Friday, May 16, 2014

Remaking India's economy; Swiss to decide on world's highest minimum wage; Debunking multitasking myths

1 Remaking India’s economy (Linda Yueh on BBC) The Bharatiya Janata Party’s landslide win in the Parliament election means India's next prime minister would be Narendra Modi, the man who seeks to remake India's economy. He has pledged to build manufacturing hubs, cities, hydroelectric power plants, and even bullet trains - essentially an India that is industrialised and urbanised. That has eluded India for some time and is the key to faster economic growth.

Manufacturing is only 14% of GDP and industrial production, including utilities, is only a quarter of national output. It is essentially unchanged since 1960 which means that India isn't industrialised unlike the other Asian giant, China. India was richer than China in 1990, but lagged behind since. It was only last year that average incomes exceeded $1,000, the level of the poorest countries in the world. China exceeded that threshold a decade ago.

There are many reasons for the disparity, but industrialisation is a significant one. By relying on what economists call import-substitution industrialisation, initially until the 1980s, India's attempt to produce everything at home and be protectionist didn't deliver the industries needed for the economy.

It's interesting what Modi has done in Gujarat - it's reminiscent of a Chinese Special Economic Zone (SEZ) - a place that is more market-driven than the rest of the country. Importantly, China's SEZs could make decisions locally about investment and setting up factories. In a sense, that's what Modi offered. After two years of debate with West Bengal, Tata decided to build its Nano car plant in Gujarat instead.

The more important factor in raising India's growth isn't the change in government, but the implementation of reforms. That is likely to be the true test of a Modi government, as running a country isn't nearly the same thing as running a state.


2 Swiss to decide on world’s highest minimum wage (Phillip Inman in The Guardian) Switzerland will put a proposal for the world's highest minimum wage to a national referendum on Sunday. The proposal is for a 22 Swiss francs (£14.70) an hour and if voted through it would put a salary floor under the average 35-hour week of more than £27,000.

Ministers have fought the proposal, made by the SGB union and supported by the Socialist and Green parties, saying it will put smaller firms out of business. While Switzerland is renowned as a home for hedge fund managers, a secretive banking sector and one of the highest per capita incomes in the world, more than 20% of its GDP comes from an increasingly beleaguered manufacturing sector.

A recent opinion poll by gfs.bern found that 64% of voters were against the proposal, but in a recent referendum voters unexpectedly forced the parliament to draw up plans to curb EU immigration. 

The move follows a string of campaigns across the developed world for higher basic wages. Two weeks ago, the mayor of Seattle, Washington, unveiled a plan for a city-wide minimum wage of $15 (£8.91), more than double the federal minimum rate. Next month the Bundestag is due to vote on a bill to introduce Germany's first national minimum wage of €8.50 (£7). Under the Swiss system, parliament can call a referendum or citizens can demand one if they can gather 100,000 signatures in support.

http://www.theguardian.com/world/2014/may/16/swiss-vote-referendum-world-highest-minimum-wage-manufacturing

3 Debunking multitasking myths (Kim Thompson in San Francisco Chronicle) Multitasking can seem like the way to handle equally important interactions, until you see people checking their messages during meetings or talking on the phone while reviewing reports. The notion that you can do two or more tasks at once is rampant. But, is it true?

In reality, multitasking is a false pretense, because you can’t effectively listen to a conversation and fully participate while reviewing documents or reports that require the same intense focus. As innocent as multitasking seems, there are numerous studies that point to its ineffectiveness. Because it’s possible to use multiple senses at any given moment, it’s easy to believe you can answer a phone, enjoy a meal, review documents and listen to a conversation effectively.

Multitasking not only affects your career, it can be life threatening as well. The habit of multitasking usually doesn’t form overnight. Instead, it’s a product of time pressures. But here’s the problem: You think you are being productive when in reality you are performing less than you are capable of delivering.

Breaking the multitasking habit and learning to focus on one project at a time requires discipline and the ability to prioritize. Single-focus tasking is by far the most productive way to work. If you want to be more productive, start by taking small steps as you plan your day. Focus on what you need to accomplish first, then prioritize from there.

Bad habits can be replaced with more effective ones. You can change multitasking into single-tasking by slowing down and making a decision to focus. You might be surprised by how much you can accomplish.


4 Khaleej Times cartoon: SuperMan Mohan Singh



No comments:

Post a Comment