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Newsletter for Aug 22, 2008


A weekly sampling of news, analysis and opinion on economic issues of India, China and the U.S. Articles and opinion pieces are from a variety of sources and viewpoints and do not necessarily reflect those of ICA Institute. Access to some articles may require free registration to the site or may not be cited to the original source.

In this issue
  • TAG's Global Sourcing Society Project Management Course
  • Expert Shares Secrets for Business Success in India
  • Headlines
  • Energy
  • ICT
  • Agriculture
  • Industrial Resources | Manufacturing
  • Environment | Climate Change
  • Corporate Social Responsibility
  • Innovation
  • Health | Medicine
  • Logistics | Transportation
  • Newsletter staff

  • TAG's Global Sourcing Society Project Management Course

    ICA Institute Board of Directors member, Suresh Sharma, recommends:

    The Technology Association of Georgia, TAG's, Global Sourcing Society will be offering its Global Sourcing Project Management Certification program beginning 10-07-08. This program was launched in 2006 and has received rave reviews from former participants.

    The course contents cover various factors relating to understanding of global people, infrastructure, and environment - as they apply to Global Sourcing Projects - discussing them in an easy-to-practice style. We call it PIE: the global business eco-system of People, Infrastructure, and Environment. Our curriculum captures a broad range of "PIE" by discussing the top 20 differentiators between project management and Global project management.

    � We identify the challenges that a Global Project Manager has to face. This course builds on the traditional PMI knowledge base. However, having a PMI certification is not a pre-requisite for this course.
    � The course is taught through a series of 4 modules - 3 hours each thus delivering a total of 12 class room lectures. It recommends an additional 3 hours of self and reference studies, thus making it the equivalent of 3-credit professional course.
    � Further, the candidates will do their own case study as applied to their business interest making it personal and relevant to them. Each participant is expected to make a presentation on his or her Case Study at the end of the course as a requirement to be awarded the Certificate.

    Our faculty of experts, who have extensive hands-on experience, taught management courses and have faced these challenges across the world, will share their experiences and discuss the critical topics of this discipline. You will obtain strategies and insights that you and your company can implement right away - and understand how to train, certify and prepare your workforce for a "flat" world. Remember - even in a flat world - one who runs faster will always win. This course is one small step to help make you more competitive in tomorrow's world.

    Space for this program is limited, so please register early to guarantee your space!

    Complete details are available at https://www.123signup.com/servlet/SignUpMember?PG=1521974182300&P=1521974191156919600&Info


    Expert Shares Secrets for Business Success in India


    Gunjan Bagla, a presenter in the ICA Institute's Tap into Chindia Global Virtual Seminar Series, offers expert advice in his new book.

    Tata Sons, Ltd. Executive Director, R. Gopalakrishnan calls Doing Business in 21st Century India "A refreshingly simple book on a very complex subject."

    Doing Business in 21st Century India is packed with everything business leaders need to know in order to understand and succeed in this emerging market, including:
    � An overview of the most promising sectors which every investor will want to read
    � Guidance on navigating the often complicated laws, rules and regulations
    � The keys to understanding important cultural differences
    � Essential advice on sales and marketing in the region
    � Relevant background and history
    � Numerous supporting examples and interviews with top professionals in India

    Doing Business in 21st Century India is available at fine booksellers everywhere and online at Amazon.com, www.HachetteBookGroupUSA.com or at www.amritt.com


    Headlines


    Olympics disappoint China business owners (Los Angeles Times, Aug 22)
    He had expected his Sichuan restaurant, a couple of miles from the Olympic village, to be packed with tourists during the Games. But it's been unusually quiet. One day this week, business was so slow that Li let two of his seven staff members go home in the middle of the lunch hour. Three others sat in the corner watching television. "Everybody thought the Olympics would be great for business," he said. "It turned out differently." Many owners of small restaurants, hotels and shops in Beijing are wearing long faces this summer, especially those who poured their life savings into buying businesses or sprucing up their shops ahead of the Games.

    WTO important for growing India, says Kamal Nath (The Times of India, Aug 14)
    Expressing hope that the Doha talks which failed in Geneva last month will start soon, Commerce and Industry Minister Kamal Nath on Thursday said WTO is important for India, engaging more in the global trade. "Ruled-based multilateral system is very important for everybody, including India... more so important for India because we are engaging more (with the world)," Nath said in an interview with. India's external trade in merchandise goods alone is expected to be over $500 billion in 2008-09.

    The China Connection (Atlanta Magazine, August 2008)
    Whether you love it for its food or loathe it for its human rights record, China is the hot new player in Atlanta foreign commerce, from Delta flights to chicken feet. In the last two years, Chinese companies have announced $75 million in new investments in the Atlanta area: Kingwasong, with a soy sauce plant near Newnan; Sany, producer of construction equipment, with a factory in Peachtree City; and General Protecht, which makes electric plugs in Barnesville. With Georgia's new trade office in Beijing, opened this year by Perdue himself, economic development officials hope to lay the groundwork for local companies craving a closer relationship. "You have to invest in the people and guanxi, and from that the business will follow," says Ken Stewart, commissioner of the Georgia Department of Economic Development.

    China faces Olympics ambush marketing challenge (Managing Intellectual Property, August 8, 2008)
    While China is set to impress an audience of 4 billion today with its opening ceremony for the Beijing Olympic Games, the work needed to protect the sponsors from ambush marketing is only just beginning. The term ambush marketing was coined in the early 1990s by Jerry Walsh, a marketing executive at American Express. Originally intended as a positive concept, it now has negative connotations and is defined as an attempt by a brand to associate itself with an event despite not having been paid to be a sponsor.


    Energy


    Imperial Energy close to takeover by India's ONGC (AFP, Aug 22)
    Oil and gas explorer Imperial Energy is close to a takeover from Indian energy giant ONGC worth 1.5 billion pounds, the Financial Times reported Friday. The business newspaper, which cited sources with knowledge of the negotiations, said talks had been progressing well and that a takeover from India's Oil and Natural Gas Corp (ONGC) could be unveiled next week.

    Nuclear exporting nations voice concerns over India-US pact (The Economic Times, Aug 14)
    Diplomats from several nuclear-exporting countries were critical on Wednesday of the US move to seek no additional conditions in international export guidelines for India to receive foreign nuclear supplies. Under its 2005 nuclear deal with India, the US pledged to seek changes in international export norms that currently forbid exports of nuclear technology or materials to countries like India, which has not signed the Nuclear Non-Proliferation Treaty. In return, India agreed to separate its nuclear weapons programme from its civilian energy sector, allowing inspections by the Vienna-based International Atomic Energy Agency, limiting the global spread of sensitive technology, implementing its own export controls and keeping a moratorium on nuclear bomb tests.

    China revamps passenger car tax rates to conserve energy (China View, Aug 13)
    China will adjust its vehicle tax rates from Sept. 1 to favor smaller-capacity, more fuel-efficient engines that will cut energy use and reduce emissions, according to a joint online announcement by the Ministry of Finance (MOF) and State Administration of Taxation on Wednesday. The tax on cars with engine capacities of 3 to 4 liters will rise to 25 percent from 15 percent, with the rate for engines of more than 4 liters doubling to 40 percent. The rate on cars with engines that are 1 liter or less will fall from 3 percent to 1 percent. "We hope the new policy will help restrain the production and sales of high-emission vehicles while promoting the development of low-emission cars," said MOF.


    ICT


    iPhone faces unique challenges in India (The Economic Times, Aug 22)
    While India may be amongst the hottest markets for Apple's iPhone 3G, the country presents several unique challenges which the US-based multinational will have to address before it can succeed here. Not just Apple, but its partners in India-Bharti Airtel and Vodafone-will have to play their roles to perfection for their customers to enjoy the iPhone.

    China Blocks Access to iTunes Store (Wired, Aug 22)
    China's authorities have blocked access to all eight million or so songs in the iTunes music store, apparently because one album -- Songs for Tibet -- doesn't sit well with them. Songs on the album include criticism of the same so-called "great firewall of China" that now prevents it from being purchased from iTunes in China. "We issued a release saying that over 40 (Olympic) athletes downloaded the album in an act of solidarity, and that's what triggered it," Michael Wohl, executive director of the Art of Peace Foundation, which released the compilation, told the Associated Press. "Then everything got blocked."

    CMAI arranges $100 mn fund for ecofriendly ICT R&D (The Economic Times, Aug 13)
    Communications and Manufacturing Association of India (CMAI), an industry body of ICT manufacturers, said on Wednesday that it has arranged a venture fund of $100 million for the promotion of eco-friendly research and manufacturing projects in the country. This fund has been arranged with the help of the association members and will be provided to the companies who are into research and manufacturing of telecom and ICT products in an environment-friendly manner, CMAI President N K Goyal said. "We will be channelising this fund for companies in ICT research and manufacturing and who are environment conscious," he said.

    Cracking China's Social Network Market (Forbes, Aug 22)
    With the biggest and fastest-growing online population on the planet, China is the holy grail for social networking sites. No surprise, then, that U.S.giants such as MySpace and Facebook are eager to reel in some of China's 250 million Netizens. But so far, American companies haven't quite figured out how to navigate China's perilous regulatory environment, in which any piece of content on social networks can be scrutinized by the Chinese government.

    China H1 Telecoms Application Market Grew to CNY9.92bn (Trading Markets, Aug 13)
    The size of China's telecommunications application market grew to CNY 9.92 billion in the first half of 2008, up 8.3% year on year, CCID Consulting Co., Ltd. (SEHK: 8235), a Hong Kong-listed consulting firm, said on August 11. It is estimated to exceed CNY 20 billion, up 7.1% year on year, for the full year, according to CCID Consulting. The industry's main products were call centers and video conferences. Over the six months, the nation's government agencies and financial industry respectively took 19.6% and 18.3% of the market.


    Agriculture


    Chinese Farm Minister Stresses Self-Sufficiency, Stable Grain Production (red Orbit, Aug 14)
    Text of article by Sun Zhengcai, minister of agriculture, entitled: "Pay close attention to grain production; always have 'grain on hand'", published by Chinese magazine Qiushi website on 1 August Currently, the large magnitude price increases in the international grain market and the grim challenges world food safety is facing are hot topics that have caught the attention of the international community. China has had four consecutive years of increased grain production and is having another bumper summer grain harvest this year. China has ample grain market supply and prices are relatively stable, and that is making a major contribution to world food security and providing important support for the country's comprehensive economic and social development. But looking at the big picture and in the long run, China's grain production is still facing many constraints and challenges. To make sure the country can permanently plant a foothold in domestic production to ensure grain security and make sure the country always has ample "grain on hand," China must relentlessly increase grain production and agricultural productivity and build a sound and permanent and effective mechanism to support and protect grain and agricultural production.

    India oilseeds futures rises as spot demand picks up (Reuters India, Aug 13)
    Indian soybean and rapeseed futures ended up on Wednesday after the U.S. Department of Agriculture's (USDA) forecast for oilseed production was less than expected, pushing up spot demand, analysts said. Demand for the oilseeds rose to cater to the domestic edible oils requirement, which has risen ahead of festivals later this month, a trader in Indore said.


    Industrial Resources | Manufacturing


    Asia: Indian tiger changes stripes to chase the Dragon (Guardian, Aug 22)
    The Indian economy will expand at 8% a year - shrugging off the credit crunch and high oil prices - as it is transformed into an industrial powerhouse to rival China, the government's top policy tsar said yesterday. He predicted that Chinese-style 10% annual growth was "achievable". Montek Singh Ahluwalia, deputy chief of India's planning commission, said the government would be "targeting 9% growth, getting up to 10%. It may look ambitious with the global economic slowdown. But in the medium term, it is achievable."

    China Points the Way to Profits as the New Global Manufacturing Leader (Money Morning, Aug 14)
    There's more bad news for those of you who are worrying about the United States' global geo-strategic position. According to a recent report, starting next year, Chinese manufacturing output will exceed that of the United States. In concrete figures, of the world's $11.8 trillion of manufacturing value added output expected to be produced in 2009, China will account for 17%, while the United States will account for 16%. For investors, even those based in the United States, the implication is clear: a substantial part of any investor's portfolio should be in China and any other countries where manufacturing is growing as a percentage of the world total.


    Environment | Climate Change


    Portal on Indian environment launched (Merinews, Aug 22)
    INDIAN ENVIRONMENT PORTAL is an online website launched recently. This has been initiated by efforts of the Centre for Science and Environment (CSE) in partnership with the National Knowledge Commission (NKC), Government of India. Presently, the portal is in English, but a media statement on its launch said portal managers plan to offer it in other languages too.

    Is Red China Ever Green? (Slate, Aug 19)
    A factory in China is likely to have a larger carbon footprint and release more pollution than a plant making the same product in the United States. On average, Chinese factories tend to be less energy-efficient, and they rely heavily on energy sources like coal that produce more CO2 and have a greater impact on air quality. Some estimates (PDF) have placed the annual carbon burden of shifting production from the United States to China as high as 500 million metric tons of CO2-an amount equivalent to the total emissions of Italy. The fact that these Chinese products must be shipped overseas to consumers might add another 10 percent or so to the total.

    Corruption 'threatens China rainforest' (BBC, Aug 22)
    Farmers in the tropical region of Xishuangbanna in China's south-west Yunnan province recently staged a protest, accusing local officials of colluding with the rubber industry to destroy the local rainforest.

    Exports Account for One-Third of China's Emissions (Worldwatch Institute, Aug 11)
    As Chinese manufacturers feed a growing global appetite for cheap goods, these exports account for a rising share of the country's greenhouse gas emissions, a new study reveals. Exports are now responsible for one-third of China's emissions, according to a study that will appear in the journal Energy Policy. The researchers describe their analysis as the most systematic study of the subject to date.

    Carbon Emissions on the Rise But Policies Growing Too (Worldwatch Institute, Aug 6)
    In 2007, carbon emissions from fossil fuel combustion worldwide reached an estimated 8.2 billion tons, which was 2.8 percent more than in 2006-and 22 percent above the total in 2000.1 The United States and Europe accounted for roughly 4 and 3 percent, respectively, of the growth during this decade.2 India contributed 8 percent, and China, a staggering 57 percent.3 Despite the rapid increase, China's 18.3 share of global fossil fuel emissions remained slightly behind the U.S. share (19.5 percent).

    China's New Environmental Advocates (Yale Environment 360)
    Until recently, the idea of environmental advocacy was largely unheard of in China. But that's changing rapidly. At a legal aid center based in Beijing, Xu Kezhu and her colleagues are helping pollution victims stand up for their rights.


    Corporate Social Responsibility


    Caring and giving: Redirecting CSR (The Economic Times, Aug 18)
    A fair amount of the funding for independent NGOs comes from foreign organisations, and the few that choose to not receive funds from abroad are inevitably in financial difficulties. Raising money from individual donors is extremely difficult, and there are but a few Indian fund-granting foundations (like Ford or Rockefeller in the US). Two Tata trusts are the only serious Indian equivalents, and even their scale is rather limited. In this, most Indian corporates have done little beyond paying lip service. Many have set up foundations, but rather then making grants to others, they tend to themselves be implementers.


    Innovation


    Finalists in 2008 EDN China Innovation and EEPW Top 10 Award Competitions (Market Watch, Aug 20)
    Xilinx, Inc., the world's leading supplier of programmable solutions, today announced that its Virtex(R)-5 FXT platform is among several Xilinx solutions honored as finalists in both the 2008 EDN China Innovation and 2008 Electronic Engineering & Product World (EEPW) Top 10 China Influential Embedded System Editor Recommended award competitions. In addition to its industry-leading Virtex-5 FXT platform, Xilinx ISE(R) 10.1 design suite, MicroBlaze(TM) embedded processor, and AccelDSP(TM) synthesis tool are among the finalists. Finalists for the EDN China Innovation Award were chosen by committee while readers determined the EEPW Top 10 finalists via online voting.

    Indian banking System: Epitome of continuous innovation (The Economic Times, Aug 21)
    The future of Indian banking lies in increased investment in technology platforms and a greater focus on end-to-end solutions provided by IT majors like core banking products, vertical specific CRM and risk management software.

    Finland's Tekes to set up innovation centre in India (Sify, Aug 19)
    Finland's state-run technology research and innovation funding agency Tekes is planning to open an innovation centre in India to tap the vast human resource pool here. It will link up with other organisations involved in similar activities.


    Health | Medicine


    Drug-makers cashing in on health supplement segment (Business Standard, Aug 22)
    Drug-makers cashing in on health supplement segment P B Jayakumar / Mumbai August 22, 2008, 0:19 IST While majority of India's drug companies are concentrating on generic or copycat drug exports or contract manufacturing and research services (Crams) as their business model for growth, a new breed of companies run by established pharmaceutical players such as Alkem Laboratories, Divi's Labs, Plethico and Mission Vivacare are emerging in the field eyeing potential opportunities in the nutraceutical segment. Nutraceuticals, consisting of dietary supplements and functional foods with curative or nutritional benefits, are estimated to have a sales of $190 billion globally by 2010. India's food supplement and health food market is estimated currently at about $400 million. The country already has a clutch of established players focussing in this segment such as Avesthagen, Himalaya and Sami Labs - all Bangalore based companies, besides numerous established players in the Ayurvedic segment such as Dabur and Charak.


    Logistics | Transportation


    We will not stay if we are unwanted: Ratan Tata (IBN Live, Aug 22)
    With growing worries over the continuing agitation in Singur, Ratan Tata on Friday talked about a possible pull out from West Bengal. "If we are unwanted here, then we dont to stay on further," he said. It was a Tata way of saying they are preparing to bid goodbye. Two months before the scheduled roll-out of Nano from the Singur plant, the father of the Rs 1 lakh car was saying he's had enough. And the signals this would send out for the Buddhadeb government desperately seeking investment are very damaging, he said.


    Newsletter staff

    Publisher: L. Roxanne Russell
    Primary Contributing Editor: RJ Paulsick
    Editor of Academic Resources: Dr. S.V. Char
    International Contributors Editorial Board: To be Announced in September 2008


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    ICA Institute, founded by Dr. Jagdish Sheth, is a non-profit research institute working to foster research and dissemination of knowledge on the rise of China and India and their impact on global markets, global resources and geopolitics of the world. The ICA Institute's mission is to generate new perspectives on the role of market and resource driven economic development. ICA Institute fosters interaction and dialogue between academic scholars, industry leaders and policy makers on the impact of emerging economies in general and China and India in particular. Specifically, ICA Institute is positioned to be a catalyst between faculty and students in International Business and industry leaders and managers.

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