LUXURY REDEFINED – Making Sustainability Fashionable

Luxury has always been synonymous with the terms expensive, status, power and exclusivity. While the luxury consumer of the past was the extremely wealthy and still represents an important segment, they are no longer the only audience in town. There are younger consumers, especially millennials that are making up an increasingly large share of the luxury market.

Would this segment of consumers be interested in sustainable or ethical fashion?

Sustainability is a concept with many definitions and its application in fashion involves diverse outlooks, covering environmental impact of materials, social justice and issues concerning labor rights. A topic that is so widely covered in conferences & creative interventions around the world and yet remains a mystery to most.

It is mostly since there is a lack of knowledge of sustainable fashion and the destruction caused by the fashion world to the environment. The perception of products and their accessibility, availability and pricing also play a big role in a sort of ignorance towards sustainability.

The consumer’s mindset in a developing country like India is most interesting and different age groups and social strata of society reveal the complexities of contemporary consumption behavior.

While the discovery is slow, it is steady. This movement is gaining momentum with celebrities endorsing the cause of responsible consumer behaviour via digital media and popular brands promoting it via ad campaigns.

Even though the majority of society does not really understand or worry about the repercussions of their actions, there is a growing number that would be happier to choose products wisely. Knowledge is key to the growth of the sustainability movement to empower consumers and future designers in society. 

The more endorsements and popularity that this wave of ethical fashion gains the more people would want to adopt it and luxury would have a whole new meaning – sustainable and responsible. The design courses at IILM are geared towards inculcating these very ideas in our students.

 

 

“When the going gets tough, the tough keep teaching online”.

By a total surprise, we got into lockdown, no ten-day notice, no world is coming to an end, a simple stay home stay safe alert. And from there on, came a supposedly temporary arrangement of teaching classes from zoom so that we could get over this unknown virus soon. Must admit it was so tuff, like going online for all classes, something totally unimaginable by teachers and students alike.

As all new things have a flavour of surprise, we all took the plunge and felt something different about teaching and learning from our homes. Suddenly, there was no private life, as we could bring our students to the dressy part of our house and teachers could log into their students’ private corners of the house.

Obviously, when this new normal looked like it will stay and all baking and cooking did not look fun anymore, we started getting edgy about zoom classes, scattering about attendance and participation of students in “classes”.  As Covid 19 cases started to rise, so did the pressure to continue dedicated classes and assessments, something no one had any experience with or knew how to make it look close to fair assessments.

Open book exam got a new name, in the form of online assessments and suddenly CGPA’s started blooming all over. Students who initially seemed enthusiastic to keep their cameras on slowly slipped into the mode of keeping their cameras off and when asked complained of network issues.  The world of learning and teaching was solely surviving on the speed of network connectivity as work from home and study from home became our reality.

Two years and no respite, we look to online teaching and learning to escape from growing anxiety lurking outside on streets in the name of social distancing. What was a class once filled with happy faces, dressed up in their favourites, trending the trends and catching up or bunking classes turned into no escape from online classes?

But I ask, is everything lost? Has online teaching been that bad? Well, this can be answered in many ways. Redundant old ways of teaching and rote learning found a jolt and everyone who is a part of the education system irrespective of nation and economy had to change. This change was something new and challenged a lot of beliefs of what is an academic success is and how learning can be seen besides exams.

Online learning has made it easier for students to freely access their classes, see recorded videos and go through the content to clarify doubts and grasp the subject. Resources once only available in college libraries have found comfortable outreach and sharing amongst students.

What continues to be a large concern is unstable networks, a poor economy affecting students and teachers, no protocols of ethics of online teaching and learning.

Would like to conclude by saying, pandemic took us by surprise, leaving us unsettled and then came our endeavour to be busy with classes to keep distractions at bay. Turning a new leaf in education both for educators and student’s perspective is showing fruitful results in our resolution to learn.

BHARAT- A Vibrant Democratic Republic

We are celebrating the 72nd Republic day on 26 January 2021, the day on which India became an independent republic with a democratic system of governance. On this day when the Constitution of India, came into effect in year 1950 after being adopted by the Constituent Assembly on November 26, 1949, we are compelled to express our gratitude to the framers of the Indian Constitution. Undoubtedly, they were men of great foresight and wisdom as they have drafted this unique document which has withstood the test of time. Over the last seven decades it has seen many ups and downs and emerged successful as the largest democracy of the world.

Every country wants to be known as a ‘Democracy’, for example even a totalitarian State like China prefers calling itself a Democracy but in the real sense only few nations qualify for democracy and India is one of them. A true democracy must allow free and fair competition. Our Constitution provides for impartial elections, sine qua non for a democratic setup. A free and vibrant Media is a hallmark for democracy. Except for a brief period of EMERGENCY in India during 1975 which was a temporary aberration, our constitution fortunately has survived all the onslaughts to only emerge stronger than before.

The Indian Constitution establishes the primacy of the legislature, executive and the judiciary in their respective domain with checks and balances. The Legislature is there to point out the mistakes and abuse of power by the Executive and put effective checks. On the pattern of American Constitution; the Superior Courts have the power of Judicial Review of executive actions. The drafters could comprehend the dangers of curtailing the liberties of the citizens by the executive if its powers were not controlled by the Judiciary. Hence, our founding fathers saw the role of Supreme Court of India very significant whenever the legislature or executive exceeded their powers.

In 1970’s the nation saw the pillars of the federal structure quiver when the Government deliberately made certain amendments in the Document which were subsequently turned down by the Supreme Court as unconstitutional. In the famous Keshavananda Bharati case, the apex court pronounced that though the legislation has every power to amend the constitution, but the government in no circumstances can change the Basic Structure of the Indian constitution. The then government strongly reacted to the landmark judgement and superseded the three most senior judges to appoint the dissenting judge as the Chief Justice of India. This paved the way to the concept of ‘committed judiciary in India’ and also confrontations between executive and judiciary. This indeed posted a great threat to the Basic Structure and the smooth functioning of the Democracy.

Though the Constitution makers had a vision of keeping the federal yet unitary nature of India while crafting this document but the center and state relations have not been cordial from the onset. The Constitution of India under Article 356 provided for the suspension of State Assembly by imposing Presidents Rule which was to be exercised by the Center only in special situations of a breakdown in the Constitutional machinery of any state. Unfortunately, this provision was abused and misused by the Center yet again during the then government in exercise of their power. Many a times various state governments were dismissed until the Supreme Court finally put some restrictions on the exercise of the said provision in the famous case of S. R. Bomai vs. Union of India.

The aspiring new India chasing the dreams of her craftsmen will have to make constant efforts to strengthen the existing pillars on which the nation stands tall and does not let it wither away with the systematic subversion by the governments elected with populous majority. Let ‘We’ the people of India come and join its representatives to work at all levels in order to redefine ‘Democratic Republic, India’. The challenges are manifold but the young India will channelize all its energy into Nation Building with small initiatives, be it digital India, startup India or Atmanirbhar Bharat.

We stand United with a mission to live up to the vision of what constitutes Bharat, a union of state.

Really is it True- Do we all Think Alike?

I was reading in the morning paper about how a game of Ludo saved our lives during the lockdown. The collective power of distracting ourselves from the pandemic glued people the world over to gaming. Obsession and now so much time on hand, made some people go back to board games, especially Ludo- the traditional four players’ game. Families hurdled up together for some fun time, given when they were free from their work from home schedule to enjoy each other’s company. Some took to phones and started playing ludo with friends and family near and far to play ludo on the app. It was all good fun and in essence, has taught many of us the virtues of living life. Pandemic was not only an eye-opener for so many of us who were living life in the fast lane but was also an insightful year to reflect and relax in life- we only get it once.

Ludo as explained by Wikipedia is a strategy board game for two to four players, in which the players race their four tokens from start to finish according to the rolls of a single die. Two, three, or four can play, without partnerships.

This game brings out the best in us- to win and go home and be happy or the worst- to keep killing other players’ tokens so that you can overtake them and win. A lot of animosities also stems up from those who are not interested in being killed and sent back to wait for a roll of dice to make a six and be released all over again in the game. This game is not for the weak-hearted, as only the most meticulous, careful, and fully aware player will make it first to home without a scratch.

Like others, I always begin the game hoping for my dice to show six so that my tokens will freely roam around the square of the board, only to occasionally meet threats from other players, who would be determined not to let my token take a peaceful walk by home, unscratched.

So, while I am rejoicing for my tokens and at the same time worried that other players may not harm me, I wonder, do we all play fair? Do we all think alike? Is it true that like-minded people think alike?

Thinking is a mental process of experiencing present events and making critical judgments from past experiences. Thinking is used almost every second of our living and most of the time engage in thoughtfulness without even thinking. It is like a habit you flow into without you realizing you are doing it (nail-biting for example).

We all display similar yet unique styles of thinking even though we can be characterized into personality types, yet something in our nature makes us individually unique. To explain how we think, I will bring in Sternberg’s ideology of thinking styles.

Sternberg (1988,1997) proposed his own theory of thinking styles, a theory he named the “theory of mental self-government”. He used the metaphor of mental self-government to portray how the human mind works. His theory postulated 13 different mental styles to manage our daily activities. To make it simpler, I would like to explain different mental styles with examples of players on a Ludo game and their strategies to win.

A legislative player will use his own method, not follow others, and look for winning moments but creatively.

An executive player will follow only a structured method and hopefully will not cheat.

A judicial player will evaluate other players’ moves and constantly comment in the game at them.

A monarchic player will spend all his energy on one token to safety than putting all his tokens in the game.

A hierarchic player will put all his tokens out in the game and make the most calculative moves to save his tokens.

An oligarchic player will be in a hurry to win and will move without looking in the game.

An anarchic player will go all out to win, unlike an executive, unlikely to see risk assessment of other players moves.

A global player may look like a loser in the beginning but will keep looking at the bigger picture than a quick win.

A local player will keep thinking, time-consuming player of the game, and take small steps.

An internal player is someone only playing for himself even if it is a group game, no partnership, no mercy to others.

External player unlike internal player is playing with everyone, will let others go at times than cutting their chance and putting them back in the box. He likes partnership.

A liberal player will keep changing his own strategies to surprise other players with unpredictable moves in the game.

Conservative player will be the predictable player of the game, everyone will know his moves even before he moves his tokens.

We like the players in Ludo have different thinking styles which we display in different scenarios when thinking critically and working through problem-solving. To make effective decisions, most of us jump from one thinking style to another, maybe from personal to professional concerns of decision making.

There is no one reason to explain this variation, but yes, some generalizations can be as to how skilled we are, varied past experiences, the seriousness of problem-solving, time at hand, and of course our temperament influences the way we think and from that thinking behave.

To conclude, thinking influences all facets of our life even when we are mindlessly doing something, say as simple as a board game. Interestingly, even if everyone knows how to play ludo, they will always play it differently than the last time; just like our thinking styles alike- yet different.

Impact of Personality and Behavioral Styles During Difficult Negotiations- Amitabh Mukherji MA PSY 2019-2021

 

This article is a small effort to help one understand the science and art of negotiation and manage the negotiation processes. It suggests few insights of the same.

Negotiation is all about trading or in simpler terms, it is nothing but a type of deal one does while carrying out businesses. It is distinctive from other forms of decision-making. “In negotiation there is an explicit trade: I get some of what I want and you get some of what you want” (Kennedy 1994: 3). There is no negotiation in voids since negotiations conclude in decision-making. We must however seek to resolve matters by various means, including submission of others.

One exhibits traits, which makes us understand the personality. These traits incline a person to respond in certain ways. If one’s personality is stable enough then it could produce predictable responses to different negotiating situations during the dealings one carries out with different personalities. In turn it helps one to secure better negotiated outcomes.

According to the research by Rubin and Brown, two variables were identified to determine personality styles influencing negotiation skills. The two variables are: Interpersonal Orientation (IO), also known as social ability and social awareness. If one is high on IO then one is responsive to one’s relationship with the other negotiator and low IO leads to non-responsiveness. The other is, Motivational Orientation (MO), means one’s nature is competitive or co-operative. These variables thus give rise to Aggressive and Submissive personality styles.

There is always a likelihood of coming across difficult negotiators in different walks of our life. They may or may not agree with us and may seem less than enthusiastic. Because of certain behavioral traits, they could be labeled as mean, aggressive and lacking in manners.

So the question is how one should deal with such complicated negotiators? One may want to negotiate but the other person may not want to! Their version of a solution implies that either one gives in and provide them what they demand or end it there.

What we need to understand is that their mindset regarding negotiation is different. They adopt such aggressive behavior(s) while negotiating, possibly because in the past they got what they demanded and they confuse aggression with toughness, which in actuality is different.

Need of the hour then is, to sever the connection of the other negotiator’s stances of intimidation and winning. For that one needs to grab the attention, choose the same style of negotiation or a contrasting style and assert unambiguously that the other negotiator will not resort to coercion or bullying but will deal either through merit of the case or through trading.

At-times matching style could be risky as it can easily get lost amidst the haze of threats and insults. The main purpose of it is to create an impression that one does not possesses a submissive personality style and it also leaves open an alternative settlement route. Contrasting style could also be risky since being possibly read by the difficult negotiators as one being submissive.

One can adopt the following during negotiations:

  • Quiet and soft conversations.
  • Displaying warmth.
  • Unhurried discussions.
  • Do not hear; but listen.
  • Empathetic attitude.
  • Understand non-verbal cues.
  • Non-interference and patience during interruptions.
  • Non-responsiveness, if there is swearing by the other negotiator.
  • Non-argumentative, if there are personal attacks.
  • Ignoring threats.
  • Be non-defensive against ascribed motives.
  • No acrimonious action.
  • Positive responses, if there is overt demonstration of aggressiveness and deviousness from the other negotiator.
  • Display of humility along with firmness.
  • Affirmativeness to be displayed upon arriving at an agreeable solution based upon merits of the case and trading.

Adoption of the above effectively renders an assertive message of; one’s toughness during negotiations, that is based on the rationale; that unless one acquires something, the other will obtain absolutely nothing.

It can be well concluded that negotiations are a fundamental element in our social lives. One knowingly or unknowingly, always negotiates for resources and attention. Recent studies have brought out that Negotiation is both an art and science. Cognitive biases (leading to deviation from judgmental rationales), personality and behavioral styles, affect negotiations. Thus a little psychology backed science added with conversational arts can deliver success during difficult negotiations.

“Everything is negotiable. Whether or not the negotiation is easy is another thing.” Carrie Fisher

AMITABH MUKERJI- A Defence Officer who is also pursuing Masters in Psychology from IILM University..
Apart from being a Science Graduate, he has certifications and diplomas in Defence Management (Strategic Studies) and Cyber Law and is a qualified Assessor for selecting candidates for Defence Services.

Fundraising Spree on for Indian Banks

Profitability and NPA are the two extremes that need to be balanced for banks. Since a long Indian banking sector is on a continuous fight to draw a balance between them. Recently the Central Bank decided to take control over NPAs with a huge capital infusion into the banking sector. But the outbreak of COVID-19 derailed all efforts and the problems of NPAs have been resurfaced and touched the new height which seems to be very difficult for the Indian economy to stand with.

Stress in the Banking Sector

The Indian banking sector is reeling under stress for a long time. Indian banks have been tested over the past few years after the RBI forced them to review their assets under strict criteria that eventually resulted a surge in bad loans. To add their woes, borrowings have also slowed due to lockdown. These stresses are more apparent in state-run banks than in the private sector.

Reason for Stress

According to a few economists, the primary cause of this situation that has slammed all banks are the fall of IL&FS in October 2018 and the ongoing pandemic. India is expected to fall into a recession this fiscal year due to COVID, which has affected over 2.6 million people and caused 70000+ death in the country. It is the most discussed and worrisome topic in the Indian economical circle that there are chances of getting caught in the recession since 1979.

According to RBI, the ratio of non-performing assets total advances could soar to over 12.5% by March 2021 from 8.5% as of end-March this year, prompting the country’s central bank to push banks to raise capital, which now totals over 1 trillion rupees ($13.4billion). Additionally, the Financial Stability Report (FSR), noted the NPA ratio could jump as a high level as 14.7% in the event of severe stress.

Fundraising a Way out

RBI Governor advised all banks to improve their governance and sharpen risk management skills. Banks need to raise capital on an anticipatory basis instead of waiting for an adverse situation. It is necessary for both public and private sector banks to build up adequate capital buffers.

As a result, financial institutions are on a fundraising spree via debt instruments and equity offerings. The latest bank to join the fundraising spree is Axis bank which on said had raised 100 billion rupees by issuing shares to Qualified Institutional Buyers for INR 420.10. Other financial institutions, mortgage lenders, HDFC also closed a deal to raise INR 140 billion via various instruments. At the same time, the largest private bank of India, ICICI bank also wishes to raise INR 150 billion. Later State Bank of India, India’s largest lender also joined the league and announced to raise INR 250 billion to maintain its capital requirement. Not only banks but similar signals are also been sensed from Non-Banking Financial Companies which might have to raise money. In total, it is approximately $13 billion could raise to tackle the NPA challenge.

Governance

At present, Indian banks are in dyeing need for reforms. The Bank exposure to stressed sectors, loan-loss cover, and pre-provision earnings determine the urgency of their capital requirements, which is more pronounced for state banks. Recently 5 members committee has been formed by RBI under the Chairmanship of former CEO of ICICI bank, Mr. KV Kamath. This committee makes recommendations on the required parameters to be factored into the resolution plans. A resolution to the problem of the corporate debtor insolvency and its consequent inability to pay off debts. The committee will submit its recommendation to the RBI. The central bank will then notify the same along with modification including the restructuring of loans if any in 30 days.

Support from Government

Over the last five years until March 2020, India had pumped around 3 trillion rupees into banks to remain capital requirements. In the future, we may expect more infusion of cash from the government eventually to support the banks and consequently to save the economy.

 

Aditya Verma

PGDM 2020-22

IILM, Greater Noida

Dr. Kumar Saurabh

Asst. Prof-Finance

IILM Graduate School of Management, Greater Noida

INDIA – AN OPPORUNITY IN CHALLENGE

Blogpost By:- Prof Sonika Sharma (OB & HR), sonika.sharma@iilm.edu

Ongoing pandemic has changed our world in many terms. The community of nations has come to realize, how vulnerable it is to a crisis like COVID 19. Despite having all the economic muscle, robust industrial ecosystem and military might, the powerful and mighty countries are found helpless and they are forced to have a rethink about their capabilities. This crisis has blurred the stereotype distinction between developed, developing and non-performing economies. Needless to say here, India is not left untouched by the impact of COVID 19. A country which was on its way to address the core problems like basic education, health for all, raising farming income, rural infrastructure and employment generation has been distracted from its path.

As the old adage says, there is an opportunity in every crisis. India is given a chance to remodel its policies and strategy about developing its huge human resources. A population of 1.35 billion with over 65% under the age of 35 is wealth in real tangible terms. If we take our lessons well from history, we find that Europe rose from the ashes after the Second World War. Japan became an economic powerhouse after nuclear destruction and South Korea joined the club of the developed world.

This pandemic has provided a window to us for raising the quality of our educational institutions who are preparing our students in the fields of scientific research, engineering, medicine, agriculture and management as these are the core areas where a lot of qualitative changes has come and still yet to come. If India desires to be counted amongst the nations having a world-class workforce, this is the time for a serious re-look at our education sector. Best of our students get admission in the premier colleges and universities across the globe and this is a testament to their mettle.

The demand for domain experts will give birth to a whole new class for employment. Students from engineering, medicine, manufacturing and management sectors will have immense opportunities as both government and private sector employers will be willing to pay better remuneration to the aptly skilled manpower.

India can only go upwards from this level of economic health in every sphere. It will be logically correct to say that a whole generation of working professional shall be rendered useless when faced with the new, demanding technological advancement in every field. Revolutionary up gradation in skillset will be the key to success for growth and survival. A very promising future awaits the management students, equipped with the right kind of knowledge and specialization. Next three decades and going to be the growth period for service and manufacturing sectors in India and resultantly the country will become a big employer.

Since 1993, IILM is contributing to India’s growth story by providing responsible education across its 6 campuses with a global alumni network of over 12,000+ members. Today, after 25 years of its inception, IILM has been delivering superior quality education consistently and incessantly. The IILM ethos is focused on identifying and nurturing the next generation of thought leaders through intuitive education and experimental learning.

Written By:-

Prof Sonika Sharma (OB & HR)

sonika.sharma@iilm.edu

Solving complicated problems with Design Thinking

For the world’s most beloved brands like Apple and Ikea, Design thinking has been the reason behind their intentional and human-centric products. Design thinking encourages the business to be more empathetic in their approach in rendering a solution/product by putting themselves in the customer’s shoes to understand the needs, desires, and potential problems. It is about providing a solution by visualising the product, telling a story rather than selling a feature.

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To explain, I will share two real stories.

The first one is about the company GE Healthcare*
Those of you who have undergone an MRI Scan or got it done for a family member would know that the scan machines, however sophisticated they look, have the ability to scare. Having an MRI Scan is generally not a pleasant experience for adults, let alone children. Children often struggle to stay still during the process (often crying) given the frightening experience. The Chief Designer at GE Imaging Machines was shocked by this and felt as though something had to change. By applying Design Thinking, he decided to observe children going through the scanner while also having conversations with not just children but doctors and educators. Through the conversations and observations, he found that rather than being seen as an elegant piece of technology, the MRI Scanner was considered to be a scary machine by young children. As a result, CT Pirate Island Adventure was created. The MRI scanner was made to look like a pirate ship and it transformed the traumatic experience into a kid’s adventure story where the patient had the starring role. This transformation brought about a dip in sedation of children prior to the scan by 70% Another story is about Starbucks*. The food and the beverage industry were experiencing a drop in sales and poor margins. Starbucks decided to interview hundreds of customers to better understand what they expected from their coffee shops. Through the insights gained from these interactions, it was evident that the customers were expecting an atmosphere and ambience that gave them a sense of belonging and relaxation. As a result, Starbucks positioned round tables strategically to make solo coffee drinkers more comfortable and less self-conscious.

Design thinking is a process that helps us to solve complicated business problems. The concept of Design Thinking questions the prescribed process and steers the designer to be conscious and mindful of the methods that help to get him/her unstuck. It requires a drastic change in mindset to ensure successful application and that itself is a difficult task. The mindset that needs change are about answers that are not clear from the start, the failures that are powerful tools for learning, the focus on human centricity and making the iterative process a way of life for unexpected solutions.

Some of the strategies or mindsets that can help to apply design thinking are :

Human Focus: Your customers are not sheer numbers and therefore it is an imperative to understand their feelings, hopes, fears, and unique stories. Once you get to know and empathize with them, you may think of your product/solution and how you market it, in a completely different light. Ethnographic research and quantitative market research will set your intuition for informed decisions.

Flare-And-Focus: In design thinking, using divergent thinking, or “flaring,” helps to discover opportunities and explore ideas. This helps to broaden the base of thinking and consider different stories before arriving at a solution. Once you have a variety of themes or concepts, using convergent thinking or “focusing,” helps to narrow down choices and make informed decisions. Using flare and focus catalyses your creativity with a focus to deliver the project within time and resource constraints.

Iterative Process Focus: Imagine investing in a big campaign, only to discover that it did not resonate with your customers after having spent so much time and resources on it. For instance in product design, the cost of failure significantly increases further along the process. One of the ways to lower these risks is by constantly testing our hypotheses, by making our concepts tangible and testable with users from the initial stages until the very end. Knowing how to give and receive feedback leads to a culture of openness and constant improvement.

To summarise, I would state that your intention for business changes when you view it through the lens of the customer. In Design Thinking, you solve problems that meet the customer’s need and that for any business is the sole objective of being in business.

*Source:https://medium.com/@shaynam85/6-companies-that-have-successfully-applied-design-thinking-2d8bddf4e9e2

Covid-19 –Political Obligation and Government Compulsion

The current state of epidemic not only urges the government to take harsh measures but also the people to cooperate with it for their own survival. Letting go of their right of self-preservation the people need to understand that the measures are for their own good.

Hobbes had once stated “Out of it, any man may rightly spoil or kill each other, in it none but one. Out of it we are protected by our own forces, in it by the power of all. Out of it no man is sure of the fruits of his labour, in it all men are. Lastly out of it, there is a domination of passions, war, fear, poverty, slovenliness, solitude, barbarism, ignorance, and cruelty, in it, the domination of reason, peace, security, riches, decency, society, elegance, sciences and benevolence”. This is a situation which seems to persist in India and around the world currently. When the people are anxious and cautious at the same time. When the citizens are looking towards the sovereign for the answers to their questions and support for their well being. There is peace and havoc; there is ignorance and awareness that simultaneously persists.

Here the measures of a complete lockdown by the Indian Government at the early stages has been up lauded across the world. Yet the Indian populace even in this state seems to be defying the government orders as a part of their leisure routine not understanding the severity of the situation. The recent incident of the conglomeration of crowds at bus stations is sheer ignorance on their part against the world wide pandemic.

The government of India needs to be praised that they have been working on meeting up with all the flaws in the scenario and bringing in satisfactory measures in the social, economic and health scenario. It is now up to the people of India to understand the severity of the situation and heed to their obligation towards the state which is abiding by the dictates of the state.

Government and Public Policy

 

The debate on the role of government in an era of automation, internet, globalization and climate change has been going on for long. Historically, the government’s chief duty has been to provide security and public services to its citizens while levying taxes and collecting revenues in return. Discussions have been galore on whether governments will be largely redundant in an interlinked world where technology and supra national authorities will become the major players. Paradoxically with the immense growth in technological progress, the regulatory role of the government has come into focus as well as the view that the government should act as a facilitator of advancement.  The Antitrust cases against Google, Facebook, Apple and Amazon bring to light this tension between the government as a defender of privacy and rights of its citizens while the claim of these companies is that they have ‘spurred innovations’. With the onset of the corona virus pandemic, the lens through which governmental action can be examined has been further widened.

Covid 19 has resoundingly brought out the importance of health and economic policies to the forefront which have comprehensively demonstrated the importance of government and its public policy. The classic definition of public policy by Thomas Dye aptly fits the current thought process- ‘public policy is whatever governments choose to do or not to do.’ Sweden is an interesting case where the government chose what ‘not to do’ by adopting a comparatively lax approach to enforcing social distancing by legal measures instead it relied on societal norms. Governments may regulate behaviour, organize bureaucracies, distribute benefits or extract taxes- or all of these things at once. The government through its monetary and fiscal policies is often seen stimulating a depressed economy like doling out stimulus packages in India, EU and USA, curbing inflation which may otherwise make food unaffordable to the common wo-man (Refer to the RBI governor’s recent statements which point to this policy goal[1]), giving assistance to those who are unemployed (case of MNREGA) or opening markets for growth and jobs (such as Indian agricultural sector reforms).

Governments are expected to impose lockdowns to curb the spread of an epidemic but also ease into ‘un-lockdown’ when economies start going into recession.  For example, the pandemic response by the New Zealand Prime Minister Jacinda Ardern’s government which has been universally praised for its preventive actions and levels of preparedness. Thus, policy-making is an intricate process, shaped and prompted by multitude of factors, actors and their interests. The defining characteristic of this process though is ‘complexity’.

This complex process of public policy making involves primarily the government along with the multitude of government bodies, organizations, lobbies, businesses, contractors and ordinary citizens. It crisscrosses almost every aspect of modern day life- banking and financial transactions, education and healthcare, transportation and infrastructure, trade and foreign policy, social and humanitarian policy, environmental and regulatory policy. One of the immediate and decisive responses of governments in Germany, France, Denmark and Sweden to the covid crisis, for example, has been in providing a direct wage supplement to employers just like wage subsidies on the condition that they not lay off workers Government policies have become absolutely crucial to curbing and coping up with the pandemic but also in solving the ongoing abyss that economies currently find themselves in. In response to the call by businesses and industry leaders for more government action, sweeping interventions and well targeted relief measures, German Chancellor Angela Merkel and French President Emmanuel Macron have proposed a €500 later €750 billion European Fiscal Response, on top of what countries already planned to do nationally.

Recognizing this growing relevance of public policy, IILM offers a variety of public policy courses as part of its post graduate programs. These courses recognize the complexity of today’s world and the ramifications of public policy on businesses, economy and society. Students can choose from various electives in public policy like political economy, international trade policy, international institutions, foreign policy, environmental policy among others along with lectures and interactions with experts on various facets of public policy making in India. The role of government institutions, stimulus packages, sectoral reforms and defense upgradation cannot be overemphasized in overcoming the challenges that we face today. Governmental policies will largely determine the course ahead in terms of recovery from the pandemic and re-energizing the economy and people.

To know more about public policy response to the COVID 19 pandemic and public policy courses at IILM, please write to me at Bidisha.banerji@iilm.edu

[1] https://economictimes.indiatimes.com/news/economy/policy/with-its-eyes-on-inflation-rbi-may-halt-rate-cuts-for-the-foreseeable-future/articleshow/77666027.cms