Count the natural debt, too

Now that Europe’s debt crisis is unfolding all around us, shouldn’t we question why the world is determined to live beyond its means and not worry how it sabotages our common future? The debt crisis is a mere symptom of a deeper malaise. The fact is that countries, private companies and individual households can run only if they can borrow against their assets and hope that the debt will grow slower than the value of their asset. Most financial analysts will now tell you that this business is doomed because of the Ponzi scheme nature of the loan business, where borrowing is used to speculate to get more loans and so repayment becomes difficult and over time impossible.

ABCDE of Obama’s sales pitch

There is no doubt US President Barack Obama was in India on a business trip. His recent electoral losses weighed heavily with him when he stitched up deals, reportedly worth US $10 billion, that would create about 50,000 jobs back home.

The right right

The world's cheapest car, the Nano, rolls out in India this week. Manufacturer Tata Motors says it will change the way Indians drive, for the inauguration places the personal car within the reach of people who once could only dream of owning one. Indeed, the Nano has been marketed as an 'aspiration'--the right of every Indian to a car. No quibble here. There is no question an affordable car is better than an expensive one; or that a small car, being more fuel efficient, is better than a big one.

The right right

The world's cheapest car, the Nano, rolls out in India this week. Manufacturer Tata Motors says it will change the way Indians drive, for the inauguration places the personal car within the reach of people who once could only dream of owning one. Indeed, the Nano has been marketed as an 'aspiration'--the right of every Indian to a car. No quibble here. There is no question an affordable car is better than an expensive one; or that a small car, being more fuel efficient, is better than a big one.

The right right

The world's cheapest car, the Nano, rolls out in India this week. Manufacturer Tata Motors says it will change the way Indians drive, for the inauguration places the personal car within the reach of people who once could only dream of owning one. Indeed, the Nano has been marketed as an 'aspiration'--the right of every Indian to a car. No quibble here. There is no question an affordable car is better than an expensive one; or that a small car, being more fuel efficient, is better than a big one.

Globalisers retreating into little shells

In 20 years, the world has come full circle: in the mid-1980s the process of globalisation intensified with the rich countries taking the lead in interconnecting countries because it was in their interest. Now in 2006, the same rich countries find the process of globalisation -- economic and ecological -- too hot to handle. They have become a roadblock in the way of global integration. The question is where will we go from here? Can we go back in time and close the processes of globalisation?

An extremely do-able job

When the new president of the Confederation of Indian Industry took charge last fortnight, he reportedly made the following observation: "While the flow of direct foreign investment is important, what is more important is that employment generation must be ensured in the country". Then -- and this is even more important -- he went on to explain the strategic choice that had to be made for the kind of job creation he had in mind. He said, for instance, that if a 0.5 million tonne paper industry imported its pulp it could create only 600 new jobs.

The real maths of the world

Our world did change in 2003. The US war on Iraq made sure that the rules of 'engagement' were changed, perhaps for a long time to come. The change I see most visible is that the world has become overtly aggressive and rude. And it is not just the US. Let us be clear that the stamp of 'aggressor' politics, where terms are set with singularly determined self-interest built on raw power (money or caste), has left a visible emboss in our part of the world as well. The fact that high-level corruption was not even an issue in the recent elections should make us rethink.

Development is not a road

Reportedly, bjp senior leader Arun Jaitley has contemptuously labelled Digvijay Singh's Madhya Pradesh government as " ngo -style". Why? Because it spends more on social development -- education and health -- and not on roads or electricity.

Stupid growth

The Sensex stock index has risen by 75 per cent since April this year. The rupee is at a three-year high. Global investment analysts Goldman Sachs predict that India is the fastest growing of the four " BRIC " -- Brazil, Russia, India and China -- economies expected to it big in the next 50 years or so. We are "feeling good", say financial planners.