Why Ministers shouldn't tweet

Or anyone in responsible position, for that matter.

Imagine if someone hacks into Shashi Tharoor's twitter account and posts something inflammatory, like say, "India plans to nuke Pakistan" or "All muslims should be killed" or some such thing. It is quite likely that it will be taken at face value by many people, including those in power in other countries. Pretty soon situation may get out of control leading to serious consequences. One could say, "oh it is the others' mistake if they jump to conclusion without verifying the authenticity of the comments", but then, given that he is known to have a Twitter account, you can hardly blame others for taking comments on it seriously. So what it does is to give some engineer sitting in Twitter office the power to change the course of an entire nation. And he has that power, because someone in a responsible position thought it fit to use the services provided by some little American company to communicate his thoughts.

Currency-basket based salaries

One of the issues for Indian IT services companies is that while most of their revenues is earned in foreign currencies (mostly US dollars and Euros), a major portion of their expenses is incurred in Indian rupees. This leaves their margins susceptible to currency fluctuations - if Indian rupee strengthens against dollar, their profits go down and if Indian rupee weakens, profits go up. To offset this effect, they resort to currency hedging.

But, imo, that is a suboptimal solution. There are bound to be losses in hedging and also they end up spending too much time in managing all that. A better solution would be to align their expenses (particularly salary expenses) in terms of the currencies in which they earn their revenue. Let's say a company's revenues are 60% USD, 20% Euro and 20% Yen. Then they should structure their salaries also in the same proportion. So, let's say, they decide to fix an employee's salary at Rs. 1,00,000 per month. Instead of specifying the salary in rupee terms, they can fix the salary in the three main currencies which consitute their revenues. So, it will be (USD 60,000/dollar-rate + Euro 20,000/Euro-rate + Yen 20,000/Yen-rate). And then convert each component to local currency based on prevailing exchange rate and pay the salary. If the currencies fluctuate, salary also varies in terms of local currency, but the profit margin remains unaffected.

KSCA all set for IPL Opener

Preparations were going on full swing at the KSCA for tomorrow's inauguration of what is being described as watershed event in the history of cricket. It looked more like a giant discotheque than a cricket stadium - what with laser lights flashing, cheerleaders practicing in one corner of the stadium and stage being given final touches. It was a riot of colours and here's hoping that the tournament will be even more colourful and exciting.

Oh, tickets are completely sold out for tomorrow's match, if you are to believe the club functionaries walking around in the stadium.
There were quite a few people standing around hoping to get a ticket somehow.

Don't shed tears for Cricinfo

The editors at Cricinfo are crying themselves hoarse over BCCI's decision to bar websites from getting access to IPL match photographs. Apparently, it is a "denial of their rights as a media organization" , one which according to the editors is "serving" millions of cricket fans. I don't understand this denial of right business. As far as I understand, IPL is an event organized by BCCI, a private club, and as such surely they are well within their rights to decide who they allow to cover their events and who they don't. On what basis does Cricinfo assume that it is their right to be allowed to cover IPL?

What is even more disingenuous is this attempt to project themselves as some sort of charity organization providing a service to the cricket fans and to the game at large. And it is the height of hypocrisy for a website owned by Disney, of all companies, to be crying about another organization trying to protect its copyrights. I mean, Disney is the past master when it comes to copyright protection. Ever heard of Digital Media Copyright Act?

Be Patriotic, Support IPL!

It is amusing to read all this outrage at players being auctioned and bought by IPL franchises. "Cricket has become a business now" goes the refrain. Let's face it. Cricket didn't become a business with the introduction of IPL. It has been a big business for more than a decade now. ICC sold the rights for its World Cups and other tournaments for a whopping billion dollars recently. Was that not a business deal? The reason players play the game is because they get paid by their boards and sponsors. The reason boards organise matches is because they are paid by the broadcasters. The reason broadcasters pay huge sums for rights and show the game on their channels is because they make money from advertisers. And the reason advertisers pay broadcasters is because in between watching cricket we watch their ads too (or vice versa) and then go out and buy those products. As simple as that. It is an ad-driven, eyeball-driven business. Are we clear on that?

ok, good. Now, the only difference in IPL is the way that business is structured and as I am going to argue below, it is better for Indian economy. With the system being followed currently by international cricket, it is the board or entity which organises an event (be it a tournament or a series) that owns all the rights for that event. That means, when Indian team plays a series in Australia, as they have been doing for past two months, it is Cricket Australia which owns the rights for that series and hence they make all the money from that series, including from Indian market. That's right - when we sit in front of our TVs to support our favourite Men in Blue, we are in effect contributing to the coffers of Cricket Australia. And this is true when we watch World Cups too. We are making ICC richer. Or when we tour Pakistan, we fill the coffers of PCB. And so on.

Now one could ask, in that case, when those teams come and play in India, doesn't BCCI make money from those other markets too? Well, they could, but the problem is there is no other country that has a market remotely comparable with India's. Which means, whatever little money BCCI makes from overseas markets is peanuts compared to what other boards make from Indian market. Net effect is, millions of dollars go out of Indian economy to the coffers of various cricket boards around the world every year.

With IPL, that is going to change. Since IPL is completely owned by BCCI, whatever money is generated by those matches will stay within Indian economy. Sure, a few foreign players get paid a few hundred thousand dollars each, but that is nothing compared to how much the boards are making from Indian market at present.

So here's my question to Dasgupta's and Thackeray's who are criticising IPL. Would you prefer that Indian audience continues to watch cricket matches imported from Australia, England, Pakistan, etc. or would you prefer that we watch cricket matches produced in India by an 100% Indian entity, which pays its taxes to Indian government? I can't see how any Communist or a Nationalist can support imported matches over 100% Indian ones.

India on Tour - memories

Since Test cricket is on its last legs, with cricket going the club way, I thought of going through the various away test series I have followed over the years. For old times' sake.

Tours of England:

1979 - Best remembered for Bharat Reddy being picked over Kirmani and other selection goof-ups.

1982 - Entire theme of the tour for me was Vishy. Glued to the transistor and hoping against hope that he finds his touch. I think he scored a couple of fifties. Don't remember much else.

1986 - Probably one of the best cricketing memories of my life. Having just finished gruelling PU exams and engineering entrance test with flying colours, was enjoying a long break (May to October). So nothing to do all day. Get up very late, have a lazy bath and breakfast, do crossword, read some book or magazine and wait for clock to turn 3:30pm, tune into BBC TMS, enjoy their wonderful coverage. Off to play cricket with friends at 5pm and after a three hour cricket and katte session, come back to watch the highlights of previous day's action on DD and to catch the final session on radio. Abiding memories - Chetan Sharma inducing a collapse with two quick wickets, Maninder's mesmerising spell, Kapil scoring the winning runs early on day 5 of second test sealing the series victory.

1990 - Again mostly on TMS with highlights on DD. Pathetic bowling from India but more than made up by Azhar's batting. Blofeld on Azhar - "Out comes the feather duster again". Tendulkar's hundred to save a test at Old Trafford. Remember listening to Kapil's four sixers and not getting too excited (he was by then on my hit list). Kumble's debut. TMS comms getting all excited to watch two leggies bowling in tandem.

1996 - First time watching a test series from England live. Srinath and Prasad's spells particularly in second test I think against Hussain and Stewart. Ganguly's debut hundred and Dravid missing it by 3 runs. Collapse against Ronnie Irani.

Tours of Australia:

1978 - Chandra's 6-52 & 6-52 at Melbourne. The heroic chase. Remember elders talking about this being a Packer-depleted side, but didn't understand all that then.

1981 - Melbourne win. Being informed by the neighbour as soon as we got up amidst huge cheering and shouting. The Gavaskar incident.

1985 - Rain, Border and Tail frustrating us, not once but twice. Remember Shastri and Yadav running through the aussie batting line-up early one morning. Gavaskar, Srikkanth and Mohinder all getting a hundred.

1991 - Plenty of memories. Mostly sad. Whitney and Hughes running through us. Age finally catching up with Vengsarkar. Manjrekar failing to live up to expectations. Azhar raising hopes in Adelaide, albeit briefly.

1999 - First time watching a test series from Australia live. Sachin shoulder before wicket. Sachin's Melbourne hundred. VVSL Sydney hundred. McGrath showing Dravid his 'aukat' :-) Srinath bowling a good first spell but not able to maintain it longer. Agarkar getting lots of dharma wickets.

Tours of West Indies:

1982 - Mohinder standing tall amidst ruin. Windies chasing 200 after tea. I don't remember listening to any commentary. Mostly newspaper reports.

1989 - We had commentary this time and it was a funny feeling with a Test match starting at 7pm. Insipid Indian bowling. Hirwani in particular disappointing. Shastri and Sidhu's decent batting. Azhar flaying at everything.

1997 - First time watching a tes series from West Indies live. Dravid standing like a rock. Azhar getting out to Hooper. Barbados collapse.

Nuclear deal and Left's position

If you believe the commentary in most Indian media, both mainstream and blogs, the Left parties' opposition to the nuclear deal with US is motivated either by their traditional anti-Americanism or their love of China. It is certainly not driven by India's national interest. Assumption there is that the deal is in India's national interest, but Left parties don't care for that and hence are trying to scuttle the deal.

How valid is that assumption? Is the deal really in India's national interest? Or can one make an argument to the contrary? Let's see.

First of all, the leftists have made it clear that their opposition is not so much to the deal itself but to India's strategic partnership with US. So rather than looking at the nitty-gritties of the deal, let's see if a broad strategic relationship with US is in India's national interest.

Now, USA's relationship with China is lukewarm at best. So it is reasonable to assume that by entering into a strategic relationship with US, we reduce our chances of having a friendly relationship with China. How good will that be for India? No matter how great a relationship we have with US, fact remains that they will always be half way across the world from us whereas China will always be our neighbour. So it is more important for us to have good relations with China than with US. More so, when you consider that China is a growing economy and could well be the largest economy in the world in another 20 years. So we have to choose between China and US. If we go with China, we can be an equal partner with them and along with Russia, Brazil and Arab countries could form an alliance formidable enough to dominate the world in a couple of decades. Or we can go with US and end up having a troubled relationship with many countries in our neighbourhood (China, Iran, Russia, etc) which is going to hamper our own growth.

One could argue that let's have a relationship with US for the time being and we can always switch to China when we find that they are becoming more powerful than US. But the nature of strategic relationship is such that we won't be able to switch sides so easily. Take the 123 agreement for example. We will be expected to shape our foreign policy on the lines of US policy or we will have to not only return all the nuclear fuel supplied to us but also forgo the billions of dollars of investment that we are going to make in building reactors to make use of that fuel. That is, once we enter into a relationship, there will be cost associated with getting out of it. All that the Left parties seem to be doing is asking us to think carefully before deciding to tie the knot with US.

Update:
There is an interview with Edward De Bono in today's (9/18) Economic Times and he makes pretty much the same point I have made above:

Q: How can India become one of top three economic super powers?

De Bono: If India can partner China, they can be a real superpower in a short time. Alternately, if India and China form a coalition bringing other developing countries in their fold, it will beat all other world superpowers.

Cause and Effect

There is a railway crossing in Mysore which we go past many times whenever we are in that city as it happens to be on the route from my parents' to in-laws' place. Last weekend as we went past it, my four-year-old daughter asked: "Daddy, why does the train always come only when the gate is closed?".