Sunday, July 30, 2006

For divestment

My opinion, of course unsolicited, is that our Govt doesn't try to explain some of its controversial moves before trying to bring them in. The move for reservation was one such. Divestment of its stakes in companies is another.

Though there's merit in both these moves, it's the duty of the Govt to roll out an elaborate communication exercise to rid people of their apprehensions. It makes sense too, even though both these issues have been in the public domain for ages.

There has been no attempt, at least in the public space, to challenge the arguments of, say, the opponents of divestment. This is all the more surprising, as the anti-divestment argument seems based on layers of assumptions. When the Centre tried to divest a 10% stake in Neyveli Lignite Corporation (where it holds nearly 95% currently), these were the arguments against such a move:

1) It's a move that could lead to privatisation eventually
2) The jobs of employees will be at stake

Take 1) first. There are numerous companies at present in India where the Govt's stake is between 51 and 100%. They are not private companies, they are in Govt control. So, it's clearly a big assumption.

Now for the second assumption, for which their first assumption must hold good. It's clearly their major worry. So, assuming NLC is privatised, there 'could' be job loss. The private sector in the last decade has clearly shown that it's adding people, not retrenching them. And still there could be enough safeguards against random firing.

In fact, if it's privatised and it's a big 'if', the skills of NLC staff would fetch greater monetary benefits when the private sector too competes for such skills. But, of course, people love status quo and want to stick on to NLC as it is now.

The fear is fanned by politicians, who also dish out interesting statements like 'Don't sell the family silver.' The other argument is that NLC is a profit-making company. That's all the more reason why people shouldn't worry with privatisation.

One new entrant to politics even praised the Govt's eventual decision to stall the divestment, saying the whole of Tamil Nadu is happy with it or something to that effect. Actually, the people of the State and the country would have been a lot happier if they had been allowed to own a part of the profit-making NLC.

The Govt didn't do that, sacrificing the chance for lakhs of retail investors for the superficial happiness of 18,000 employees. And, of course, politicians who will continue to be invited for the company's functions.

What it all implies?

1) The Govt will continue to find raising resources increasingly tougher. Taxes, in many cases, have already seen their highs. Expanding the tax base could be another political challenge.

2) Point 1) becomes a monstrous challenge when we consider that many of the state govts think that it's their duty to provide everything from safety pins to TV sets free of cost.

3) All these means education and health, where the Govt should have an enormous presence, will be sacrificed. Remember, AIIMS is not the only Govt hospital in India.

PS: The Govt at least for the sake of the money that divestment raises could have sweetened the offer by presenting two possible alternatives:
1) Present salary plus benefits continue, Govt stake unaltered
2) Present salary plus benefits continue, Govt sells 10% stake which means a chance to own a part of equity

I am sure 2) would have had a fair chance!

Tuesday, July 25, 2006

Which poem?

The last lines of which English poem,
published in the early 1920s, are:

"Datta. Dayadhvam. Damyata.
Shantih. Shantih. Shantih."

Thursday, July 20, 2006

Myth quiz

In Ramayana, what was the name of the eldest son
of a character that was also called Nikasha?

Saturday, July 15, 2006

A line each about four books

This is an interesting and a novel way of looking at the central theme of four books. The idea was suggested by my friend Ramnath's (who says he read about the framework somewhere), and I told him I would post this one!

Imagine you are in a restaurant and just about to order. You would

1) Order what dish comes to your mind immediately, if you follow Malcolm Gladwell's Blink.

2) Give the whole issue a thought and order after evaluating all options, if you follow Michael LeGault's Think, which talks about the flip side of Blink.

3) See what others in the restaurant have ordered and choose accordingly, if you follow James Surowiecki's Wisdom of Crowds.

4) Reject the waiter's recommendations and wonder what incentive does he have in motivating your behaviour, if you follow Freakonomics, authored by Steven Levitt and Stephen Dubner.

If people really tune their ordering strategies according to their favourite books, restaurant owners would be really wary of hosting Lynne Truss' fans. Wasn't she the one who wrote Eats, Shoots & Leaves!

Origin of the codename

From the BL archives:

It is said an anti-Communist film Red Dawn, made 20 years ago, inspired the title (carrying the same name) for the operation to capture Saddam Hussein. As part of it, US forces considered two locations near the town of Adwar, 10 miles from Saddam’s hometown Tikrit. The codename assigned to the ‘suspect’ locations is also the name of the company that is a leading maker of casual, work and outdoor footwear. Its brands include Merrell, Caterpillar and Bates. What's the 'common' name?

Saturday, July 08, 2006

What's the word?

If 'mazingo' is the Swahili word for 'bends', what's the Makonde word for 'that which bends up'? (Makonde is the language of an ethnic African group)