Cover Story

Economics of conflict 

--  Amit Singh Sisodiya, Team Analyst

United by history but divided by destiny, India and Pakistan have shared a love-hate relationship post-independence. Whatever their political history, their economic history has been a chequered one; echoing among others a sordid tale of poverty, malnutrition, and child mortality. They have fought several bitter wars but to no consequence. Even as they struggle to resolve the Kashmir issue, several new monsters like terrorism have raised their ugly heads . It is time each nation realized that neither have won nor lost the wars. And that the real battle has to be won against poverty and illiteracy.

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Spotlight

Argentina Crisis : Dark shadows

-- Debasis Mallik, Team Analyst

With the largest ever sovereign debt default of $155 bn, the Argentine economy is facing a catastrophe. Abolishing its decade-old peg to the dollar and a devaluation of the peso by 29 percent was a Hobson's choice for the government. Will this be sufficient to revive the economy?

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Debate

Agenda for the Union Budget 2002-03

Come February and the focus of attention turns to the forthcoming Union Budget. Budget 2002 is yet another challenging task awaiting the Indian finance minister given that the Indian economy is confronting problems unique to this year. Growing tensions along the Line of Control raising concerns of war with Pakistan, attacks on the symbol of Indian democracy, weak economy, sharp decline in GDP growth, poor state of capital markets are all poised to challenge the abilities of the finance minister in performing a delicate balancing act.

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Corporate Finance

AT&T-Comcast Merger : Big strides

--  Y Chandra Sekhar, Team Analyst

Creating the world's largest broadband communications with over 22 million subscribers in US alone, AT&T-Comcast is sending the signals to its competitors. The broadband juggernaut is all set to dictate terms to the industry and reshape it altogether.

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Underwater Stock Options :The sinking feeling

--D Satish, Team Analyst

Afghanistan : A saga of exploitation 

--  Dr. Ajit Kumar, Team Analyst

Afghanistan with the highest per capita Kalashnikov count, faces stupendous task of reconstruction, which according to UN officials will cost $10 bn.

Afghanistan's past and present has been a saga of exploitation by various forces. It started with Alexander the Great who first subjugated Afghanistan in around 330 BC. Geo-politically, Afghanistan lies on the trade route between the Far East and Asia and the Middle East and Europe and thus had a turbulent history. It has been the region for power struggles of empire builders and neighboring countries for centuries. Great Britain, the former USSR, the US, have all exploited it for selfish ends, not excluding Pakistan that finally led to the present conditions. Afghanistan's economy has witnessed widespread destruction during the past two decades of war; a three-year drought and the fluid political situation. These have all taken their toll. Most of the major social, administrative and economic institutions of the country are seriously damaged and need a huge investment for revival, after peace and stability are restored in the country.

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International Finance

Euro : Frailty is thy name

--  Debasis Mallik, Team Analyst

Though the euro was launched as a cash currency with much fanfare, its performance has been particularly weak. Unless rigorous structural reforms are implemented by the ECB in the eurozone, recovery seems to be a distant dream.

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Industry

Cellular Price Wars :The heat is on 

--  N Janardhan Rao, Team Analyst

A price war is on in the cellular world. Whatever the final outcome, consumer will be the king.

Ever since the cellular industry was opened to the private sector in 1992, it has seen the initial euphoria, subsequent despair and then hope when revenue-sharing policy was introduced and finally consolidation and growth. Within a very short span of time, the industry has grown in technology, marketing and competitiveness at par with developed nations. The opening up of the market led to impressive growth in business, as private sector continued to spread its operations across the country, acquiring new licenses, raising enough funds and launching new services both in basic and cellular arena. Telecom services, especially cellular, witnessed further boom with the government allowing the entry of a fourth operator. If one analyses the performance of economic reforms in the country, perhaps telecom sector is the only sector where the policies were not only framed but also implemented and the result was for a jubilant, over four crore telecom customers to see.

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Corporate

Microsoft :Success unlimited 

--  D G Prasuna, Team Analyst

The three-year long antitrust litigation against Microsoft seems to be drawing to a close. The terms of the proposed settlement between the US Department of Justice are milder than the earlier ruling of breaking up Microsoft into two distinct companies. Microsoft, no wonder is delighted at this turn of events. A more important question, however, is about the interests of the consumers, are they going to have a fair deal?

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CMC Ltd :Changing hands 

--  D G Prasuna, Team Analyst

The Government's decision to divest majority stake in CMC to Tata Sons would usher in a new era for the company. The change in management might be a precursor to many more drastic changes at CMC.

Tata Sons' a subsidiary of Tata Consultancy Services (TCS), might only be too happy about the Computer Maintenance Corporation (CMC) joining its ranks. For a company that was created to maintain the umpteen IT installations that IBM had left behind in India, CMC has come a long way. Today in spite of being a public sector company, CMC has carved a niche for itself in the software market in varied areas ranging from software development, maintenance, training and education. Its expertise and experience have become major assets for the company in all its areas of functioning.

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HDFC :Cementing growth

-- D Satish, Team Analyst

The housing finance sector is growing at an unprecedented rate and HDFC is consolidating its position as the leader in this sector.

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