Business to the Buddha

Tag: Accountability

  • Individually smart, collectively dumb!







    Book Games Indians Play cover
    Games Indians Play
    Have you read Games Indians Play! by Dr Raghunathan? Very interesting book with pertinent examples of issues we face, many a times overlook and are facing worldwide. In that book he says – “We are individually very smart but collectively dumb”. I think we are collectively dumb and therefore we are in the economy-related mess we have created.

    I did not know that I would be referring to my new year blog so early in this year. Newspapers of 3-Feb-2012 made me do so. The news was about the 2G scam which had been under scrutiny for a long time now. In my opinion the verdict clearly stated that power corrupts and it gives you confidence that you can get away with murders too (many such cases pending in India)!

    I thought hard – really very hard – to find a solution. I think I will go back to TRIZ (theory of Inventive Problem Solving) to decide conflicts and resolving them. Until I find a one size fit all ‘man made’ solution, I could think of only one possibility. This solution is self restraint, and owning responsibility to make sure we are morally correct.

    This word ‘Moral’ reminds me of my economics and business ethics class of MBA where we discussed moral hazards with Prof Mankad and Prof Arun Ramanathan. I was reading this article on Moral hazards at Wharton. The article talks about authorities and new stringent rules. This regulatory authority will tomorrow need another (other set of rules) and so on and so forth. How long will we create such authorities? Moral hazards would end very easily when each one takes responsibility and become accountable for his/her action. This accountability has to come on each level and for all the actions. The problem lies with a reality that – ‘We are individually very smart but collectively dumb’. This ‘being individually smart’ begets moral hazard. The solution for this problem is one’s own self. Take responsibility own it and be accountable. Perhaps initially we (as individual) will fail but collectively we will start succeeding.

    I am hopeful that once we start from ourselves (individually), each one of us would be able to avoid situations where we would talk about Newspapers of 3-Feb-12 (2G Scam), other scams and the bad shape of world economy. Hoping that we would save our energy to concentrate on something constructive.

  • Welcoming’12, Seasons of ’11 and accountability







    For some new year is getting new fancy, even more exposing table calendar and flaunting that. For some it is a continuum of the life – life as usual. For some it is a time to celebrate. I think this is the occasion when we should ask ourselves what happened last year and what should be improved? In 2011 I asked myself -” would I support places such as Barasti in Dubai?” I felt that Barasti is a place which supports racism and I decided against going there.

    When it comes to the year 2012, some time back there was a rumour about the year 2012. Hollywood made a movie – 2012. That movies speaking about this year as a question of existence, right? Well, why start the year with that question. Or we can start thinking about existence and ask questions to ourselves. Look at the 2011, what we did not see? We saw Arab Spring, Summer of India/USA and Winter of Europe. Let me elaborate –

    Arab Spring – I was in middle East during the time when Egypt, Bahrain, Yemen and other such uprising were in news. I wrote in 2011 about Arab uprising – Power Corrupts. Yes, it does and had been in question for Middle East in 2012.

    Summer of Europe – Have you not noticed that the production in China, industrial growth figures of India and other developing nations were not positive lately? The likely reason for that is slow or negative growth of developed nations e.g. USA and Europe. Euro zone saw a unique problem this summer of 2011 when countries were likely to default on their loan payment! I asked a question to myself Euro is it dead? and in May 2011 asked my Teacher of economics – Professor Mankad is Euro dead? We saw the turmoil of Euro for couple of months. Lately, I read on Reuters that “the Euro is not an experiment…” ECB executive said that. On a lighter note – “as if it was supposed to be an experiment until now”. Personally, I am in favor of the kind of economic zone Euro has created. However there are problems with accountability which needs very strong measure.

    Winter of India and USA – Euro zone crisis did not end and we saw another people’s movement – the Lokpal movement in India and Occupy Wall Street in USA. In brief Lokpal bill is to curb corruption and bringing high and mighty beurocrates and politicians under the ambit of LAW. Strange a democratic country India talking as if it is an autocratic country where KING/QUEEN (beurocrates – include lower and upper – and politicians) is above the law. On the other hand citizen of USA were questioning ‘the top 1% holding maximum wealth‘. Why not Investment Bankers take responsibility for not only creating toxic assets but also burning those assets which eventually ruined the economy – of the whole world.

    Well what do you make out of these seasons of 2011. If I look back and take a macro perspective – all these big events of 2011 were Questions on “accountability”. Let us begin the new year with taking responsibility of our actions and working towards a peaceful (Middle East), moral (India) and equitable (Europe and USA) world.

  • Need of the hour!







    Recently, I woke up early in the morning, it was not because I had to go somewhere, but because in the night I forgot to switch on my mosquito repellent. Apparently, I didn’t have to kill the mosquito. All of them put together had sucked enough blood to wake me up and as individuals had sucked enough to full their bellies that none could fly. And they all fell under my weight to die!

    I was wondering about the same in different context and thought about politicians of India and some corporate houses (include Kingfisher). In current context the Anna movement, Occupy Wall Street movement and economy world around has made every commoner – like me – to think seriously about what is happening around. Now it seems that not all politicians and executives can get away with the deeds. They have to be accountable and answerable because the pinch of the rash and extravagant decision are backfiring. If I compare the scenario to my waking up and inadvertently killing few mosquito, the weight of economy has killed some companies (Lehman Brothers) and some are in the lurch. Either politicians and executives have to understand that there has to be enough and more responsible actions and decision or people would gather on streets to protest.

    I am not against development and taking risks yet we have to balance risk and be responsible for the powers offered to us by the shareholders, banks and others. Is it fair to party when you know you are under debt of 1000s of cr (tens of billions) rupees? Is it fine to sponsor and own events when you are under lots of liabilities? I was wondering when I read the news – LIC may be forced by the Govt to rescue Kingfisher. Thankfully it does not seem to happen, otherwise LIC policy holders – such as me – would feel robbed of their hard earned income.

    The collective power has toppled a Govt in Middle East – I term it as French Revolution of Middle East – and other countries of Middle East are feeling the heat. Credibility of a company was on stake when Murdoch was summoned. We see a strong voice against corruption in India and against the reckless decision of bankers as Occupy Wall Street movement. Is not it fair to assume that all educated people (politicians and executives) would understand that commoners are asking for only fairness and accountability, and perhaps it would solve many issues we face in current times, That’s it!