries Limited which has since split.

Ambani is a Bachelor of Science from the Bombay University and an MBA from Wharton School, University of Pennsylvania, US. He is credited with having pioneered many financial innovations in Indian capital markets and is the pioneer of India's forays into overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. He directed Reliance in its efforts to raise, since 1991, around US$2 billion from overseas financial markets; with a 100-year Yankee bond issue in January 1997 being the high point.

His major achievements include being adjudged CEO of the Year at the prestigious Platts Global Energy Awards for 2004; polled India's most admired Chief Executive for 2004 for the sixth year in succession in the Business Barons magazine; ranked top in 3 out of 4 qualities: leadership, integrity and vision.

AZIM PREMJI HITECH TYCOON He is an Indian businessman and Chairman of one of the largest software companies in India, Wipro Technologies (Bangalore). He was rated the richest person in India from 1999 to 2005 by Forbes. An undergraduate student in Electrical Engineering at Stanford University, he had to leave midway due to the sudden demise of his father and the need to handle the family business in 1966. Then just 21. Wipro, a compa-

ny that initially dealt in hydrogenated cooking fats and consumer products, expanded into computer software under him and from a $1.5 million unit it is now ranked among the top 100 technology companies globally with a turnover exceeding $1.4 billion.

Under his chairmanship, Wipro has diversified into Services, Technology Products and Consumer Products with leadership positions in most of the businesses it is in.

A role model for young entrepreneurs across the world, Azim Premji has integrated the country's entrepreneurial tradition with professional management, based on sound values and uncompromising integrity. In 2000, he was voted among the 20 most powerful men in the world by Asia Week. He was also among the 50 richest people in the world from 2001 to 2003 according to Forbes.

BABA KALYANI SMALL TO BIG Baba Kalyani turned a family business that was bending metal for farm tractors into a global comer, supplying demand from Detroit to Dusseldorf.

India's commercial-vehicle market tanked in the mid-1990s after a false start during the country's liberalization drive. Baba N Kalyani, managing director of one of the country's largest forging companies, decided that it was time to accelerate his global push.

Over the next decade Kalyani plunked about $140 million into capacity expansions at his Pune headquarters plant. He courted auto manufacturers in North America and Europe in a bid to sell engine and chassis components from Pune. And he chalked out a strategy to take over small forging companies abroad to enlarge his customer base.

"We want to be the world leader in our business," says the 56-year-old chairman and managing director of Bharat Forge.

With $1.8 billion in market capitalization, Bharat is now the second-largest forging combine in the world. It manufactures forgings like crankshafts and axle beams.

BRIJMOHAN LALL MUNJAL KING OF ROAD The venerated patriarch and visionary of the Hero Group, Brijmohan Lall Munjal, is a first generation entrepreneur who started very small and through sheer hard work has today made his two wheeler venture the World's No.1 two wheeler company.

One of the brightest stories of Indian entrepreneurship began 71 years ago when a six-year-old boy walked into a gurukul near his home in Kamalia (now in Pakistan) determined to gain admission.

Impressed by his conviction, the gurukul granted him admission instantly. Thus began an extraordinary saga of entrepreneurial achievement.

Brijmohan Lall's inspiration to enter the two-wheeler world came from a desire to provide the cheapest form of transport for the poorest of the poor.

Post-partition, Brijmohan and his brothers relocated to Ludhiana. They had to begin from scratch.

They set up as manufacturers of bicycle components. From then on there was no looking back. In typically modest manner, he accords a great deal of the credit for his success to his family and his team.

Above all, his leadership and sagacity have earned him great respect and he has personally been responsible for kindling the spirit of entrepreneurship amongst his employees who today constitute a family of about forty successful entrepreneurs.

DILIP SANGHVI THE MEDICINE MAN Indian Pharmaceu-tical Alliance (IPA) has announced its new office bearers.

Dilip S Shanghvi, Chairman and Managing Director of Sun Pharmaceutical Industries and VicePresident of IPA will succeed H F Khorakiwala of Wockhardt Group as the President of IPA. IPA, initially formed by eight national companies in November 1999, has now thirteen companies in its fold.

Collectively, their R&D spend amounted to Rs 1,500 crore in the year ended March 2005.

This accounts to 90 per cent of the total private sector spending in pharmaceutical research and development.

A brainchild of late Dr Parvinder Singh, IPA, in a short span of five years, emerged as a credible alternative capable of caring for all stakeholders in the pharmaceutical industry. It grasped the emerging scenario and worked with the Government to steer the local industry to new heights and be counted in the world. Dilip Shanghvi, the earlier VicePresident, is as a man with a vision and determination. He brings to the new position his unique qualities of leadership that promotes innovation and creativity.

KIRAN MAJUMDAR SHAW THE BIOTECH QUEEN Among the many persons whom Bangalore can proudly call its own, biotech entrepreneur and CEO of Biocon India Group Kiran Mazumdar Shaw is definitely one. Forward looking, driven, enterprising and outspoken, Kiran is everything that one would look to in a woman of her stature.

She was born in Bangalore and educated in Bishop Cotton Girls School and then Mount Carmel College. She started Biocon in 1978 collaborating with an Irish firm, floated 2 joint ventures, Biochemizyme and Biocon-Quest India Ltd. The

Edge 47

With her commitment to individual enterprise, she has held positions in industry councils, including VicePresident, Association of Women Entrepreneurs of Karnataka (AWAKE).

Rightly, she was awarded Rotary Award for Best Model Employer, National Award for Best Small Industry, and most note worthily, the Padmashri in 1989.

So how did Biocon India happen?

Kiran, never the one to shy away, is open about the huge inspiration she got. But it was never smooth going. Banks and financial institutions had never heard of biotechnology back then and shied away from her proposals.

She was termed India's Biotech Queen

by The Economist and Fortune, and India's mother of invention by New York Times. Some of the major awards won by her are: Padma Bhushan (2005), Lifetime Achievement Award from Indian Chamber of Commerce (2005), Honorary Doctorate of Science, from Ballarat University (2004), The Economic Times Business Woman of the Year Award (2004), Whirlpool GR8 Women award for Science and Technology (2004)

KUMARAMANGALAM MULTISTRAINED BILLIONAIRE In a media-conscious world where business tycoons are measured by the number of column centimeters and the seconds of sound bytes they hog, Kumaramangalam Birla is an anomaly.

The Mumbai-based chairman of the giant Aditya Birla Group is reticence personified. He shuns interviews; queries about his diversified group's achievements or future plans are quietly diverted to the corporate communications department. Almost any other businessman would have loved to be in Birla's place.

For there have been numerous occasions to be in the limelight: Acquisition of the Indian Aluminum Company; buyout of a crucial 10 per cent stake in Larsen & Toubro; takeover of the computer firm PSI Data.

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Birla was far away from inquisitive reporters even after Fortune announced last week that at age 34, he is the eighth richest in the world (under the age of 40), and the richest man in India. Birla's wealth of $2.1 billion is derived from interests in everything from cement, textiles, rayon, carbon black and aluminum to insulators, copper, fertilizers, chemicals and sponge iron. Last year, the Aditya Birla Group clocked sales of $5.5 billion.

KUSHAL PAL SING BUILDING A DREAM When Kushal Pal Singh came on board his father-inlaw's real estate company in the early 1970s, it was on a downward slope. From being Delhi’s leading property developer in the post-partition real estate boom, Delhi Land and Finance (DLF) had developed areas such as Greater Kailash, Hauz Khas and South Extension. But then the company hit a brick wall. Under the Delhi Development Act, 1957, land development became the prerogative of the Delhi Development Authority. Restricted to projects that had been approved earlier or were already underway, DLF started sliding.

Then came Gurgaon. Almost singlehandedly, Singh converted a sleepy, rural settlement of Ahris and Jats into a DLF City, which is probably Asia's largest private township and, in the process, built DLF into the country s leading real estate firm.

At last count, the group had developed 20 million sq ft. of residential space, 3 million sqft commercial space and 1 million sq ft retail space in the Harayana district, it is working on a million sq ft of workspace each in Chandigarh and Kolkata, is considering extending to Mumbai, Hyderabad, Pune and Bangalore, and has been declared a Super brand. At present, company sources value the DLF Group s assets at between Rs. 15,000 and Rs. 20,000 crore

and Singh, who is also group chairman, owns 98 percent of all this.

MUKESH AMBANI SELF-RELIANCE Mukesh Ambani is CMD of Reliance Industries Limited, India's largest private sector company. His company’s wealth is estimated at $ 6.4 billion. Mukesh was born on April 19, 1957 in Eden, Yemen.

He is ranked 42nd among the World's Most Respected Business Leaders and second among the four Indian CEOs featured in a survey conducted by Pricewaterhouse Coopers and published in Financial Times, London, November 2004. He was conferred the World Communication Award for the Most Influential Person in Telecommunications in 2004 by Total Telecom, October, 2004.

He is ranked 13th in Asia's Power 25 list of The Most Powerful People in Business published by Fortune magazine, August 2004.

He joined Reliance in 1981 and initiated Reliance's backward integration from textiles into polyester fibres and further into petrochemicals.

Mukesh Ambani has set up the largest and most complex information and communications technology initiative in the world in the form of Reliance Infocomm Limited. Covering more than 1,100 towns and cities across India, Reliance Infocomm offers the full range of voice, data, video and value added services, on the strength of 80,000 km of optic fibrebased terabit infrastructure, at the lowest entry cost and services cost anywhere in the world.

NANDAN NILEKANI Born as the second and last son to Mohan R Nilekani, a manager in Minerva Mills, Nandan Nilekani spent his first 12 years in Bangalore. His father's job was transferable, and he had to move to his uncle's place in Dharwad for studies but did study at Bishop Cotton Boys School, Bangalore. In 1973, he cleared the

entrance test for IIT, Bombay from where he graduated in 1978.

Next, he walked into the cabin of N R Narayana Murthy, then head of the software group at the Mumbai-based Patni Computer Systems, to seek a job.

Murthy hired the young engineer right away. Neither realised then that the relationship would get etched into India's corporate annals.

Three years later, seven enthusiasts including Nilekani, decided to start their own outfit Infosys Technologies Ltd with Murthy at helm. This decision rewrote India’s domestic software industry. He became CEO of Infosys in March 2002 as currently functions as its President, CEO and Managing Director.

He is co-founder of India's National Association of Software and Service Companies (NASSCOM) and has been named in Asia's Power 25 by Fortune magazine.

NUSLI WADIA STYLE BHAI Nusli Wadia is a Parsi Zoroastrian entrepreneur and an important figure in the Indian textile industry and realestate business.

Son of Neville and Dina Wadia, and grandson of Mohammad Ali Jinnah, founder of Pakistan, Nusli is the chairman and majority owner of Bombay Dyeing, a major textile company, and has vast holdings in real estate across Mumbai.

He is married to Maureen Wadia, who heads Gladrags magazine and is one of the forces behind the Miss India beauty pageant.

Their son, Ness Wadia, is managing director of Bombay Dyeing. Nusli Wadia is a member of the Wadia family and a direct descendant of Lovji Nusserwanjee Wadia, Sir Cowasji Jehangir (Readymoney) and Dinshaw Maneckji

Petit, as well as a distant relative of JRD Tata.

Wadia is a workaholic too, and is often to be spotted late in his office. Unlike Mittal, he isn't into hi-tech gadgets. But if there's one thing he's passionate about, it's cricket. No wonder he was seen in the stands beside General Pervez Musharraf when India went to Pakistan to play cricket for the first time since the ban was lifted.

If there's something most Indian billionaires would count as a common card, it's their love for travel. Nusli Wadia of Bombay Dyeing - no party animal - would prefer doing his own cooking. Stylish like his famous grandfather Mohd Ali Jinnah, Wadia also likes to spend time in London, though his favourite holiday destination as also Mallya's, is Goa.

PALLONJI MISTRY MISTRY MAN Pallonji Shapoorji Mistry is a media shyconstruction tycoon.

The fifth richest Indian and Chairman of the Shapoorji Pallonji Group, Pallonji Mistry leads is a man who rarely appears in public.

The Group's largest stakeholder Pallonji Mistry's father Shapoorji muscled his way into Tata Sons by buying out solicitor FE Dinshaw's estate which was equal to 12.5% of Tata Sons.

When JRD Tata took over, Shapoorji took advantage of the Group's uncertainty and bought out other Tata family members — increasing his stake to 16.5%. Yet the construction contractor was always considered an outsider and his relations with the Tatas eased only when Noel Tata, Ratan Tata's stepbrother, married Pallonji's daughter Aloo.

Today, Pallonji owns 18.35% of Tata Sons, while Ratan Tata himself owns less than a per cent. When TCS went public, Pallonji was the biggest beneficiary, netting more than even the Tata companies.

His networth, estimated by Forbes in 2003 was Rs 9,200 crore. He's expanded

the family business to build buildings in the Middle East His firm has moved on to road construction.

RAMALINGA RAJU SATYAM-EV JAYATE B Ramalinga Raju (born September 16, 1954) is a pioneer in the Information Technology industry.

He is Chairman of Satyam Computer Services Ltd which he founded in the 1980's after venturing into other businesses such as construction and textiles. Raju is a B.Com from the Andhra Loyola College at Vijayawada and holds an MBA degree from Ohio University. Ernst & Young gave him the Entrepreneur of the Year Services award in 1999, he was given the Asia Business Leader Award in 2002 and he is the proud holder of CNBC's Asian Business Leaders Award for "Corporate Citizen" for 2002.

Raju incorporated Satyam in 1987 and was responsible for making it public in 1992. He has, since, nurtured and grown it to be one of the world's premier IT companies.

RATAN TATA BIGGEST BIGGIE Ratan Naval Tata (born December 28, 1937 in Bombay) is Chairman of the Tata Group, a leading Indian conglomerate established by his family. After getting a degree in Architecture and Structural Engineering from Cornell University and completing an advanced management programme from Harvard University in 1974-1975, Tata got a job offer from IBM, but turned it down after patriarch JRD Tata advised him to do so.

In 1962, Ratan joined the family business and took it over from the legendary JRD in 1991. He is a Padma Bhushan and is member of various organisations, including the Central Board of the The

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Reserve Bank of India and the Prime Minister's Council on Trade and Industry.

His global seats include membership of the international advisory boards of the Mitsubishi Corporation, American International Group, JP Morgan Chase and Booz-Allen Hamilton Inc. He is also a member of the board of trustees of the Ford Foundation. He serves on the International Investment Council set up by the president of the Republic of South Africa, the Asia-Pacific advisory committee to the board of directors of the New York Stock Exchange, the board of governors of the East-West Center, the advisory board of RAND's Center for Asia Pacific Policy and the programme board of the Bill & Melinda Gates Foundation's India AIDS initiative.

SHIV NADAR IT PIONEER When Shiv Nadar set up Hindustan Computers Limited 25 years ago in a one-room tenement, he knew he had taken a huge gamble.

Many associates were shocked, because Nadar, then 30, had quit a high-paying executive job with Delhi Cloth Mills to dabble in a concept that had few takers in the country then.

But his success with HCL, as also the numerous other companies he has founded over the past two-and-a-half decades, has earned him praise for being one of the pioneers and visionaries of the information technology sector.

The bearded high-tech entrepreneur nurtured HCL in his signature style of decentralised management, making it a billion-dollar group with 100 offices worldwide.

In the process, he created wealth for himself, his associates and investors. In last year's Forbes List of Billionaires, he was ranked the 126th richest person in the world with an estimated personal net worth $3.7 billion. Perhaps, that is the reason why he was the only person with whom Microsoft founder Bill Gates had a private meeting during his famous The

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India visit in 1996.

HCL, established by Nadar in August 1976, broke into the big league of the Rs 10-billion club of homegrown companies in 20 years flat. Armed with a keen business sense, Nadar, a member of the Nadar business community of Tamil Nadu who migrated to New Delhi in 1968, forged his first fruitful partnership with a multinational 15 years after founding HCL. In 1991, US-based IT giant Hewlett-Packard picked up a 26 per cent stake in HCL. In the US, a software subsidiary, HCL America, has reaped rich benefits by taking advantage of global time zones.

SHIVINDER SINGH & MALVINDER SINGH BROTHERS IN SUCCESS

Shivinder Singh and Malvinder Singh have a lot in common apart from names that sound alike. They went to the same college, St Stephens in Delhi, and did their MBA from the same university and then branched out, but again in related areas. They don't seem to venture very far from each other.

Malvinder Singh credits their parents for giving them the value system that the brothers have imbibed. Shivinder says the reason he's been following in his brother's footsteps is that both have similar thought processes. They both like facts and figures and both want to get to their goals in a tearing hurry. Both inherited the now globally known pharmaceutical firm Ranbaxy, but Malvinder took up the reins as it was more his field of interest.

Shivinder has branched out to providing healthcare services and has given North India its very own, world-class hospital Fortis Healthcare.

Ranbaxy was a successful Indian pharmaceutical company, long before Malvinder came on the scene. But he took it into unchartered waters and given it a higher profile in the world Press.

SUBHASH CHANDRA GOEL LIVE ON AIR Here's something not many people know about Subhash Chandra Goel: The Zee chairman dropped out of school after Class XII. Subhash Chandra started his own vegetable oils unit at 19, as his first job.

Years later, a casual visit to a friend at Doordarshan gave him the idea of starting a broadcasting company. We all know how that story ran. Chandra knew nothing about programming, distribution or film rights. What he did understand quite well was the Indian sensibilities.

Funded by UK businessmen, Zee came into being as India's first satellite TV network. Today, it reaches 32 million homes, connecting with 200 million people in South Asia alone. Ten years ago this month, Zee TV came into existence starting with a few hours of telecast a day, demonstrating that you could get bright-looking programmes on shoe string budgets, and providing an audacious, upbeat contrast to Doordarshan.

Its first telecast was of its launch party, and making his appearance on the small screen was Subhash Chandra, the new magnate in the making.

Chandra has achieved whatever he dreamt of. In 1992 he outbid top Indian businessmen and signed a lease deal for a transponder on Asiasat with Richard Li, Chief of Star TV, then owned by Hutch Vision Group, Hong Kong, for $5 million.

SUNIL BHARTI MITTAL BUTTON MAN Sunil Mittal's corporate office in Delhi is in the shadow of the Qutub Minar. And on the door of his conference room are

inscribed the words: Sultanate.

One knows why he's made it big, the biggest name in Indian telecom after the government.

Sunil Bharti Mittal thinks Big. Sunil's father, Sat Paul Mittal, an MP, was always in public life. It was Sunil who started in business (making cycle parts in Ludhiana, India) in 1976 at age 18 with borrowed capital of Rs 20,000.

Later, he started operating from Delhi and Mumbai, importing and distributing products.

The big break into the telecom sector happened by accident. In Mittal's words: "In '83 many imports were banned, including portable generators which we were importing. So we tied up for the manufacture of push-button telephones. Our telecom business is worth Rs 1,2000 million today."

With the introduction of Airtel mobile phones in Delhi in 1995, they hit the spotlight. Mittal prides himself on a string of firsts: "the first push-button, the first cordless, the first answering machines, the first fax machines".

What's his long-term vision? "In five years Bharti should be a a billion-dollar one! Personally, in another seven years, I'd like to play a larger role in society.

No, not politics."

TULSI R TANTI ENERGY TYCOON Suzlon Energy's promoter Tulsi R Tanti is the fourth richest Indian with a net worth of Rs 15,086 crore.

Suzlon Energy went public in September through a 100 per cent book-built issue carrying a price band of Rs 425 to Rs 510 a share. The issue was oversubscribed 51 times and Suzlon was listed on October 19 at Rs 692. The numbers Tanti talks about are fantastic"India has wind energy potential of

45,000 mw; with a current shortfall of 16,000 mw, wind energy can play a major role in bridging the gap". So much so, that Tanti says the cost per unit from a fully depreciated windmill is as low as 40 paise per unit. "Bajaj Auto invested in 60 mw of power from our windmills and after four years, their costs of electricity are the lowest in their peer group," Tanti adds proudly.

Tanti, a textile baron, had commissioned a wind energy solution for his company a decade back. Convinced about the economics of the deal, he later decided to venture full-steam into the business.

A commerce graduate and a diploma holder in mechanical engineering, Tanti, 47, has built an empire in the wind energy business. The bright future scenario for the industry, coupled with Tanti's entrepreneurial instincts, have made investors like Ashish Dhawan, Managing Director of private equity firm Chrys Capital, particularly bullish on Suzlon. Chrys Capital holds just over 2 per cent in Tanti's company.

VIJAY MALLYA IN HIGH SPIRITS Dr Vijay Mallya (born December 20,1955) is a Bangalore-based billionaire and Member of Parliament since 2002. He is the son of famous industrialist Vittal Mallya and Chairman of United Spirits. Mallya recently started the domestic Kingfisher Airlines.

He took over as chairman of UB Group in 1983. Since then, the group has grown into a multi-national conglomerate of over 60 companies with an annual turnover which increased by 439% to $1.2 billion in 1998-99 despite the frequent devaluation of currencies.

His achievements include establishment of Mallya Hospital in Bangalore with a charity ward, buying back of Tipu Sultan's articles and sword in an auction in London.

In March 2006, Forbes Magazine described him as on of India's newest billionaires and one of the world's richest people.

Mangalore Chemicals & Fertilizers Limited is a part of The UB Group, a large and diversified Indian business house. The Group is one of the foremost multinational organizations based in the sub-continent with operations in many world markets. Its combined turnover is Rs 3,500 crores.

VIVEK C BURMAN TYCOON WITH A DIFFERENCE Vivek C Burman is Chairman of Dabur India Limited and the senior-most representative of the Burman family. He is the great-grandson of Dr. S.K. Burman, the founder of Dabur. Vivek C. Burman joined Dabur in 1954 after completing his graduation in Business Administration from the US. In 1986 he was appointed Managing Director of Dabur and in 1998 he took over as Chairman of the Company.

Under Vivek C. Burman's leadership, Dabur has evolved as a multi-crore business house with a diverse product portfolio. And a marketing network that traverses the whole of India and more than 50 countries across the world.

Vivek has motivated employees of Dabur to "do better than their best" - a credo that gives Dabur its status as India's most trusted nature-based products company. Vivek is on the Board of Directors of several companies including Dabur Foods Ltd., Dabur Ayurvbedic Specialities Ltd., Dabur Research Foundation, Dabur Investocorp. and Aviva. He is member of various Chambers of Commerce, of the Indian Institute of Foreign Trade and of the Indo-French Forum. His two sons Mohit and Gaurav Burman have excelled academically and pursue independent careers. Vivek stays in Delhi with wife Monica and is a keen golfer, polo player and swimmer.

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STUDENT CORNER EDUCATION’S FAIR SHARE

INDIA’S QUOTA OF WOES

Our government may be committed to education for all but India still has one of the lowest female literacy rates in Asia. This low level of literacy negatively impacts not only women but also their families and India’s economic development.

Studies show, illiterate women have high levels of fertility and mortality, poor nutritional status, low VISHAL GOYAL earning potential and little autonomy within the household. An illiterate woman adversely affects her children. A recent survey found infant mortality was inversely related to mother's educational level.

There are many reasons for the low level of literacy, poverty being the primary cause. Over one-third of the population lives below the poverty line. Although school attendance is free, the costs of books and transportation is high.

Poor families are more likely to keep girls at home to care for younger siblings or to work. If a family has to choose between educating a son or a daughter because of funds crunch, the son is chosen. Negative parental attitudes towards educating daughters is a barrier to girl education. Many parents view education of sons as an investment daughters as education wastage as they would get married into another family and go away. Also, daughters with higher education may have higher dowry expenses as they would want an educated husband.

Another barrier is inadequate school facilities. Many States do not have enough classrooms. Others lack basic ameneties.

In UP, 54 per cent schools did not have water supply and 80 per cent no toilets.

Lack of women teachers is another barrier to girls' education. Gender bias in curriculum adds to it. In 1965, the Government agreed to rewrite text books so that men and women would not carry gender stereotypes. However, Indian textbooks show that men are main characters in a majority of lessons. They hold high-prestige occupations and are portrayed as strong and intelligent. Women, on the other hand, are depicted as weak, often victims of abuse.

If our country has to become a developed nation, it cannot neglect education of its women.

The main reason of British rule in India was inequality between citizens, males and females, lack of education and casteism, to list just a few of the nation’s continuing woes.

The SC/STs cover 24.4% of the population which is around onefourth of the total population.

However, they were never considSANA FATIMA ered a part of society, forced to live separately, not allowed to participate in festivals or enter temples and denied education. India’s biggest curse was untouchability.

The major concern of free India has been to minimize disparities. In education, too, disparities continue to exist. The government has laid out policies to democratize education but disparities between SC/ST and the non-scheduled population, between males and females and between rural and urban population still exist.

Hence, the role of education in promoting equality needs particular attention not just of the Government but of the entire society.

Nowadays, a big question being raised is of quota to SC/STs and OBCs in institutions of higher education. But is this justified — taking bread from one's mouth and feeding the other who is equally hungry. There are mixed views on this.

States which saw the highest response on this issue were Uttar Pradesh, Madhya Pradesh, Maharashtra and Delhi.

Though MP and Gujarat saw agitations and strikes over the proposed additions to the reservation percentage, over 20 per cent responses on this issue came from students who appear to be directly affected by it. Only 10 per cent professionals were involved in raising their voices for or against this highly controversial move of the Government. As per the 1991 survey, the SC/ST literacy rate was 23.76/18.19, whereas the total increase of education in India was 52.21%.

This situation raises many questions: Is it proper to stifle education of SC/STs? Will the Government accept and help the development of talented students of the weaker sections of society? What is the Government doing to bring uniformity of educational standards all over India?

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MEDIA & WOMAN’S VOICE

THE GOLDEN SHORES

In the words of Swami Vivekananda, "India will not be able to forge ahead if half of its population is enslaved in the kitchen".

Through knowledge and information, Indian women have fought all odds to make their presence felt.

They have set their own boundaries and achieved their goals with grace.

Kiran Roy, Kalpana Chawla, ArundLAVINA AJBANEY hati Roy, Barkha Dutt, Sania Mirza are some faces of the contemporary Indian woman.

Kudos to the media as without it the stupendous progress of women would have gone unnoticed. The media has played a huge role in bringing out the success stories of the femina fabric. It is a link between women and the masses. Had there been no communication, the cases of Zahira Sheikh, the dance bar girls, the Jessica Lal murder case and the public outcry against injustice and abuse would have not been there to move Governments.

The revolution in Information Technology has brought the voice of ordinary people to the forefront. It is this platform women activists are using to address the burning issues of atrocities on women while filmmakers like Deepa Mehta, Meera Nair and Gurinder Chadda are bringing out the plight of under-privileged and downtrodden.

Despite this, all is not well. Much of the portrayal of women in the media is still influenced by man’s image of the woman.

The infamous MMS case involving a school girl, the Anara case, the misuse of digital cameras and mobile phone cameras, are all pointers to the fact that women are being treated as mere source of entertainment in a male dominant society. The advertisements on the television, the hoardings and the billboards on the roadsides, many a time portray women in objectionable poses.

So, one part of the media is to be blamed for having reduced women into entertainment pieces. It is, therefore, essential to make media barons realise their moral responsibilities towards society and take corrective steps.

To conclude, one can say that though the media is acting as a tool to uplift women, it should also stop looking for the sensational element in women-related issues.

Going abroad for higher studies is what excites students the most.

There are several reasons to pursue higher studies abroad, the most important being the exposure one receives from the stint in a country which is not their motherland.

Education in India is no less than in other countries. But the opporE. SANJAY SAMPATH tunity to know new people draws several students to foreign shores. Besides, who can dispute that travelling is learning.

The cross culture environment teaches a lot .The individual moves up the maturity ladder, understands one's strength and weakness. There is enormous opportunity to build a good, constructive, mutually beneficial network. If you exploit the merit in you, you don't have to worry about any kind of unearned reservation.

There are many agencies in India representing universities abroad. For an interested student, the first step would be to identify the universities offering the course of one's interest.

The best way to apply is online. They would ask for your academic background and results. Most universities desire the students to have a 1st division i.e. above 60 per cent in under-graduation.

Universities in the West prefer students who have taken the ILETS or TOEFL Exam (English language test). The required marks level in these exams would be 6.0/10 for ILETS and above 600 for TOEFL. If the course choice requires submission of GRE/GMAT scores, then that exam will also have to be taken.

Once admission is obtained, application for visa has to be an immediate affair. The visa process may take a month's time. To make the process a bit easy, try and pay 70 per cent of the course fee to the university.

Most universities would refund the fee if the visa is not issued. Once you reach the university, try to get a part-time job. It helps supplement daily expenses.

From then on it is for you to make the best of the opportunity you have created for yourself.

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STUDENT CORNER A GENERATION AWAKENS

NISHANT TIWARI

Ye India hai India, Yahan system ko badalne ki koshish karo to system khud tumhe badalta hai. Yaha kuchh nahi ho sakta.

This dialogue of the blockbuster movie Rang De Basanti shows the true picture of contemporary India.

Our politicians have left no stone unturned in making the situation worse. Reservation in higher education seems to be a step in the

same direction.

The government has decided to bring a Bill to ensure 27 per cent reservation in higher education for the uplift of the Backward Classes. But would this reservation benefit them in monetary terms? No. No one is going to respect a person who has been given a seat or a post just because he or she is an OBC. That too when he or she does not deserve that seat on the basis of merit. Is reservation meant for securing material assets only? Is it not meant to secure respect and dignity? Everyone knows that the way in which reservation is being conceptualised in India it will never bring social equality and justice for Backward Classes.

There are two drivers of the Indian political system — money and vote. In the case of quota, vote seems to be taking a higher pedestal. One view about reservations is that is has benefited Backward Classes. May be, but what about the quality of work which they perform? And how fair is it to snatch hard-earned bread from the mouth of general category and gift it to Backward Classes? If the Government really wants to bring social justice to BCs, it will have to improve infrastructure at the school level.

When the Mumbai Police brutally beat up agitating students recently not a single political leader came to their rescue. Now, when the government has decided to bring a Bill in Parliament for 27 per cent reservation for OBCs in higher education, this generation can do nothing except protest.

Great leader Subhas Chandra Bose once said: "The grossest crime is to compromise with injustice and wrong."

So, the highest virtue for this generation is to combat this discrimination.

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A FLAWED SYSTEM For Indian students, the pasture seems to be greener in a distant, overseas land.

Indians are burning millions of dollars to get quality education abroad. The reason behind this mass exodus of quality students, willing to shell lakhs for ASHMITA KHANNA studying abroad, is the failure of the Indian education system.

The Indian education system has failed to arm the youth with a skill-set which could empower learners and enable them to perform their jobs in a better way.

In the current module of education, people have been unable to earn their livelihood but have failed to become an asset to the economy.

Due to this failure, millions of educated youth in this country are facing stagnation and despite spending lakhs on education, they find themselves in the unemployed ranks.

The reason for this failure lies in the way our higher education institutions functions.

Instead of imparting skills, they have turned simply into examination centres where students enter to pass exams and earn their degrees.

Learning, meanwhile, has no role to play in this entire process barring a few institutions. If by reading books one could become a doctor or an engineer or a historian than what is the need for universities and their highly paid teaching faculties.

All this muddle has led to an acute disenchantment with the higher education system and soon the civil society and the Government will have to find a way to clean this mess. Else, India will lose the race to become a developed country.

We must realise that a handful of IIMs and IITs will not make India a superpower and the sooner we do something about this the better it will be.

ARE WE EQUAL?

MAKING HEADLINES

The term inequality and differentiation refers to the problem of relationship between the society and an individual, and their competing claims of supremacy over each other. The problem is domination of individuals by other individuals or by huge organizations, by multifarious networks of confusing and conflicting social expectations, by external ICHHA AGGARWAL demands and pressures of all kinds which seem to leave no room for an individual.

Inequality refers to inequality of caste and class. The Hindu religious scriptures divide the Indian society into four main castes — Brahmins, Kshatriyas, Vaishyas and Shudras.

Although the caste system is breaking down somewhat in modern India, there is a lot to be done in this area if a modicum of equality is to be achieved for the overall success of the nation. Granted, persons from the lower caste have been upgrading themselves by taking up better jobs and higher positions in society but they are nowhere near complete equality.

It is assumed that caste is a rural phenomenon and class an urban one. But both caste and class are linked. The society is categorised into a distinct class system — the lower class, the lower middle class, the upper middle class and the upper class. The social status of an individual or family is based more on occupation, education and income rather than caste.

Inequality has shown its signs even in the case of genders. It is usually the women who are disadvantaged and discriminated against as compared to men.

Even today, the men are given preference over women in many areas. Women are perceived to be weak and there are thousands of cases of violence against them, oppression, sexual abuse, wife-beating, rape and forced prostitution.

The root cause of violence against women lies in the complete subordination of women and their dependence on men. Thus, in our society inequality and differentiation can be seen in almost all areas where we see no means for the satisfaction of demand which proves to be destructive not only for an individual but for the entire society.

Publishing a newspaper looks like an easy job if one were to go by the number of new dailies being launched. But creating a newspaper, which manages to interest a wide spectrum of readers, is not so easy. Especially for student journalists like me who had to start from scratch.

But we did create and publish the HEMANT PURI most happening newspaper in town. It was like an event waiting to happen to show others of what mettle the undergraduates of Journalism and Mass Communication are.

We turned our dream of creating a newspaper by sheer hard work and help from our dedicated faculty. First, we set up an editorial team and reporters were allotted beats.

When we started work, we had only a nodding acquaintance with the software for designing. The hands-on training and hitting ground zero was challenging. We had so many fears and questions — What will the paper look like?, Will it be critically appreciated? When will it come out? and Whether people will like it?

We realized that planning and management were crucial to our project. The second step was to organize a competition for selecting a name for the newspaper. This generated a huge response from students. We were besieged with names that were hilarious, scandalous, outlandish, serious, poor and brilliant. At last, we decided to call our newspaper IILM PERSPECTIVE. As no great event can stay away from controversy and this too was hit by one. Over a difference of opinion we went through emotional lows. But once we realized that the newpaper had to come out, the issue got resolved and work began in right earnest. Several reports were selected and then dropped because we did not want it branded mediocre. It was tough getting students views as they were largely indifferent but nothing could stop us. On December 16, Mr K Rajendran Nair, IILM Director, launched our newspaper during Mosaic. Our dedication and hard work was rewarded with deafening applause. A great sense of satisfaction and motivation awaits our next issue.

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Inaugration of IILM World School

IILM WORLD SCHOOL, GURGAON Report by Aarti Rai The IILM World School has been set up in Gurgaon to bring the latest in academics at the school level to the National Capital Region. Prof Anne Taylor (Professor and Director, Institute for Environment Education, School of Architecture and Planning, University of Mexico), an authority on programming and design of schools, helped in planning the school.

The IILM World School seeks to engender intellectual curiosity, a sense of family, compassion, kindness and self-confidence.

The most important feature is that the school seeks to enable students to explore their potential through rigorous academic pursuits while provoking them to ask questions, creating an excitement for learning.

It is our belief that all children

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have the ability to achieve greatness and become the person they dream of becoming.

"I wish I could be‌.. when I grow up", means that as an institution, we have the task of mentoring students, guiding them, helping them develop self-confidence, and making them believe that they can and will do anything they set out to accomplish.

The World School's academic program is stimulating and challenging with an incredible support structure and the finest faculty. The teaching staff utilizes its experience, wisdom and warmth to create a dynamic academic environment.

Our teaching combines the best of tradition and innovation, providing our students with a solid foundation in humanities, social and natural sciences, foreign languages, the arts and technology.

Small classes provide personal attention, resulting in individual growth. Through integration of science and art, skill and sportsmanship, a balance is instituted so that

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each student can find his own success.

Inter-disciplinary and themebased education derives their structure from both systematic thinking and ecoliteracy.

Overarching themes like "change" or "patterns" or "systems" are used to help students make a connection across subject disciplines and to encourage in-depth learning.

Technology is integrated into the daily life of a student at the World School. Our school is equipped with the latest software, as it should be in an international institute. The entire facility is wireless, with computers on every floor. To foster anytime, anywhere learning, our students have the ability to access their work from home computers as well and master the technological competencies required of them in today's world.

The School will offer two internationally recognized curricula: 1. University of Cambridge International Examinations (CIE), United Kingdom. � GCE A/AS levels & IGCSE to students of Grades IX - XII � The School has obtained recognition from CIE. 2. International Baccalaureate Organization (IBO), Geneva,

Mrs. Malvika Rai, chairperson in conversation with Mr Patrick Ritter

Switzerland � Primary Year Programme (PYP) — Nursery to Grade V � Middle Year Programme (MYP) — Grade VI to X � Diploma Programme (DP) — Grades XI - XII. The school was inaugurated by Mr Patrick Ritter, International Baccalaureate Organisation (Geneva), on April 26, 2006.

Speaking on the occasion, Mr Ritter said the IBO is a community of teachers — that is spread around the world.

The IILM World School has implemented the MYP program that is currently being offered in 350 schools in 100 countries; "Your school is a member of that community. You are connected to the global community. Your students will withstand where your teachers definitely are," he said.

“The IWS is the first school of its type in Delhi, the nation's capital, and I think it's symbolic and of significance. I appreciate the courage of the founders because what they have done is taken a step guided by the World and Vision of the Future. We welcome this school into the world community to recognize its importance, its position and the courage of its vision," Mr Ritter said.

Finally, the school has embarked on a journey which is exciting for all those involved in it. However, Dr Seuss may have said it best in his book, Oh, the Places you'll Go! "You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose.

You're on your own. And you know what you know. And YOU are the guy who'll decide where to go".

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Art Exhibition by B.A. (Journalism) students

GET SET FOR A NEW WORLD An exhibition is always enticing and all the more so when it is a students' exhibition. The students of BA Journalism second-year, had an exhibition of their works in Layout and Design. It started on May 12 and their works were on display for more than two weeks.

On display were three major assignments in Layout and Design done by students during their semester. The students designed three dummies for: � A broadsheet newspaper giving it a name and headlines to stories selected for a particular day. � A tabloid again, giving it a name and headlines to different stories keeping in mind the distinctive genre of a tabloid. � A magazine cover, front and back selecting from two topics that of 'nature' or 'politics' Brilliant reporting and writing, exceptional photographs and startling designs are not enough these days. To entice the reader who has become a quick scanner, newspaThe

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pers have to offer coherent packages to read and make sense of the content. It is here that the brilliant writing and exceptional photographs must complement each other in order to illuminate.

A typical working environment of a newspaper office was simulated and the result was the production of these works. The Maestro concept, the modular design, silhouetting, mortising and irregular wraps, all were tried and tested.

To fit elements onto a page, how to show a relationship among them, how to determine headline sizes, how to change the width of a copy and photographs and still make them all fit. Their brilliant display shows that they have mastered all the basic skills and craft of layout and designing in a creative way, combining the interest of the reader with aesthetic values.

Headlines, pullouts and cutlines that are written to supplement each of the other elements in the package help turn mere data into

information.

The new trainee journalist has to be cross trained and understand the value of photographs and graphics. As designers, one must be trained to know the value of good stories told well. They need to understand how to arrange the letters and the copy in points and picas.

All this has been accomplished by our students. Believing in the saying that practice makes one perfect, our students have learnt through hands-on training and from the mistakes they might have made. The enthusiasm and effort they put in was truly infectious, amazing and praiseworthy.

The exhibits of students’ efforts won great appreciation as was evident in the large turnout to the exhibition. The students, with this brilliant showcase, will be highly valued for their skills, craft and expertise when they enter the work place arena.

— Fatima Khader

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IILM

LODHI ROAD, NEW DELHI

CAMPUS PLACEMENT, 2006

THE RISING TIDE OF 21ST CENTURY Sumati Channa Head, Placements

The Final Placements for the PGDBM batch of 2004-06 was an achievement of sorts. The process started early for the batch and the campus was buzzing with activity.

In record time, a majority of the 2004-06 batch had received job offers from a range of companies.

Over 130 companies patronized IILM, Lodhi Road, to offer over 350 job opportunities. Sixty-two companies have recruited students.

This was against last year’s figures of 63 companies who participated and 41 companies who actually recruited the 2003-05 batch.

A record number of new companies accorded jobs to the batch this year. As many as 45 new corporates came to IILM for campus recruitment. The average salary went up by 30% from last year's figures.

The maximum recruitments took place in the financial sector with banks and Financial Institutions taking 45% of our students.

31% jobs were offered in the Marketing and Sales sectors.

Trading and Logistics received 4% of the pie and Market Research Corporates comprised 5% job offers. The recruitments in the HR sector showed an increase over last year at 5%. Only 7% of the students opted for jobs in the Insurance sector.

Functionally, it was the Marketing majors who took most of the job pie, with 61% of the

offers being bagged by them.

This may have been due to the fact that most of the jobs were in the Marketing of Financial Instruments and Wealth management/Asset acquisitions sectors.

A sound marketing base stood the students in good stead along with basic financial knowledge.

15% of the job profiles which the students managed to bag were of a financial nature. This was a 14% increase over last year. 4% of the

functional break-up went to Trading and Logistics.

Out of the balance, 9% went to Market Research. HR and Consultancy firms took the remaining 11% of the pie.

Some of the leading companies who selected our students are ABN Amro Bank, American Express Bank, HDFC Bank, Citifinancials, Yes Bank, Centurion Bank, DLF, MGF Developments, Helix Financials, Pipal Research, PN Vijay Financial, Evalueserve, Copal Research, Capital IQ, Heidrick & Struggles, ConsIndia HR Service, UB Group, Daewoo International, Essar Group, Thomson Press,

Tally, NKY Line, naukri.com, CNBC-TV 18, to name a few.

The summer internship of the 2005-07 batch has students placed in foremost corporates from almost every sector of the economy.

Over 90 companies have recruited our students. The automobile sector was represented by Apollo Tyres, Bajaj Group, Escorts.

Maruti, GE Motors. The banks were represented by HDFC, American Express, ICICI, Standard Chartered. Consultancies like PWC, IMRB, Gallop, TCS and E&Y have taken summer interns.

The Finance sectors have come in the form of Citifinancials. FMCG like Coca Cola, ITC, Haier, Punj LLyod, Voltas and Phillips have recruited summer trainees from IILM. From the ITES sector, HECL, Jubilant Technologies, Infosys have taken their cut.

The Reliance Group, Essar Group, Jindals, Tata Teleservices and Airtel-Bharti Group are some of the others.

With this foundation, we expect to outshine the records set by us in the previous year with our final placements of the 2005-07 batch.

IILM's Campus Recruitment2007 for the current MBA 2005-07 batch commences from September, 2006. These students will graduate in May, 2007. The campus will once again hum with activity when the Pre-Placement Talks (PPTs) begin in September and then the final selection procedure starts by November 2006.

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Industrial Visit to IBM-Daksh, Gurgaon Backdrop of visit: India being the largest BPO player in the world holds an enviable position in the global market. Outsourcing is one of the most challenging businesses to be in and requires outstanding execution skills.

India has pioneered this art of negotiation and has gained a competitive advantage through strong fundamental practices that are an integral part of our operational model, and more importantly, our culture.

The large pool of dedicated and ambitious youth of India makes the industry more wholesome. In the coming years, the BPO industry will be one of the biggest employment generators and a major GDP contributor. With these facts in mind, it was important to expose IILM students to this sunrise industry.

IBM-Daksh is a fast growing BPO services provider in India.

They provide customer care services and back office processes for many international organizations in areas of banking, insurance, financial services, travel, technology and many others.

IBM-Daksh believes in delivering utmost customer satisfaction through world-class talent, strong management focus, dedicated business units and a strong financial platform.

Date of Visit: April 21, 2006 Visit to: IBM-Daksh, Gurgaon Visitors involved: 26 UG-IIIrd year students & three faculty members.

Focus of visit: To expose students to the sunrise industry — the BPOs. Activities conducted: � 2 pm: Briefing on IBM-Daksh � 2.30 to 3 pm: Presentation by the Senior Manager The

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Students learning IBM - Daksh

� 3 pm to 3.30 pm: Survey of communication networks and processes � 3.30 pm to 4 pm: Question & answer sessions Outcome from visit: The visit was a very illustrative and academically stimulating experience for both students and faculty members.

The most interesting part was that important issues like taking over of Daksh by IBM, cultural fusion during mergers and global quality control measures were discussed at length.

These inputs reinforced concepts like imperatives of global

Intense assimilation

outsourcing; explained differences between BTO and BPO; an insight to future of BPO industry which are otherwise taught in classes in courses like business marketing, global business environment, applied strategic management and human resource management.

This learning was undoubtedly crucial for final-year students of UG third year as they will be moving out to the corporate world after their completion of BBMS Program.

Studentspeak: “Like other people, I too had a wrong perception about BPOs. I used to think that it's just a call centre where you can go and earn easy money. But after visiting IBM-Daksh, I realized how wrong I was. It's a place where you can totally change your personality.

This industrial visit was an amazing experience and helped us in understanding what actually globalization is.

I am thankful to the college for giving us this opportunity and increasing our horizon — Kaveri Mohinder

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Industrial visit to Maruti Udyog Ltd. An industrial visit was organized for the UG-1 students to Maruti Udyog Limited on February 21, 2006.

The factory is situated in Gurgaon and spreads over 297 acres with three fully integrated production facilities. Each includes a Press and Banking line, a paint shop and an assembly line.

The students were taken on a tour of the A-2 car production facility which consists of Zen, Swift, Alto and Wagon R. Mr. V.K. Malhotra, Deputy Manager, Public Relations, was the resource person who gave an overview of the entire production process before proceeding to the shop floor.

The students were provided with safety gear and instructions. The tour started at the 1st Press and Banking Line, where steel coils were cut into various shapes and sizes by different blanking machines.

Presses press these blanks into panels. At the end of the line, all the pressed parts are welded by robotic hands to form body shells.

Then the body shell goes to the paint shop where different automatic paint machines and robots paint the body.

Students weren't allowed in because the fumes are dangerous and dust in the paint shop can disrupt the painting process.

The students were taken to the assembly shop 2, where they saw how various components like glasses, dashboards and wheels are assembled in the body.

Car production at MUL

In the end, the engine, which gets assembled in another part of the assembly line, is fitted into the car. This assembled vehicle is tested for functionality and road worthiness and then dispatched. The company

50 students visit Inland Container Depot About 50, of International Business (04-06) in Term IV had a rewarding visit to the Inland Container Depot (ICD) at Tughlakabad to have a first- hand experience of Container handling, Movement and Customs Procedures.

Containerization being a boon to International trade, the visit provided a good scope to learn besides an enjoyable picnic.

produces a new car every 26 seconds and takes only 14 hours to convert a sheet of metal into a proper car.

After the enlightening tour the students were taken to the conference hall where Mr Malhotra gave a brief overview of the company.

There are approximately 105 robots being used in the factory, every component is marked with a label that shows when the component was made and in what quantity it was made and the company follows a Japanese work culture.

A lot of importance is given to safety measures of the machinery and workers. Every first day of the week from 1 am to 7 am, preventive and corrective maintenance is carried out for smooth functioning.

The work culture ensures a very disciplined and hygienic atmosphere for the employees.

Later, the students were asked to solve an interesting crossword quiz. Shrey Gupta won the first prize. This was followed by an interactive session. On behalf of IILM, the faculty and students presented mementoes to Mr. Malhotra and his assistant and expressed their gratitude.

Maruti 800 is the basic car every Indian thinks of as his first car as it is the cheapest in the world. On February 21, 2006 we visited the Maruti Udyog factory for our foundations of marketing industrial visit.

Saheb Sahni: UG-1B

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PROFESSIONAL ACHIEVEMENTS PROF. B. BHATTACHARYA

❙❙❘❘ Published a paper in Management and Change, Volume: 9. Topic "Evaluating the Stock Selection abilities of Indian Fund managers: An Empirical study of Indian Capital Market".

Director - IILM ❙❙❘❘ Published a case study in "Managing the challenges of WTO Participation: 45 case studies." (Eds. Peter Gallagher and Patrick Low). Published by WTO and the Cambridge University Press 2006. ❙❙❘❘ Invited to address the National Management Forum, 2006 organised by the All India Management Association held on May 11, 2006 at Mumbai.

The address was on "Establishing and naturing external networks to foster innovation."

DR RAJESH K PILLANIA Assistant Professor

SHAILEY DASH

Fellow(Economics) ❙❙❘❘ Presented a paper "Human Capital as a Basis of Comparative Advantage Equations in Services Outsourcing: A Cross Country Comparative study" at the International Conference on Information and Communication Technologies and Development (ICTD 2006) , organized by the

School of Information Management and Systems, University of California, Berkeley, May 25-26, 2006

PRITI PANDEY

Faculty (Finance) ❙❙❘❘ Awarded a doctorate degree in the area of Finance.

❙❙❘❘ Research paper titled "Current status of Storage and Access of Knowledge in Indian Industry" published in the Journal of Information and Knowledge Management. ❙❙❘❘ Research paper titled "State of Organizational Culture for Knowledge Management in Indian Industry" published Global Business Review, 7(1), Sage Publications.

MEENA BHATIA: Fellow (Finance)

❙❙❘❘ Published a paper titled "Indian Brokerage Industry: Shift in Paradigm" in IIPM Finance Journal NEED THE DOUGH, March 2006, Volume I Issue I.

NEW ENTRANTS D. BANDOPADHYAY

Dean, Management Training & Development.

M.Sc.(Ag.) with specialisation in Agricultural Economics, M.B.A. (FMS, Delhi) — Marketing Management.

Twenty-nine years in public and private corporates sectors (economic research, fertilizers, print media, market

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research/management consultancy, management education programmes) in senior positions

GURPREET KAUR Legal Assistant

Completed LL.B. from Law Center II, Delhi University, in 2004.

Worked with a Government Counsel at Delhi

High Court for a few months before joining LLM at the University of Queensland, Australia.

Completed LLM in 2006 with specialization in Intellectual Property Rights and did a Research Paper on The Protection of Traditional Knowledge in the Developing Countries.

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LETTERS to the EDITOR America: Freedom is thy motto I had the opportunity to study in the US for a few years. I take this opportunity to share with you some of my perceptions about this great country.

Landing in this country for the first time in 1999, the first thought that came into my mind was how could a country be so clean (first 'shock') - no visible evidence of the massive consumption of this country.

The second 'shock' came to me when I visited Walmart - the concept of a 'shop' got drastically altered in my mind.

However, the real 'shock' came to me when I walked on the streets — strangers smiled at me and wished me 'good day'.

America is a land of immigrants. The original inhabitants of this land number few.

Therefore, what we see are 'China Towns', 'Korea Towns', 'Little Indias' and a host of other 'towns' living the great American Dream — living a prosperous and free life.

Modern-day America has rightly been described as a 'salad bowl' where every culture is distinct and flourishes on its own.

The AMISH people (in the state of Ohio), for example, still do not use electricity, cars and TV's. It's not because they cannot afford these gadgets but because they do not believe in the modern way of living. Their way of living is close to 100 per cent natural.

The real America is not only Tom Cruise and McDonalds, the real America is based (largely) on the values of honesty, discipline

and freedom.

I only wish we imbibe these values to take our country to even greater heights.

Joydeep Ghosh, Fellow, IILM

Reservation policy The move to extend reservations to the OBCs makes little sense.

Reservations as a means of social engineering has very limited and elitist reach to begin with as a certain fairly high level of education is presupposed for being able to complete high value professional degrees.

Barring the odd Ambedkar, most individuals falling in the reserved category are in no position to benefit from them.

Reservations, therefore, benefit the creamy layer and sometimes help perpetuate it for generations.

To extend reservations means effectively adding more to the creamy layer. A better policy would be to provide extensive reservations at the school level.

Without access to quality education the poorest of the poor have no real means of accessing premier institutions accept as a dream.

Shailey Dash Fellow , IILM

Second Partition This is the beginning of India's second Partition, which follows the one that took place 59 years ago. That one was geographical; this one will go right through every town and city. Courtesy, Manmohan Singh's Government.

It has taken a "decision" to additional 27 per cent seats in higher educational institutions will be introduced in the monsoon session of Parliament.

The main argument in favour of reservation is oppression of the underprivileged over several millennia.

But reservation also prevents deserving candidates from getting their due.

The objective should be the uplift of the oppressed by taking steps to make them competitive, not removing competition.

The admission process to India's elite professional schools is based on competency examination.

If the complaint is that the admission test is not entirely fair and favours the urban student who prepared for it at an expensive cram school — and this complaint has some merit — then the admission procedure should be changed.

If the complaint is that some communities are grossly underrepresented in the student-body, then there is reason to establish excellent high schools in areas that are poorly served now.

Indians from all communities want to send their children to professional colleges, which is great since such desire seems to be less strong in Western countries that have open admission in universities.

But we don't have enough colleges, especially those at the higher end of the spectrum. We also need to upgrade our secondary and primary schools Manoj Sharma Fellow , IILM

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3- Lodhi Institutional Area Lodhi Road New Delhi- 110003 Phone: 91-11-24647820 www.iilm.edu