Ever-widening circle: of Greed, Corruption, and Devasation

A few days ago, I met some bright MBA students at a highly regarded graduate school in India. These students used the word "recession" in describing the Indian economy- they were quite apprehensive about the job market when they graduate in a year. Their attitude was quite downbeat, considering that India's GDP is estimated to grow in excess of 5% this year. In addition to the global macro factors, domestic spending seems to be curtailed, and corporate scams like the one involving Satyam are being feared. This was also reinforced during my discussions with academics and business leaders in India.

This experience ties in very well with the U.S. storyline. Some of my students who were promised internships for the upcoming summer are being informed that the offers are being withdrawn. Large firms like Starbucks and Boeing are doing RIFs (Reduction in Force). In addition, companies like IBM are stealthily doing layoffs. Microsoft, Intel and others have added to significant layoffs announced this month.

The root cause of these ailments to be addressed, rather than propping up the patient through infected band-aids. Highly corrupt, immoral leadership at the top of organizations-both in the private sector and in the government, is the source of these problems. For instance, rather than working on serious plans to educate and develop the workforce, Obama's team is working on creating a bank to take on the bad assets of other banks- effectively telling shareholders of Wall Street that their noble actions are to be blessed. Obama's actions thus far have been disappointing on this front, adding to the notion that his administration, like others, is morally defunct. More news is filtering out that managers of AIG, BoA//Merrill and others have fattened their wallets through the largesse of the government and the public taxpayers. One of the exports from the U.S. to other countries has been this type of greed and corruption.

The road to recovery, as reflected in the infrastructure of the U.S. and India, is tortuous and filled with huge potholes that can crater even a good vehicle.