In Latin America, the soft power Indian gurus exert over the literati and intelligentsia is considerable.
With most Indian business houses controlled by families, this affords a natural affinity for Latam business groups with similar ownership structures. Given survey results, Indian business has better long-term prospects in mostly democratic Latin America than in authoritarian African countries.
Sadanand Dhume in WSJ.com
Earlier this month, the industrialist Anand Mahindra donated $10 million
to support the teaching of the humanities Harvard, the
largest gift to the program in the university’s 374-year history. Barely
two weeks later, the $70 billion salt-to-steel Tata Group plonked down
$50 million for Harvard Business School, the biggest international
donation since the school’s founding. In recent years, Indian corporate largesse has also benefited, among others, Yale, Cornell and the University of Pennsylvania. But these gifts also illustrate a broader phenomenon: India’s growing soft power.
The most obvious signs are hard to miss. In recent years, Bollywood-themed dances have invaded wedding celebrations from Sydney to San Francisco. In Britain, curry houses employ more than 100,000 people and generate about £3.5 billion ($5.5 billion) of business each year. And if Yoga Journal is to be believed, an estimated 15.8 million Americans can tell a corpse pose from a downward-facing dog. Indian-born CEOs head such iconic global companies as PepsiCo, Citigroup and MasterCard. In the arts, reports of Indian writers scooping up literary prizes and directors helming big ticket-movies in Hollywood have almost become commonplace.
Scholars and journalists alike tend to make much of China’s vaunted “charm offensive.” It turns out, however, that when it comes to winning hearts and minds—at least democratic hearts and minds—China’s top down state-led model is not much of a match for India’s decentralized private effort.
In terms of goodwill, India bests China in both Western and Eastern democracies. For instance, according to a poll released last month by the Chicago Council on Global Affairs, Americans place India in the same ballpark as long-term allies South Korea and Israel. China elicits only about as much warmth as Venezuela and Mexico.
A recent BBC World Service poll of 28 countries says more or less the same thing. On average, more than half of Americans, Britons and Canadians feel “mainly positive” about India; only about one in six feel “mainly negative.” With China the numbers are reversed. Barely one in three from the Anglophone countries feel mostly positive about the Middle Kingdom; for more than four in 10 the emotions evoked are negative. Similarly, more Japanese, Indonesians and South Koreans feel positively than negatively toward India; with China it’s the opposite. Read the rest of this entry »
In 2011 Brazil is expected to surpass Italy to become the seventh largest economy in the world, and India is expected to move ahead of Spain. From MercoPress:
The research unit of The Economist is predicting that Brazil, the eighth largest economy of the world in 2009, with a nominal GDP of 1.5 trillion, followed by Spain, Canada, India and Russia, would continue in the same position during 2010.
However it is expected that in 2011 the largest Latin American economy will climb up to stand in seventh place in the ranking with a nominal GDP of just over 2 trillion. Thus, Brazil would regain the position it occupied in 1994 displacing Italy which it is not expected to reach 1.8 trillion in nominal output. Another European Economy that will surrender position among the largest economies in the world is Spain, being relegated to the 12th post because of the significant advance of Russia and India.
Vale Rio Doce, which is world’s biggest iron-ore miner, is optimistic about its chances of remaining on top, and has several large new projects in the pipeline, including a $12.6 billion nickel mine in the Brazilian state of Pará. From MercoPress:
Vale, which aims to become the biggest mining company in the world, doesn’t need to compete with rivals for assets because it has the highest-quality iron ore and a pipeline of other metals projects, Chief Executive Officer Roger Agnelli told investors in New York on Monday.
“Everybody is looking for assets, they are going after acquisitions and we are not going after acquisitions,” Agnelli said in a presentation. Vale is “very well positioned” after “quietly” buying assets in 2004 through 2006, he said.
Rio de Janeiro-based Vale will start six new projects this year including its Onca Puma nickel mine in Brazil’s Para state after spending $12.6 billion, according to a regulatory filing Monday. The company’s 7.9 million metric tons of nickel reserves put it above OAO GMK Norilsk Nickel, the world’s biggest supplier, according to the presentation. Vale is also planning to expand production of minerals such as copper and fertilizers.
“We are the only mining company in the world that can double the capacity only with our own projects,” Chief Financial Officer Guilherme Cavalcanti said during the same event at the New York Stock Exchange.
“If America had a central bank chief like Y. V. Reddy, the U.S. economy would not have been such a mess,” Joseph E. Stiglitz, the economist and Nobel laureate, has said. In India, there were no subprime loans.
Part of the reason is cultural. Indians are simply not as comfortable
with credit as Americans. “A lot of Indians, when you push them, will
say that if you spend more than you earn you will get in trouble,” an
Indian consultant told me. “Americans spent more than they earned.”
“Savings are important. Joint families exist. When one son
moves out, the family helps them. So you don’t borrow so much from the
Real Time Economics – WSJ
Why did China, India and Brazil all emerge so much more rapidly from the global financial crisis than advanced economies did? In a presentation in Denver to the National Association for Business Economics, Nobel Prize-winning economist Michael Spence, now of New York University, offered several reasons:
* These economies learned bitter lessons in the 1997-98 crisis that afflicted them more than advanced economies.
* They were in “a good initial position” with relatively low leverage, and thus didn’t get hit with the severe “balance sheet recession” that hit the U.S.
* They hadn’t any complex securitized financial instruments.
* They had built up large foreign-exchange reserves.
* Their central banks responded, much as advanced countries’ central banks did, with speed and agility to the credit tightening.
* Their economic managers displayed “a high degree of competence.”
“Is this sustainable? Will they keep growing? I think the answer is a qualified yes,” he said. “I wouldn’t have said that 10 years ago.”
Adding to the sustainability of growth in emerging markets are two other
factors, he said: One, they are increasingly trading with each other
and thus are less dependent on now slow-growing advanced economies; two,
they have become rich enough for their consumers to buy the goods they
India Real Time – WSJ
Another mountain range is making its debut as the backdrop for a song-and-dance sequence in an Indian movie—if it made the editor’s cut, that is: the Andes in Peru, and the ruins of the Inca city of Machu Picchu located high amid those mountains.
Strictly speaking, we’re talking Kollywood not Bollywood, even if the latter has become the catch-all term overseas for all movies coming out of India. “Endhiran” (Robot), in which Tamil megastar Rajnikanth plays a scientist and a robot and which opens Friday, flew its stars to Peru to film one of the music scenes.
Fernando Astete, director of the Machu Picchu Archaelogical Park, recalled the shoot approximately two years ago.
“We have seen some Indian movies here,” said Mr. Astete. “It was the quintessential music that we see in those movies, with the man falling in love and courting the woman. There were also some Brazilian elements all mixed in. It was something quite exotic.”
The anthropologist said it was quite unusual to get a film crew like this. “Normally we get films about the discovery of Machu Picchu, the Discovery Channel, what was Machu Picchu like, films by National Geographic, that kind of thing,” said Mr. Astete. “The idea was to promote Peru in the vast market of India,” he said. Mr. Astete said the agency that markets tourism to Peru, Promperu, helped the film’s crew with the paperwork in order to be able to film there.
Technorati Tags: india, peru, movie
For instance, Peru — South America’s fastest-growing large economy — has excellent economic prospects with reasonable valuation levels.
Until last year, investors could only buy into Peru through companies like gold miner Compania de Minas BuenaventuraADR (BVN_), copper miner Southern Copper (SCCO_), or the financial Credicorp ADR (BAP_). But iShares MSCI All Peru Capped Index Fund (EPU_) now offers a new way.
Granted, 20 years ago Peru struggled with raging hyperinflation and violent attacks by communist guerrilla groups. A lot has changed since then, and it’s set to grow 7% this year. Most economists can’t help but notice the difference — so should you.
Peru’s Commodity Advantage and More
Peru can trace its mining ties back to a time before the Inca Empire. That same tradition has helped push it into a successful economy today. Similarly, much of its future success relies on its exports of gold, copper and the like.
Fortunately, global mining companies can’t seem to get enough of any of those. In all, they have $41 billion in investments planned there over the next decade. That should quadruple Peru’s copper exports, putting it neck-and-neck with Chile, the world’s biggest producer right now.
Along with mining, the country has other factors going for it, such as agriculture. In the past decade, such exports have surged from $300 million to $2.5 billion.
* Peru exports the world’s largest amount of asparagus.
* The country produces the most specialty coffees, paprika and organic bananas.
* It also reaps significant amounts of cocoa, sugar, artichokes, avocados and mangos.
Right now, that sector only accounts for 8.3% of GDP, though it employs a third of the workforce. But it should grow fast with the introduction of superior farming methods such as drip irrigation. With strong sales in the first half of the year, revenue rose 19% over the same time in 2009 to $1.37 billion. That highlights Peru’s potential in the global agricultural market.
Technorati Tags: peru, agriculture, mining
1 Crore is 10 million. 1 USD – ~~ 44 Indian Rupees. You do the math. If you’re in the business of feeding India, you don’t know what “global recession” people are talking about.
The Hindu Business Line
Import of food grains jumped 3100 per cent to Rs 111.7 crore in April-July 2010 from just Rs 3.5 crore last year. This is mainly due to import of wheat by flour millers in south India.
Import of milk and milk products in the period under review was Rs 370.4 crore, a 324.5 per cent increase from only Rs 87.3 crore in the same period last year. In March, the Government had allowed duty-free imports of up to 15,000 tonnes of butter oil and 30,000 tonnes of milk powder, anticipating shortfalls in milk supplies to cities ahead of the summer season.
Edible oil import grew 18.9 per cent to Rs 8,763.7 crore during April-July this fiscal from Rs 7,371 crore last year. A significant feature of edible oil import is that import of crude oil has gone up by 25.9 per cent to Rs 7,958.6 crore (Rs 6,319.8 crore), while imports of refined oil have fallen by 23.4 per cent to Rs 805.1 crore (Rs 1,051.3 crore). The increase in edible oil import is mainly due to substantial increase in import of soya-bean crude oil, the statement said.
Among those other sensitive items whose import growth has increased during the period under reference include fruits and vegetables including nuts (up 10.8 per cent to Rs 2,178.3 crore), spices (11.9 per cent to Rs 302.7 crore), alcoholic beverages (85.2 per cent to Rs 147.4 crore).
Food inflation in India for the week ended September 25 was 16.24 per cent, mainly because of soaring prices of milk, fruits and vegetables.
Technorati Tags: india, consumption trends
China, Brazil to fuel global economic growth – International Business – MiamiHerald.com
Latin America and the East Asian Tigers are lifting the world economic tide, showing more resilience to the global economic crisis than the United States and many European nations.
Such a growth path is a break from the past for Latin American and Caribbean countries, which have had a “history of frequent and devastating financial crises,” the World Bank said in a report called The New Face of Latin America and the Caribbean.
The keys to the newfound resiliency of the Latin American and Caribbean region were more sound monetary policies and better debt and fiscal management, the World Bank said. But a growing connection to emerging Asian economies — especially for South American countries, Costa Rica and Panama — and the region’s evolution from a net debtor to a net creditor to the rest of the world were also big factors.
In addition to Brazil — Florida’s top trading partner — the best performers this year are expected to be Argentina, Peru, Paraguay and Uruguay.
Technorati Tags: latin america, economic growth
| %Good Morning Colombia%
As part of the inauguration of the International Fair of Bogota, Colombia’s president, Juan Manuel Santos, said that “Colombia has a clear horizon that makes you dream to prosperity.” The president said India’s participation in trade shows as a model of technological progress, economic and industry and said the approach opens up the possible signing of an FTA with that country.
India is participating for the first time at the show and does so with 151 companies, seeking to consolidate and expand trade relations with Colombia says 50 years ago.
And the president of the Export Promotion Council of India, Chadha Aman, said the Colombian market as one of the most stable in Latin America and is appreciated for products like oil, coal, wood and petrochemicals, among others.
Colombia’s ambassador in New Delhi, Juan Alfredo Pinto, said that India is clearly an engineer[ing] power, with production aimed at high technology and product development, with high domestic consumption of vehicles.
He said that 70 percent of taxis circulating in Bogotá was manufactured in India
He also said that Colombia has currently 26 Indian companies.
Technorati Tags: india, colombia
as investors diversify into assets that cannot be “printed”. People like Jim Rogers and Marc Faber have been saying this for years, and Boston University econ Prof. Larry Kotlikoff says the U.S. is heading towards an Argentina 2001-like sovereign crisis.
Three Horrifying Facts About the US Debt “Situation” | zero hedge
#1 The US Fed is now the second largest owner of US Treasuries.
That’s right, this week we overtook Japan, leaving China as the only country with greater ownership of US Debt. And we’re printing money to buy it. Setting aside the fact that this is abject lunacy, this policy is trashing [the USD} which has fallen 13% since June…
#2: “There are only about $550 billion of Treasuries outstanding with a remaining maturity of greater than 10 years.”
the US has entered a debt spiral: a time in which fewer and fewer investors are willing to lend to us for any long period of time… at the exact same time that we must roll over trillions in old debt and issue an additional $100-150 billion in NEW debt per month in order to finance our massive deficit.
#3: The US will Default on its Debt
… either that or experience hyperinflation. There is simply no other option. We can NEVER pay off our debts. To do so would require every US family to pay $31,000 a year for 75 years. Obviously that ain’t going to happen.So default is in the cards. Either that or hyperinflation (which occurs when investors flee a currency). Either of these will be massively US Dollar negative
Technorati Tags: US debt, commodities, agriculture