Posts Tagged ‘Ghadar’

H1N1 and Our Global Health Infrastructure

Thursday, October 22nd, 2009

As the H1N1 pandemic continues its spread around the world, many businesses, governments, and NGOs are learning that they are ill-prepared to handle such a disease outbreak. Earlier this year on Business Casual, Smeal’s Fariborz Ghadar warned of this scenario:

Some developed countries have systems to track, identify, and quarantine outbreaks such as this, but many developing countries simply cannot do it. Compounding the problem is the fact that very few national entities talk to one another. The current infrastructure leaves much to be desired.  To manage potential pandemics, we need  global mechanisms in place beforehand to handle situations like this as they arise, not after.

In his book Global Tectonics: What Every Business Needs to Know, co-authored by Erik Peterson of the Center for Strategic and International Studies, Ghadar elaborates on the weaknesses in our global health infrastructure and offers some solutions:

Countries need a global health infrastructure that responds quickly and effictively to epidemics … or to terrorist-induced disease outbreaks. In this era of increased economic and social integration, an outbreak in one country can develop into a global pandemic in a matter of days. As a result, governments, nongovernment organizations (NGOs), and private companies must devise health care solutions that cross borders as effectively as the infectious agents they work to contain.

International disease control will present vast opportunities and challenges to businesses operating in afflicted countries or working to provide containment products and services. The ability of these corporations, along with governments and NGOs, to react and respond to outbreaks, and to devise solutions that meet the health care needs of the world’s population, will be critical to continued global prosperity.

More specifically, what should businesses be doing to prepare for contingencies arising from natural or deliberate epidemics and disease-related volatility? First, they need to engage in scenario-analysis in order to begin to define their reactions in the event of an epidemic. Second, they should assess the extent to which international and national institutions are prepared for such contingencies—especially because public-private sector partnership is critical to defining and implementing solutions. Finally, the growing threat of bioterrorism suggests new possibilities for the private sector to marshal its resources and technological innovation in support of new biodefenses and procedures.

Tags: Ghadar, Globalization, Pandemic, Swine Flu
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Iranian Revelations and Relations

Thursday, October 1st, 2009

Smeal’s Fariborz Ghadar appeared on public television’s “World Focus” recently to discuss Iran’s recently revealed uranium enrichment plant and its implications for today’s talks in Geneva on Tehran’s nuclear ambitions:

 

Tags: Ghadar, International Relations, Politics
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The Kraft-Cadbury Waltz

Tuesday, September 8th, 2009

Kraft Foods is continuing to pursue its takeover bid for Cadbury despite the fact that Cadbury rejected Kraft’s first bid of $16.7 billion, or about 31 percent more than Cadbury’s Friday per-share closing price. Smeal’s Fariborz Ghadar says this back and forth is all strategy, and he expects the deal to ultimately succeed:

Cadbury’s rejection of Kraft’s initial bid doesn’t mean the deal will not eventually go through. As many analysts are suggesting, both companies are now weighing their options. Kraft is likely considering placing a higher bid, while Cadbury directors are deciding whether to stay independent, seek a higher price, or entertain other potential suitors like Hershey’s or Nestle.

Whatever the final outcome, the deal is going down so far like a well-choreographed dance: Kraft privately bids on Cadbury. The Cadbury board, looking out for its own best interests, rejects the offer. In return, Kraft takes the already-rejected bid public, ratcheting up the pressure on Cadbury’s directors, who reject the offer again. The next step is likely to be a higher price negotiated by the Cadbury board, making everyone look good.

Regardless, such activity is yet another positive sign for our economy. Conditions are improving and we can expect to see more deals like this one and the Disney-Marvel deal as the economy continues its rebound.

Tags: Ghadar, Globalization, M&A
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Smeal on TV

Monday, June 22nd, 2009

Fariborz Ghadar, director of the Center for Global Business Studies, appeared on FOX News Channel’s “Studio B w/Shepard Smith” today to discuss the role of oil and religion in Iran:

Tags: Ghadar, Media
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Should He Meddle?

Thursday, June 18th, 2009

The New York Times‘ “Room for Debate” blog posed the question yesterday, “Should Obama Speak Out on Iran?” One of the experts asked to weigh in was Smeal’s Fariborz Ghadar, director of the Center for Global Business Studies. He supports the wait-and-see approach, arguing that any statement other than an expression of support for the genuine will of the Iranian people would be counterproductive at this point.

You can read Ghadar’s complete statement here.

Tags: Ghadar, Politics
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Insight on Iran’s Presidential Election

Monday, June 8th, 2009

Record numbers are expected to turn out for Friday’s presidential election in Iran, which features President Mahmoud Ahmadinejad running for another four-year term against three challengers. Smeal’s Fariborz Ghadar, director of the Center for Global Business Studies, says that the reelection of Ahmadinejad is not quite a foregone conclusion.

Last week, he wrote a piece previewing the election, outlining the implications for U.S. foreign policy, and explaining why he believes the challengers pose a threat to Ahmadinejad. You can read his entire election preview online here.

Below, Ghadar provides some background on each of the candidates:

President Mahmoud Ahmadinejad: He is a former Revolutionary Guard, and his anti-Israel rhetoric and support for Iran’s nuclear program have caused alarm in the West. During his term in office, we have seen tensions rise in U.S.-Iranian relations. At 53, he is the youngest candidate, Iran’s first nonclerical president in more than 25 years, and appears to have the backing of the supreme leader. Ayatollah Ali Khamenei urged voters in May to choose an anti-Western leader. However, Ahmadinejad is blamed for a disappointing economy, unemployment, and rising inflation. He has promised to share Iran’s oil wealth more fairly: a position that still resonates with the poor.

For Ahmadinejad, the stakes could not be higher. In order to assure his support among the poor, the government is handing out 400,000 tons of free potatoes in rural areas. Ahmadinejad’s opponents accuse him of trying to buy the poor’s vote. “Death to potatoes” is a moderate rally chant. While to much of the world the election is about Iran’s nuclear ambitions, to most Iranians, the economy is the main issue.

Mohsen Rezaie: Rezaie is branded as a moderate conservative. He is 55 years old; only slightly older than Ahmadinejad. He was commander of the Revolutionary Guards during the Iraq war and now heads the Expediency Council. In 2006, an international arrest warrant was issued against Rezaie for alleged involvement in the Buenos Aires bombing of a Jewish cultural center in 1994; he denies any involvement. He will pursue Ahmadinejad’s ideological path but with a more moderate foreign policy position. He supports privatization to improve the non-oil sectors of the economy. His support is likely to come from conservatives opposed to Ahmadinejad. This may split the conservative vote, preventing a 50 percent first round decision. Few expect him to win the election.

(more…)

Tags: Ghadar, Politics
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Ghadar on NPR’s ‘Marketplace’

Wednesday, April 29th, 2009

Smeal’s Fariborz Ghadar is scheduled to appear on the public radio program “Marketplace” this evening discussing Swine Flu and globalization. To listen online visit  marketplace.org.

Tags: Ghadar, Media
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Swine Flu and Globalization

Monday, April 27th, 2009

As the number of people killed by swine flu in Mexico continues to climb, the health commissioner for the European Union has warned against non-essential travel to the United States and Mexico. Fariborz Ghadar, director of the Center for Global Business Studies at Penn State’s Smeal College of Business, says pandemics such as this will continue to present formidable challenges to world leaders in an age of globalization.

It is estimated that  it took 18 years for the bubonic plague to reach the shores of Europe from its origin in China and another 30  months to reach England from Venice. A couple years ago, when SARS hit Asia, it could have reached  Canada in 72 hours. Now, swine flu from Mexico is discovered in New Zealand before anyone knows what’s going on.

Some developed countries have systems to track, identify, and quarantine outbreaks such as this, but many developing countries simply cannot do it. Compounding the problem is the fact that very few national entities talk to one another. The current infrastructure leaves much to be desired.  To manage potential pandemics, we need  global mechanisms in place beforehand to handle situations like this as they arise, not after.

Ghadar is the co-author of “Global Tectonics: Underlying Trends Shaping the Future of Business.” The book identifies the 12 trends in technology, nature, and society that will present the most formidable challenges in the next 30 years.

Tags: Ghadar, Globalization, Pandemic, Swine Flu
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Mexican Trucks, No Mas

Thursday, March 19th, 2009

When President Obama signed the omnibus spending bill last week, he also killed an 18-month-old pilot program that allowed Mexican trucks to drive on U.S. highways. In retaliation, the Mexican government announced yesterday that it is levying higher tariffs on $2.4 billion worth of U.S. goods, including beer, shampoo, and toilet paper.

Columnist Mary Anastasia O’Grady outlines the history of the Mexican truck debate in Monday’s Wall Street Journal and argues that allowing Mexican trucks on U.S. highways improves trade relations, supply chain efficiency, and border security.

Smeal’s Fariborz Ghadar agrees that the trucks should be permitted on U.S. roadways:

If we are going to take NAFTA seriously, Mexican trucks should be allowed to cross the border and continue unimpeded to their U.S. destinations. First, Washington says that they’re not allowed because they are too dirty. Then, once they were cleaned up, the argument became that they’re unsafe. We put up hoop after hoop, and they’ve jumped through all of them.

We finally installed this pilot program, which allowed the trucks on U.S. roads for a year and a half with no safety problems whatsoever, until another election put politics ahead of good policy. The fact that this fight has been going on for so long has everything to do with labor politics and nothing to do with the safety of Mexican trucks. No matter what NAFTA says, if the government continues to put up one obstacle after another in the way of cross-border commerce, they eventually end up blocking free trade.

Tags: Ghadar, Globalization, Politics, Trade
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Auditors: GM’s Future Doubtful

Thursday, March 5th, 2009

General Motors’ auditors said today in a report filed with the SEC that there is “substantial doubt”  about the company’s financial viability and its ability to continue operating. The news may increase pressure on Washington to grant GM the $30 billion in federal loans it seeks to stem bankruptcy.

However untenable that option may seem, offering further government loans is better than standing by as GM goes bankrupt, according to Smeal’s Fariborz Ghadar, director of the Center for Global Business Studies. He says that the company and the economy have little to gain in bankruptcy.

“Under the current arrangement with the government, everything that takes place in a bankruptcy is happening now,” Ghadar says. “GM is already negotiating its contracts with labor, lenders, and suppliers. A bankruptcy filing will only make recovery more difficult and add another financial burden by scaring off consumers who are weary about warranties from a bankrupt company.”

Ghadar says that, for now, the government should do what it takes to keep automakers afloat:

When sales were numbering 15 to 17 million cars a year, there was plenty of room for all of these car companies. As sales dropped to about 10 to 11 million per year, we saw the companies start to struggle. And now, at about 9.5 million cars per year, they are really hurting. But these are not normal economic times, and that number cannot be sustained. We’re destroying about 12.5 million cars per year right now. Sooner or later these cars will need to be replaced and demand will pick back up. We need to see our automakers through to that point.

If we can keep them afloat for a year or so, demand will rebound, and then consumers can choose the types of cars they want and the market can determine what companies will stay in business. At that point, if an automaker can’t survive, it should be allowed to go bankrupt.

Tags: Auto Industry, Economic Crisis, Ghadar
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