Showing posts with label BRIC. Show all posts
Showing posts with label BRIC. Show all posts

Kerry to woo Modi's India, but quick progress unlikely

#GNN - U.S. Secretary of State John Kerry visits India this week as Washington tries to revitalize ties it sees as a counterbalance to China's rising power, but rapid progress is unlikely, despite the reformist reputation of India's new leader.
The visit by Kerry, and a trip by Defense Secretary Chuck Hagel next month, follow the resounding election win of Prime Minister Narendra Modi in May and are meant to create a good climate for Modi's planned visit to Washington in September.

Analysts say it is only once Modi meets President Barack Obama that the United States may have a more realistic hope for progress on big defense projects, on removing obstacles to U.S. firms' participation in India's nuclear power industry, and for firmer statements of shared interests in Asia.

"India will play a much greater role in Asia under the Modi administration, but it will do so for its own reasons and under its own terms," said Ashley Tellis of Washington's Carnegie Endowment for International Peace think tank.

Four years ago, Obama declared the U.S.-India relationship would be "one of the defining partnerships of the 21st century" and last week the State Department called it one of "enormous strategic importance."

But while the two countries are in many ways natural allies, as big democracies with shared concerns about Islamist militancy and the rise of China, the relationship falls far short of Obama's rhetorical billing.

Disputes over protectionism and intellectual property rights have soured the business climate and India has remained cautious about committing to U.S. strategic designs, given concerns that U.S. power, eroded by domestic budget battles, may be waning.

The relationship took a dive last year after an Indian diplomat was arrested in New York on charges of mistreating her domestic help, an episode that provoked outrage and resentment in New Delhi.

Modi, whose Hindu nationalist Bharatiya Janata Party swept to an overwhelming victory after years of shaky Indian coalitions, has yet to make clear how closely he plans to work with Washington.

The potential for tension was always high. He was banned from visiting the United States after Hindu mobs killed more than 1,000 people, most of the Muslims, while he was chief minister of his home state of Gujarat.

The Obama administration sought to turn a new page by quickly inviting Modi to Washington after his election, and was pleased by his quick positive response.

Kerry will be heading the U.S. team at the annual Strategic Dialogue with India on Thursday, and will be accompanied by U.S. Commerce Secretary Penny Pritzker.

MODI MYSTERY
The BJP has a strong streak opposed to Western dominance of world affairs and this meshes with the rise of the BRICS block of five powerful emerging nations, which includes China, that see themselves as a counterbalance to U.S. hegemony.

One of Modi's first moves on the world stage since taking office was to sign up to a BRICS development bank intended to wrest control over global finanacial institutions away from the United States and Europe.

On Friday India threatened to block a worldwide reform of customs rules agreed last December, prompting a U.S. warning that its demands on food stockpiling could kill global trade reform. [IN:nL4N0Q02SU]

The deadline for agreeing the trade facilitation deal falls during Kerry's time in New Delhi and a failure to overcome India's objections by next week could overshadow his visit.

The Indian stance has fueled doubts about the extent of Modi's commitment to pushing through economic reforms seen as necessary to spur growth and attract investment.

U.S. officials say Modi's first budget contained some positive signs. But ownership limits in the defense sector were not relaxed enough to allow U.S. firms the controlling stakes they seek in joint ventures, which will make them reluctant to share technology India craves.

Nisha Biswal, U.S. assistant secretary of state for South Asia, spoke this month of the U.S. desire for Indian growth and its greater involvement in Southeast and East Asia, where China's territorial claims have caused increasing alarm.

India, which for decades had close military links with the Soviet Union while leading the world non-aligned movement, is cautious about being too closely associated with U.S. strategic policy, not least because of its economic links with China.

"They will resist packaging their initiatives as a favor done to the United States, or as part of grand American strategy," said Tellis, of the Carnegie think tank.

"They may end up doing pretty much what the United States wants, but they will do so their own way."

(This version of the story was refiled to remove an extraneous word in the third paragraph.)

(GNN,Reuters,AIP)(Reporting by David Brunnstrom in Washington and Frank Jack Daniel and Sanjeev Miglani in New Delhi; Editing by David Storey)

The Most Important M’s In M-Commerce

#GNN - Editor’s note: Phil Carter is an associate at Trinity Ventures, where he focuses on early-stage consumer technology investments particularly in mobile-enabled marketplaces and services.

A few customer groups are driving a disproportionate share of growth in smartphone use and mobile transactions. For entrepreneurs looking to build the next billion dollar m-commerce company, it pays to understand who these groups are, what their mobile activity looks like, and how to best serve them. When it comes to finding customers in mobile commerce, remember the Three Ms: moms, millennials and multinationals.

Moms
Moms are a great consumer demographic, accounting for more than 70 percent of U.S. household spending according to a 2009 survey by Boston Consulting Group. Moms are also smartphone power users. According to Edison Research, 64 percent of moms owned smartphones in early 2013 vs. just 53 percent of the general population.

The same study indicated moms spend an average of 8 hours and 37 minutes a day with media, 89 percent of moms report having their smartphone within arm’s length always or most of the time, and 42 percent of moms say their smartphone is the first thing in their hand every morning. The combination of moms driving a large majority of U.S. spending and being highly engaged smartphone users makes them the single-most powerful constituency driving m-commerce today, particularly in the retail enablement, mobile retail, marketplace, and on-demand service categories.

Today, mothers tend to be constantly juggling activities, so whether your app is selling a product or a service, make her life simpler with a friendly user interface that she can navigate easily. Companies like Houzz and Wanelo do a great job of this with their mobile apps.

Entertainment and gamification also work well. Dot&Bo increases shopper engagement and spend by wrapping a story around every piece of furniture and home décor it sells. Meanwhile, Zulily boosts loyalty and retention by personalizing a mom’s shopping experience and rewarding her with discounts for buying within a specified window of time.

Finally, be respectful of her time and space. A mom has enough on her mind without your app constantly pinging her with push notifications, so make sure you build intelligence into your app so that you’re tailoring engagement to her unique rhythms.

Millennials
If it wasn’t obvious that today’s teens and twenty-somethings spend a lot of time on their smartphones, then a recent ComScore study makes it clear. According to ComScore’s data, 81 percent of U.S. Millennials (defined as 18-34 year olds) owned a smartphone by the end of 2013 vs. 68 percent of 35-54 year olds and 40 percent of the 55+ population.

Furthermore, 85 percent of millennials consume digital media on mobile versus 80 percent of 35-54 year olds and 58 percent of the 55+ population, and 18 percent of millennials are mobile-only, meaning they do all their Internet browsing, emailing, social networking, and news reading on a smartphone or tablet. That’s 3.5x the percentage of 35-54 year old mobile-only users and 6x the percentage of 55+ mobile-only users. millennials are driving growth in several App-Based Service categories like dating and fitness, and are also an important force in mobile retail, particularly teen and college-age women who spend a lot of disposable income on apparel, accessories, and beauty products.

Today’s teens have increasingly short attention spans, so to capture share of mind and wallet with this valuable demographic, an entrepreneur must first capture their imaginations. According to the National Center for Biotechnology Information, average attention span dropped 33 percent in the last decade from 12 seconds in 2000 to 8 seconds in 2013.

Apps targeting teens and twenty-somethings must demonstrate value quickly to gain acceptance, so skip the long onboarding process in favor of Facebook Connect or throw it out entirely and immerse users in your app’s experience from their very first click. Millennials are also hyper visual, as proven by the success of social apps like Snapchat, Instagram and Whisper.

A picture is worth more than a thousand words because the average teen will only read the first 10. Finally, teens operate on smaller budgets, so make price points accessible to convert shoppers into buyers.

Multinationals
According to data collected last year by Statista, the U.S. ranks 13th in smartphone penetration globally. The four countries topping this list – United Arab Emirates, South Korea, Saudi Arabia, and Singapore – are all from the Middle East or Asia. Meanwhile, a recent Pew Research Center report highlighted an explosion of mobile payments in Sub-Saharan Africa, where a much higher percentage of mobile users (as high as 68 percent in Kenya) report regularly using phones to make or receive payments vs. a median of just 8 percent in other countries surveyed.

Outside of traditional m-commerce, social messaging apps are booming in Southeast Asia where WhatsApp competitors Line, Kakao, and WeChat have accumulated hundreds of millions of registered users. The lack of a large installed base of PCs has allowed mobile penetration in many developing nations to outpace penetration in more industrialized parts of the world. This trend, paired with rapidly-rising GDPs among the BRIC nations (Brazil, Russia, India, China), Asian Tigers (Hong Kong, Singapore, South Korea, Taiwan), and parts of the Middle East and Africa, indicate it’s only a matter of time before the global share of m-commerce shifts increasingly abroad, particularly in categories like Mobile Payments, Mobile Retail, and Marketplaces.

It’s difficult to prescribe a list of winning m-commerce strategies for multinationals because they exhibit fewer consistent patterns than moms and millennials, but a couple general principles are transferrable. First, know the cultural context you’re operating in. Digital goods may be a great monetization mechanic in Southeast Asia but not in other countries where there’s no cultural basis for valuing these items. Second, if you’re expanding an app outside its native market, localization matters.

Even if all your users understand English, you’ll need to adapt your messaging to build emotional attachments. Crowdsourcing can be a powerful solution for this problem, as Facebook famously demonstrated when it designed a tool to let users translate its platform into their native language. Finally, in markets without significant PC penetration, mobile-first design principles are even more important, as many users will be mobile-only.

Moms, millennials, and multinationals certainly aren’t the only groups driving m-commerce. In today’s increasingly mobile world, smartphone penetration and usage is increasing across nearly every demographic. However, for m-commerce entrepreneurs looking to build the next big thing, targeting at least one of the three M’s represents an effective strategy for establishing a core of highly-engaged early adopters.

Moms and millennials also tend to be above-average users of social media, creating greater potential for organic user acquisition and viral growth. Given how important moms, millennials, and multinationals are within the m-commerce ecosystem, understanding their usage behaviors and meeting their needs can be the key to building a great business on mobile.

Disclosure: Trinity Ventures is an investor in Dot&Bo, Zulily, and Whisper.

IMAGE BY SHUTTERSTOCK USER PCRUCIATTI (IMAGE HAS BEEN MODIFIED)

Connate - a native ad tech firm launches services in Pakistan

#GNN - #KARACHI: #Connate #announces to start its #operations in #Pakistan. #Dubai based #Connate is an #ad #tech firm that focuses on premium content monetization, production and delivery. Native advertising is a non-intrusive and in-content online advertising method where the advertiser engages with the consumers via content within the context of the user's experience with matching form and function.
According to Connate, "Pakistan is one of the fastest growing markets in the emerging economies and we entered the market purely by the dynamics of an ever evolving media scene. So far the native ad campaigns have received phenomenal response with the results gaining over 70% higher response than standard banner ad campaign and with extremely high engagements. We are now in talks with some of the biggest local publishers that are already in the onboarding process."


Ms. Marrium Khan, Associate Director Iris Digital (A symmetry Group company) who has experienced the overwhelming response of native advertising expressed her views - "Content marketing is the key area of focus for our clients and us. Native advertising is one of the fastest growing online ad methods which globally reached USD 2.4 billion in revenue in the year 2013 and by 2017, it is expected to account for USD 4.6 billion in revenue. With Connate we saw a huge opportunity to tap into the publisher side native ad market. We wanted to look past the standard banner ads and address challenges like banner blindness, spill over and drive more effectiveness for our campaigns and we seem to have achieved just that."

To know more about Connate, visit: www.connate.co

Another lender?: Analysts tip-toe around BRICS’s new bank

#GNN - #ISLAMABAD: For long, Pakistan has remained dependent on west-dominated #global #financial #institutions. But, as a strategic shift in the global economy gets under way – from the developed to the largest and fastest growing economies – the country can benefit from the New Development Bank (NDB) recently formed by the growing economies.
 Known as BRICS, founding members of the NBD – Brazil, Russia, India, China and South Africa – have for the time being restricted membership to themselves. However, in principle, they have agreed to expand membership to other countries.

The bank will be headquartered in Shanghai, China with its first president from India. The newly born financial institution is widely perceived an alternate to global financial hegemony of the US and Europe.

The new financial institution will help break the monopoly of the World Bank (WB) and International Monetary Fund (IMF), which will benefit countries like Pakistan, according to an official of a multinational financial institution.


But for a country like Pakistan, heavily dependent on the west, there will understandable be pros and cons of joining a new bloc, according to analysts. They said Pakistan should become a member of the NDB at the earliest but will have to weigh in foreign policy implications before joining the club.

It opens the door for Pakistan to get funding other institutions decline to give. However, experts say that “it is too early” to expect that the NDB will replace the WB or the IMF. They say it will take at least 10 to 15 years before the NDB is counted as a near rival to the established global lenders.

The NDB will be one more window for getting finances for infrastructure projects but it will also not offer free lunch, said Dr Abid Hasan, a former operation WB advisor. The NDB might have less stringent conditions but it will ensure that its money is safely returned, he added.

Dr Hasan said there is a possibility that the NDB will raise funds by floating bonds like the WB and the Asian Development Bank. Bond investors will also seek solid guarantees and eventually the NDB will have to adopt policies which give comfort to investors, he added.

Pakistan’s ambitions to join the new club may face resistance from archrival India but it can successfully counter the Indian factor with the help of China and Brazil, said analysts. They said China is the dominant force among the five members and is considered close to Islamabad. Brazil may also neutralise political ambitions of India, the former being an important supplier of defence equipment to Pakistan.

The response of the US and European investors to the NDB will be another important factor for the new financial institution becoming a rival to the Bretton Woods System, comprising the WB and the IMF.

The Bretton Woods System are predominately Western institutions and over the years have been used for political purposes by the US and Europe.

The loans these institutions offer to developing economies like Pakistan are always linked to painful structural re-adjustments that create social and political troubles in the recipient countries.

Initially, the NDB will finance infrastructure and sustainable development projects, with $50 billion in capital. The BRICs have also announced a $1000billion Contingent Reserve Arrangement (CRA), to tide over members in financial difficulties. The CRA is going to be a substitute of the IMF, according to analysts. But it will take time till the NDB and CRA become global.

Each BRICS country will contribute $10 billion to the bank’s capital stock. China will provide 40% of a $100-billion Contingency Reserve Arrangement. While the NDB will have contributions from all five member countries, the dominant player in the organisation will be China.

China’s underline aim is that it wants Yuan become a global exchange currency —an objective that remained unfulfilled due to strong US influence.

Published in GNN, AIP, Tribune, July 21st, 2014.

China pushes for developing world's rights as BRICS summit opens

(GNN) - China will dedicate itself to "perfecting" the role developing countries play in international affairs to give them better representation and a greater say, President Xi Jinping said ahead of a summit of BRICS nations in Brazil.
China has already started doing this by promoting international development banks which will either be led by China or will have a very strong Chinese role, as opposed to Western-dominated institutions like the World Bank.

Brazil, China, India, Russia and South Africa are due on Tuesday to sign off on a new development bank being launched by the BRICS emerging market nations.

Officials from BRICS nations have said Shanghai will likely be the headquarters, but an official involved in talks on the bank told Reuters late on Monday in Brazil there still was no agreement among the five on where the lender will be located.

China is also planning an Asian Infrastructure Investment Bank.

Xi, in an interview with South American media released by China's Foreign Ministry, said China would try to better play the role of a responsible major power and promote the rights of the developing world.

"We will ... dedicate ourselves to perfecting the international system of governance and proactively push for expanding the representation and right to speak for developing countries in international affairs," he said.

"We will come up with more Chinese proposals and contribute China's wisdom," Xi added, without elaborating.

But China faces deep suspicion about its motives, not least from another BRICS member, India, and there have also been concerns in the group that China could hijack the new bank to serve its own interests.

DOMINATION CONCERNS DISMISSED

Xi appeared to dismiss these concerns, saying China did not believe it was destined to dominate others just because of its growing strength.

China's moves to assert its claims of sovereignty in the disputed South and East China Seas, as well as its growing military might, have unsettled the region and caused concern in Washington.

"The Chinese people love peace. In the blood of the Chinese people there are no genes for invading others or dominating the world. China does not acknowledge the old logic of 'when a country is strong it must dominate'," Xi said.

"China will resolutely pursue the path of peaceful development, to proactively seek a peaceful international environment for its own development, and will use its own development to promote world peace," the president added.

In a meeting with Indian Prime Narendra Modi in Brazil, Xi invited India to become a founding member of the Asian Infrastructure Investment Bank, the official Xinhua news agency reported.

"The two countries should join hands in setting global rules, so as to raise the voice of developing countries," Xinhua cited Xi as saying.

Xi's trip to the region also takes in Argentina, Venezuela and Cuba, where he is expected to sign a series of trade deals.

(GNN)(Reuters)(AIP)(Reporting by Ben Blanchard; Editing by Richard Borsuk)

Modi's farm export curbs may ease India's June inflation

* June WPI seen at 5.80 pct y/y, CPI 7.95 pct v/s 8.28 pct -poll

* Next central bank policy review Aug. 2

* Analyst expects central bank to hold rates

By Manoj Kumar

NEW 14 DELHI, July (GNN) - India's inflation probably eased marginally in June after the new government curbed farm exports, but a growing risk that drought will shrivel summer crops could encourage the central bank to keep interest rates on hold.


Prime Minister Narendra Modi, elected in May amid anger over rising prices, has ordered a crackdown on hoarding to hold down food prices and set limits on the export of staples, such as onions and potatoes.

Presenting his first budget on Thursday, Finance Minister Arun Jaitley vowed to keep the fiscal deficit at 4.1 percent of gross domestic product in this fiscal year, while allocating more funds to ease inflationary pressures.

"The monsoon this year appears more unpredictable," he told lawmakers, adding that the government would take all steps necessary.

Consumer price inflation probably eased to 7.95 percent last month, down from 8.28 percent in May, while wholesale price inflation eased to 5.80 percent, the Reuters poll of economists found.

The government will release the data on wholesale prices on Monday around 0630 GMT. Consumer price data is due at 1200 GMT.

Modi faces his first challenge as soaring prices for basic food items, such as milk and potatoes, lifted retail food inflation to 9.4 percent in May, driving wholesale inflation to a five-month high of 6.01 percent.

The government is banking on stocks of food such as rice, wheat and sugar from recent bumper harvests, but has few ways to cap prices of fruits and vegetables that drive food inflation.

"The measures may prove to be inadequate in light of the supply-demand dynamics associated with perishable products, absence of adequate cold storages and inefficiencies in the domestic supply chain," said Aditi Nayar, an economist at ICRA, the Indian arm of rating agency Moody's.

Retail inflation has eased to about 8 percent, after staying in near double-digit figures for the past two years, the highest among the BRICS group of emerging economies - Brazil, Russia, India, China and South Africa.

Economic growth has been stuck below 5 percent for two years - the longest slowdown in more than a quarter of a century. The economy is expected to grow slightly above 5 percent in this fiscal year to March 2015.

In 2009 benchmark New York futures swept to a 30-year high after the worst drought in nearly four decades forced India, the world's top sugar consumer, to buy large quantities of the sweetener from top producer Brazil.

The farm sector accounts for around 14 percent of India's nearly $2 trillion economy, and two-thirds of its population of 1.2 billion live in rural areas.

Weak investments and industrial performance have hurt economic growth, but figures on Friday showing that industrial output grew 4.7 percent in May on the year bettered expectations for a rise of 3.8 percent.

Output gained just 0.1 percent in the fiscal year that ended in March.

RELIEF FAR AWAY?

Weak rainfall since a delayed start to the monsoon season could push up food prices - further delaying a decision by the Reserve Bank of India to cut interest rates and ease the flow of credit to the economy.

"We believe a rate easing cycle is unlikely to commence before the second half of the current fiscal, keeping interest costs elevated for the productive sectors," said Nayar of ICRA.

Reserve Bank of India Governor Raghuram Rajan held benchmark interest rates at 8 percent in the June policy meeting. He has raised rates three times since taking charge last September. The next policy review is due on Aug. 2.

On Thursday, Rajan said the central bank was "determined" to make sure consumer inflation follows a "glide path" lower.

An RBI panel has recommended bringing down consumer price index (CPI) inflation to around 8 percent by the end of January 2015 and to 6 percent by the end of the following year. (Reuters)(AIP)(Reporting by Manoj Kumar; Editing by Douglas Busvine and Clarence Fernandez)