Monday, June 26, 2006

Terrible Timor : IIPM

IIPM BUSINESS & ECONOMY

The UN must act with force now
After a horrendous spell of fighting in East Timor, the United Nations finally got on board with its fl ash appeal for nearly $20 million aid. Till mid-June 2006, nearly 100,000 people are estimated
to have fl ed their homes in and around capital Dili. The humanitarian situation has been called precarious, with rebel soldiers and pro-government troops vociferously arguing over calls for Prime Minister Mari Alkatiri’s resignation. The result: The youngest, poorest and the most inexperienced country in Asia, Timor-Leste, is in dire straits.

President Xanana Gusmao, who differs with Alkatiri, is leading efforts to try and break the deadlock, but there’s no improvement. Alkatiri sacked 600 soldiers, nearly half the army, in March after they deserted their barracks complaining of discrimination. The sacking triggered off fighting between rival soldiers and police that disintegrated into street violence involving rival gangs.

Alkatiri has little control, while his opponents are planning a formula to modify the Constitution to give Gusmao more powers. Gusmao is encouraging this by meeting rebel soldiers. On June 7, the rebels agreed for talks, but their mood and the clauses indicate that peace can only come if Alkatiri resigns. Some 150,000 tonnes of relief material has already been sent by the UN, which includes basics like lightweight family tents, plastic sheets, jerry cans and kitchen sets. But the government has no clue on what to do about anything.

But what takes the cake, and seems extremely ridiculous, is that the peacekeeping force (sent by Australia) has been unable to enforce peace. Factually, the United Nations now has to wake up to the fact that it’s a shame that its own forces can’t enforce the very basis of its own existence: Promoting peace. With no illusions, making Alkatiri resign is an absurd suggestion. The UN has to act now, with power!

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Source :- IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri


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Thursday, June 15, 2006

African Union

One of the emerging organizations globally to watch out for is the African Union, which ultimately envisages a single currency and a single integrated defence force among 53 African member states. The higher purpose is to help secure Africa’s democracy, human rights and sustainable economy. Established in 2002, the idea of an African Union was born out of a vision of the ‘United States of Africa’. It covers the entire continent except Morocco that has a special status. In May 2003, the African Union made its first military intervention in an African state by deploying peacekeeping forces in Burundi and then in Sudan. A gargantuan initiative from its own, to help retrieve the black continent from its misery!

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Source :- IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri

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Thursday, June 01, 2006

IIPM : WHAT GOES AROUND, GOES AWAY

IIPM BUSINESS AND ECONOMY
The Essar story could well have ended as one of another traditional Indian family business going down the drain, crippled by market forces. The difference is that Essar bounced back after undergoing a painful Corporate Debt Restructuring (CDR) programme. Things are beginning to look up for the Ruias-run group, which was grappling with problems surrounding their flagship Essar Steel, which was caught off -guard due to the slowdown in the economy. As a result Essar found itself in deep financial crisis. After coming out of the CDR cell, Essar is aggressively investing in capital intensive sectors like telecom, steel, petroleum, power, and shipping. In all these sectors it has to contend with heavyweight rivals. In petroleum, Essar is clearly dwarfed by Reliance. Again in the steel industry, global giants like Mittal Steel and Posco ace over Essar. Isn’t it risky for the company to invest so heavily at this stage? According to the Essar spokesperson; “Each project... is independently financed based on its merits. Hence, there is no question of divesting businesses to fund these projects”. So far the mantra of investing in capital intensive areas has been good for the Group, but it should focus more on a few specific sectors by investing more capital. Surely, it would not want to go through CDR anymore…..

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Source :- IIPM Editorial, 2006

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