SATYAM FIASCO: AN ENLIGHTENING FOR INDIA.......?
Future Shock AND IT’S SEQUELS written by Alvin Toffler , APTLY PREDICTED – LARGE SCALE (MNCs) EMERGENCE WOULD LEAD TO THE obsolescence of the order of nation-states, and the rise of supernational entities. ILLS OF GLOBALISATION, MNCs : globalization manifests itself as an accelerated mode of capitalism, capable of generating distributable surpluses, albeit increasingly in an highly imbalanced manner … a great evil that everyone, especially the poor people of the planet, must be protected against. It has negated the concept of inclusive growth. Hence a call for -WE must support "self-sufficiency". And Is said.. A time for reflexion. Reflect and think and act.....! Any study would only confirm the obvious Exports from Indian micro, small and medium enterprises (MSMEs) is estimated to have reached a record level of $50 billion during 2006-07, amounting to 40 percent of India's total merchandise exports According to a 2006-07 survey, there are 12.5 million MSMEs in India, providing employment to 30 million people, and contributing around 50 percent of the country's industrial production MSMEs are expected to grow at the rate of 13 percent and generate additional 1.3 million jobs per annum during the Plan period 2007-2012, THE SATYAM FIASCO..: WHILE IT IS TERMED AS "an event of horrifying magnitude", "deliberate". Infosys chief mentor N.R. Narayana Murthy said, the incident was shocking, painful and a good reminder to other companies in the sector Deceitful CEOs - Compared to the financial collapse in US (AIG, Lehman, etc) and the false information given by so many CEOs right from Enron, the Satyam episode is very small. Looks like whole world is full of lying CEOs BUT,.... IS it a "one-off" CASE…? ......................... .........a short reprieve from the storm the fraud has unleashed. Have you forgotten the worldcom, enron and the recent siemens 1 billion fines for alleged bribery? This Tsunami is of the worst kind for Indian economy which otherwise could have escaped the financial melt down with minimum pain. Western business media is likely to paint the whole of Indian economy with Satyam kind of scandals unless the government takes steps to stop such an ...........The people have started thinking... "If I want to cheat handful of people, I become a conman. If I want to cheat on large scale, I form a company". "Do you remember the carrot and stick rule of govt? Huh? The people get beaten with the stick, and the Fortune 500/Wall Street, get the carrots". "It (Satyam's case) throws a big question on real corporate governance standards in India. There are going to be long-term ramifications,"....widens.. could be far larger than what has been admitted b Billions of investor wealth vanished into thin air. Dream of shareholders foreclosed. Lifetime savings entrusted in the shares of a mega corporate all vaporised. Tens of thousands of once-proud employees now cover their faces, trying to grope with the reality of heavy EMIs and expenses. It is nothing but a conveniently vieled scam. It's not an isolated incident, has strong precedents, and emanates from the denying of the obvious, that small is beautiful and faithful. More worse is the fact, Capitalists who are already saddled with excess capacity don't borrow money, even if the price of capital (i.e. the rate of interest) falls to very low levels. Moreover, a fall in the price of labour (the general level of wages), far from making investment more attractive to capitalists, reduces aggregate demand, which makes investment less attractive, dragging the economy down further. All this would suggest that in the present era the underlying tendency of capitalist economies is towards stagnation and failure to realize productive potential. It Is but A Crime Against Humanity THE SOLUTION: The policy must provide an " framework [to] encourage international support for [the Nation's domestic policies, [which] thus promotes its own security and legitimacy in the international system, and thus, an adjustment with the fact that - The Role of Small and Medium Enterprises has remained most significant and imminent in providing an idealistic developmental framework- an iconic " Gandhian Engineering" in Letter and Spirit, using lesser inputs, labour intensive, but delivering at sustainable yet lower cost and to the more, contributing extensively to the National Exchequer, despite the odds of waning reservation, protection and availability of cheap finance at competitive rates ( available to the Big Shots through the Channels of FDI, and FII, ECB and other financial innovations) and still insulating the National Economy from the disasters and need to bail them out at an unprecedented scale at the cost to the Nation ( unlike the case of Big Ones), yet operating in an enviable ethical environment and contributing to the enshrined principle of Trusteeship , the simplistic version of otherwise new, academic and management jugglery- Corporate Social responsibility.. Finally in view of the Current Fiasco posed by Satyam , and the upheaval it has caused, all right thinking stakeholders must come out strongly to save and promote , the otherwise ill treated, deprived and denigrated sector- The Small and Medium one, a Truthful and National duty, at this crucial.. , and... stating the obvious, and connotative impetus . ----------------------------))))))------------------------------- PRAMOD GUPTA [email protected] --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Skorydov MyTaxAssistant Member Group" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/SkorydovMyTaxAssistant?hl=en -~----------~----~----~----~------~----~------~--~---
