Showing posts with label IIPM-Article. Show all posts
Showing posts with label IIPM-Article. Show all posts

Thursday, October 11, 2012

Heavy weight champ

Telang’s background in operations and his experience with the successful Commercial Vehicles business will be an asset

As Jack Welch once said, “If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it you almost don’t have to manage them.” Ratan Tata has done exactly the same in Tata Motors, which is one of the key reasons why the company is the market leader in the Commercial Vehicles segment and more importantly, produces almost half of the Commercial Vehicles sold in the country. Well, P. M. Telang, Executive Director (Commercial Vehicles), Tata Motors would have a lot to do with that, for he is the man standing behind this success.

A Mechanical Engineer and an MBA from IIM-Ahemdabad, Telang has over three decades of experience in the automotive industry as he has been with Tata Motors since 1972. In his previous role as President (Light & Small Commercial Vehicles), Telang played a major role in ensuring a turnaround in the company through cost cutting and e-procurement. He is also serving as Senior VP (Operations), Pune currently. Overshadowing the success that the company achieved under Ravi Kant’s leadership will certainly not be a cake walk for anyone succeeding him. However, if we talk about the Commercial Vehicle segment of Tata Motors, Telang has been able to take its growth story forward very efficiently. And industry insiders believe that if Telang takes charge; it will surely set the stage for the next phase of growth for Tata Motors. And as auto expert Murad Ali Baig asserts, “The person taking charge of Tata Motors after Ravi Kant leaves should have an in-depth knowledge of the automotive industry apart from the basics of management and finance.”


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face

Posted by at
Labels: , , , , , , , , , , , , ,

Monday, October 08, 2012

B&E’s Karan Mehrishi dives deep into the auto quagmire and gasps for breath...

 Of course, one has to accept that two years back, Bill Ford had divulged to the media that Ford would be necessarily moving towards more fuel efficient cars. That should have done it, right? Well, there was just a slight little problem. Despite his public statement, Bill never moved towards ‘fuel efficient’ cars! [“The market was pulling us in a different direction,” Bill reveals in BusinessWeek this August]. Dangerously, neither had GM! And we’ve not even started discussing the travails of the down and almost out Chrysler yet, which is perhaps simply looking around for a suitable buyer! The Detroit three, unfortunately, focused horse-headedly on selling SUVs and tough trucks, and investing more and more into R&D [close to $12 billion annually] to recreate products that were doomed from the start! That’s how tough it takes some billion dollar loss makers to understand no-brainer issues.

The no-brainer auto issue #2

I caught up with Christian Breitsprecher, equity analyst at one of Germany’s largest investment banks, Sal Oppenheim, and he commented, “Obviously, the auto industry did not foresee the trends... that one day the price per barrel would be so high. Companies, which do not invest in alternate fuel will go down and hybrids is just an element of the entire investment.”

That brought me to the no-brainer issue number 2, hybrids! To say that it’s the most over-hyped concept in the industry today not worth even the media space it occupies, is to speak the truth. The situation today is such that after testing out, one should say successfully, the concept of fuel efficient cars, car manufacturers today are assuming presumptuously that the next logical step in this hugely competitive world is the hybrid (for the rare uninitiated, a car that runs on a combination of petroleum and another source of energy).

And more so companies that are leading the race, like Toyota, Honda etc. Dramatically, the fact is that even with hugely profitable companies like Toyota and Honda, who believe that with hybrids they have the instant solution for the future, the concept could be a thrashing in disguise. The first structural defect afflicting hybrids is the market share. The hybrid is, in simple terms, before its time, and cannot account for significant market share and usage for the next ten years globally. Illogical you said? Look at the figures even in the world’s top auto market (or is it second already?). In the US, despite being ‘in the news’ for the past decade, only 347,102 hybrids were sold in 2007 (see detailed story later on, ‘Where, Mrs. Robinson, lies the problem’). That means that even with Toyota monopolising a 70% share of the market, and after all the billion dollar global marketing attempted by various auto corporations, hybrids accounted for only a miniscule 2.15% of the total new vehicle sales in the US, and puniest percentages in other global markets.

The second structural defect afflicting hybrids is their pricing. It could well turn out that unless auto companies ensure that the pricing levels of offered hybrids are in tune with mass market expectations – especially in markets like India and China, expected to be the world’s top two in the next five to ten years – they might well start failing. Hybrids are simply not cost effective, and will not be in the next seven to ten years, if at all then. A hybrid, to be rampantly successful, has to be priced in such a range that enables the consumer to perceive its ‘long term’ cost effectiveness over the ‘short term’, thus engaging his buying intent. Confusing? For better clarity, read what Deputy Editor Virat Bahri writes later on in the cover section: “Doubts are often raised about how cost effective hybrids really turn out to be. NuWire Investor’s Cali Zimmerman compared the [price of the] Toyota Camry hybrid with the normal version, and statistically proved that the cost difference cannot be recovered before 13.8 years!!! Even the first hybrid to be introduced in, say, a poor country like India – the Honda Civic – costs a huge Rs.18-22 lakhs.” How does one expect consumers in a poverty-ridden country like India (with per capita GDP just around $1000) to buy such a costly car? Isn’t it then quite a no-brainer issue to say that a hybrid, by its very definition, loses its USP once it is priced higher than even normal cars? Amusingly, not when you look at it from the perspective of billion dollar corporations who refuse to wink when drunk.


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
Posted by at
Labels: , , , , , , , , , , , ,

Wednesday, August 29, 2012

Brand and Communications

Sudarshan Mazumdar, Former Director of Brand and Communications, Fortis and Escorts Group, speaks to Steven Philip Warner on why he considers the UPA II regime a half-success...

B&E: The Naxalite movement – Is UPA II doing its bit to curb it?
SM: The government doesn’t seem to have any policy in place to tackle this problem. There is lack of consistent development. Let us understand it this way – you give them livelihood, keep them distracted with day-to-day productive living. Only then can you curb it. And there have to be long term policies, transparent ones. Over time, the area under the Naxalites movement has increased and this is worrying.

B&E: What has been your experience with policies & their implementations in the healthcare industry?
SM: Healthcare continues to be a neglected area, despite the government realising that when the sector is growing at 15% per year, there will definitely be a crunch of talented medical practitioners. There was also a paper sent from the Planning Commission to the government, but the recommendations are yet to be implemented.

B&E: Is the UPA doing enough to uproot corruption from India?
SM: What has the current government done about the money that is stored in illegal forms overseas? It’s a known fact that Indians have the highest illegal deposits in Swiss Banks! There is even a lack of delivery mechanism that ensures that the taxpayers’ money is utilised cleanly. Imagine this - the UID was supposed to be one of the biggest programs that could have finally prevented leakages in all forms including our tax system. But its budget has been slashed. This is insane.


Posted by at
Labels: , , , , , , , , , ,

Thursday, August 23, 2012

THE QUANTUM OF OPPOSITION FOR THE STEEL PROJECT

POSCO WAS TRULY CAUGHT UNAWARES BY THE QUANTUM OF OPPOSITION FOR THE STEEL PROJECT. RECENT TRENDS PROVIDE HOPE FOR A BREAK IN THE DEADLOCK

Since the signing of the MoU on setting up of POSCO’s Indian subsidiary, POSCO-India Private Limited in June 2005, the company has been trying to convince the villagers within the project area that they will be suitably rehabilitated for any kind of displacement. POSCO maintains, “We will rehabilitate fully and in fair manner all categories of displaced, be it form of home, land or livelihood, and sincerely try to give a life better than before. We will implement the Government of Orissa’s Rehabilitation & Resettlement Policy-2006, which is called the best in the country, in both letter and spirit.” The company has taken so many confidence building measures to create a welcoming atmosphere among the people. Some of those are :

* POSCO declared in 2006 that 97% of the total employee strength of the plant will comprise of Indians. It also declared creation of about 48,000 jobs directly and indirectly in the region, and approximately 467,000 man years of employment during the construction phase. POSCO launched vocational training at its own cost to both men and women at the proposed plant site.
* It conducted first surgery camp in Orissa for palate corrections and launched mobile health check-ups.
* The company announced that it will provide one employment to all the original displaced families and also families losing all agricultural land in accordance with the provision of the Orissa New R&R Policy 2006.
* An office in Kujanga has been opened to establish a communication channel and address the concerns of the local residents.

While most of the families of Nuagaon and Gadakujang panchyats supports POSCO project, majority in Dhinkia don’t want the project. As a gesture of goodwill, POSCO has been providing Rs.25 per head every day to members of 72 families from Dhinkia and Govindpur villages living in make-shift shelters due to threat of anti-POSCO activities.

As some headway is being made, it is pertinent to note how R&R issues have led to loss of significant time and money for POSCO and also for India, which badly needs such FDI. Land acquisition remains a sensitive issue and companies have to learn from the experience of POSCO’s paper trail that they must factor in the possible repercussions of such issues when they plan investments for India. And for India to improve its standing on the global FDI front, one hopes that the POSCO project sees the light of day, sooner rather than later.



Posted by at
Labels: , , , , , , , , , , , , ,

Tuesday, August 14, 2012

Abreast about the new cancer test?

New technology for simpler and painless breast cancer detection will not just aid in diagnosis but in the prevention of this deadly disease too

In 2005, the Australian pop music diva, Kylie Minogue was diagnosed with breast cancer. But today, having survived the mosttraumatic period of her life, she is proudly educating the world through awareness campaigns on breast cancer.

Kylie was just one of the millions who have had to fight to save their curves. The ‘symbol of women’s sexuality’is being increasingly associated with the “risks of contracting cancerous growth due to the changing lifestyle and preferences of modern women,” says Dr. Harsh Dua, Senior Oncologist at ApolloHospital. According to World Health Organization (WHO), more than a million women worldwide are diagnosed with breast cancer annually, and it is the lack of early-detection programmes that is increasing its incidence rate, particularly in developing countries. While preventionthrough a healthy diet, physical activity, control over alcohol intake and one’s weight could reduce its incidence, the latest technology in breast cancer detection – a simple blood test called the BCtect – devised by a team of Norwegian scientists, is, according to Dr. Bhawna Sirohi, Chief Medical Oncology, Max Healthcare, “a huge step forward in the fight against breast cancer.”

At a time when the medical world has been divided over the risks and benefits of existing screening tests that expose one to harmful cancercausing radiations, Dr. Sirohi says, “Current gold standard for screening for breast cancer is mammography, which has quite a few drawbacks including exposure to radiation. It is also not recommended for women less than 40 years of age. We see a lot of young patients, as young as 23 years old, with breast cancer in India. Some tumour types are poorly detected by mammography and it’s also difficult to detect very small tumours through mammography alone. BCtect can detect lobular breast cancer, and will also be useful in young women, usually with high breast density, where mammography is less effective in detecting breast cancers.” With about a 75% accuracy rate, early detection – even when the cancer is the size of a seed – “improves overall survival for the patient and also increases options for treatment like breast conserving surgery. The test only requires a small blood sample from the patient. Due to breast cancer, certain characteristic changes take place in women to be screened. It will need validation among Indians and I’m in contact with my colleagues in London. We plan to start a large prospective randomised trial in India as a research study with MRC’s (Medical Research Council, UK) support.”


Posted by at
Labels: , , , , , , , , , , ,

Monday, July 30, 2012

Hicks was Right; They are Wrong!

Rising Interest rates are Massacring The Automobile industry but players are hoping that the upcoming Festive Season will reverse the sluggish trend. Well, will it?

In the end, the ISLM model won. What were they thinking? That auto demand in India will keep rising irrespective of interest rate spikes? Well, John Hicks (who propounded the ISLM theory) might have had to pawn his Nobel if that had happened. While the going was good, the automobile industry in India was on a roll. Car sales put up a scorching pace; FY2010-11 wound up with a mind-boggling growth of 26.17%. The launch of new products and growth in rural areas fuelled the boom, stoking the ambitions of automakers to make India overtake Brazil and become the sixth-largest automobile market by next year. Had it come to pass, Society of Indian Automobile Manufacturers’ (SIAM) forecasts – of India finding a place amongst the world’s top six carmakers by 2015 – might have even cut much ice with us; well, despite the rising interest rates, some industry experts claimed that even the forecasts of 12-15% growth for the current fiscal were pretty low. Quite a few were willing to wager that auto growth would surpass the 20% mark as Indian consumers did not care about interest rates. Well, our experts forgot three words – macroeconomics, macroeconomics and macroeconomics.

When numbers arrived for the first quarter of this fiscal, the cookie was already crumbling. As per SIAM, the passenger vehicle industry managed a growth of 8.77% in the first three months of this fiscal (April-June). In terms of number of cars sold, the figure stood at 601,547 units. If 8.77% looked deceptively fulsome, the news waiting around the corner for the month of July was shocking. Out of the 19 automakers in the country, 12 posted a sales decline of 10.56% during the month. Unit sales stood at 1,73,615 units as compared to 1,94,122 units sold during the same period last year. The worst hit were India’s big three automakers – Maruti Suzuki, Hyundai Motor India and Tata Motors – whose sales dropped by 26%, 11% and 38% respectively. Market leader Maruti Suzuki, which has over 42% market share in the domestic market, sold 66,504 units in July 2011 as against 90,114 units in the same period last year. Tata Motors, at the other end, once again took a big hit as unit sales for the world’s cheapest car, Tata Nano, fell precipitously to 3,260 units. The slide sent Nano’s sale into negative territory, a fall of 64% over the same period last year. It’s quite surprising then that SIAM last month claimed that the passenger car sector will still grow by 10-12% in 2011-2012.

For SIAM, even this 10-12% growth forecast admittance is a huge ego hit, as it comes after a growth forecast claim by SIAM of 18% just three months back. Clearly, rising interest costs and spikes in fuel prices have pushed the industry into a spot which seems worse than even the slowdown era. The question is, will the upcoming festive season lift the gloom that the industry is currently facing? Can the ‘spirit’ of purchasing overcome the shadow that the oversized Hicksian spanner is casting? More importantly, does the Indian consumer really have it, to provide the kind of growth that the auto sector expects?

By the look of the super-sized investments that many auto majors have chalked up for India, faith and confidence in the Indian market looks as strong as ever. New entrants like Volkswagen, Renault-Nissan have already invested Rs.38 billion and Rs.45 billion respectively in India. Another heavyweight, Ford, has recently announced an additional investment of Rs.40 billion for setting up a new plant in Gujarat. Even though India will continue to remain a small-car market in the years to come, the low penetration level in the passenger car industry is the reason why players are drooling over the Indian market. Currently, only 11 out of 1,000 Indians own a passenger car as compared to over 900 people in the US. According to JD Power and Associates, 11 million cars will be sold in India annually by 2020, making it the third-largest market for automobiles and only behind China and the US. But that much is already known.

But then, did these investments and forecasts mentioned above take into account the interest rate vagaries in India? Over the past 15 months, lending rates have risen 11 times, which has translated into a hike of 300 basis points on auto loans. “Though customer enquiries have increased, the conversion rate has slowed down due to the increase in fuel price and interest rates,” rues Arvind Saxena, Director - Marketing & Sales, Hyundai Motor India to B&E. Ajay Seth, CFO, Maruti Suzuki, tells us that “the silver lining is that incomes are still rising.” Unfortunately, the real incomes are actually falling as the inflation is rising faster than the income growth.




Posted by at
Labels: , , , , , , , , , , , , , ,

Saturday, July 28, 2012

This time, Polman might be right!

Having been in existence for 173 and 81 years respectively, P&G and Unilever are legends in their own rights. After years of divestitures and streamlining, P&G has a strong lead. But with a little help from Acquisitions and Emerging market presence, Unilever could end up as The Undisputed consumer goods leader.

On June 02, 2011, a news report in the Daily Mail (a British publication) sparked off rumours that P&G, the world’s largest FMCG giant was lining up $61.26 billion to acquire rival Unilever. Almost immediately, media circles were ablaze with debates, some arguing that the deal was practically impossible while others like C. K. Ranganathan, MD, CavinKare (a personal care products major in India) embracing the idea stating that it would be easier for him to fight one company instead of two!

However, far from chalking out an M&A plan, meetings in the corner offices of P&G and Unilever narrate a different story altogether. Robert McDonald, CEO, P&G, who has been working for the company for 31 years, moved on to meet his top executives at the Cincinnati headquarters. The agenda continued to be the same as it was ever since McDonald took the top job – strengthening its position in emerging markets, thereby making P&G a more operationally streamlined machine.

On the other hand, Paul Polman, CEO, Unilever, was busy making key decisions, which would determine and guide Unilever’s future strategic orientation. As a matter of fact, it was a sort of crisis situation for the Anglo-Dutch consumer goods major. Michael Polk, the head of global foods, home and personal care quit Unilever to join Newell Rubbermaid as CEO. His predecessor, Vindi Banga had also left in 2009. Polman probably could predict the future. To avoid risking another top executive, he promoted Harish Manwani, Chairman, HUL (Unilever’s Indian SBU) to COO of Unilever. More importantly, he rejigged the entire top management by dividing Unilever’s different divisions under five top executives.

Fact is, P&G would not be acquiring Unilever as long as they are in their right senses. That would mean going back to what they’ve been avoiding – complicating a company that is already too huge and complex in structure. That would further weaken control and make negative synergies in the realm of possibility.

McDonald, 57, is one hell of a strategist. And why not? Being a graduate from the US Military Academy, strategy was destined to come naturally to him. Unlike former CEO A.G. Lafley, who acquired Gillette for $57 billion in 2005 (which accounted for 10% of P&G’s $78.9 billion in 2010) [and which we think by far was the best decision taken by a CEO in P&G’s more than a century long history], McDonald prefers to stick to what he states in his annual reports – “to grow P&G’s core brands and categories with an unrelenting focus on innovation”. To be more precise, McDonald is shying away from making any further acquisitions. He instead plans to concentrate on strengthening the internal R&D pipeline and on pushing existing brands more aggressively to consumers around the world. 



Posted by at
Labels: , , , , , , , , , , , , ,

Friday, July 27, 2012

Just Keep Those Costs Down

Rec has seen its Numbers Grow at a Steady clip in The Past Few Years, but will have to now Tackle Increased Competition

Being the nodal agency under the Government of India in charge of financing rural power projects in India, the challenge for Rural Electrification Corporation is always about managing the opportunity, rather than looking for it. Unsurprisingly, the company has been experiencing y-o-y growth of 15-20% on an average over the past decade.

For FY 2010-11, REC reported a growth in net profit by 28.4% to reach Rs.25.70 billion, which has catapulted it to rank 33 in the B&E Power 100 list from 38 last year. Revenue grew by 26.09% to reach Rs.81.09 billion. Strong return on equity with low cost of funding allowed REC to generate superior spreads, which is currently around 4.34% despite the zooming interest rates. REC was able to maintain this margin largely because of the fact that they had gone for international borrowing of $1.2 billion & also set domestic borrowings to the G-Sec benchmark. Cost of borrowing for last year on an incremental basis was around 7.25%; whereas overall cost of borrowing was around 7.62%. Furthermore, REC successfully brought NPAs down to 0.03% due to the escrow mechanism and managed margins of 4.3% despite high cost of funds. The major bad news this year was the resignation of CMD J. M. Phatak, who joined the company in June 2010. Phatak is accused of playing a role in the Adarsh society scam when he was Municipal Commissioner of Mumbai.

The role of REC comes only when all delays & clearances, particularly environmental clearances & securing of coal linkages issues are accounted for & finalized. Last year saw loan sanctions of Rs.664.21 billion (growth of 46.44% y-o-y) but disbursals were just Rs.245.19 billion, a growth of 16.03% y-o-y. REC is now focusing on creditworthy projects by turning their attention towards power generation projects rather than exclusively on the transmission & distribution sector When asked about the shift, H. D. Khunteta, CMD, REC told B&E, “It was a natural shift to all the parts of the power sector & the Ministry of Power has expanded the mandate for REC to include generation projects.” The power generation share in the outstanding loan book has almost doubled from 26% in 2007-08 to 48% in 2010-11 and the private sector is also playing a huge role.


Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age WomanIIPM's Management Consulting Arm-Planman Consulting
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
Posted by at
Labels: , , , , , , , , , , , , ,

Friday, July 13, 2012

Many stones killing neither bird!

The green energy/jobs promise isn’t working, so what’s Barack’s Plan B?

Barack Obama, the president of US, once promised that he would create 5 million green jobs over 10 years. He promised $2.4 billion for green jobs in 2009, mainly to make batteries for electric cars. California Governor Jerry Brown pledged to create 500,000 clean technology jobs when he made his successful comeback bid. Both seem to have bitten more than they could chew.

According to a study, which has been released by non-partisan Brookings Institution, all clean technology jobs are just 2% of total employment all over the nation. The study has revealed that jobs in the cleantech industry rose by half a million between 2003 and 2010, at an annual rate of 3.4%, a growth that lagged the overall employment growth in the national economy (4.2%, excluding job losses from establishments that closed down) during the period. Obama’s green dream is falling apart as well. To illustrate, a huge amount of around $450 million was planned for what was called Retrofit Ramp Up, a program by the Department of Energy to make houses insulated and more energy efficient. Seattle was selected for receiving $20 million of this funding, and it was projected to get around 2000 green jobs. Till the beginning of August this year, only three homes had been retrofitted and just 14 new jobs had been created. So far, around $162 million has been spent by Department of Labour to train and employ people in “green jobs”, which could help only 8,035 people getting jobs.


Posted by at
Labels: , , , , , , , , , , ,

Friday, July 02, 2010

‘Hope floats’

Looks like the "Ms Congeniality" actress, Sandra Bullock has a proposal coming her way. Her ex-husband, Jesse James, has been spending time with his daughter, and is apparently using her to get Sandra back in his life. Meanwhile, the bombshell Michelle McGee, who poses nude regularly in tattoo magazines, had once said that Sandra should be grateful to her for revealing that Jesse was having an extramarital affair, has now been sending the actress apology letters for causing her pain. Well, the girls should probably join hands and together bring down the culprit of their lives!

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
Posted by at No comments:
Labels: , , , , , , , ,

Tuesday, June 22, 2010

Poor sporting spirit!

Sporting events come heavily on the marginalised population

The upcoming FIFA World cup 2010 in South Africa is seen as a major breakthrough in sporting history. Not only because it’s after a long struggle that an African nation succeeded in grabbing the opportunity of hosting such a mega sporting event, but also as it is expected to refurbish South Africa’s economy. Amidst South Africa’s preparation to make this event a major success, the poorest citizens of the country are being largely neglected. In order to bring up world standard stadiums, the government has ordered massive eviction. In simple words, to make space for stadium and games infrastructure, the South African government has evicted low income housing areas and informal traders. More than 70,000 workers employed on World Cup projects have raised their voices for better wages and conditions. In contrast to 500,000 jobs promises, only 22,000 jobs have been created with occupational health and safety survey giving negative rating to 52 per cent of World Cup construction sites.

The construction of N2 Gateway housing project (construction of rental housing for the 2010 World Cup) led to the removal of over 20,000 residents from the Joe Slovo settlement. The government has also came up with the Elimination & Prevention of Re-Emergence of Slums Act to eliminate slums and put homeless shack dwellers in transit camps during the games. Without any apprehension, this mega sporting event would not only will help the country to upgrade their infrastructure but would also help them tap economic gains. But then, the major pie of the profit will eventually go to big business houses and to FIFA.

This is not for the first time that a mega sporting event would create major hurdles for the underprivileged population of the nation. During 1988 Olympic Games, more than 15 per cent of the population of Seoul, Republic of Korea, was evicted and 48,000 buildings were reduced to ruins to accommodate game’s infrastructure. Similarly in 1996 Olympic, around 1,500 social housing units for the poor were destroyed in Atlanta, in 1992 in Barcelona, 200 families were evicted, in Beijing mass evictions were executed, 6000 were made homeless in Sydney in the run-up to the Olympics and similar eviction is predicted to happen in Rio de Janeiro for the 2016 Olympic Games.

Besides direct impact such as mass eviction and trade bans, indirect displacement due to gentrification and escalating housing costs can also be led to social crisis. After Olympics, prices of houses rose by 28 per cent in Seoul, by 131 per cent in Barcelona, by 500 per cent in Sydney — to name a few incidents. Many governments went to an extent of criminalising the homeless and marginalised pockets of populations. In Seoul, local authorities created a list of places where homeless people were banned and in Atlanta, homelessness was made illegal. Recently, to address such inhuman issue and rush to the rescue of marganised people, the UN has asked the games organiser to properly scrutinise the host cities and introduce housing provisions in hosting agreements. These nations and host countries should learn from their counterparts like Los Angeles, who uplifted the local economy and permanent housing and an Olympic village.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
Posted by at No comments:
Labels: , , , , , , , , , , , ,
Subscribe to: Posts (Atom)