India is currently a $1.2 trillion economy, and is likely to almost double in size in next six years, even if it grows at a modest 7 percent increase in the GDP.
This $2 trillion economy will need 64 million skilled workers. But, currently, we have only one million people that are a mix of skilled and semi-skilled people. How are we going to meet this shortfall? This is really astonishing to know that the second largest populated country in the world, with more than 1.1 billion people, has only one million skilled workers!!! Dudes, please study!!! Save the country!!
Thursday, May 22, 2008
Saturday, May 17, 2008
A low-carbon Economy
As per the McKinsey Quarterly, the EU Emission Trading Scheme (ETS) and similar regulatory mechanisms, the total value of the emission rights in the EU scheme is about €40 billion a year.
Only a fraction of that value is traded now, but it is a growing fraction. Many roles are attractive—buying or selling for speculative purposes, for example, or creating clean-development-mechanism projects that would help companies outside the system reduce emissions at low cost and then profitably selling the emission rights in the market.
In parallel with efforts to optimize the existing infrastructure’s carbon performance, there will be major moves to develop radically more effective low-carbon solutions for new infrastructure. Emissions can usually be reduced at lower cost by building new houses, factories, or cars than by retrofitting existing assets. Indeed, regulation will have to encourage these new low-carbon solutions, for they could only match a predicted doubling of global GDP by 2030 with a significant and simultaneous decrease in greenhouse gas emissions.
The need to decouple emissions from economic growth will reinvent industries. In forestry and bio-energy, for example, a major new value chain seems likely to appear around the large-scale supply of biomass to power plants. Another value chain may build on cellulosic ethanol, which could significantly change the supply patterns of transportation fuels if its cost comes down as quickly as many predict. Power companies and property owners could form new alliances to generate distributed power, provided, for instance, by rooftop solar panels, if regulatory conditions were right.
A recent McKinsey Global Institute (MGI) analysis of the economic sectors most responsible for the end use of energy indicates that overall demand, which has increased by 1.6 percent a year for the past decade, is on track to grow by 2.2 percent annually over the next 15 years. Developing countries such as China account for the largest part of this growth. Curbing demand for energy in the emerging world would mean asking its consumers to reduce their newfound expectations of comfort, convenience, and economic growth—an unacceptable proposition for them.
Is there an escape from the vice grip of finite supplies and surging demand? We believe there is. Both developed and developing economies could use energy more productively by reducing the raw-materials inputs required to produce a given level of energy use, increasing the quantity or quality of the economic output from a given set of energy inputs, or both. These approaches wouldn’t call for reducing the benefits that energy’s end users enjoy.
MGI defines energy productivity as the ratio of value added to energy inputs. Energy prices, business practices, market forces, and government policies all influence energy productivity. Japan leads the world here. Thanks to consistently high energy prices and strict government energy efficiency standards based on the best practices of leading companies. Japanese gas- and coal-fired power plants are 70 percent more energy productive than Russian ones, and Japan’s 2007 standards for room air conditioners are nearly 50 percent stricter than their Chinese counterparts. The Arab Gulf, by contrast, is among the least energy-productive parts of the world as a result of large, sustained energy subsidies, and an energy-intensive growth model. Similarly, US cars are 15 percent less energy efficient than European ones in the same class, partly because European gasoline taxes are roughly seven times higher and partly because US regulatory exemptions have long helped automakers market SUVs as light trucks, which are subject to less stringent fuel-efficiency rules than passenger vehicles.
Only a fraction of that value is traded now, but it is a growing fraction. Many roles are attractive—buying or selling for speculative purposes, for example, or creating clean-development-mechanism projects that would help companies outside the system reduce emissions at low cost and then profitably selling the emission rights in the market.
In parallel with efforts to optimize the existing infrastructure’s carbon performance, there will be major moves to develop radically more effective low-carbon solutions for new infrastructure. Emissions can usually be reduced at lower cost by building new houses, factories, or cars than by retrofitting existing assets. Indeed, regulation will have to encourage these new low-carbon solutions, for they could only match a predicted doubling of global GDP by 2030 with a significant and simultaneous decrease in greenhouse gas emissions.
The need to decouple emissions from economic growth will reinvent industries. In forestry and bio-energy, for example, a major new value chain seems likely to appear around the large-scale supply of biomass to power plants. Another value chain may build on cellulosic ethanol, which could significantly change the supply patterns of transportation fuels if its cost comes down as quickly as many predict. Power companies and property owners could form new alliances to generate distributed power, provided, for instance, by rooftop solar panels, if regulatory conditions were right.
A recent McKinsey Global Institute (MGI) analysis of the economic sectors most responsible for the end use of energy indicates that overall demand, which has increased by 1.6 percent a year for the past decade, is on track to grow by 2.2 percent annually over the next 15 years. Developing countries such as China account for the largest part of this growth. Curbing demand for energy in the emerging world would mean asking its consumers to reduce their newfound expectations of comfort, convenience, and economic growth—an unacceptable proposition for them.
Is there an escape from the vice grip of finite supplies and surging demand? We believe there is. Both developed and developing economies could use energy more productively by reducing the raw-materials inputs required to produce a given level of energy use, increasing the quantity or quality of the economic output from a given set of energy inputs, or both. These approaches wouldn’t call for reducing the benefits that energy’s end users enjoy.
MGI defines energy productivity as the ratio of value added to energy inputs. Energy prices, business practices, market forces, and government policies all influence energy productivity. Japan leads the world here. Thanks to consistently high energy prices and strict government energy efficiency standards based on the best practices of leading companies. Japanese gas- and coal-fired power plants are 70 percent more energy productive than Russian ones, and Japan’s 2007 standards for room air conditioners are nearly 50 percent stricter than their Chinese counterparts. The Arab Gulf, by contrast, is among the least energy-productive parts of the world as a result of large, sustained energy subsidies, and an energy-intensive growth model. Similarly, US cars are 15 percent less energy efficient than European ones in the same class, partly because European gasoline taxes are roughly seven times higher and partly because US regulatory exemptions have long helped automakers market SUVs as light trucks, which are subject to less stringent fuel-efficiency rules than passenger vehicles.
Friday, May 16, 2008
The Basics of Currency Fluctuations
Exchange Rates reflect the balance of supply and demand for currencies. Two key factors affecting supply and demand are interest rates and the overall strength of the economy. Economic indicators such as GDP, foreign investment, and the trade balance reflect the general health of an economy, and are, therefore, responsible for the underlying shifts in supply and demand for that currency.
The total return on an international investment is based on two factors:
1) The Return on Investment (ROI) in local currency, and
2) Gain or loss because of currency fluctuations.
For example, suppose, you purchase an Indian stock whose price increases 10 percent in one year in terms of INR. If during that same year, the INR increases in value by 5 percent compared to the US dollar, your total return - Net ROI - would be 15 percent that is because of gain of 10 percent from the surge in the stock price plus gain of 5 percent from the currency fluctuations. However, if the INR decreased in value by 5 percent, your total return would be only 5 percent.
When the US dollar declines compared to the other currency, your investment increases in value, because more dollars are then required to purchase the investment. An increase in the US dollar compared to the other currency means your investment decreases in value.
Most countries use a system of managed floating exchange rates. Supply and demand factors set the exchange rates most of the time, as international banks, investors, tourists, consumers, and multinational companies buy and sell foreign currencies and goods. Governments typically only intervene to prevent massive fluctuations in exchange rates.
Demand for a particular currency is determined by many factors, including a country's inflation, interest rates, political and economic outlook, monetary policies, and speculation. The US dollar does not move uniformly against all currencies - it can be rising against one currency, while it is declining against another.
In general, a rising dollar makes it less expensive for Americans to travel abroad, to import foreign goods, and to purchase foreign investments. However, US companies may suffer since cheaper imported goods hurt sales of domestic products. When the dollar is declining, it becomes more expensive for Americans to travel abroad, and to import foreign goods, but US goods become more competitive on international markets.
When considering international investments, consider these tips about currency fluctuations:
1) Foreign bonds are subject to more currency risk than foreign equities.
2) Currency fluctuations tend to be more moderate in parts of the world where political and economic factors are stable and the local currency is strong. Avoid areas where inflation rates are extremely high.
3) Diversifying your investments by country and region can help reduce the overall effects of currency risk.
The total return on an international investment is based on two factors:
1) The Return on Investment (ROI) in local currency, and
2) Gain or loss because of currency fluctuations.
For example, suppose, you purchase an Indian stock whose price increases 10 percent in one year in terms of INR. If during that same year, the INR increases in value by 5 percent compared to the US dollar, your total return - Net ROI - would be 15 percent that is because of gain of 10 percent from the surge in the stock price plus gain of 5 percent from the currency fluctuations. However, if the INR decreased in value by 5 percent, your total return would be only 5 percent.
When the US dollar declines compared to the other currency, your investment increases in value, because more dollars are then required to purchase the investment. An increase in the US dollar compared to the other currency means your investment decreases in value.
Most countries use a system of managed floating exchange rates. Supply and demand factors set the exchange rates most of the time, as international banks, investors, tourists, consumers, and multinational companies buy and sell foreign currencies and goods. Governments typically only intervene to prevent massive fluctuations in exchange rates.
Demand for a particular currency is determined by many factors, including a country's inflation, interest rates, political and economic outlook, monetary policies, and speculation. The US dollar does not move uniformly against all currencies - it can be rising against one currency, while it is declining against another.
In general, a rising dollar makes it less expensive for Americans to travel abroad, to import foreign goods, and to purchase foreign investments. However, US companies may suffer since cheaper imported goods hurt sales of domestic products. When the dollar is declining, it becomes more expensive for Americans to travel abroad, and to import foreign goods, but US goods become more competitive on international markets.
When considering international investments, consider these tips about currency fluctuations:
1) Foreign bonds are subject to more currency risk than foreign equities.
2) Currency fluctuations tend to be more moderate in parts of the world where political and economic factors are stable and the local currency is strong. Avoid areas where inflation rates are extremely high.
3) Diversifying your investments by country and region can help reduce the overall effects of currency risk.
Thursday, May 15, 2008
What Is Engineering?
Engineering is all about “engineering” life. How do you define engineering? I define engineering as the art of maneuvering that leads you to success in anything that you do in life. So, you engineer a situation; you engineer problems; you engineer difficulties; you engineer solutions; you engineer failures so as to succeed thereafter. While engineering, you use all your knowledge that you have acquired so far. Engineering is all about manipulating obstacles, so as to achieve the goals, perhaps, at any cost or at the cost that you can afford. That’s engineering for me. What about you?
I am an engineer by education, by profession, and by choice. I love myself for being an engineer. It gives me immense pleasure in replying to someone who asks me – what do you do for a living? By and large, I reply, with a bit of “tashan”, that I am an engineer. I just love the word engineering. I feel I am a gamer and the world is my amphitheater. I have to show the world how I play the “game.” At times, I play by the rules, and at other times, I make the rules. I write protocols, for others to follow. I just love what I do. I am sure for my entire life I would be engineering – or call it maneuvering, in layman term.
Then there are several fields of engineering. You see, when you have many players, you have to give them their own space to play. :-) They need their own rules to play. Just imagine the world without engineering!!! It would look so ugly. We would go to the ancient times, wherein, we didn’t have any tools. The world will come to a grinding halt without engineering. So, there you agree with me. Right? Thus, engineering makes the world move.
So, next time, if somebody asks you – what do you do? Reply with some “tashan” that you engineer.
I am an engineer by education, by profession, and by choice. I love myself for being an engineer. It gives me immense pleasure in replying to someone who asks me – what do you do for a living? By and large, I reply, with a bit of “tashan”, that I am an engineer. I just love the word engineering. I feel I am a gamer and the world is my amphitheater. I have to show the world how I play the “game.” At times, I play by the rules, and at other times, I make the rules. I write protocols, for others to follow. I just love what I do. I am sure for my entire life I would be engineering – or call it maneuvering, in layman term.
Then there are several fields of engineering. You see, when you have many players, you have to give them their own space to play. :-) They need their own rules to play. Just imagine the world without engineering!!! It would look so ugly. We would go to the ancient times, wherein, we didn’t have any tools. The world will come to a grinding halt without engineering. So, there you agree with me. Right? Thus, engineering makes the world move.
So, next time, if somebody asks you – what do you do? Reply with some “tashan” that you engineer.
Wednesday, May 14, 2008
Winning
A couple of months back, I finished reading a book called “Winning” by Jack Welch. I found this book very useful and extremely informative. I suggest you to read this. It would be worth the effort and time.
Here is the gist of some important points adapted from that book. I hope to incite enough enthusiasm in you that you “hog” on to it right away. No, I am not publicizing the book for Mr. Welch. I want well-educated co-workers around me. :-)
What leaders do?
1) Leaders relentlessly upgrade their teams, using every encounter as an opportunity to evaluate, coach, and build self-confidence.
2) Leaders make sure people not only see the vision, but also live and breathe it.
3) Leaders get into everyone's skin, exuding positive energy and optimism.
4) Leaders establish trust with candor, transparency, and credit.
5) Leaders have the courage to make unpopular decisions and gut calls.
6) Leaders probe and push with a curiosity that borders on skepticism, making sure their questions are answered with action.
7) Leaders inspire risk taking and learning by setting the examples.
8) Leaders celebrate.
Here is the gist of some important points adapted from that book. I hope to incite enough enthusiasm in you that you “hog” on to it right away. No, I am not publicizing the book for Mr. Welch. I want well-educated co-workers around me. :-)
What leaders do?
1) Leaders relentlessly upgrade their teams, using every encounter as an opportunity to evaluate, coach, and build self-confidence.
2) Leaders make sure people not only see the vision, but also live and breathe it.
3) Leaders get into everyone's skin, exuding positive energy and optimism.
4) Leaders establish trust with candor, transparency, and credit.
5) Leaders have the courage to make unpopular decisions and gut calls.
6) Leaders probe and push with a curiosity that borders on skepticism, making sure their questions are answered with action.
7) Leaders inspire risk taking and learning by setting the examples.
8) Leaders celebrate.
Tuesday, May 13, 2008
Shortcomings of the CMM Standards
Carnegie Mellon's CMM and the other standards don't address some sources of waste, such as ineffective allignment between businesses and IT, the unavailability of the right resource at the right time, or architectural complexity. Moreover, CMM treats human resources as commodities - this conceptualization is engrossly wrong, because humans differ from each other and they cannot be solely judged on the quantifiable parameters of inputs and output.
Three big challenges are in focusing on:
1) changing behaviour.
2) broadening the focus from the specifics to general principles.
3) setting up the right incentives.
No transformation can sustain itself without the proper metrics and incentive systems that ensure change. In application development, "function points" measure the level of efforts devoted to a project. A successful lean transformation requires new metrics to identify waste and to set goals for reducing it. A lean transformation is a journey well worth the effort.
Lean, of course, isn't a technology, but rather a methodolgy applied to processes -- originally in manufacturing operations but increasingly within services, including IT.
Three big challenges are in focusing on:
1) changing behaviour.
2) broadening the focus from the specifics to general principles.
3) setting up the right incentives.
No transformation can sustain itself without the proper metrics and incentive systems that ensure change. In application development, "function points" measure the level of efforts devoted to a project. A successful lean transformation requires new metrics to identify waste and to set goals for reducing it. A lean transformation is a journey well worth the effort.
Lean, of course, isn't a technology, but rather a methodolgy applied to processes -- originally in manufacturing operations but increasingly within services, including IT.
Sunday, May 11, 2008
Financial hoopla in the UAE
According to the Gulf News, the fund management industry in the Gulf is expanding like never before. The reasons are: rising wealth from the states, fast growing economies, regulatory reforms, and increasing investor appetite for the region.
In the past 18 months, significant levels of foreign investment have flowed into the GCC stock exchanges, as international investors look for insulation from global economic turbulence. The MSCI GCC composite index has risen by 40.5 percent since the start of 2007, outperforming the MSCI World index by 38.0 percent and the Emerging Markets Composite by 8.7 per cent. Over the same period there has been a rush of fund managers going into the region to chase a slice of the lucrative market, which comprises of Saudi Arabia, Kuwait, Qatar, Bahrain, Oman, and the UAE.
Total managed assets of foreign and domestic investment managers were more than USD $1.6 trillion in 2007. More than 90 percent of foreign fund managers' businesses are institutional, focusing largely on sovereign wealth funds and, to a lesser extent, on family offices.
The region's small market, but growing mutual fund market was estimated to be worth $100 billion at the end of last year, and is expected to grow by 15 percent over next five years. Certainly, the asset management industry is young, but it is growing rapidly.
Access for foreign investors to the region's equity markets is difficult and exposure to a specific company or sector can be limited, while in Saudi Arabia the equity market is closed to international investors.
Rasmala, which has $1.3 billion assets under management, is launching a fund of funds that it plans to list on AIM this month. It is the first fund of funds focusing on the Gulf to list on the London Stock Exchange, and aims to raise capital of $200 million.
The GCC Equity Opportunity Fund, which will invest in GCC equity markets through locally-managed funds, will give foreign investors exposure to equities in the region. It is aimed at endowments, pension funds, and family offices.
A new trend has emergerd amongst the local investors - local investors who have benefited from the oil wealth are now looking to invest in their own region rather than in abroad markets.
The six nations of the GCC earned $381 billion from their exports of oil in 2007, according to the Institute of International Finance. Since the terrorist attacks on the US in 2001, Middle Eastern investors have been repatriating their assets and reinvesting in the region, particularly in infrastructure.
The fund, which has raised $83 million since the end of March, is aimed at retail and institutional investors, and is invested in locally incorporated funds, mainly in equities with some cash.
Although the region is often perceived as a single jurisdiction by overseas investors, the level of regulation varies between the six states. The credibility of local fund managers has been enhanced by the establishment of local regulatory frameworks in Dubai and Qatar, and by the continued development of existing regulation in Bahrain, while the development of financial centres in the other GCC countries has been accelerating for the past four years.
For transparency, there is a well developed culture for asset management in Kuwait, and Dubai and Bahrain are just following. There are problems in Saudi where it is difficult to find good institutional fund managers.
One of the world's biggest money managers, Franklin Resources, which operates as Franklin Templeton Investments, has also been eyeing the region. Last September it took a 25 percent stake in Algebra Capital, a Dubai-based asset manager, to gain greater access to managing money in the region.
The strong interest in the region shown by foreign investors is likely to be sustained as long as the oil price does not take a huge dive, and as long as valuations do not rise too far above those of the other emerging markets.
In the past 18 months, significant levels of foreign investment have flowed into the GCC stock exchanges, as international investors look for insulation from global economic turbulence. The MSCI GCC composite index has risen by 40.5 percent since the start of 2007, outperforming the MSCI World index by 38.0 percent and the Emerging Markets Composite by 8.7 per cent. Over the same period there has been a rush of fund managers going into the region to chase a slice of the lucrative market, which comprises of Saudi Arabia, Kuwait, Qatar, Bahrain, Oman, and the UAE.
Total managed assets of foreign and domestic investment managers were more than USD $1.6 trillion in 2007. More than 90 percent of foreign fund managers' businesses are institutional, focusing largely on sovereign wealth funds and, to a lesser extent, on family offices.
The region's small market, but growing mutual fund market was estimated to be worth $100 billion at the end of last year, and is expected to grow by 15 percent over next five years. Certainly, the asset management industry is young, but it is growing rapidly.
Access for foreign investors to the region's equity markets is difficult and exposure to a specific company or sector can be limited, while in Saudi Arabia the equity market is closed to international investors.
Rasmala, which has $1.3 billion assets under management, is launching a fund of funds that it plans to list on AIM this month. It is the first fund of funds focusing on the Gulf to list on the London Stock Exchange, and aims to raise capital of $200 million.
The GCC Equity Opportunity Fund, which will invest in GCC equity markets through locally-managed funds, will give foreign investors exposure to equities in the region. It is aimed at endowments, pension funds, and family offices.
A new trend has emergerd amongst the local investors - local investors who have benefited from the oil wealth are now looking to invest in their own region rather than in abroad markets.
The six nations of the GCC earned $381 billion from their exports of oil in 2007, according to the Institute of International Finance. Since the terrorist attacks on the US in 2001, Middle Eastern investors have been repatriating their assets and reinvesting in the region, particularly in infrastructure.
The fund, which has raised $83 million since the end of March, is aimed at retail and institutional investors, and is invested in locally incorporated funds, mainly in equities with some cash.
Although the region is often perceived as a single jurisdiction by overseas investors, the level of regulation varies between the six states. The credibility of local fund managers has been enhanced by the establishment of local regulatory frameworks in Dubai and Qatar, and by the continued development of existing regulation in Bahrain, while the development of financial centres in the other GCC countries has been accelerating for the past four years.
For transparency, there is a well developed culture for asset management in Kuwait, and Dubai and Bahrain are just following. There are problems in Saudi where it is difficult to find good institutional fund managers.
One of the world's biggest money managers, Franklin Resources, which operates as Franklin Templeton Investments, has also been eyeing the region. Last September it took a 25 percent stake in Algebra Capital, a Dubai-based asset manager, to gain greater access to managing money in the region.
The strong interest in the region shown by foreign investors is likely to be sustained as long as the oil price does not take a huge dive, and as long as valuations do not rise too far above those of the other emerging markets.
Saturday, May 10, 2008
IT is the promise of the UAE
Information technology business in the UAE crossed USD 2.01 billion last year, growing at 10.1 per cent. The UAE's IT sector is the fastest growing in the world, according to industry experts. And, the market will grow at the same rate till 2010, when it will reach $2.5 billion.
This success saw the light because of the UAE's zero income and corporate tax policy, strong legal framework, robust and effective intellectual property protection system, and the free flow of capital, information, and people. Now, the UAE is looking forward to bring in investment for the semiconductor sector.
The UAE needs basic technology tools and services but the position of the market in the life-cycle curve is at expansion stage. The average annual growth rate of the Middle East and North Africa region's IT and communication sector will be 9.9 per cent until 2010.
While the region's growth in the sector is the highest globally, there is a lot more potential since the industry is in the infancy stage. The way is paved for innovation and options in comparison to more mature and saturated markets. The average increase in IT expenditure and investment in the Gulf and Middle East stands at about 8.5 percent until 2011 compared to a 4.3 percent of other market.
Overall, the UAE looks poised to absorb a lot of investment in IT and communication, promising a far superior Return On Investment (ROI) to investors.
This success saw the light because of the UAE's zero income and corporate tax policy, strong legal framework, robust and effective intellectual property protection system, and the free flow of capital, information, and people. Now, the UAE is looking forward to bring in investment for the semiconductor sector.
The UAE needs basic technology tools and services but the position of the market in the life-cycle curve is at expansion stage. The average annual growth rate of the Middle East and North Africa region's IT and communication sector will be 9.9 per cent until 2010.
While the region's growth in the sector is the highest globally, there is a lot more potential since the industry is in the infancy stage. The way is paved for innovation and options in comparison to more mature and saturated markets. The average increase in IT expenditure and investment in the Gulf and Middle East stands at about 8.5 percent until 2011 compared to a 4.3 percent of other market.
Overall, the UAE looks poised to absorb a lot of investment in IT and communication, promising a far superior Return On Investment (ROI) to investors.
International Trends To Watch Out For
Here are the trends that the McKinsey Quarterly predicts to watch out for in the years to come. I am presenting you the gist of the entire situation, coupled with my own elaborations, wherever I could. Please refer to the full article for your enhanced understandings of the situation.
The following trends look set to continue during the years ahead, long after the present turbulence in the world capital markets gets settled down:
1) The continued growth and deepening of global capital markets as investors pour more money into equities, debt securities, bank deposits, and other assets around the world. This will, inevitably, come true, as smart investors see troubles as opportunities for future growth. “Small” investors back off when the prospects of troubles loom large.
2) The soaring growth of financial markets in emerging economies and the growing ties between financial markets in developed and developing countries. This seems obviously true, as developed economies are comparatively saturated, and are hard to grow in. Thus, reaping “obscene” amount of success in developing economies is relatively easier, and worth giving a shot by all standards.
3) The shift of financial weight in Asia from Japan toward China, India, and the other fast-growing emerging markets. Diversity of any sort is, in general, good. Moreover, diversity by itself does hedging to some extent, giving rise to stability and competition.
4) The growing financial clout of the euro zone countries and the significance of the euro. The European Union is going to be a big phenomenon to watch out for. Collectively, it can take anything head on, be it either adversity at large or shared prosperity.
5) The burgeoning role of oil-rich Middle Eastern countries as suppliers of capital to the world, along with the rise of new financial hubs in the Middle East to complement the rapidly growing hubs in London and Asia. The UAE is one of the most important sources of international capital. It invests its “extra” petro-dollars in developed and developing economies. After all, the UAE also needs to do hedging for the future. Its “liquid money” is drying fast, and the size of the “family” is growing at a fast pace. Last year, somewhere close to 65% of the UAE’s GDP was earned from non-oil products and services. The UAE’s oil reserves are depleting. Now, it is heavily relying on tourism for its own survival and growth. That’s one of the precise reasons that the UAE’s culture and rules are quite “tolerant.”
While these trends reflect a shift in financial power from the United States toward the other parts of the world, the sheer size and depth of the US market will give it a leading role on the international financial stage for years to come. Apart from this, the UAE will play a major role in infusing the world with a lot of capital inflows. It is certainly a smart investor, with a lot of petro-dollars at its disposal.
The following trends look set to continue during the years ahead, long after the present turbulence in the world capital markets gets settled down:
1) The continued growth and deepening of global capital markets as investors pour more money into equities, debt securities, bank deposits, and other assets around the world. This will, inevitably, come true, as smart investors see troubles as opportunities for future growth. “Small” investors back off when the prospects of troubles loom large.
2) The soaring growth of financial markets in emerging economies and the growing ties between financial markets in developed and developing countries. This seems obviously true, as developed economies are comparatively saturated, and are hard to grow in. Thus, reaping “obscene” amount of success in developing economies is relatively easier, and worth giving a shot by all standards.
3) The shift of financial weight in Asia from Japan toward China, India, and the other fast-growing emerging markets. Diversity of any sort is, in general, good. Moreover, diversity by itself does hedging to some extent, giving rise to stability and competition.
4) The growing financial clout of the euro zone countries and the significance of the euro. The European Union is going to be a big phenomenon to watch out for. Collectively, it can take anything head on, be it either adversity at large or shared prosperity.
5) The burgeoning role of oil-rich Middle Eastern countries as suppliers of capital to the world, along with the rise of new financial hubs in the Middle East to complement the rapidly growing hubs in London and Asia. The UAE is one of the most important sources of international capital. It invests its “extra” petro-dollars in developed and developing economies. After all, the UAE also needs to do hedging for the future. Its “liquid money” is drying fast, and the size of the “family” is growing at a fast pace. Last year, somewhere close to 65% of the UAE’s GDP was earned from non-oil products and services. The UAE’s oil reserves are depleting. Now, it is heavily relying on tourism for its own survival and growth. That’s one of the precise reasons that the UAE’s culture and rules are quite “tolerant.”
While these trends reflect a shift in financial power from the United States toward the other parts of the world, the sheer size and depth of the US market will give it a leading role on the international financial stage for years to come. Apart from this, the UAE will play a major role in infusing the world with a lot of capital inflows. It is certainly a smart investor, with a lot of petro-dollars at its disposal.
Tuesday, February 12, 2008
Think Until You Understand
1) Risk Management is all about Identification, Classification, and Mitigation of risks.
2) “The mission should always be to help organizations achieve their project objectives and objectives of scope, quality, budget, and schedule within the context of the natural, social and political environment in which the project is being developed.”
3) "Optimizing performance at one stage of the process may not be beneficial overall if additional costs or delays occur elsewhere. For example, saving money on the design process will be a false economy if the result is excess construction costs."
4) "Fragmentation of project management among different specialists may be necessary, but good communication and coordination among the participants is essential to accomplish the overall goals of the project. New information technologies can be instrumental in this process, especially the Internet and specialized Extranets."
5) "Productivity improvements are always of importance and value. As a result, introducing new materials and automated construction processes is always desirable as long as they are less expensive and are consistent with desired performance."
6) Generally, project management is distinguished from the general management of corporations by the mission-oriented nature of a project. A project organization will generally be terminated when the mission is accomplished. According to the Project Management Institute, the discipline of project management can be defined as follows:-
Project management is the art of directing and coordinating human and material resources throughout the life of a project by using modern management techniques to achieve predetermined objectives of scope, cost, time, quality, and participation satisfaction.
7) "The majority of all development projects fail to meet their time and cost targets, with the overrun typically between 40 and 200 percent."
8) "The most precious and intangible quality of leadership is trust."
9) System integration needs are determined by the chosen decomposition and its resulting architecture. We map the structure of interactions in order to plan for integration.
10) Project Management comprises a body of methods and tools that facilitate the achievement of project objectives: within time, within cost, at the desired performance/specification level, and while effectively and efficiently utilizing the assigned resources.
2) “The mission should always be to help organizations achieve their project objectives and objectives of scope, quality, budget, and schedule within the context of the natural, social and political environment in which the project is being developed.”
3) "Optimizing performance at one stage of the process may not be beneficial overall if additional costs or delays occur elsewhere. For example, saving money on the design process will be a false economy if the result is excess construction costs."
4) "Fragmentation of project management among different specialists may be necessary, but good communication and coordination among the participants is essential to accomplish the overall goals of the project. New information technologies can be instrumental in this process, especially the Internet and specialized Extranets."
5) "Productivity improvements are always of importance and value. As a result, introducing new materials and automated construction processes is always desirable as long as they are less expensive and are consistent with desired performance."
6) Generally, project management is distinguished from the general management of corporations by the mission-oriented nature of a project. A project organization will generally be terminated when the mission is accomplished. According to the Project Management Institute, the discipline of project management can be defined as follows:-
Project management is the art of directing and coordinating human and material resources throughout the life of a project by using modern management techniques to achieve predetermined objectives of scope, cost, time, quality, and participation satisfaction.
7) "The majority of all development projects fail to meet their time and cost targets, with the overrun typically between 40 and 200 percent."
8) "The most precious and intangible quality of leadership is trust."
9) System integration needs are determined by the chosen decomposition and its resulting architecture. We map the structure of interactions in order to plan for integration.
10) Project Management comprises a body of methods and tools that facilitate the achievement of project objectives: within time, within cost, at the desired performance/specification level, and while effectively and efficiently utilizing the assigned resources.
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