The Real Cost Of Bureaucracy
August 22, 2013 3 Comments
“The government in India, through its incredible bureaucracy, has retarded economic growth in the last 20-30 years by at least 3% per annum in real terms.”-Marc Faber
Wedding Planning Resources
August 22, 2013 2 Comments
Getting married soon?Then do take a look at the site below to get an idea of what is available by way of wedding services and for how much.Then check out the prices in your neighborhood.This way you can be sure of getting your money’s worth,
7 Paths Of Highly Successful Luxury Brands
August 22, 2013 2 Comments
The luxury space is limited and brands looking to occupy this space need to find appropriate routes to communicate luxury and move up the value perception.
From the analysis of luxury brands across 24 countries, the Rediffusion-Y&R Brand Asset Valuator® (BAV), identifies seven distinct paths to communicate luxury.
The first route is based on the cues of originality, quality, distinctiveness, and charm. We call this route as Fabled Reputation. Brands like Ferrari and Rolex are typical of this route; they define the category based on their reputation. Ferrari stands apart as distinctive and original in the sports cars category basis its reputation built over decades.
The second route is to communicate Exquisite Functionality. Brands like BMW and Armani are archetypal of this form of communication. They enjoy the perception of performance, leadership, and intelligence, as you would experience while driving a BMW with all its exquisite details taken care with perfection. These brands are also seen as highly trusted and reliable. Read more of this post
The Story Of The Falling Rupee
August 22, 2013 3 Comments
Even after independence in 1947,the Indian Rupee was still pegged to the British Pound. The peg to the Pound was at INR 13.33 to a Pound which itself was pegged to USD 4.03. That means, officially speaking the USD to INR rate would be closer to Rs 4. In 1966,the Rupee was devalued and was now directly pegged to the US dollar at INR 7.50 per Dollar. Till 1966, the Indian currency, which was pegged to the British pound, was an officially or unofficially acceptable tender over a large part of Asia and Africa, from Beirut to Hong Kong.After the devaluation, the Rupee suddenly turned a global pariah, with few takers anywhere.Exports did not surge as expected and Indian financial prestige suffered even further.
By 1985, India had started having balance of payments problems. The rupee had by then been depreciated to about 17/$ in the intervening 2 decades,By the end of 1990, the country was facing a serious economic crisis. The government was close to default, its central bank had refused new credit and foreign exchange reserves had reduced to such a point that India could barely finance three weeks’ worth of imports. India had to airlift its gold reserves to pledge it with International Monetary Fund (IMF) for a loan.In 1991,overnight the Rupee was devalued by another 50% from about 17/$ to about 25/$. In 1993,the government allowed the Rupee to be traded by traders without a forced peg and it started to slide as the government was no longer controlling the prices, fully and started to reflect the reality. From about 27/$ it slid to Rs.35/$ by 1997. Read more of this post
The Indian Rupee And The General Elections
August 21, 2013 2 Comments
History shows that after liberalization,the Rupee falls ahead of the general elections.For example,in 1996, the rupee depreciated by nearly 10% in the 12 months leading up to the elections. And in 2009, it fell by 18% in the run-up to the polls.
Economist’s explain this phenomenon by pointing out to the governments’ tendency to overspend to satisfy various vote banks as elections approach. This unproductive expenditure causes the Rupee to depreciate, which then forces the government to intervene and try to prop up the currency.
Lay people have a more interesting take on the matter:the money of the political class stashed abroad is brought back to fund elections. A weak rupee means politicians and others bringing back the money are able to get a greater bang for their buck, and it is in their interest that the Rupee remains weak during this period. Read more of this post
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