Toward India 2020: Challenges and Opportunities

MIT World is a free and open site that provides on demand video of significant public events at MIT. Saw this amazing video recently.

People sometimes ask Montek Singh Ahluwalia questions loaded with “aspirational objectives,” such as when India will “get rid of poverty.” Few are as well equipped to respond as Ahluwalia, one of the architects of India’s breathtaking economic transformation.

The current income of an average Indian citizen is about 1/15th that of a U.S. citizen. Ahluwalia envisions increasing India’s per capita income ten fold. He sees this as a matter of “simple arithmetic.” To achieve this advance, India must sustain GDP growth of 9% a year (which corresponds to a 7%/year growth in personal income) -- for 32 years. By 2040, India’s 1.5 billion people could be living more like Americans. “Regrettably, I won’t be around to see it,” says Ahluwalia.

By 2020, though, assuming such sustained economic growth, he would be around to witness “more modest results.” Indians would double their annual income to $6,600, and the nation would be able to “provide a basic level of services to the vast majority of its population,” essentially leaving behind its problems of poverty. This kind of growth, “an extremely worthwhile objective” for India, would also leave its mark on the rest of the world. It would inspire other emerging economies, for one thing. It would also shift the balance of power in global trade, with the combined economies of India and China taking on the U.S.

So can India really achieve this kind of relentless economic progress? Ahluwalia’s not sure, but invokes the successes of Japan, Korea and China, and sees reasons for optimism. Over the past eight years, India’s averaged a 7.2% GDP growth rate, and looks likely to land on its feet after the current worldwide recession. On the other hand, the nation’s vibrant democracy (420 million voted in the most recent elections) can make agreement on economic policy and its implementation difficult. Ahluwalia is “not complaining,” but acknowledges that this kind of participative society “means we’re taking longer to get done what needs to be done.”

He sees institutional strengths that will enable India to push its development agenda forward: a sense of confidence pervades Indian society; past reforms have “unleashed tremendous energy in the private sector;” the economy has opened up to greater domestic and foreign markets; and in spite of changes in government, the general economic policies continue to evolve. Ahluwalia acknowledges that defeating poverty may not address everyone’s goals for success. The true objective for India, he believes, is “inclusive growth,” an equitable and constructive distribution of economic gains via market forces, government and public means.

GE’s Immelt: We Actually Hire People

Here is an interview of GE CEO Immelt at a conference held by Wired.com in June 2009. He talks about the challenge of driving continuous growth and innovation in a company of GE's size as well as the impact of the financial crisis.

Future of Global Equities Markets

Amazing conversations in this video by Ewing Marion Kauffman Foundation about how a turbulent financial market combined with accelerating technologies will affect tomorrow's equity markets by three of the nation's leading market experts.

Following an introduction by Kauffman Foundation President and CEO Carl J. Schramm, the discussion is led by Harold Bradley, chief investment officer of the Kauffman Foundation, and features Duncan Niederauer, CEO of the NYSE Euronext, and Peter Bloom, managing director of General Atlantic Partners, a global growth private equity investor. The 90-minute discussion addresses current challenges in the equities markets and the trading of stocks, bonds and derivative securities in a global marketplace.

Organizational Behavior

No need to explain anything.
Saw this on the blog http://socialbusinesssa.blogspot.com/

Bill Gates Unplugged

A passionate techie and a shrewd businessman, Bill Gates changed the world once, while leading Microsoft to dizzying success. He plans to do it again with his very own style of philanthropy.

Take Investing Back to Basics

Got this nice email from INGDirect about 'simple' investing.

Tough times and volatile markets come and go, but solid investing principles are timeless. Good advice right now and in any market: go with S.I.M.P.L.E. investing:

Step back – Take a deep breath. Everyone knows that mattresses might seem like the safest spot for your money. But historically, the stock market has provided an opportunity for long-term returns.*

Investigate, then diversify – Take advantage of free research and investing tools instead of jumping on a hot tip or trying to act fast. Remember to balance your portfolio across investments.

Max out retirement vehicles – Take full advantage of any employer match for your 401(k). Otherwise, you leave money on the table. No 401(k) available? Grab the tax-deferred benefits of an IRA.

Pay yourself first – A cliché for sure, but not as easy as it sounds. Unless you have savings automatically deducted from your paycheck or bank account. It's like pre-paying bills in retirement. Talk to your employer's HR department.

Live like an investor – Adopt an investing way of life by committing to the long-term view. Your saving and investing habits can even set an example for the kids in your life.

Earn rewards – Set milestones and small rewards for yourself when you "earn" it on your smart financial plan.

Even if you only follow one or two of these tips, you'll be better off than you are today. So trust yourself. Then grit your teeth and get to it.

10 ways to find joy

Read this article on the 10 Secrets to Finding Happiness During the Recession by Deborah Kotz.

1. Spend $20 on an experience rather than an item.
2. Pursue meaningful life goals
3. Be open and receptive to what's happening right now, in the moment.
4. Nurture meaningful relationships.
5. Recognize your strengths.
6. Count your blessings.
7. Keep an optimism journal.
8. Seek advice from your neighbor.
9. Get out and sweat.
10. Do unto others.