Sports and A Nation's Crisis

This article was published in my magazine - The Focus - September 2010 Edition - For IBS, Hyderabad

Do the sporting events create a crisis situation for the host countries? Are the sporting events actually deliver the "social benefits"?

South Africans are already feeling the heat of hosting the World Cup tournament. When the initial estimate of World Cup stadium costs was made by South Africa, it was set at some 2-3 billion Rand. Based on current visitor estimates, there seems no way for the SA Government to recoup that investment; to top it up, over the last few months officials have been predicting the final bill will come in around 13 billion Rand. It is a staggering increase, but also a typical example of the insane enthusiasm that every country gets when asked to stage anything to do with big-money sport. These mega events are organized with the hope of generating vast revenues and gain more businesses and tourists. Organizing countries highlight the advertising revenues and international exposure (social benefit) as the benefits that follow.

The 1990 World Cup cost Italy £550 million. The economic benefit has been variously described since then as neutral to negative. In 2002 the host country Japan made a whopping loss: ticket sales were £1.4 billion, and FIFA gave the country £100 million - but the all up cost was £4.7 billion. Even the Germans made only a measly £56.4 million on their staging of the World Cup in 2006: and if Germany can't make money out of something, then it just isn't possible. (Versus the cost of staging the thing, this represented a net profit margin of 0.4%). When the UK won the 'right' to stage the Olympics in 2005, the nation went crazy. The total expenditure which started at £4.8 billion has crept up to £8 billion by 2010.

The EU has estimates that when soccer World Cup tournament is played on another continent, the loss to economic output is £.8.1 billion -either through people watching at a late/early hour and then calling in sick, or just calling sick for the whole two weeks to see the finals in person. Last week, Britain's new coalition government announced $38 million in Olympic budget cuts as part of efforts to slash the nation's budget deficit.

Even the current Greece crisis has got its heritage linked back to the Olympic Games. While many factors are behind the crippling debt crisis, the 2004 Summer Olympics in Athens has drawn particular attention. If not the sole reason for the nation's financial mess, it scores some point to the games as an illustration of what's gone wrong in Greece. Greece had been overspending. Governments in the Greek were not able to balance a budget in nearly 40 years, and the country narrowly averted bankruptcy in May before panicky European partners grudgingly put up massive rescue loans. As a result recently the Greece's Finance Minister George Papakonstantinou had to outline harsh spending cuts and tax increases to free up billions of Euros in a joint International Monetary Fund and Eurozone rescue. Greece will receive about $135 billion in bailout loans through 2012 from IMF and EU governments worried about the Greek crisis. This crisis could also damage the Euro.

There are more than a dozen Olympic venues - the start of Greece's irresponsible spending binge - now vacant, fenced off and patrolled by private security guards. Money loaned on short term, was spent on long term assets. The 2004 Athens Olympics cost nearly $11 billion by current exchange rates, double the initial budget, which does not include major infrastructure projects rushed to completion at inflated costs. In the months before the games, construction crews worked around the clock, using floodlights to keep the work going at night. In addition, the tab for security alone was more than $1.2 billion. Six years later, more than half of Athens' Olympic sites are barely used or empty.

So finally the question that prevails for us Indians is; are we heading for the same fate with the CWG? With the current media publicity of the in-appropriations in CWG purchases and more than `30,000 crore expenditure, do we still expect the tourists to come and watch the events at incomplete stadia? Would we even break-even?

India SA 5th ODI & Life

What a match it has been so far. Indeed a very intriguing match being played at The Centurion park ground. Students in my hostel are cheering for every run being scored, elated for every four and intoxicated for every sixer. What a match. All are glued to the TV set in the common area. Yusuf's made the second fastest century in the Indian batting history. India still strugling at the looming danger of losing the match and the series. What hopes remains?

Just during this cheering a thought crossed my mind, what is happening?
For every run cheers and after the wicket fell gloom and later normal. Drawing a parallel to life with this match isnt this quite similar to our experience.

In your life you will get so many people and items which will be cheering you all through your life. Some of them will be just part of your life for few years or maybe months, but then what boils down is just one thing Nothing Remains. All this will be finished some day, then why do we need to be entangled to them? Why do we need them? People wont care who you were and what you did after you are gone. Then whats the use of being longing to these attachments, these things?

Then the answer dawned upon me, Indeed to make the path till your end a bit more pleasurable. Everyone will not give you company till your end, there will be few who will remain till your end. Life gives you the experience to be able to find those who care for you till end. Then why do need materialistic pleasure? Indeed it remains useless when you have the greatest treasure which you will relish till the end.

But continuing the thought, what will happen to your cherished few after you are gone? I am clueless at this thought. Help Me!!

Induced Spending

The buzz word doing the rounds from the advent of "recession" is how to induce the consumer spending when they are quite skeptical about the future security. America is the leading example in this. America has brought in various fiscal and monetary policies which induce the people to spend more and save less. Policies are reducing the borrowing rate, reducing the value of the currency so that more money is spent constructively. But how much of it is actually done? American investors are sending their money to overseas markets where there are more returns on investments. How much is actually been spent to improve the economy?

As a parallel to this, India in the ancient times was very rich. Most of the population was wealthy and had some occupation to perform. There was no urgency in spending the money to buy items of desire. They had enough liquidity with them to spend as and when required. Also the people believed in savings and longevity of material goods.

This situation can be seen as an issue to the country's financial circulation. If people do not spend much and there is no consistent demand, then how can enterprises define their raw material pipeline? And as raw material for enterprise A is the output product of enterprise B, with this vicious circle there can be a devastating crumble of the system. With this crumble citizens tend to save more and spend less as there is no future security.

With this situation in mind and the recent festivities doing the round, I was amazed at the rituals which were formulated for all the festivals of our nation. There are numerous festivals, effectively making someone celebrate a festival or occasion everyday. All these occasions require people to invite guests and also give some money as "shagun". Now with this kind of raw money changing hands, the system is finally able to run the mill. People are spending during the festive seasons and saving during the odd seasons. These festivals are an imbibed feature of us Indians. We cannot live without it. Its our culture.

So without blaming any culture, I will say that if the festivities are made about such that people are compelled to spend, then you have your financial machinery running smoothly. There won't be any need of fiscal or monetary policies to Induce Spending.

Advertising. Is it attack on Indian traditions?

Why do the advertisers and the media time and again try to attack the Indian cultural roots to sell their products, inspiring the youth and the consumers to get away from their roots?

All of us distinctly remember the time when shampoos had entered into the Indian markets. It was promoted as useful agent to get rid of stickiness from hair oil. Indeed a necessary and an on target point, but at what cost? People reduced the oil usage. Youngsters opposed hair oil usage. And what happened? The younger generation of yesterday, the working generation of today; is facing heavy hair loss, dandruff and various other hair problems. You may argue that these problems were already present thousands of years ago when Ayurveda was discovered, but were these problems so aggravated? We had many other natural options which could effectively cleanse the hair of the extra oil and also give strong and silky hair like “areetha”, “shikakai”, etc. But to get ahead in the race to use the latest products the people started using shampoos. But when they could not see any good benefit they stopped using both shampoo and also oil. Effect – More damage.

Now the companies are bringing in products which are catering to the above problem by instilling in the minds of people that “look you people, you don’t have time for putting on hair oil. We have this shampoo which contains oil. Use this”. Phase shift of ideology for shampoo industry?

This is just an example. This is happening in other products too which had competed against the use of traditional items. Best example is soft drinks. All the soft drink brands pitched in as the new youth drink. This is “THE” drink, and the alternative natural drinks are no use. And now these soft drink companies are in a race to capture the natural health drink product markets. Interesting!

Some may term it as “Market Capture” – Erase traditional products, then re-introduce them with new packaging. To me this can be termed as “Re - Laying the base”. [I resist from using the term “Foundation” as that’s not what is being remade.]

So the question which props the mind is does selling means just sell and no ethics? No values to the inherent ideology of the nation, the traditions? I was and am still searching for the answers.

I am divided with the answers I have got till now. Sometimes the “Brain” says it’s all in the business. You need to sell the product come what may. While the “Heart” says don’t do this, its unethical. Don’t fool your traditions. But then I recollect a line from the movie “Lord Of Wars” –

Never go to war. Especially with yourself.

har cheez ki ek umar (nahi) hoti hai?

A very interesting article
Sourced from here

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"Bete, har cheez ki ek umar hoti hai", parents used to say.

There is a time to focus on studies.
A time to build your career.
A time to shoulder responsibilities.

But in the Indian scheme of things you are never 'old enough' to really live your life the way you want to.Until ultimately you are old and telling other - "Bete, har cheez ki ek umar hoti hai..." Philosophy aside, there is a very real dilemma facing parents today. My ten year old daughter (if you ask her she'll say, "11 in 3 months time!") wants to join Facebook. Now officially you have to be over 13 to be on Facebook but you know how simple it is to circumvent that rule. Her point is, lots of kids in class have Facebook accounts. I have no way to verify that - and neither should be the basis of my decision. So what do I do?This is but one example. There is the 'when can I get a cellphone' question. When can I go to the mall with my friends - and no adult escort?Recently I was stumped by when can I get a manicure (just want to try it once).My standard response is:"When you are in class 10". But I doubt I will actually be able to hold out for another five years.

So what are my concerns, why stop her from 'having it all' as soon as possible?

Well, like all parents, I want to protect her. From the big bad world out there. And yet, I do not want to spy. And I do not want to worry when I don't spy (and therefore don't know what company she is keeping). The hope is, the older you get, the wiser you get. But is there any such guarantee in this world?At best, you are postponing the inevitable. I've let her read the 'Twilight' series (it's supposed to be teen fiction but hey.. it's a rage among kids her age).

I switch off 'Desperate Housewives' when she is around but she's just discovered 'Friends' and funny as it is, the storylines are definitely 'adult'. I've handed down my ipod to her (but strictly forbidden taking it out of home).Yes, kids are growing up faster - physically and mentally. But you know they're still kids when they ask you - can we do this or that? The day they 'just do it' is the day they have grown up.

Har cheez ki ek umar hoti hai. The question for parents is, when will be old and wise enough to let go?

So i call Mumbai Bombay

The Marathas were never in possession of the Bombay group of islands. These were the territory of the Sultan of Gujarat. He was forced to give Bombay to the Portuguese. Unfortunately, these very proselytizing Portuguese murdered Sultan Bahadur Shah of Gujarat. There was no Indian ruler claiming ownership of these soggy, disease-prone islands of Bombay. Not only the Moguls but also the Marathas never claimed this piece of land as their own. They had no interest in the barren wasteland.

The wasteland of Bombay was given as the dowry by Catherine of Braganza (Portuguese princess) during her marriage to Charles II of England. That is how the British got possession of the islands.

Even for the British Crown, this remained a useless piece of land. It was passed on to the East India Company. The East India Company had no particular interest, nor could they see Bombay’s potential as a great port. Surat port was becoming congested and the Surtis of Gujarat were the first people who moved to Bombay in pursuit of their trade and commerce.

It was not the British East India Company but the Parsees who put their own private money in the development of the port. Major economic actives were initiated by the Parsees, Gujaratis and Bohras from Surat, which set into motion the process of evolution of Bombay and its becoming the financial capital of India. (Historically, meaning when Bombay was soggy, disease ridden place) There was no or negligible contribution worth the name from Marathas in development of Bombay.

Some people who never studied (or at least didn’t pay much attention while studying) history have renamed it ‘Mumbai’ and demand exclusivity to make political gains …

So i call Mumbai Bombay :)

The article has been sourced from here