Will we ever Learn?

Dr Venkatraman Ramakrishnan has won the much coveted Nobel Prize for Chemistry for this year, sharing the honor with two other outstanding scientists. Venky, as he is affectionately called by his friends and admirers, has indeed done India proud - though India has done nothing to him. We, however, rejoice at his achievement, so let it be.

Venky and the two other scientists have made a path-breaking scientific discovery which eventually will revolutionize the entire health care activities of millions of people across the globe. These three Laureates have generated 3D models that show how different antibiotics bind to the ribosome. These models can now be used by scientists to develop new antibiotics, directly assisting the saving of lives and decreasing humanity's suffering.

Admittedly Venky was an above average student when he was in India - but verily he blossomed to his full dimension when he went abroad. He reached the pinnacle of glory primarily because the academic and research ecosystem made available in the US and UK . Had he continued in India, he would have perhaps languished as a senior professor in some academic institution or ended up as a scientist bureaucrat in one of the National Labs.

Except for Sir C V Raman and Tagore, India has never produced a single home grown Noble Laureate till today. Indians who had become expatriates have indeed excelled beyond question. . Out of 789 Noble prizes awarded as on July 2008, US bagged whooping number of 320, UK 114, Germany 102, France 57, Swiss 25, Russia 23, Italy and Austria 20 each,, Canada and Netherlands each 18,, Japan 16, Denmark 13, Poland 12, Norway and Belgium each 11, , Australia 10 and India if you include expatriate Indians 9. Tagore and C V Raman were the real Indians who remained Indians and got the prize. Mother Theresa was Albania born and was more than Indian - she belonged to the entire world.

The question that begs an answer is: How is it we have not produced a home grown Noble Laureate after C V Raman? There are three reasons:

In the first place, our research spending is minuscule as compared what is being spent in the US, UK and in other western countries. They invest mind boggling amount in all futuristic research - we do not.

Secondly this flows from the first. Our research infrastructure even in IITs is no way nearer to the facilities made available in Stanford, MIT, Yale, Georgia, Berkeley or elsewhere in the west. Without high quality infrastructure, high level research especially in frontier areas is next to impossible.

Thirdly, we need to have a band of young scholars who are highly qualified and intensely dedicated with enormous passion for scientific investigations to assist the research and academic leaders to take forward the scientific problems to their logical conclusion. The quality of research scholars that our academic institutions attract leaves very much to be desired. Higher education should encourage all high level intellectuals. But this is not done here.. Look what is happening in the US: they open out their portals to all those across the world provided they are brilliant and can take their research to greater heights . Result they get the best of the foot soldiers who can do really solid work for their academic leaders. This cumulative and combined work results in high level synergy which is the source of their success.

Will we ever learn?

Unique Identification Card – A Challenge and an Opportunity

The Second UPA Government has taken a momentous decision – to issue Unique Identification Card to each citizen of the Country.

That the government means business is manifestly evident from two factors: first, it has drafted Nandan Nilekani of Infosys to head this gargantuan and mind boggling project and secondly it has set a time frame of three years to complete the project and operatiionalize the same. That is a good augury.

Citizens’ Identification Card is nothing new. It is vogue in couple of countries. It was introduced and abandoned in a few because of intractable difficulties they were encountered in its operation. In the US it is banned by law.

What is the card about? What are the benefits? What are the challenges and pitfalls? What will be the cost? What will be the cost-benefit ratio? Is it worth it? Or will we be breaking a new path and showing to the world that we can do what the rest of the world cannot do? In other words, what is in store for India – for its audacious attempt to plough almost a lonely furrow on the most slippery path, history has ever known?

Unique Identification Card, is a multi purpose card issued to every bona fide citizen by the duly authorized government authority. It will have photo identity, name, address proof and biometric authentication. This card is a “single point card” “with multifarious features” and will help to identify even economic status of its citizens like people living below the poverty line or farm coolies, or marginal farmers, urban poor, indigent women, destitute children, socially and economically oppressed and deprived people. It will also indicate the professionals, highly placed people, business men, self employed people, workers of different walks of life. In fact it will identify every citizen and place them in proper and well defined and classified groups. No citizen will be left out.

The Card will serve several objectives: In the first place, this will help the authorities to identify criminal intruders who infiltrate into and ex-filtrate from the country with impunity. Concomitantly the authorities can identify terrorists, saboteurs, extremists of all hues, isolate them and emasculate them. This will help to enhance the national security for which no price can be too great.

The card will help to check perennial influx of illegal immigrants from Bangladesh. Their number is massive and their incursions constitute in a way “demographic aggression” against us.

The Card addresses not only National Security issues, but will help the government of the day to tackle several Social Security problems as well.

It is a matter of common knowledge that several social security initiatives including subsidies meant for people below the poverty line seldom reach out the target audience in adequate measure. Rough estimates with the government indicate that less than 30% reach the intended beneficiaries. Pilferages, maladministration, corruption, wrong canalizations etc result in wrong people cornering bulk of such government aids and subsidies. It is because of these basic weaknesses in the supply chain available, our developmental works are not making the impact they are expected to do. It is government hope – and this hope is not a misplaced one – will plug all the loopholes in the system, especially our PDS and similar initiatives, and ensure the poorest of the poor stand to be benefited substantially. If this hope gets fructified, peoples’ faith in the governmental initiatives will get enhanced and which in turn reinforce people’s faith in the democratic process. No price can be too high if it happens.

At the same time, experts tend to point out the single point ID card for a vast populace – the world’s second large population – spread across length and breadth of the country is fraught with almost insurmountable difficulty. The sheer number of our population should cause a scare. The linguistic diversity, cultural multiplicity, pronounced divide on account of economic, social, religious, ethnic and educational factors, should compound the situation. The geographical barriers, inaccessible terrains etc are factors to be countenanced. Illiteracy and problems relating to it need to be faced.

Fear is also expressed that a single card, with multiple features, will help the enemy agents to hack the whole socio-economic and political edifice by hacking a single card- a la- thieves break open the weakest link in the chain to grab the entire chain. In other words, even as it helps the government in its multifarious tasks, it will also help our detractors and enemies to penetrate into our system.

Technical experts are worried on another score. How authentic the biometric authentication. Eye balls and thumbs are used for biometric authentication. Scanning of eyeballs, though on the face of it, is innocuous; it can damage the eye sight. This can lead to litigation against the move by any ordinary citizen and the process can be halted. Thumbs, expert say, will vary from childhood to youth and then between youth and middle age and from middle age to old age. How do we solve these problems? In that case the uniqueness of identification loses its central point.

Certain degree of R&D efforts is therefore called for to make the project viable and vibrant.

Population-size is not all that insurmountable. Our public distribution system, despite its inadequacies, functions well. This is despite the fact that we need to cover all the people, all the regions, all the strata of the society. If PDS can function, why it is difficult to issue the UIC? The effort to understand that is going on….

Professor – It is “B” for banking and “I” for information technology…. (Learning 4)

Contd from Learning 3:

“Anyone who believes you can't change history has never tried to write his memoirs” says a famous Quote.

Well then am I here to write memoirs, I thought for a while. Well to make my thought simple, I again remembered another quote which says “A bad book is as much of a labor to write as a good one; it comes as sincerely from the author's soul”.
So, be it bad or be it good, I want to be sincere in translating my thought process. And let me not worry on how the write-up shapes up, but the article should reflect the immediate first thought and off course, if it could benefit some, then you are on a great road-track.

“So sir, it is great to note that you coming back to writing” Said J

I looked up while sipping my tea (supposed to be tea – as usual a tea kadai) and thought “When was I a full-fledged writer first”

Well, I was an editor of a house-journal in my previous concern and writing was one of my passion (not necessarily a forte), and it has been so- all through my years of growth and that was well reflected when I was working for this nice concern in Chennai. Being an IT professional and being a Project Manager, I was busy garnering more of business knowledge than executing the wonderful passion that I have. So, I decided that yes, it is time that I start writing.

M Joined us shortly. We took off to the nearby place where we settled in comfortably.

M: Sir, I was just wondering – rather pondering with one question that was put forth to me recently. It was a question at the grass root level, which I was not able to answer convincingly.

Me: What is that?

M: How do you elicit an example to showcase the risk in derivative trading?

Me: Haa..ha… ok – here it goes - Selling a contract with a derived value on top of an asset is similar to selling your CV with the contents derived from your experience. You might click sometime and you might not. Does this answer your question?

Both M and J gave out a loud laugh and I was sure that this should suffice a question of the order which is seldom put forth. (I would call it as a good basic question)

M: Last time, we discussed about Future contracts and the way it is traded in Exchange house. You promised that you will take a session on the exchange house protocols and other related concepts.

Me: That is right. I will do that. Btw- J – has M briefed you about Forwards and Futures.

J: Yes and further I read the blog as well. So, I am ready.

Me: Good. Primarily, There are two facets to how trading happens. One is called “OTC” and the other is called “Exchange house Governed” OTC stands for “Over the counter”. Contracts trading such as Forward contracts and Interest rate swaps come under OTC. Contracts such as Futures and Options come under Exchange house.

M: Ok…

Me: Basically, to ply in the Futures market, you need to open an account called “Margin”. Margin is an account to which where the traders will deposit a “Margin amount” as designated by the exchange house. This margin amount will be used as safe money, when the position of the contract falls on that day.

J: Sorry Narasimhan, I am not able to get it.

Me: Ok, let me make it more lucid. For anyone to start playing in the futures market, it is imperative that a “Margin” is created first. It is mandatory that the traders will have to keep some designated amount in that account. Is this clear first?

J: Yes

Me: Good. Next markets such as these will use Mark-to model to find the position of that contract on that day. Mark to Model – something like Mark-to –Market is an accounting methodology by which the position of the futures is calculated on that day. Based on this calculation, the position of the contract is decided. It is also called “Fair Value accounting”. If the position of the contract increases that day, then the respective profit will be credited to the Margin account. Likewise, if the position drops down, then the amount from margin will be used to settle for that day. If the amount in the margin is less than the designated amount, then a “Margin call” is made by the exchange house indicating that the trader must credit more amounts into the margin account.

M: Great. So, how does this Mark to Market model exactly work and I am sure it must be precise as well

Me: Well not exactly. In fact, Mark to Market works on Hypothetical value assessment and therefore have given room for accounting frauds. The most famous would be Enron scandal. Yes, there are financial standards which one has to adhere to. The latest is FAS 157 for fair value accounting.

J: FAS!!

Me: Financial Accounting standard

J: Oh! Ok…

M: Just a question out of curiosity. In OTC, what happens when the counter party does not honor the commitment?

Me: In such a case, they are governed by the ISDA contract. ISDA contract is a master agreement on basis of which OTC transactions are goverened. In the case when a counter party defaults in Exchange house, the counter party’s position is immediately closed and the clearing house is substituted for that counter party’s position. So, in nutshell, what does this mean?

M: Elimination of Credit risk

Me: Precisely Watson… (LOL!) This at the outset explains how the exchange governed market works. You have some terminologies like Expirations, Series and Basis, then initial market volatility. This we can take it up some other time.

J: I want to know about Options? Is this the right time to go for it?

Me: Sure – We can take it up as the next topic. Let us catch up tonight at the lakeside, where I can give you a brief insight into options.

J: Sir, You were also planning to talk on this ID card plans which the Government has planned to launch.

Me: Yes, that is a good initative. See my blog tommorow, there will be an article on that. Then we will talk...

Adios….

Professor – It is “B” for banking and “I” for information technology…. (Learning 3)

note: contd from the previous post "Learning 2"

We met again yesterday. This meeting was a specific one. “To learn and re-learn derivatives”. Re-learning is a methodology which I believe every professional should imbibe. Re-learning enables better understanding in terms of achieving good clarity, multi dimensional conceptualization, large scale refined introspection and most importantly preservation of the learning for a longer period of time. Thus, I always say that re-learning is indeed the passport for success – which everyone aspires.

Having said this, we settled for a good cup of filter coffee at Ratna Café hotel.

M: I went through a lot of material on derivatives on the web. I was able to grasp some concepts hither and thither – but I was not able to make out as to why there are so many of type of derivatives and what are its specific usages and what made new type of derivatives to evolve?

Me: Yes, that is a very important question. Many of us just accept the concept straight away and mug up the definitions without proper reasoning. A hands-on dealer would be able to explicitly elicit the practical evolvement of different types of derivatives – as he would know the practical implication of each type of trade. Let me take the same route – so that you can also understand and reason the concepts better. Let us go first on forward contracts.

M: Narasimhan, why don’t we go to futures first as they are most used trade in the market.

Me: No, that will not be the correct approach. You wanted to know on the evolution of each type of derivative trading. Think for a moment with proper reasoning. It must now be obvious that new type of trade would have evolved because of something lacking in the previous one and learning step by step would make our understanding better.

M: Oh, Ok.

Me: Previously, we talked about what are derivatives and why it is traded in general. Now, let us come to the first derivative type “Forward contract”.
A forward contract is a type of derivative trading where the buyer and seller mutually agree to buy or sell an asset, on a specified date in future at a specific price. (“The specific price being agreed today”). I hope you have got this definition right.

M: Ok – hmm, can I have an example.

Me: Good. Let us take a simple case – A rice farmer agrees to sell the rice that he is going to harvest at a specific price and on a specific date to the buyer. (Assume that the buyer is a whole sale dealer). Now, “Rice” is the asset, the seller and buyer agree on the price and they fix the settlement date in the future.

Like wise, Assume a scenario, where petrol bunk dealer agrees to buy the oil from the merchant at an agreed price and on an agreed date. The asset – here -being the “Oil”.

Now, tell me what do you see here?

M: It is hedging – as what you told me yesterday and that any fluctuation in the prices in the physical market is negated.

Me: Excellent. You have understood it well. This is forward contract and this is the basic advantage of doing one such derivative trade.

M: Cool- thanks. Now, how did the futures contract arrive then?

Me: (Smiles) Well, there are some disadvantages in doing a forward contract. First and foremost, when I gave you an example for the forward contracts, you would have seen that it is a bi-lateral agreement. This means that it is not governed by any monitoring body. This would mean, there is no obligation on both the sides. One might honor or dishonor the agreement on his whims and fancies. So, to sum it up, the following disadvantages exists in a forward contract

1) No monitoring body – which I call it is as the exchange house which acts as a centralized trading center or console
2) No proper standardization of the contracts.
3) No obligation scenario ( which I would term it as counter party risk)

So, the above following disadvantages gave birth to future contracts.

M: Ok, now I get the picture. I thought Forward contracts are monitored. No wonder, Future contracts are more popular.

Me: Yes, so what are future contracts then? They carry the same definition of forward contracts with some modification. Future contracts are exchange controlled trades happening between a buyer and seller to buy or sell an asset at an agreed price on an agreed future date. (The price is agreed today). The asset can be live stock, bullion, cross currency rate, rice, wheat etc. The advantages here are as follows:

1) There is an obligation for both the buyer and seller and thus, no counter party risk of dishonor
2) The buyer need not know the seller and vice versa as the exchange house takes the responsibility of clearing and settlement
3) Trading is standardized
4) And highly liquid.

M: This is nice. So, what is the protocol that is to be adhered while doing futures in exchange house?

Me: This again is a concept - where you have to understand Margins, Mark to market, basis, expirations, tick size etc. I will let you know on that in our next outing. Let us go slowly – so that we can pick up the concepts better.

M: Ok, so what is the plan for tonight?

Me: I have to complete Irvin wallace’ novel “The second lady”. It is a pretty good novel and off course, to spend some time on the idiot box as well – for there is the super singer finals today.

M: Great.

Me: Chalo, let us catch up later…adios…

Professor – It is “B” for banking and “I” for information technology…. (Learning 2)

note: contd from the previous post "Learning 1"

M came up with a basic question “Why did the concept of derivatives come in picture and what is it by the way”

Me:“Well, as you know financial markets are volatile in nature. Volatility would then mean involvement of high level of risk. It is this risk factor that becomes a concerning factor to the financial agents. To negate or possibly lower the risk, the concept of derivatives came into existence.
Now to your second question, Let us rewind ourselves to the years when we studied mathematics in school. If you remember, in mathematics, when we started learning derivatives, we understood that derivative – by itself does not have any value and that it derives its value from the preceding one. Like wise, in financial terms, a derivative is nothing but a financial instrument that derives its value from an underlying asset. The derivative here does not have any meaning by itself, but it acquires its value from the asset that it is based on. The underlying asset can be livestock, bullion, currency etc.

I hope that you have got this definition right.

M: That is nice buddy. Thanks – but how does this negate or lower the risk

Me: Ok. To understand let me explain the concept of hedging and futures. I am hopeful that you can understand the market terminology to some extent. Assuming the answer to be yes, let me try to make my explanation as lucid as possible. Basically, here there are two markets. One is the futures market and the other is the physical market. Now, the concept of hedging says, take a position in futures market opposite to that of physical market. Take an opposite position would then nullify the risks that arise.

M: Sorry Narasimhan. Can you explain with an example?

Me: Ok, imagine that I am an automobile manufacturer. Now I have already decided on the pricing of my automobile in the market. Obviously, the pricing would depend on raw materials which can include say – Steel. And this I would have done based on the present prices of steel in the market (Taking into consideration the projection prices of steel in the market as well)

Now, how sure I am that the steel prices would not increase after 6 months. (Beyond the projected pricing as well) An increase in steel prices (In physical market) would drain out my profit margin that I have estimated. Thus to negate this risk, I buy steel futures (in futures market). This means that I buy future contract (derivative) whose value will depend on the underlying asset (steel).

Now let us take up different possibilities to show how buying steel futures benefit the automobile manufacturer.

Case 1: Assume that the steel prices go up appreciably in the physical market. This would mean that automobile manufacturer would incur loss (if he had not bought the steel futures) . Now, since the steel prices have gone up, the rate of steel futures also goes up. This mean the loss that is seen in physical market is well compensated in the futures market – as the automobile manufacturer gains from the increase in steel futures. (This is what I meant taking a position in futures market opposite to that of physical market)

Case 2: Likewise, if the price of steel goes down in the physical market, it does not have an impact on him, as he is going to make a profit anyway.

This concept would technically mean, hedging and this how derivatives help in minimizing the risk.

M: This is nice and great. Thanks and what about other type of derivatives that you were saying?

Me: Well basically, you have futures, forwards, options, Interest rate swaps, baskets, leaps and swapations. And adding to it, you should also understand who are the players in this market, margin, mark to market concept, strike price, premium, discount and various other things. This being a party, I would not like to make it very detailed. Let us hold up a separate session for this alone. What do you say?

M: It is fine with me. Thanks

Me: Thanks.And may I take your permission to put forth our discussions in my blog, so that others can also benefit and that it also becomes a revision to me.

M: Sure, you don’t need my permission sir.

Me: Ok, I am hitting the floor and mate thanks for the party once again.

Cheers and adios for now….

Professor – It is “B” for banking and “I” for information technology…. (Learning 1)

“Toast to the THEE” we all said in Chorus.

It was a nice get together and I initiated the conversation by shouting “Well – a new saying has come up in the derivatives market and that is “Implied volatility. It is like predicting whether it will rain today by counting how many people are carrying umbrellas to work in the morning.”

My friends in the banking – investment sector gave out a loud laugh – and for those alien to banking – it still remained yet another English sentence. “So banking is the vertical that you have been working all through” remarked “J” to me. “Yes” I said quite beamingly.

” I think you have taken a wise decision of being in the same vertical for nearly a decade”

I agreed with a satisfactory smile. I know that the financial markets across the globe have gone through a distinguished metamorphosis in more than last one decade. Yes, it has indeed opened a vista of opportunities – of Himalayan altitude - in every gamut of industrial sphere that could possibly evolve.

Precedence to learn banking concepts in Information technology sector and the inclination to imbibe different disciplines and aspects of banking has become a “sine qua non”.

Yes, banks have evolved as one of the main staple diets of the modern day information technology industry. And vice versa, we cannot imagine banks without technology these days. Well, you may call it as a beautiful example of “Symbiosis and synergy”.

My good friend “M” was giving us a treat for his new job- which he managed to get in one of the reputed IT concerns in Chennai. J and M were working on a different domain till last year. M was supposedly going to work on a derivatives application and he was pretty perturbed over the fact, that he could not understand the fundamentals of the derivatives concept. And that was when I was approached for a teaching session to “M” and I agreed –for I knew that session would benefit me as well. “La-revision”

“Shoot out your questions mate” I said...and the journey of learning starts....

Kapil Sibal - You are right ( IITs truly in class?)

Kapil Sibal - You are right. Yes, the curricula of IITs and IIMs need to be restructured. They seem to have lost their competitive edge. No doubt they are the best that we have - but not the best when compared with what is being offered in some of the best universities. Particularly the post graduate program has never attracted the best of talents. Otherwise, how can one explain the massive exodus of its gradudates to MITs, CMM, Stanford, Berkley etc for their second degree. Seldom a graduate of IIT does his PG in India - that is their confidence level in our system and that is the brand equity of of our PG program. Prestigious Universities across the world have acquired their prestige because of their research out put. IITs have acquired their prestige because of their UG program - which is their flagship.

Prestigious Universities across the world have become research hub of leading industrial houses. A lot of research is done in IITs - but a lion's share is from the government coffer. Prestigious Universities across the world attrract talents across the world without reservations. IITs nowadyas has become a citedal of our own reservations based on caste, community and creed in the same of social justice, giving a total holiday to efficiency. The knowledge pool available in the IIT system is, therefore, of questionable quality. Establishment of eight more IITs in different states, making the total to fifteen is right in terms of concept. But the question is, has enough home work been done to ensure the quality expected of an IIT. Admittedly the Undergraduate program is the true essence of IITs' success story - what type of JEE that we have which can be cracked at will by teaching shops in Andhra Pradesh and Kota. The admission procedures, despite various experiments done to break the monotony, still remain monotonous bereft of imagination.

In synposis, IITs still remain the best, becasue there is nothing better available. If Kapil Sibal opens out education to foreign investors and if that open door policy paves the way for world renowned institutions makes a beeline to India, and if what they offer is affordable, the challenges that IIT system will face will be stupendous and may be insurmountable. That can happen - and how IITs are going to face the challenge will be indeed interesting. It will not suffice if the curricula are restructured - we need to streamline the admission procedure so that best of the brains get into the system, merit being the sole criterion. We need to take a large number of students from abroad. This will create an academic ecosystem and facilitate peer learning process - which is perhaps effective way of learning. This is critical in the current context when quality of students is being sacrificed on the altar of caste based reservation introduced recently. No innovation seems to have been made in the IITs in the teaching - learning process.

If students are doing well it is essentially because they up till now represent the very best in the society. When the system faces the challenges of dilution, how the leadership in the System is going to sustain the same level of excellence appears anybody's guess.What is the percentage of students taking up international internship? Is is not true that if someone does international internship, it is because of individual efforts? How is it no serious effort is made to send out vast majority of students to do internship with corporate of international renown in an organized manner. This will give the students tremendous exposure, give them enormous confidence and endow them with remarkable maturity required to be a world class work force. The purpose of IITs is to enhance the competency of our youngsters in science and technology. Unfortunately the reward in research is slow to come, and when it comes, it is measly. This gravitates IITians towards businesses and managerial functions. This is called internal brain drain - which needs to be arrested. True R and D, done extensively and intensively, will gravitate international corporates to set up their R & D network here in India. This will kick start demand for serious researchers, which will kick start their price for excellence, which again will motivate many a students to take up R and D as their preferred career. “High level research in frontier areas, especially when they are in the niche area relevant for the growth of the country will give us leadership position in the comity of the world”.

We need to realize that it is the leadership position in R & D that gave the preeminent position to the US. Their open door policy to talented people across the globe enabled them to creat a formidable reservoir of knowdege force. Can't we take a leaf from them? Countries like the US have not only created knowldege - but created wealth out of the knowldege so created.

Addressing an International seminar in one of the IITs, a former Dy Director General of UNESCO made an intersting remarks: " Knowledge comes from the North to South whereas the Wisdoms comes from the South to North". What he had meant was that developed countries gave science and technology to devloping countries, the priceless wisdom always germinated in the developing countries for the developed countries to adopt. One of the acerbic and interpid professors interject to say: "Sir you are partly right, and you are partly wrong". An astonished UN official who genuinely thought that he was praising the host country asked him pointedly:'where did I go wrong and where was I right". The Indian Professor said: "Sir you were right when you said that wisdom flowed from the South to North; and, you were wrong when you said the knowledge flowed from North to South". He proceeded to say: " you never part with your knowledge free of cost, where as our wisdom is open and openly available. Every knowledge, you create, you patent. Whenever you give it to us, that comes with a heavy price tag - either an economic price or a political price or both" The Indian academic went further to say: "Sir, when we did the Pokhran II, you imposed sanctions, denied certain critical technology though they were needed for innocuous research in institutions like IITs. Does it not speak for itself"

The above underscores a cardinal truth in the modern society. Knowledge is not merely power, it is wealth. It needs to be promoted and protected. If 1.1 billion people can collectively work, become people with enormous skill sets, knowledge and erudition, we can make this country truly create. We can support the entire world with out superior capabilities and make the international community to look towards for guidance - in all spheres. That will be the real hallmark of greatness. Kapil Sibal appears to having the right hang - Will our politics allow him to do what he considers right is truly a billion dollar question.

Let us Wish Dr Manmohan Singh

Dr Manmohan Singh has inaugurated his second term as the Prime Minister of this country with a lot expectations from all sections of the populace. By all indications, their faith is not misplaced.

Dr Manmohan was till recently pilloried as a "weak Prime Minister" a "meek supplicant to Sonia Gandhi" and a "willing puppet" in the hands of "his Masters".
Unambiguously, beyond any pale of doubt, this self-evasive, unassuming and scholarly Sardar has proved all the Cinderellas of Indian politics totally wrong.
The Prime Minister has demonstrated his inner strength and shown the doubting Thomases that he is tough without being rough, meek without being weak and aggressive without being abrasive.
In synopsis, the soft-spoken Sardar has taken all his detracting bulls by their horns. Result: DMK is shown its place. Lalu is silenced. Mulayam is sulking. Maya is cut down to size. Old haggard like Arjun is shown the doors.
Now, his attempt to project a clean and neat government should work.
However Dr Manmohan has a heavy agenda on his plate. Challenges are many and varied and what is more important is that totally independent parameters that are liable to impact our public policies are as much unpredictable as they are powerful.
People as a whole expect a clean governance, a responsive administration, a secure environ and a better quality of life that can ensure, good drinking water, a roof on the head, controlled prices which can give two square meals to everyone, affordable health care, avenues of education and access to all the tools of science and technology making the life livable.
Admittedly these are not, by any stretch of imagination, tall aspirations - but looking practically, in the current context, they are indeed tall orders.
What needs to be done is clear to all: Create job opportunities on a massive scale - both in rural areas as well as in urban centers. Every able bodied Indian must be assured of a job. Job creation will put a lot of money in the pockets of ordinary citizen. That will kick start consumption, which will kick start production, which in turn will kick start the entire economy.

The American President Franklin D Roosevelt, popularly called as FDR, did precisely this in the early forties in the US under his famous "Great Deal" initiatives. US were bleeding profusely due to the Great Depression generated by his predecessor President Herbert Hoover. There was all round depression of unprecedented dimension bordering outright panic in the US. The economy was tottering, the social fabric was getting torn, the political edifice was facing menacing challenge and the internal stability of the country became a question mark.

FDR ordered massive construction activities; roads were laid, railways were expanded, airports were constructed; waterways were cleaned and deepened. That was a turning point of America. What Industrial Revolution did to UK, what Dairy and Dairy Product did to Denmark, what Oil did to the Middle East, the Railways and Roadways did to the US.

We need to take a leaf from the others and create opportunities for every Indian to be productive force. While agro based industries, irrigation work, expansion of highways, aqua culture have the enormous potential for creation of productive jobs, care must be taken to supplement them with meaningful social infrastructure so that the benefits of development really reach the common man.
Grand infrastructure Development like connecting all the places in the country will provide a lot of employment besides pushing up cement, steel and related industries in a gargantuan way.

Building major and minor dams will result in considerable saving of water resources, expand agricultural operations and provide extensive employment for our people. Building more airports, expansion of railways and modernizing our ports will yield a lot of benefits.

Urban Development is crying need of the hour. Urban slums represent the ultimate in squalor. Poverty rules the roost here, as do prostitution. Crime is generated here as mosquitoes are. People live in unlivable shanties, eating and excreting in the same place. There is no good drinking water, except poisonous arrack, illicitly brewed and illegally sold. The central government needs to have a comprehensive and deep look into the most deplorable state of affairs, though these are essentially state subjects. Such a comprehensive plan of action will not only improve the quality of life of the most hapless people in the urban slum and give them a respectability which will bolster up their morale and self esteem, but generate enormous job opportunities embedded in the developmental activity.

Corruption is a Cancer that eats into our body politic. It eats away roughly 40 % of our total revenue. This cancerous growth needs a drastic operation.
One way is to invoke technology intervention in our governance. E Governance is the answer. It is generally known that local bodies are given enormous funds to lay roads, provide sanitation, supply drinking water, open schools and arrange for common facilities so essential for a minimum decent life.
What is verily happening is as follows: Contracts are awarded - but roads are never laid - or not laid as per specifications. But bills are passed and money is paid. The entire operation is fictitious and fraudulent. Settlement of Bills for the entire civil work must be system- generated. The terms and conditions of every work awarded together with technical specifications, time schedule and the cost must be loaded into the system. Electronic sensors using aerial satellite should capture all the features of the work done - in the case or road-laying, whether thickness ensured, extent covered, material used etc must be captured through special software. Based on the successful screening of the quality of the road, the System should give instructions to Banks to make settlement within 48 hours.

The above arrangement will ensure effective delivery of government service to the common man and totally eliminate man made mistakes and outright corruption.

Let us see another example: People make traffic violations. Traffic cops stop them. Quite often the dialogue takes place between the two and that results in some mutual understanding -- and after "give and take" the chapter is closed. Very often, the traffic cop harasses innocent citizens and "fine" them for a crime not committed. This unfair practice creates a lot of heart burning and the "proceeds" never reach the government coffer.

Electronic surveillance of all traffic violations using satellite communications will cut out police- public confrontation. Violations will electronically communicate to the offender with a clear mandate to pay the fine in the nearest Bank. Corruption goes lock, stock and barrel and with the police harassment perishes.
Elimination of corruption especially in places where common citizens are involved will bring a lot of revenue for the government and bolster up the peoples morale in the democratic set up.

Dr Manmohan is a free market economy man. He is also progressive in the sense he is sensitive to all progressive ideas. The word "progressive" is not be understood in the sense the Fellow Travelers quite often champion. He can delver the good - and he will.
Adios...

Shhh...dad is learning!

"As clear as the sounds of the ocean, as pure as the honey in the blooming flower;
As clear as the winds of the high end mountains, as pure as the mother’s milk;
As clear as the glowing spring sun, as pure as the spring water;
As clear as the sharpness of the dew, as pure as the tears of doting mother;
As clear as the God’s Blessings, as pure as the wishes He gives us;
As clear as the new born kid’s heart, purity …?”

Purity is what we inculcate.

Why do I say this and why did I pen this – or rather - What made me pen this? A sudden rush of la-poet came in as a different personality with in. I walked through to the nearest coffee shop at the waiting lounge of the Chennai Airport. The movie “Abhium Nannum” was still running in my mind. The movie was a revelation in terms of being father centric storyline and I really admired Prakash raj’s guts to produce it as well. ( Note: this is not a review – but a translation of thoughts after seeing the movie)

I could relate with immense amount of emotionality – for I am a proud dad as well and as the movie beautifully puts it, I was born as a dad when my son was born. The feel of holding my son, touching his small feet and fingers, the cute little eyes, the wonderful innocent smile – Oh my! I really loved it and something with in me was exuberantly dancing with joy.

Fathers play a very important role in an excellent upbringing of their kids. To be honest, I became more disciplined after the birth of my baby boy. I suddenly realized that he is going to take me as a role model and the house being the first school for him, I have to demonstrate better standards of life to him. Even though, I was relishing the fact that I have become a father, the thought of being disciplined in all the ways possible – was I felt – becoming a bit hypocritical. But then seeing the wonderful bandwagon of kids competing in singing competition being hosted in television channels, I felt that it is an imperative necessity that I become disciplined first and learn the facets of wonderful talents that are available in today’s world.

Then the mission started - I have started reading before my son. This has lead to increased reading abilities. I have started listening to good music before my son. We stopped fighting over petty maters at home. The family started eating together in unison – to showcase the importance of family bondage. I have started painting to showcase that life offers a lot in terms of nature, culture and family.

And, now, I am finding that I am becoming a more refined person and thus, unknowingly, my son has himself become a teacher in showing me the better part of life and today, I am enjoying the better aspects of life.

As Prakash raj’s beautifully puts it in his movie, we can learn a lot from kids. I was able to relate instantly – for my being a party guy and an outdoor guy all through, this metamorphosis was a well needed one. I would suggest young parents and prospective parents to watch this movie – at least for the thought that I have shared.

So, purity is what we inculcate to our kids, and unknowingly, the inculcation becomes self-within. Cheers to praksh raj and the director of the movie, for my mind would not have thought about this. May your breed increase. Adios….