The real truth behind the success of Lalu at Railways

I stumbled across an extremely interesting article, thanks to a post on Ajay Shah's blog which I regularly follow. It is an extremely exhaustive account. Do go through the entire article. Here some of the interesting points:

• "The world’s only employer larger than Indian Railways is the People’s Liberation Army of China. (The third-largest employer is the British National Health Service.)"
• "Lalu's single most important innovation at Indian Railways was not a populist move at all. It was an elite one: the hiring of a prodigiously talented civil servant named Sudhir Kumar."
• "Kumar’s two flat-screens show real-time data on the country’s main routes. Periodically, a minion walks into Kumar’s command center to present a 20-page stack of papers that represent the day’s statistics on passengers, freight, and on-time arrivals. “Like Jack keeps a daily tab, I also keep a daily tab,” Kumar says, referring to Jack Welch, one of his idols. The contrast with Lalu’s own listless inattention is jarring. When Lalu tells me about his success, mumbling vaguely about winning “the confidence of the business classes,” Kumar shouts from the back of the room, citing revenue figures from memory."
• "None of the innovations was original. All sound, in retrospect, like no-brainers: make the trains faster, heavier, and longer. Kumar wrinkled his nose when I pointed this out. “A five-billion-dollar no-brainer!”"
• "He may not have increased the fares directly but he has increased the speed of several trains. Once the speed increases beyond a certain point, it qualifies for the super-fast category, and thus its fares is increased, without catching any attention"
• "The number of coaches in several trains have been increased thus per unit cost has been reduced"
• "Lalu mismanaged Patna terribly. So how has he managed a gargantuan state organ so well that students from Kellogg and Wharton are taking notice? Part of the answer lies in India’s recent economic growth spurt: Lalu stood on the shoulders of an economy that never grew by less than 6 percent per year during his whole tenure as railways minister. (India’s economy has slowed considerably since the global downturn began.) With a boom like that to fuel demand, how could he fail? All he had to do was sit back and let the market propel him forward"

To add to that, if we look at the Indian scenario, passenger traffic has historically been cross-subsidized by charging more on goods traffic. Infact many industry leaders have criticized his interim budget saying that he hasn't done enough to bring about parity between pricing of passenger traffic and goods traffic, particularly in a recessionary scenario. Indian railways has been loosing its market share in goods transport for many years to the road transport. Even in his latest budget, he has gifted trains to Bihar, whether or not those routes are feasible is a different issue.

Nevertheless, I would have acknowledge one thing - "Lalu is still awesome when it comes to getting media publicity. After he was routed in Bihar, he realised that he needed an image makeover. What better platform could he get other than Railways, the largest employer of India. And he has successfully achieved that and even earning praise from the IIMs and Harvards of the world."

Incredibly stupid India

I recently came across Karan Thapar's blog, one of the few journalists whom I respect, and found some extremely interesting posts there. I have added this blog to the ever growing list of the blogs that I regularly read, a list which on last count was close to 30. Subsequently, I have stopped counting that number.

I read his latest blog with same title, Incredibly Stupid India. He makes some very interesting points:

• "in the name of Indian nationalism, the twits from the Maharashtra Navnirman Sena (MNS) have ripped apart India’s claim to be the original country of the subcontinent. The truth is it was all India before Pakistan was created. Pakistan, of course, doesn’t always accept that and now the MNS has corroborated their view that the land west of the Indus is different and separate. What a fabulous self-goal."

• “And then there’s Slumdog Millionaire. After Gandhi in 1982, no film has done more to make the world aware of India. It’s a runaway success. Yet what’s the response in India? Some foolish politicians think the name is offensive and at least one court has taken them seriously enough to issue formal notices to the producer. Talk about getting the wrong end of the stick.”

• “Such as: India is supposed to be a tolerant, liberal democracy. So how come we can’t accept a name like ‘Karachi Sweets’ and buy Pakistani books? Or: Hinduism is supposed to venerate women, we supposedly elevate them as goddesses. So how come we thrash them if they walk into a pub? And then: India is supposed to be an aspiring and dynamic society. So how come a rather clever name like Slumdog Millionaire can’t be appreciated but is, instead, considered offensive? These are disturbing questions.”

I don't have any answers but only questions. Is this the India our forefathers wanted to built?

Analysing India's defense preparedness

The tempers have risen in the aftermath of the Mumbai attacks. The attacks brought a renewed attention to India's defense preparedness and capabilities. Even as I am writing this blog, Pakistan is expected to give its reply to the Indian dossier. As per the reports, there is nothing new in the reply and Pakistan is going to simply deny the Indian charges. Surely, the coercive diplomacy hasn't yielded any major results.

So what are the other options before India. According to the Asia Times Online article, the military option is certainly not there. Not just because of threat of Nuclear weapons but because of the lack of preparedness. Infact the article mentioned above claims that it was Indian Army that had backed out of a full scale. This isn't something new that we are hearing. India's last major military conflict was Kargil, about 10 years. Kargil review commitee had also raised several questions. the Israeli Ambassador in New Delhi, Mark Sofer, has said that his country had assisted India in 'turning around' the situation during the 1999 Kargil war with Pakistan.

Kargil war was a narrow miss for India. It happened between May-July 1999. Had we not recieved Israel's support, the outcome wouldn't have been the same. Especially because winters were fast approaching and it would have been virtually impossible to continue with the conflict because enemy had an advantage of height. This would have given adequate time to the Pakistanis to build adequate defenses. Israel is surely a key ally for India, and it wasn't really a co-incidence that there were not too many harsh statements from Indian Govt in response to the Israeli invasion of Gaza.

If we look back at even earlier times, during the 1962 War, India did not fully use its air-power even though it was much more advanced than the Chinese and could have easily slowed their movements.

But have really learnt anything from the past and are we prepared for the future challenges? Sadly, the answer is a NO. India's defense modernization plan is stuck under red-tape and numerous delays. For example - Following the Bofors Gun scandal, no subsequent Govt. had the guts to acquire this gun even though it has proved its worth and was even intrumental during the Kargil conflict.The Arjun Tank, LCA and other important project with the DRDO are miles away from induction. Even the recent BrahMos missile failed its induction test.

India has historically depended on Russia for its arms supply. However, lately there has been blatant arm-twisting by the Russians on the Gorshkov and the LCA engines. It is therefore important for to move out from the Russian claws. The Russian weapon systems are no more cost effective, while their quality control and delivery schedules have always been unreliable.

India's defense spending recently fell below 2% of its GDP, far below 3-3.5% of GDP which is considered to be safe. This is much lower when compared to its neighbors such as China and Pakistan who spend close to 5% of their GDP on defense. China recently got the capability to shoot down spy satellites and also successfully sent a man to space. On the other hand, India's space program continues to largely civilian oriented. China has already build up a good road infrastructure along its borders with India and thus is in a much better prepared.

Turning attention to our internal security, the situation is once extremely bad. Naxalism continues to remain the biggest threat. But we are not tackling it politically. Chattisgarh will raise an elite commando unit on the lines of the Greyhounds(Source). But this wouldn't solve the real issues. The Bangladeshi refugee continue to remain a big security threat for us. Many of them have been in the country for almost 30 years and have even acquired voter cards. Unfortunately, this matter is being politicized by the so called secular forces. Most of the Bangladeshi refugee are muslims and thus are steady vote bank for them. Other than BJP, none of the parties have really raised this issue. POTA which was brought in by the BJP was branded as anti-Muslim. Now the Congress Govt. has brought in a new anti-terror law, which not quite different from POTA.

I can understand that we are a developing nation and have only a limited budget when it comes to defense spending, but surely we can spend the money allocated to defense in a much more efficient manner. Moreover, at least on matters such as defense and internal security, oour politicians should show some amount of consensus.