Wednesday, November 18, 2015

A Look at Hillary Clintons Economic Policies

A Look at Hillary Clintons Economic Policies
By Matthew Johnston | November 13, 2015

The middle class has been on the decline for nearly half a century, and with income inequality now at levels not seen since the 1920s, the Democratic presidential race has been largely focused on economic security for the bottom 99 percent. Democratic Presidential hopeful Hillary Clinton’s campaign is no different. Clinton's economic policies target the middle class, promising to secure their economic futures and expand their opportunities through greater access to education and more evenly distributed economic growth.


The American dream promises that hard work will naturally lead to success. Yet with incomes no longer growing in line with productivity, it would appear that this central tenant of the American dream is fading. Clinton wants incomes to rise in line with corporate growth and productivity. Her website says that the “defining economic challenge of our time is raising incomes for hardworking Americans.”

Clinton's economic policies are aimed at confronting the challenge of raising incomes head on. Her approach is centered on three pillars: strong growth, fair growth and long-term growth. Below we briefly review these policies.


In order to achieve strong economic growth, Clinton believes that it is important to invest in education and infrastructure, promote small business growth and increase workforce participation, especially for women.

The New College Compact is Clinton's plan for making higher education more affordable and accessible. The plan extends tax cuts of up to $2,500 per student and significantly cuts interest rates on student loans. It also guarantees all students tuition-free community college and the ability to graduate from a four-year state school without taking loans for tuition. Clinton also proposes to invest in more scientific research. The New College Compact is not cheap. It will cost an estimated $350 billion over the next 10 years--a budget gap that Clinton plans to close by eliminating certain tax loopholes and expenditures that benefit mainly the wealthiest Americans.

Clinton's plans to improve infrastructure include the creation of a national infrastructure bank. Such a bank would use both public and private funds to invest in infrastructure projects throughout the country, improving everything from highways and bridges to broadband service.

On her website, Clinton also writes “that small businesses are the backbone of jobs and growth in America.” Part of her campaign is promising to provide small businesses with increased access to capital, greater tax relief, easier access to new markets and less red tape.

The labor force participation rate has been on the decline for a number of years now, and Clinton wants to improve the situation. One of the ways in which she wants to do that is by making the workforce more accessible to women through equal pay, paid leave and affordable child care.


Clinton’s emphasis on fair growth is based on the premise that corporations have been earning near-record profits while wages for average working Americans have stagnated. To achieve greater shared prosperity, she aims to encourage profit sharing, boost the minimum wages, ensure the rich pay a fair share in taxes and expand early learning opportunities for young children.

To encourage companies to share profits with their workers, Clinton has proposed a plan to implement a 15% tax credit - even higher for small businesses - for businesses that distribute profits to employees. The tax credit would be targeted at those workers and businesses that need it the most. Clinton expects the plan to cost close to $20 billion over ten years and she plans to pay for the credit through closing tax loopholes.

Concerning the federal minimum wage, Clinton is supporting that it should be lifted to $12 an hour. But, through state and local government efforts, and stronger collective bargaining for workers, she hopes to boost wages even higher.

To ensure that the wealthy pay their fair share in taxes, Clinton plans to do away with the carried interest tax break and other tax loopholes and expenditures that serve to benefit the rich.

Believing that early development is crucial for later success, Clinton also plans to expand early learning through a proposal that would give every 4-year old in America access to high-quality preschool education. Making this education available to all children would help to ensure that they all have equal opportunities for success.


Finally, Clinton wants to emphasize long-term economic growth. To achieve this, she aims to encourage companies to plan for long-run growth instead of short-run gain. She also plans to increase regulation on Wall Street that would deter risky speculation that might have long-term destabilizing effects on the economy

To encourage businesses to invest for the long-term, she proposes to reform the capital gains tax in a way that would give greater rewards to investments aimed at creating jobs and future growth. She will also work to discourage the influence of shareholders that are too focused on short-term profits, as well as reforming executive compensation so that it is more aligned with the achievement of long-term growth.

One of her major focuses in this regard will be to impose strict accountability on Wall Street. She will defend the Dodd-Frank Wall Street Reform and Consumer Protection Act, but will also work to remove the dangerous risks posed by the financial sector by giving more power to independent regulators and ensuring that criminal activity is dealt with appropriately.


Clinton has made some ambitious proposals for the economy that will come with costly price tags, but if she can achieve the strong, long-term growth that she hopes for, these proposals may end up paying for themselves with benefits to all classes of Americans, including the wealthy.

In an economy that appears to be struggling from a lack of aggregate demand, plans to increase infrastructure investment, help small business growth, and put more money into the pockets of middle-class Americans make a lot of sense.

Putting more money into the pockets of middle-class Americans will increase their purchasing power, which will raise aggregate demand. Business confidence will rise and future investment will be seen to be profitable once again. Thus, helping to increase incomes for the middle class doesn't just benefit just them, but all Americans, including the wealthy.

Discouraging risky financial speculation will also help to direct funding to more long-term investments that will help to create more jobs. In fact, it may be that the economy is so broken that it is encouraging those with more money than they know what to do with to engage in financial speculation that differs little from gambling.

With purchasing power returned to the middle class, cracking down on risky financial speculation will build the right incentives for real productive business investment to become not just profitable, but sustainable.


Clinton’s emphasis on strong, fair, and long-term growth is aimed at increasing the incomes of hard-working, middle-class Americans. At a time when the economy has been struggling and income inequality is on the rise, Clinton’s campaign could promise a brighter economic future.


Monday, November 09, 2015

Top Tips to Lead and Empower Employees

Employees are an essential part of your business and brand.  If they come across as unwelcoming or uninterested, you run the risk of rubbing your customers the wrong way.  Unhappy employees can lead to assumptions about whether or not your business is a great place to work – and whether or not customers want to give you their business. 

There are countless studies highlighting the links between strong employee morale and satisfaction and customer satisfaction. So how do you make sure your employees are happy and satisfied?

“Happy” and “satisfied” are subjective terms, but typically, satisfied employees are those with a sense of well-being.  This includes the presence of positive feelings like joy and interest, and the absence of negative feelings like apathy and sadness.  In the same way that positive feelings can enhance an employee’s ability to find meaning in his or her work, those feelings can also play a role in that employee’s performance and growth.

Here are some tips to foster a positive work environment and empower your employees:

1.  Start by being a good leader.  You might be a good manager, but are you a good leader?  It’s often said that while managers manage people, leaders lead people.  In addition to managing projects and workload, make sure you’re also focused on inspiring your team to excel and succeed.

2.  Give them quality time with strong leaders.  As a leader, it’s important for you to listen and show that you care about your employees’ work, concerns, and aspirations.  Whether you introduce a mentor/ protégé program or a few extra one-on-one meetings, your employees will be more engaged and productive when they feel seen and heard.  If you have a larger business with a hierarchal reporting structure, it’s also important to give recognition to your management team.  If they already get workplace face time with you due to their positions, consider a social outing like a lunch or a social event for the entire management team.

3.  Encourage empowered behaviors.  Employees who have a strong sense of well-being are also more likely to take on new challenges and to play a wider role in the success of your business.  When possible and with parameters, let your employees make some decisions independently of you when they are closer to the action than you are and may be more likely to know the right call to make.  Remind them that as they make decisions that they need to consider customers, the team, and your business profitability.

4.  Encourage creativity.  There are always new challenges to address and better ways to do things; let your employees get creative when it comes to dealing with common business issues.  Whether it’s suggesting a process improvement for managing inventory or researching a new technology solution for your invoicing system, give your employees room to creatively address everyday challenges.

5.  Hold “lunch and learn” sessions.  These meetings give your employees the opportunity to learn and connect with one another during the lunch hour.  Determine a clear topic ahead of time and tee the sessions up to be both informative and interactive.  Whether you’re discussing team goals and performance, holding a “show and tell” with a partner or a particular team, or bringing in a guest speaker or outside resource, getting everyone together in one room can shed light on new ways of doing things and make the lunch hour energizing and engaging.  

6.  Don’t forget to say thank you.  We all appreciate being thanked, but taking the extra step to use a hand-written note, a gift card, or other gestures to recognize achievement can make a big difference in making employees feel appreciated.

Published: September 25, 2015 - Updated: September 25, 2015

How to Communicate During a Disaster

The idea of returning to “business as usual” when you’re in the middle of a disaster can seem impossible.  While it is absolutely possible to make a full recovery, especially with the resources available to your business, many business owners overlook one of the most important parts of disaster recovery and business continuity – communication.

How your business communicates during and following a disaster can directly affect your business’s ability to recover.  Misleading information, even from outsiders, can drive speculation about a damaged business – which is why precise, effective communication – both to the public and internally – is absolutely critical during and following a disaster.

Crisis Communication 101

Planning is a key component of disaster preparedness and recovery, especially when it comes to communication.  Don’t wait for disaster to strike to create a crisis communication plan.  Your plan should not only consider the various avenues you have to communicate, but also your different audiences – customers, employees, vendors, your community, etc.

We depend so much on digital communication and electronics, but a traditional phone tree can be immensely helpful during a crisis.  Ensure that your business has alternate contact information for everyone you might need to reach, internally and externally, and provide hard copies that are easy to access.

You may also want to consider an alert notification system of some kind to send out text, email, or phone alerts through systems that are separate from your primary systems.   Similarly, you may want to have a standard operating procedure in place for communication via Facebook, Twitter, and other social channels.   Social media gives us the ability to push out information quickly to large groups of people, and should not be overlooked as a critical tool for crisis communication.

Top Tips

Here is a simple list of tips to get your company’s crisis communication plan started:

  • Develop (and keep updated) an emergency contact list that includes home phone numbers, alternate mobile numbers, personal email addresses, family contact information, and a phone tree assignment system.

  • Establish an evacuation plan and review it with employees on a regular basis.

  • Look into email and/or text alert systems that can facilitate multiple means of communications to both employees and customers – and be sure to test the system on a regular basis.

  • Develop an SOP for your online social networks for Web-based crisis communications on Facebook, LinkedIn, Twitter, etc.

  • Develop a plan to work with local media when you can.  With proper planning, the media can serve in a support role as your business works to rebuild after a disaster.  This means you’ll also need to designate a spokesperson/group of spokespersons and provide some sort of basic media training.  All employees should know which members of the staff are media trained, and create key messaging points for these individuals to ensure consistent voice and message during a disaster.

  • Similarly, as best you can, monitor what is said and written about your company during and after a disaster – it may provide more insight on the strengths and weaknesses of your business strategy than you realize.
The Bottom Line

Beyond communication, it’s always smart to conduct a debrief following a disaster to evaluate any lessons learned and to work to improve your crisis communication plan for future use.

Published: July 15, 2015 - Updated: July 28, 2015

Wednesday, October 07, 2015

The Right Mindset for CEO Success

The Right Mindset for CEO Success
By David Joseph Hoppock | June 29, 2015

The Chief Executive Officer of a company is a person that employees, investors and customers look to when organizational decisions are made, good or bad. More often than not, they are the figurehead that receives the praise or ridicule that comes with holding a leadership position such as this. Owning the role of CEO is no simple task so it is imperative that CEOs have the correct mindset to ensure the success of their organization.


Possessing the ability to execute a plan of action effectively and efficiently is a vital attribute for a CEO and should be of the highest priority. Proper execution can be the difference of maintaining an edge on the competition or losing revenue opportunities and market share. Ultimately, business decisions are what make headlines, move stock prices and determine the fate of a company.


The mental capacity to transcend ego and any individual aspirations is necessary in managing an effective business. Considering all areas of the organization and how they fit into the overall vision and mission will aid in understanding the short and long-term goals of the company. Forward thinking and planning for uncertainty will allow a business to be better prepared for challenges when they arise.


Being adaptable is a crucial part of business as innovation is a byproduct of competition. Businesses are progressive by nature, so having a stationary attitude will only harm a firm’s standing in the marketplace. For instance, International Business Machines Corp. (IBM), surprisingly, used to sell commercial scales, punch card tabulators, enormous mainframe computers and calculators. Now they produce software in addition to providing consulting and IT services.

General Electric Co. (GE) was established as a way for Thomas Edison to organize and produce his electric inventions. However, today it manufactures gas engines, hybrid locomotives, HD CT scanners, chemical sensors and ultra-sound devices. It’s interesting to imagine where these companies would be now if their leaders had not adapted to opportunities and trends in their respective industries.


Genuinely understanding the talents and strengths of those that work for a company can be a significant asset to its growth and progress. Embracing the contribution employees offer will invite time that could be better spent strategizing and focusing on organizational goals. The willingness to ask for assistance in less familiar matters is also the quality of a strong leader.


As the CEO of a company, things won’t always work in your favor and obstacles will be imminent. People are much more likely to admire positive leadership as opposed to pessimism. Having an optimistic yet realistic outlook will speak volumes about their character and in turn gain them more respect.


Most employees don’t like working for a tyrant. Being approachable and willing to lend an open ear might help bring light to new ideas and open discussion for concerns that might not have been addressed otherwise. Exercising an open mind and empathy will not only promote discussion, but will also strengthen the trust and relationships amongst individuals across departments.


As everyone should know, the primary reason any company’s doors are opened is because of its customers. Remembering it’s the basis of having the CEO position is imperative and will provide proper perspective when establishing organizational objectives. Giving the customer reasons to keep coming back will continue to pay dividends for the entire company.


By no means is holding the title of CEO an easy assignment. Countless duties while having to answer to employees, shareholders, customers, the media and even sometimes Congress is, incontestably, a tall order. Nonetheless, it must be accomplished and can be achieved with the right mindset. To the virtues previously mentioned, if they can be exercised effectively and gracefully, it will make the responsibilities of being CEO a much greater pleasure to experience.

Top Qualities Of An Effective CEO
By Stephen D. Simpson, CFA | September 22, 2011

With Apple's (Nasdaq:AAPL) near-legendary CEO Steve Jobs heading back to semi-retirement and Hewlett-Packard (NYSE:HPQ) recently changing the name on the door of the executive suite once again, the quality of executive management is a hot topic. Time and time again, the markets have proven that even companies in low-growth or commodity industries can offer winning stocks on the basis of exceptional management. Likewise, the markets have shown that few stocks can thrive for the long term with suboptimal leadership.

What, then, goes into making a CEO and how does he or she build value for shareholders?

The Traits of Highly Effective CEOs

Unfortunately, there are no objective quantifiable markers of a good CEO. Great CEOs have come from the Ivy League and from Nowhere State. Likewise, good CEOs have had deep backgrounds in a single industry or wide-ranging careers across many functions and sectors. Nevertheless, a few key traits seem to come up over and over again.


Arguably nothing is more important to a company than a CEO who understands both the market today and where it will be tomorrow. There is a famous quote from Walter Gretzky, father of hockey legend Wayne Gretzky, that goes "skate where the puck is going, not where it's been," and CEOs would do well to take this to heart. Bill Gates understood the potential of the PC before many others, just as Steve Jobs understood the potential of mobile computing, and those visions helped build their respective companies. Consequently, this is a key CEO trait and a key component of long-term success. For companies to stay strong, it is vital to understand what the customer is going to want in future, maybe even before the customer knows it.

Execution and Organization

CEOs do almost nothing on their own. Warren Buffett does not quote rates for Berkshire Hathaway's (NYSE:BRK.A) insurance businesses and McDonald's' (NYSE:MCD) CEO isn't slaving away over a grill. What makes for a successful company is the ability to identify quality managers at all levels of the organization. CEOs have to find quality vice presidents, those vice presidents have to find quality managers and those managers have to find good workers.

A corporate organization has to be functional and efficient. Multiple layers of bureaucracy can slow things to a crawl, demotivate employees and quash new ideas. Likewise, there has to be accountability and execution at all levels. Good CEOs build good organizations, populate them with good people and then make sure the right incentive structures are in place to keep it all moving forward.

Candor, with Compassion and Pragmatism

Arguably the most important attribute of a CEO, beyond his or her own integrity, is a sensitive "BS meter" regarding everyone else's integrity. CEOs need to know when they're dealing with suppliers, customers or co-workers who cannot (or will not) deliver what is expected of them. Along the same lines, while a CEO needs to be demanding and expect high standards to be achieved, he or she cannot be so harsh or volatile that underlings prefer to lie than deliver bad news.

Likewise, successful CEOs do not rely upon mass-firings to cover up their own mistakes. Sometimes there is no choice but to close an under-performing business and fire the workers, but all too many CEOs curry favor with Wall Street (and their board of directors) by large-scale firings aimed at momentarily boosting margins - all without a hint of irony that it is often the same CEO who boldly pushed the company to hire those workers to fulfill his or her "growth strategy."

How CEOs Build Value

Right Markets, Right Times

A good CEO should be able to build value in any industry, but long-term value creation is preconditioned on a healthy underlying market. IBM (NYSE:IBM) saw the future of mainframe computing (and then PC computing) and made sure that it was ready to enter more promising markets like storage and IT services.

Likewise, DuPont (NYSE:DFT) has a long tradition of developing new markets and then leaving them behind (or deprioritizing them) as they transition from growth to cyclical growth.

Driving Hard Bargains, but Not Too Hard

Here again there is a delicate balance - a balance that the best CEOs seem to intuitively understand. It is important to be efficient and to be a hard negotiator. At the same time, long-term corporate success is predicated upon hiring good people and keeping them motivated to continue working hard. Fear motivates for a while, but eventually quality workers tire of the stick and leave the company in search of an employer that will give them carrots instead.

Along similar lines, good CEOs understand that their companies are part of a food-chain and it is difficult to succeed by beggaring partners. Companies like Apple, McDonald's and Wal-Mart (NYSE:WMT) demand a lot from their suppliers, but they don't look to put them out of business. Put differently, a good CEO understands that a cow can be milked for years, but can only offer up steaks once.

Managing for the Future, Not the Mirror

Quality CEOs generate above-average returns on capital, something that comes about largely from strong margins (an efficient operating structure and strong brands) and efficient use of capital. Often this means running a lean, efficient structure that is no bigger than it has to be and having a CEO who is willing to jettison businesses that do not (and cannot) earn a satisfactory return on capital.

That seems obvious, but it is difficult in practice. Most CEOs have big egos, but you have to have a healthy ego to want the responsibility of that job and withstand the challenges. In lesser CEOs, that ego can manifest as a drive to run as big of a company as possible - with bigger taking the place of "better." Many CEOs regard their employer as "their company" and run it like a medieval lord would run a fief, and not as an employee running a business on behalf of shareholders. Likewise, a CEO who cares more about being named to industry "roundtables" or showing up regularly on CNBC is likely managing for the mirror and not for the shareholders.

The Bottom Line

Unfortunately, there are few inarguable quantifiable ways to evaluate CEOs, and what few ways exist are almost always backwards-looking statistics like return on capital. Still, shareholders can listen carefully to how CEOs communicate with them, monitor the types of decisions the CEO has made in the past and evaluate whether the company operates a sustainable model - not wasting money or capital on vanity projects or unsalvageable businesses, but not stinting on research or fair compensation.

As few things are more important in the long-term success of a company than quality management, it is very much worth an investor's time to do thorough due diligence on a CEO and the vision he or she has for their enterprise.

How Corporate Culture Affects Your Bottom Line
By Janet Fowler | December 26, 2012

In an economy where raises and promotions may not always be financially feasible, what can employers do to improve employee retention? Though many companies may be tempted to overlook corporate culture as a means of improving their bottom line, some companies have found that effectively building and maintaining a positive corporate culture helps to improve productivity. Ultimately, corporate culture is developed and impacted by society and other cultural aspects; however, it is largely formed by the attitudes of the employees within a company and the procedures enforced by that organization. It is something unique to each and every organization.

Find Flexibility

Do you find that your employees are constantly clock watching, waiting for five p.m. to roll around so they can bolt out the door? Although it may seem counterintuitive, some companies have found that allowing for flexible work schedules has increased worker productivity instead of decreasing it. Workers find that they feel trusted by their employers when they aren't being constantly policed, allowing them to get their work done as they see fit so long as the job is done on time. This also allows workers to find a greater work/life balance, leading to a happier, healthier workforce.

Promote Creativity

Creativity should be promoted within the workplace. Many organizations have fostered creativity by creating open-concept workspaces that allow for teamwork and a certain amount of freedom. This allows employees to collaborate and work effectively, creating a sense of community within the office. This in turn promotes employee innovation and creativity in their approach to work, often allowing employees to quickly identify successful solutions in dealing with workplace issues.

Time for Fun

Though it may be often said, it is probably true that we typically spend more time with our coworkers than we spend with our families. For this reason, finding ways to make work fun can dramatically improve morale in the workplace. Things such as company events or friendly competitions can improve both loyalty and performance.

Approachable Leaders

A lousy manager is a common reason for leaving a job. An excellent boss, however, can have the opposite effect. Employees look for supervisors and managers who are clear communicators and don't micromanage. This allows employees to feel supported and free to ask questions without fear of retribution, helping to improve the overall communication within the office.

United We Stand

Creating a strong and respectful team dynamic ensures that your employees will look out for one another and work together to succeed. Organizations that place a high level of importance on creating a unified team will often seek new employees who are a proper fit for their company's corporate culture instead of simply hiring the most qualified person, only to find that they don't match with the organization's ideals. In turn, employees feel compelled to work together to achieve the greatest results.

Recognizing Excellence

Companies that recognize outstanding performers often enjoy a greater level of loyalty from their employees. Recognition can come in many forms, including promotions, performance bonuses and other incentives or rewards; however, recognition does not always need to be formal or tied to compensation. In fact, a simple pat on the back or a thank you for a job well done can do wonders to encourage employees to keep giving it their all.

Accountability and Loyalty

Greater accountability and employee loyalty are some of the main perks that come from a less-structured, more-supportive work environment. In fact, employees who feel like they play an important role in the success of the organization generally strive to do the best job they can, often performing at a higher level than those who are closely monitored or policed in the workplace.

Solid Service = Limitless Growth

Making customer service job one ultimately leads to a company that can grow and flourish. Each department should clearly understand who its customer is. Some departments serve clients or customers within the company, while others serve external clients outside the organization. If a company focuses on providing the very best service possible, however, the company's customers will probably be happy, coming back for repeat business and sharing their positive experience with friends, family and business associates.

Contagiously Positive

It's a simple fact that a smile can be contagious. Happy employees talk positively about their employers. This in turn can shed a positive light on your organization, leading to increased awareness about your company and translating to improved sales.

The Bottom Line

Every company that moves toward creating a unique corporate culture goes through growing pains, and not all strategies will work equally well for all companies. It really depends on finding the right mix of freedom and creativity that will work for your industry and for your employees. There is, however, no denying that happy employees are typically much more eager to come into work and give an honest day's work - which will hopefully translate to greater sales volume and employee retention. Bear in mind that each and every time an employee leaves your company, there is lost productivity, as a replacement worker must be recruited and trained. It is often a lot easier and more beneficial for an organization to keep its experienced and outstanding staff happy and productive.

Sunday, September 13, 2015


What is Globalization?

Globalization means the coming together of different societies and economies via cross border flow of ideas, finances, capital, information, technologies, goods and services. The cross border assimilation can be social, economic, cultural, or political. But most of the people fear cultural and social assimilation as they believe this would have a negative impact on the existing culture of their society.

Globalization therefore has mostly narrowed down to economic integration and this mainly happens through three channels; flow of finance, trade of goods and services and capital movement. 

Globalization is a term that includes a wide range of social and economic variations. It encompasses topics like the cultural changes, economics, finance trends, and global market expansion. There are positive and negative effects of globalization - it all comes as a package. Globalization helps in creating new markets and wealth, at the same time it is responsible for extensive suffering, disorder, and unrest.

The great financial crisis that just happened is the biggest example of how negative globalization can turn. It clearly reveals the dangers of an unstable, deregulated, global economy. At the same time, this gave rise to important global initiatives, striving towards betterment. Globalization is a factor responsible for both repression and the social boom.

What happens when there is a growing integration of economies across the globe? Majorly there have been positive impacts of this global phenomenon - through liberalization, privatization and globalization (LPG). Due to globalization, there has been significant flow of inward foreign direct investment. MNC companies are getting a chance to explore various different markets across economies and explore the untapped potential.

Globalization in

Globalization has had a huge impact on the Indian economy. Globalization affected the Indian economy both positively and negatively.

India's economy opened up during the early nineties. The policy measures on the domestic front demanded that there was a requirement of multinational organizations to set up their offices here. The market became more open and the economy started responding to the external (global) market. The direct impact of globalization was directly seen on the GDP of the country which increased significantly.

The liberalization of the Indian economy along with globalization helped the country to step up its GDP growth rate considerably. The GDP growth rate picked up instantly from 5.6 percent in 1990-91 to 77.8 percent in 1996-97. Since then the growth rate did manage to slump down due to drought and other factors but the country still managed to survive in the rat race and maintained a GDP growth of about 5 to 6 percent. Today India is regarded as being the one of the fastest developing countries just after China.

Globalization has also played a major role in generating employment opportunities in
India. After liberalization in the 1990s, the scenario of employment in India has witnessed a phenomenal change. Cities like Bangalore, Delhi, Mumbai and Chennai provide employment to a chunk of the Indian population since it is in these cities only that most foreign companies have set up their operations. 

Impact of Globalization

It was in July 1991, when foreign currency reserves had tumbled down to almost $1 billion; inflation was at a soaring high of 17%, highest level of fiscal deficit, and foreign investors loosing confidence in Indian Economy. With all these coupling factors, capital was on the verge of flying out of the country and we were on the brink of become loan defaulters. It was at this time that with so many bottlenecks at bay, a complete overhauling of the economic system was required. Policies and programs changed accordingly. This was the best time for us to realize the importance of globalization.

India welcomed globalization with open arms, the result of which can be seen clearly. India's Export and Imports have grown significantly over the last two decades. Quite a large number of Indian companies have made a reputation for themselves on the global scenario. India has become a one a stop destination for many services specially related to IT and IT support.

Measures of Globalization

Devaluation: The first initiative towards globalization had been taken the moment there was an announcement of devaluating the Indian currency by a hoping 18-19% against all the major global currencies. This was a major initiative in the international foreign exchange arena. The Balance of payment crisis could also be resolved by this measure.

Disinvestment: The core elements of globalization are privatization and liberalization. Under the privatization scheme, bulk of the public sector undertakings have been/ and are still being sold to the private sector. Thus the concept of PPP (public private partnership) came up.

Allowing Foreign Direct Investment (FDI): Allowing FDI inflows is a major step of globalization. The foreign investment regime has been quite transparent and thus the economy is getting boosted up. Various sectors were opened up for liberalizing the FDI regime.

Disadvantages of Globalization

Along with its many benefits globalization also comes with some negative effects. One of the major concerns of globalization is that it leads to unequal distribution of income within the country, the second fear is that globalization hampers the domestic policies of the country, Globalization also increases the risk of spreading of communicable diseases, monopoly can also set in with globalization and lastly outsourcing of jobs to the developing nations only results in the loss of jobs for the developed nations.

Is globalization delivering all the desired results to the masses? Or only a few can feel the benefits of globalization ?Figures have out rightly proved that the global average per capita income showed a strong surge throughout the 20th century but the income gap between rich and poor countries have not been bridged for many decades now. The ultimate inference being that globalization hasn't shown positive results.

Benefits of globalization

The continuing global tendency towards the free flow of business and monetary infusions across nations describes globalization which helps in the formation of international financial system. It provides economic independence and triggers competition stimulating globalization to elevate the living standard of people in the nations that offer themselves to the world trade.

"We have moved from a world where the big eat the small to a world where the fast eat the slow", as observed by Klaus Schwab of the Davos World Economic Forum.

All economic analysts must agree that the living standards of people have considerably improved through the market growth. With the development in technology and their introduction in the global markets, there is not only a steady increase in the demand for commodities but has also led to greater utilization. Investment sector is witnessing high infusions by more and more people connected to the world's trade happenings with the help of computers.

As per statistics, everyday more than $1.5 trillion is now swapped in the world's currency markets and around one-fifth of products and services are generated per year are bought and sold. 

Buyers of products and services in all nations comprise one huge group who gain from world trade for reasons encompassing opportunity charge, comparative benefit, economical to purchase than to produce, trade's guidelines, stable business and alterations in consumption and production. Compared to others, consumers are likely to profit less from globalization. 

Another factor which is often considered as a positive outcome of globalization is the lower inflation. This is because the market rivalry stops the businesses from increasing prices unless guaranteed by steady productivity. Technological advancement and productivity expansion are the other benefits of globalization because since 1970s growing international rivalry has triggered the industries to improvise increasingly.

Globalization leading to social anxieties:

Listed below are the three sources of anxiety between worldwide markets and social steadiness:

  1. Across the nations, globalization triggers the services of large sections of working people more effortlessly substitutable,
  1. Commerce can set free factors that weaken guidelines in national practices, for example workers in South Carolina are replaced by child labourers in Honduras,
  1. Globalization and its cutthroat rivalry makes it hard for administration to perform important tasks of offering the social programs

 Key areas which demand immediate attention:

  1. Public education, which will demand proper evaluation and outcomes of globalization incorporating its benefits.
  1. Amending practices to review the international fiscal institutions to assist in averting crises, facilitating helpful early warning systems, better synchronization of exchange rates among the world markets and arranging the private sector in order in performing rescue functions, and
  1.  Reorganizing the bilateral liberalization of the global financial system, which should tackle the major areas related to food trade, labour pacts and the environment.

Saturday, August 22, 2015

Land for Abu Dhabi’s First Hindu Temple

The Indian government has lauded a decision by the United Arab Emirates to allocate land for the building of the first Hindu temple in Abu Dhabi.  Narendra Modi, India’s Prime Minister, currently on a two-day trip to the UAE, said in a tweet on Sunday that he was thankful to the UAE government, describing the move, a great step.

There are currently two Hindu temples and one Sikh Gurudwara in Dubai, but none in Abu Dhabi.

On Sunday, Modi became the first Indian premier to visit the country in 34 years, meeting with Abu Dhabi’s Crown Prince Sheikh Mohammed bin Zayed Al Nahyan and Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum.

The trip is seen as an important step in burgeoning trade relations between India and the UAE, and the decision to allocate land for a temple in Abu Dhabi underpins the strategic vision of the two nations.

The UAE, a federation of seven emirates, is home to about 2.6 million Indian expatriates who comprise a third of the total population and outnumber the local Emirati population. Annual Indian remittances from the UAE are estimated at $14bn.

India is the UAE’s second-largest trading partner and the UAE is India’s third largest trading partner behind the US and China. Trade between the two countries reached $60bn last year.

Samir Saran, vice president of the Observer Research Foundation, a think tank based in Delhi, told Al Jazeera that UAE got it right by allocating land for such a venture.

“There will be those who will think that it is about him [Modi] demanding a temple or pushing a religious agenda. It is none of that. It was simply a case of him being the first leader from India to go to UAE after a long time, and it was a goodwill gesture.

“It is still a relationship centred around trade … Modi certainly didn’t go lobbying for a temple,” Saran said.

In July 2013, The Times of India, citing a source within the Bochasanwasi Shri Akshar Purushottam Swaminarayan Sanstha (BAPS), said a Muslim businessman had donated five acres of land for the building of a temple in Abu Dhabi.

According to the source, the move came after the BAPS had traveled to UAE on invitation from the Invest AD group based in the Dubai.

It is not clear if Sunday’s announcement referred to the same land.

It is a good news to the Hindu, Sikh, Jain, Buddhists and Sanatani Omkar followers that they will be able to perform their Dharma in an upcoming State recognized temple upon the lands donated by the Royal authorities of UAE. The United Arab Emirates on Sunday decided to allot land for building a temple in Abu Dhabi for the Indian community, as Prime Minister Narendra Modi arrived here on a two-day state visit.

“A long wait for the Indian community ends. On the occasion of PM’s visit, UAE Government decides to allot land for building a temple in Abu Dhabi,” tweeted external affairs ministry spokesperson Vikas Swarup.

“PM @narendramodi thanks UAE leadership for this landmark decision,” he said.

Afterwards PM Modi also tweeted the matter and thanked the UAE authority accordingly.

The UAE is home to 2.6 million Indian workers, of who around 20 percent are white-collar professionals. Indian expatriates comprise 30 percent of the UAE’s population and are the largest nationality group.

So, far there are some unrecognized and in-house restricted Hindu-Sikh worship places in Dubai and in some vicinities in UAE, the Islamic Royal State has decided to allow public non-Islamic worship place for the Indian roots people very significantly.

The upcoming Temple in Abu Dhabi will accommodate the worshipers of Panch Upasana (Ganapati-Shankar-Vishnu-Shakti-Surya), Omkar, Gurugranth Shahib, Buddha and Mahavir with the facilities of Indian festivals like Diwali, Dussehra, Ram Navmi etc. and most obviously the practice of Yoga and Meditation.

Indian nationals staying in UAE has heartily welcomed the decision. They expect that this Temple will be a symbol of World Peace and Harmony, as well as the landmark of Indian spirituality.

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Sunday, July 05, 2015

American Dream

American Dream

4th July – Happy Independence Day – United States of America - @librahitech

The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version of success in a society where upward mobility is possible for everyone. The American dream is achieved through sacrifice, risk-taking and hard work, not by chance. Both native-born Americans and American immigrants pursue and can achieve the American dream. In contrast to other political and economic systems, such as communist dictatorships, America’s free-enterprise system makes possible the circumstances that allow individuals to go beyond meeting their basic needs to achieve self-actualization and personal fulfillment.

The tenets of the American dream can be found in the Declaration of Independence, which states, “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.” In a society based on these principles, an individual can live life to its fullest as he or she defines it.

The American dream requires political and economic freedom as well as rules of law and private property rights. Without them, individuals cannot make the choices that will permit them to attain success, nor can they have confidence that their achievements will not be taken away from them through arbitrary force.

The American dream offers the freedom to make both the large and small decisions that affect one’s life; the freedom to aspire to bigger and better things and the possibility of achieving them; the freedom to accumulate wealth; the opportunity to lead a dignified life; and the freedom to live in accordance with one’s values, even if those values are not widely held or accepted.

Home ownership is frequently cited as an example of attaining the American dream. It is a symbol of financial success and independence, and it means having the ability to control one’s own piece of property instead of being subjected to the whims of a landlord. Owning one’s own business and being one’s own boss also represent American dream fulfillment.

From: Investopedia

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