COMÉRCIO com PORQUE ESCOLHEM ROYAL Construímos ROYAL em uma corretora global com uma convicção em mente: SABER O QUE OS COMERCIANTES QUEREM. Com tecnologia de ponta de negociação, condições de negociação otimizadas e gerenciamento de relacionamento personalizado com clientes, nós o armaremos com as ferramentas de que você precisa para ter sucesso nos mercados financeiros. Abaixo estão algumas razões pelas quais você deve escolher ROYAL como seu parceiro comercial. FORÇA FINANCEIRA Acreditamos que você precisa ter bases sólidas para alcançar a grandeza. Com a nossa experiência, crescimento e boa gestão, a ROYAL tornou-se uma história de sucesso com uma sólida estrutura financeira. AMBIENTE OPTIMIZADO DE COMÉRCIO As nossas parcerias globais de liquidez, acesso premium ao servidor e tecnologia de agregação de preços permitem aos nossos clientes negociar e executar a liquidez profunda mais competitiva em O mercado PRÉMIO BROKER ROYAL recebeu muitos prêmios de revistas financeiras respeitáveis, colegas da indústria e exposições do mercado global. GAMA DE MERCADOS Escolha o produto financeiro que se adequa aos seus objetivos de investimento de nossa ampla gama de OTC e mercados baseados em câmbio REGULAÇÃO SEGURANÇA DE FUNDOS ROYAL é regulamentado em cada uma de suas áreas de operação e garante dinheiro dos clientes são mantidos apenas com bancos de nível superior DIVERSOS TIPOS DE CONTA Você é um comerciante, investidor ou um pouco de ambos Nossa gama de contas diversas atende a todos os tipos de negociação e investimento. Com os ativos financeiros globais superando quase 1.000 trilhões no final de 2013, existem literalmente inúmeros instrumentos de investimento e oportunidades disponíveis diariamente. Na Royal, queremos dar-lhe o máximo de acesso possível para ajudá-lo a concretizar os seus objectivos de investimento através de uma vasta selecção de produtos financeiros. BONOS BONDS STCKs STOCKS ETFs INTERCÂMBIO FUNDOS COMERCIAIS FX FOREX CFDs CFDs INDs INDICES CMDTs COMMODITIES OPTs OPÇÕES FUTRs FUTURES LPs SOLUÇÕES DE LIQUIDEZ WL WHITE LABEL IBs INTRODUÇÃO BROKERS MMs GERENTES DE DINHEIRO APIs APIs Mercado e oferta de produtos variam de acordo com a região. NÍVEL DE RISCO: VOLATILIDADE DE INSTRUMENTOS Em finanças, a volatilidade é o grau de variação de uma série de preços de negociação ao longo do tempo. Avalie rapidamente o volume de negócios do mercado nos principais instrumentos com o nosso Indicador de Volatilidade do Instrumento abaixo. A baixa volatilidade é colorida em verde (0-0.5), volatilidade média em amarelo (0.5-1.0) e alta volatilidade em vermelho (1.0 e acima) REGISTER NOW Você é um potencial ROYAL LOYAL Escolhendo um corretor confiável que pode realmente agregar valor ao seu Investimento não é uma tarefa fácil. É por esta razão que a ROYAL quer tornar esta decisão mais fácil para você, abrindo suas portas para que você possa sentir o que é ser parte da família ROYAL. Basta registar os seus dados aqui e dar-lhe-emos acesso ilimitado à nossa página de ferramentas de comerciantes, à conta de demonstração ao vivo e à nossa maravilhosa equipa experiente durante um mês inteiro. Gostaríamos que você experimente o que é que faz ROYAL clientes um dos mais leais na indústria. Obrigado pelo registo. Você está agora no caminho para a negociação on-line confiável, a maneira REAL Um dos nossos especialistas do mercado experiente estará em contato dentro de 24 horas. Obrigado - Para ser redirecionado para a página apropriada, selecione o escritório ROYAL que deseja ser Regulado e Prestado por Sydney, Austrália Regulado pela Australian Securities Investments Commission (ASIC) Licença Australiana de Serviços Financeiros (AFSL): 420268 Level 31, Grosvenor Place , 225 George Street, Sydney NSW 2000 Beirute, Líbano Licenciado pelo Banco Central do Líbano Regulado pela Autoridade de Mercados de Capitais (CMA) 1145 Marfaa, Edifício Cristal, Distrito Central de Beirute, 2011-6201 NOSSOS VÍDEOS Visite nossa biblioteca de vídeos para assistir a tutoriais úteis sobre tudo Desde o básico de FX ou futuros para como executar um comércio no Meta Trader 4, melhorando sua experiência de comércio on-line com ROYAL. RENÚNCIA DE RISCO: Investir em derivativos de balcão implica um alto nível de risco onde você pode perder mais do que seu depósito inicial. Royal fornece uma informação geral e consulta sobre produtos de mercado financeiro: Qualquer informação fornecida não leva em conta seus objetivos de investimento e / ou situação financeira. Do mesmo modo, o Cliente tem a obrigação de buscar o status geral do mercado, o risco incorrido, os ganhos e custos potenciais para entender plenamente os riscos de mercado e solicitar o assessoramento de um especialista independente, se necessário. O Brasil é o quinto maior país do mundo, a maior economia da América Latina e um importante parceiro comercial para os EUA. O governo brasileiro domina muitas áreas Da economia do país, subcotando o desenvolvimento de um setor privado mais vibrante, ea média de crescimento de quatro por cento do Brasil há quatro anos enfraqueceu recentemente. As despesas do governo consomem mais de 40% do PIB. O ritmo da reforma regulatória do Brasil diminuiu e a carga tributária é muito mais pesada do que em muitas outras economias emergentes. A corrupção é alta, os direitos de propriedade privada são inseguros eo sistema judicial continua vulnerável à influência política. O Brasil precisa de mais liberdade econômica, e o governo deve eliminar as barreiras à atividade empresarial, impostos onerosos, regulação ineficiente, falhas no financiamento de longo prazo e rigidez governamental criada no mercado de trabalho. O quinto maior país do mundo ea maior economia da América Latina, o Brasil é um importante parceiro comercial americano. A economia brasileira obteve, em média, um crescimento anual superior a 4% de 2006 a 2010, em grande parte devido à alta dos preços das commodities exportadas. No entanto, essa taxa de crescimento foi substancialmente menor do que muitos outros grandes países emergentes1 e o crescimento enfraqueceu consideravelmente desde 2011. Os brasileiros estão justificadamente preocupados com o fato de seu país ter ficado preso novamente no ciclo de décadas de alta inflação e dependência de commodities, Somente na década de 1990. Fortalecer os alicerces da liberdade econômica é a etapa crítica necessária para restaurar o crescimento rápido. O governo brasileiro continua dominando muitas áreas da economia do país, subcotando o desenvolvimento de um setor privado mais vibrante. A eficiência ea qualidade geral dos serviços governamentais são inadequadas eo governo parece ser mais qualificado na cobrança de impostos do que na implementação de reformas necessárias. Os gastos totais do governo, incluindo os salários do setor público e os pagamentos de transferência, consomem mais de 40% do Produto Interno Bruto (PIB). O ritmo geral da reforma regulatória do Brasil tem diminuído, ea carga tributária é muito mais pesada do que nas economias emergentes da Colômbia, Peru e México. A corrupção é problemática, os direitos de propriedade privada são inseguros eo sistema judicial continua vulnerável à influência política. O Brasil também é muito dependente das exportações de commodities e corre o risco de ser atingido pela doença holandesa2, onde as receitas de recursos naturais tornam a moeda mais forte, as importações mais baratas e os produtos manufaturados mais caros. O crescimento sustentável exigirá reformas internas para aumentar a produtividade ea liberdade econômica. A era induzida pela commodity da prosperidade brasileira foi impulsionada principalmente pela China. Se a China continuar a subir por mais uma década ou mais, o Brasil pode ficar trancado em um relacionamento dependente, que terá de quebrar mais tarde. Alternativamente, Pequim também enfrenta desafios crescentes devido ao seu próprio retrocesso na liberdade econômica. Se a China tropeçar antes que o Brasil ponha sua casa em ordem, o resultado será mais doloroso. Em ambos os casos, a melhor resposta do Brasil à China é tornar-se mais competitiva e mais inovadora para abraçar maior liberdade econômica. Enquanto os avanços liderados pelos Estados Unidos em tecnologias de perfuração horizontal e fracking reduzem os preços do petróleo e tornam a produção de petróleo brasileiro abundante, mas difícil de extrair, mais problemática, o governo brasileiro vivendo no pastis exigindo royalties que são muito altos para pré - Sal para ser rentável. Entretanto, um relatório recente indica que 40% dos projetos de infraestrutura, habitação, transporte e segurança atualmente desenvolvidos pelo governo brasileiro para preparar os milhões de turistas que irão visitar o país para a Copa do Mundo de 2014 e as Olimpíadas de 2016 não são A presidente Dilma Rousseff ganhou elogios recentemente no Brasil por ter adotado uma linha dura contra a corrupção.4 Mas sua resposta inicial aos atuais desafios econômicos do Brasil foi recorrer ao tipo de programa de gastos governamentais de estímulo keynesiano5 que não só foram testados e têm Fracassou nos Estados Unidos e em outros lugares, mas também criará uma infinidade de novas oportunidades para a corrupção comprometa. Em vez disso, seu governo deve fazer as dolorosas reformas estruturais para criar condições para o crescimento, especialmente em setores não-commodities. Essas reformas devem ser conduzidas por uma maior privatização, especialmente em infra-estrutura, e pela redução de impostos onerosos, regulação ineficiente, barreiras à atividade empresarial, barreiras ao financiamento de longo prazo e rigidez no mercado de trabalho. A base para o sucesso do passado Como observou o professor Walter Russell Meade, o passado ainda assombra o Brasil. Apesar de sua enorme riqueza de recursos naturais e capital humano, o país sofreu inúmeros booms e bustos durante os séculos XIX e XX e foi o pôster da hiperinflação nas décadas de 1980 e 1990.6 Como resultado, por muitas décadas, especialistas disseram que O Brasil é o país do futuro, e sempre será. Esta histórica instabilidade política e econômica mudou, em primeiro lugar com o retorno à democracia através da Constituição de 1988 e, em seguida, com as inovadoras reformas de política neoliberal do Consenso de Washington. Henrique Cardoso. Essa nova estabilidade relativa foi, então, surpreendentemente reforçada e fortalecida pelo presidente populista de esquerda Luiz Inácio Lula da Silva, de modo que as reformas do Consenso de Washington finalmente romperam a hiperinsuflação crônica do Brasil e prepararam o cenário para um crescimento recorde. Quando o presidente José Sarney inesperadamente assumiu o cargo após a morte de Tancredo Neves, ele estabeleceu um forte sistema executivo presidencial com poderes de emergência para promulgar leis temporárias (medidas provisorias ou MPs) que se tornaram cruciais para a operação governamental. Assim, ainda que nem o Plano heterodoxo Plano Cruzado (envolvendo a criação de uma nova moeda, o cruzado, destinado a cortar a inflação) nem seu sucessor Fernando Collors mais ortodoxo Plano Cruzeiro (planos para uma segunda moeda nova, que também não conseguiu controlar a inflação ) Foram bem-sucedidos em derrotar a hiperinflação, que atingiu o pico de quase 3.000% em 19907, afetando economicamente o Brasil, a ferramenta MP estava em vigor. Essa ferramenta ajudou Cardoso a lançar em 1994 o bem sucedido Plano Real (a terceira e, finalmente, bem-sucedida introdução da moeda real) que basicamente reestruturou a economia brasileira. Cardoso emitiu mais de 300 MPs (e re-emitiu mais 4.500) 8 para estimular a privatização e abrir o Brasil ao comércio global e ao investimento. Uma política monetária vigilante, restritiva e independente, supervisionada por ex-banqueiros internacionais neoliberais e ancorada ao dólar americano por altas taxas de juros reais, permitiu que as regras econômicas no Brasil se tornassem mais permanentes e previsíveis. De acordo com o professor Albert Fishlow da Universidade de Columbia, os setores de agricultura, mineração e petróleo aumentaram as exportações, enquanto muitas indústrias estatais e muita infra-estrutura estatal foram vendidas a empresários privados que poderiam gerenciá-los de forma mais eficiente. O resultado foi um setor industrial reativado, maior acesso ao crédito privado, processamento de falências mais eficiente e um regime regulatório mais efetivo. Enquanto isso, a economia brasileira e sua política se tornaram mais estáveis.9 O sucesso do Brasil não teria sido sustentado sem o compromisso de Lulas ao assumir o cargo em 2003 para dar continuidade às políticas de Cardosos, que ele considerava na época uma necessidade política e econômica e respeitar Os termos de um Cardoso-era 30 bilhões de resgate10 do Fundo Monetário Internacional (FMI). Lula obteve benefícios políticos diretos ao aderir a essas políticas pró-crescimento. A prosperidade subseqüente do Brasil permitiu a Lula aumentar os gastos sociais com educação, assistência médica e outros programas para mais de 11 milhões de famílias que vivem na pobreza. Por exemplo, o financiamento do programa Bolsa Família (Bolsa Familiar) de Lulas 11 só foi possível graças aos rendimentos de impostos gerados pelo crescimento econômico liderado pelo setor privado.12 Ajudado pelo crescimento dos preços globais das commodities, a aderência precoce de Lulas a Cardosos As reformas neoliberais impulsionaram a emergente classe média brasileira, ao mesmo tempo que elevaram as classes mais pobres. Mas, nos últimos anos de sua presidência, Lula também instituiu políticas industriais neo-desenvolvimentistas cada vez mais assertivas e estatistas por meio do Banco Nacional de Desenvolvimento Econômico e Social (BNDES) .14 Culpando as condições econômicas globais, Lula abandonou gradualmente os esforços anteriores de descentralização e federalismo inerentes Na Constituição de 1988 a favor da recentralização. A tendência de retrocesso em direção ao estatismo no segundo mandato de Lulas preparou o cenário para potencialmente repetir os erros do passado, recriando um governo central ineficiente e inchado que interfere demais no mercado. A questão agora é se a presidente Dilma Rousseff fará do federalismo e do crescimento liderado pelo setor privado uma prioridade novamente. Fishlow observou que a nova liderança necessária no Brasil não deve vir do governo federal, mas dos níveis estadual e municipal, já que o poder está concentrado nas mãos de prefeitos de cidades importantes e governadores estaduais.15 Brasil v. Red BRIC Road Nos últimos cinco anos, a República Popular da China (RPC) tornou-se o maior parceiro comercial do Brasil, bem como um importante parceiro de investimento. As fortunas do Brasil se entrelaçaram com a Chinas, e os dois são compreensivelmente comparados. O PRC é inegavelmente o líder no ritmo de crescimento econômico, e alguns vêem a China como um modelo econômico viável para o Brasil. Tal visão é severamente equivocada, no entanto, e desenvolvimento de estilo chinês teria conseqüências feias para o Brasil. Mil novecentos e noventa e um foram o último ano completo da repressão política e econômica na RPC que se seguiu à repressão após as manifestações na Praça Tiananmen em 1989. Naquela época, o Brasil era oito vezes mais rico que a China e maior em termos agregados. Em 1992, o Secretário Geral do Partido Comunista, Deng Xiaoping, reiniciou a reforma econômica chinesa. Vinte anos depois, a China é três vezes e meia maior do que o Brasil em termos agregados, e o Brasil é menos do que o dobro de rico. A história do crescimento positivo recente do PRC é bem conhecida, mas tem sido mal interpretada. O sucesso da China não vem dos últimos oito a nove anos de intervenção governamental, o que levou apenas a desequilíbrios macroeconômicos e liquidez insustentável16, semelhante aos problemas observados na economia americana na última década. O sucesso dos PRC decorre dos anos de reforma do mercado de 1978 a 1989 e de 1992 a 2002, culminando com a entrada na Organização Mundial do Comércio (OMC). A partir de 2002, a RPC não tinha desequilíbrios macroeconômicos e nenhum excesso de liquidez, e sua economia estruturalmente enfraqueceu desde 2006. Como continua a fazer isso, o mal-entendido do papel de um estado em expansão na atividade de mercado está finalmente caindo no ceticismo sobre Chinas perspectivas de longo prazo ausente reforma. Os políticos brasileiros não devem ser enganados pelas afirmações de superioridade estatal.17 O crescimento rápido da China, no entanto, tem importantes implicações para a relação bilateral. A expansão dos países rurais e a demanda resultante por commodities de que carece, como minério de ferro, soja, petróleo bruto e gás natural, puxaram o Brasil.18 Mas enquanto a competitividade agrícola brasileira, os depósitos de metais e a expansão do papel energético foram uma vantagem Para a China, eles certamente não impulsionam o crescimento chinês. Pelo contrário, a expansão da China impulsionou o crescimento brasileiro. Se a China tropeçar, o desafio para o Brasil será encontrar fontes de crescimento que não dependem da demanda externa transitória. A dotação de recursos brasileiros é uma bênção, mas que se enrijece e diminui com os ciclos globais. Melhorar a produtividade do trabalho doméstico e do capital através da reforma é um impulso permanente, não transitório. À medida que a China se desvanece nesse cenário, mais liberdade econômica poderia tornar o Brasil a nova China, apenas mais rica. Por outro lado, se a China renovar sua economia, será devido a uma reforma renovada visando alcançar maior liberdade econômica, como Deng aceitou em 1978 e reiniciou em 1992. Renovado reforma chinesa e eficiência iria cortar a demanda por alguns bens brasileiros, Tais como o minério de ferro, mas o gás e os bens agrícolas permaneceriam fortes com base na demanda dos consumidores chineses por alimentos de melhor qualidade e melhorias ambientais.19 A questão é se isso é suficiente. O Brasil deve se contentar no seguimento da China, mesmo que a RPC possa subir por mais uma década ou mais Não, o Brasil pode fazer melhor. Não há escolha necessária para fazer entre um comércio enorme e relacionamento de investimento com uma China vibrante e maior liberdade econômica. A reforma baseada no mercado tornará o Brasil mais competitivo e mais inovador, mais capaz de aproveitar os pontos fortes da China e mais capaz de competir com a China. A crença de que o Brasil deve restringir a liberdade econômica para competir com a RPC está equivocada. O apoio do Estado às indústrias, na tentativa de assegurar a sua competitividade face às empresas chinesas ou outras, tem um custo para o resto da sociedade. A RPC pagou esse preço pela degradação ecológica, pelo aumento da desigualdade de renda e pelos desequilíbrios econômicos que devem ser corrigidos em última instância.20 O Brasil pode imitar o planejamento chinês de cima para baixo por um tempo, mas pagará um preço alto. Enquanto isso, a reforma baseada no mercado para melhorar a produtividade dos trabalhadores brasileiros e expandir a gama de ações para as empresas brasileiras aumenta a competitividade e não custa nada. A maior eficiência minimiza a ameaça ao meio ambiente ao minimizar o esgotamento dos recursos. Um Brasil aberto, integrado à economia mundial, está em melhor posição para tirar pleno proveito da demanda global por seus recursos, em vez de enfrentar retaliações por seu próprio protecionismo e exclusão de acordos comerciais preferenciais. Um Brasil mais aberto recompensará os agricultores brasileiros, mineiros e trabalhadores da energia, aliviando a desigualdade de renda. O Brasil deve responder a uma China bem sucedida da mesma maneira que faria a uma China sem êxito: com mais liberdade econômica. O Índice de Liberdade Econômica 2012, 21 publicado pela The Heritage Foundation e The Wall Street Journal. Fornece algumas perspectivas importantes sobre as reformas mais necessárias do Brasil. O índice de liberdade econômica global do Brasil é de 57,9 em 100, tornando sua economia o 99º mais livre de 179 países no Índice de 2012. Sua pontuação é apenas 1,6 pontos melhor do que em 2011, com melhorias em apenas quatro das 10 liberdades econômicas. O Brasil ocupa o 20º lugar entre os 29 países do sul e centro-americano e do Caribe, e sua pontuação global é inferior às médias regionais e mundiais de 60 e 59,5, respectivamente. Em cada área de liberdade econômica há espaço para melhorias significativas. Protecção dos Direitos de Propriedade. Todos os contratos no Brasil são geralmente considerados seguros, mas o Judiciário do Brasil é ineficiente e sujeito a influência política e econômica. Também é sub-recursos comparado a outros ministérios do governo e seu pessoal carece da formação adequada. As decisões judiciais podem levar anos para serem proferidas, e os julgamentos do Supremo Tribunal Federal de nível superior não vinculam automaticamente os tribunais inferiores. Em 2011, o Departamento de Estado dos Estados Unidos informou que os tribunais foram invadidos por casos de direitos de propriedade e que o atraso estava crescendo.22 Em uma Avaliação de 2009 realizada pelo grupo anticorrupção Global Integrity, pequenas empresas relataram que muitas vezes não podem Pagar os custos de um processo.23 A World Banks International Finance Corporation revelou em seu Enterprise Survey 2009 que quase metade das pequenas e médias empresas no Brasil considerar o funcionamento dos tribunais uma grande restrição para fazer negócios no país.24 Tribunais Nos níveis mais baixos, são particularmente propensos à corrupção, influência política e intimidação.25 É vital para o Brasil um saudável crescimento econômico que as pessoas, tanto nativas como estrangeiras, possam comprar e vender bens imóveis facilmente, com baixos custos de transação. O mercado hipotecário brasileiro ainda está subdesenvolvido e os estrangeiros em particular podem ter dificuldades em obter financiamento para hipotecas. A proteção dos direitos de propriedade intelectual melhorou, mas persiste a pirataria de materiais protegidos por direitos autorais. Liberdade da Corrupção. A corrupção é muitas vezes um obstáculo ao investimento no Brasil. Empresas licitação contratos de contratos públicos podem encontrar a corrupção, que também é um problema nos tribunais inferiores. Em 2010, investigações de corrupção de políticos de partidos da oposição e da coalizão governamental resultaram em sentenças de prisão para dois governadores. Desde então, escândalos de perfil mais elevado já vieram à luz. Entre junho e setembro de 2011, a presidente Dilma Rousseff perdeu cinco funcionários do gabinete, nenhum dos quais enfrentou acusações criminais, mas quatro deles deixaram depois que as denúncias de corrupção foram impostas contra eles.26 A corrupção também impede as operações diárias de empresas, possuído. Um inquérito comercial de 2008 encomendado pelo Ministério dos Negócios Estrangeiros da Noruega, Colaboração em Anti-Corrupção: Noruega e Brasil, encontrou uma falta geral de confiança no sistema judicial que faz as empresas relutantes em apresentar queixas aos tribunais em situações em que foram vítimas de corrupção. Segundo a pesquisa, a apresentação de queixas aos tribunais é considerada um desperdício de tempo e dinheiro pela maioria dos entrevistados. Por isso, muitas empresas permanecem caladas sobre atos corruptos cometidos contra eles, mesmo que tais crimes lhes tenham custado importantes contratos.27 Liberdade Fiscal. Embora a economia brasileira demonstre grande promessa de passar da décima maior economia do mundo para a quarta maior em 2050, ela ainda precisa superar enormes desafios e reduzir as onerosas regulamentações e taxas de tributação para realizar plenamente seu potencial. O governo de Rousseff deve procurar tornar-se mais competitivo, melhorando o escore brasileiro de liberdade fiscal. Alcançar esse objetivo não será fácil. Como disse o advogado de São Paulo, Raphael de Neto, ao The Economist. A capacidade dos governos brasileiros de arrecadar impostos correu muito além de qualquer esforço de racionalização, aumentando a carga sobre os negócios.28 A taxa de imposto de renda pessoal é de 27,5%. A alíquota padrão do imposto corporativo é de 15%, que quando combinada com um sobretaxa de 10% e contribuição social de 9% sobre o lucro líquido pago pela maioria das indústrias traz a taxa efetiva para 34%. Outros impostos incluem um imposto sobre transações financeiras, com a carga tributária global igual a 34,3 por cento da renda doméstica total. O gasto público é superior a um terço do PIB, resultando em défices orçamentários crônicos. A dívida pública é de 66,18 por cento do PIB.29 Ambientes fiscais que são acolhedores para as empresas podem ajudar a levar a um aumento do investimento directo estrangeiro (IDE). Isso é de particular interesse para o Brasil, uma vez que as entradas de IED no Brasil caíram 42% em relação ao mesmo período do ano anterior, para US $ 25,9 bilhões em 2009, ante os ingressos recorde de US $ 45,05 bilhões em 2008.30 Entre outras razões, Do IDE e do acesso à tecnologia avançada, a fim de extrair os 80 bilhões a 100 bilhões de barris de petróleo doce leve que se acredita estar no mar abaixo de cinco quilômetros de águas oceânicas e uma milha adicional ou duas de rocha pré-sal abaixo do Atlântico Sul . Como está hoje no Brasil, os registros fiscais não são apenas financeiramente caros, mas o tempo necessário para preencher os registros fiscais também tem um impacto negativo adicional. Para gerentes de negócios, o tempo é dinheiro. A complexa estrutura tributária consome cerca de 2.600 horas por ano para empresas locais de médio porte, de acordo com o levantamento anual das Empresas de Finanças Internacionais e do Banco Mundial, Doing Business. Isso se deve principalmente aos impostos, como o IRPJ, as contribuições previdenciárias (INSS) e os impostos sobre bens e serviços (ICMS) semelhantes aos impostos sobre valor agregado.31 Em comparação, a Doing Business informa que A China adotou medidas para melhorar o ambiente fiscal com sua nova lei de imposto de renda corporativo que unificou os regimes fiscais para empresas nacionais e estrangeiras e clarificou o cálculo do lucro tributável para fins de imposto de renda corporativo. Notável por executivos incorporados. Esses líderes empresariais entendem que a atual estrutura tributária no Brasil é muito complicada. Comentando sobre o regime regulatório da tributação no Brasil, Mark Buthman, diretor financeiro da KimberlyClark, disse que se não é o sistema tributário mais complicado do mundo, certamente está lá.33 Tarek Farahat, CEO da Procter amp Gamble Brasil, Afirmando que o Brasil precisa de simplificação fiscal. Isso trará transparência e competitividade e lançará as bases para o crescimento sustentável.34 Gasto do governo. No ano mais recente, as despesas totais do governo, incluindo o consumo e os pagamentos de transferência, chegam a 41% do PIB, a dívida pública está logo abaixo de 40% do PIB. Além do serviço da dívida, os gastos públicos concentram-se principalmente em pensões, transferências para os governos locais e financiamento da burocracia. Os salários do setor público e os pagamentos de transferência representam mais de 70% dos gastos primários do país. As pensões do setor privado e do setor público no Brasil estão entre as mais generosas do mundo, substituindo, em média, 75% da renda pré-aposentadoria. Algumas destas pensões são pagas aos mais pobres e destinam-se a reduzir a pobreza. Em geral, no entanto, os trabalhadores rurais com mais de 60 anos e qualquer pessoa pobre e com mais de 65 anos podem obter uma pensão de 622 reais no salário mínimo sem nunca terem pago para o sistema.35 Embora esta provisão seja relativamente baixa em termos orçamentais para o governo2% Anualmente, os maiores problemas que ela cria, que o Brasil compartilha com estados de bem-estar de falência de fato, como a Grécia, resultam de regras que permitem que os trabalhadores contribuintes se aposentassem mais cedo, com pensões maiores do que em qualquer outro lugar do mundo.36 Dado que o conjunto de Anticoncorrenciais e, finalmente, fiscalmente insustentáveis, talvez não seja surpreendente que a maioria dos brasileiros se aposente surpreendentemente cedo: o homem médio no setor privado é 54 a mulher média, 52. Benefícios de sobreviventes não têm limites de idade. Para tornar ainda mais assustadora a responsabilidade do Fundo de Pensões, há também uma provisão que permite que as famílias herdem 100% da pensão de um falecido sustentador de família, o que significa que mesmo as jovens viúvas sem filhos nunca precisam de trabalho. Hoje, no Brasil, um décimo de todos os jovens de 45 anos já estão recebendo pensões.37 Liberdade Empresarial. Para tornar-se mais globalmente competitivo, o Brasil deve eliminar barreiras à atividade empresarial, por exemplo, reduzindo o número de procedimentos, o número de dias eo custo associado à obtenção de uma licença comercial. Embora o governo brasileiro tenha adotado algumas medidas em 2011 para aliviar os custos de start-up de negócios, aumentando o grau de sincronização eletrônica entre autoridades fiscais federais e estaduais, segundo Doing Business, 38 não está nem perto dos 10 maiores reformadores globais de liberdade de negócios. Em 2011, o governo do vizinho Peru facilitou significativamente o início de um negócio, a obtenção de licenças de construção, o registro de propriedades eo comércio transfronteiriço. O Peru facilitou o processo de criação de uma empresa, simplificando os requisitos para licenças de operação e criando um balcão único online para registro de negócios.39 No Brasil, são necessários 13 procedimentos, 119 dias e aproximadamente o custo de 5,4% da renda per capita40 começar um negócio. Na Nova Zelândia, é preciso apenas um procedimento e um dia para iniciar uma empresa.41 Mesmo a China obteve um desempenho ligeiramente melhor para iniciar um negócio, leva 14 procedimentos, 38 dias e custa 3,5% da renda.42 Liberdade do trabalho. O mercado de trabalho rígido do Brasil é uma camada adicional de encargos regulatórios no setor privado do país que afeta negativamente sua capacidade de competir por um ranking estelar na liberdade econômica. Regulamentos trabalhistas sufocantes continuam prejudicando o crescimento do emprego e da produtividade. A pontuação de liberdade de trabalho no Brasil cai na metade inferior do ranking mundial. O custo não-salário de empregar um trabalhador é alto, e despedir um empregado redundante pode ser caro por causa das regulações governamentais que governam a separação e a demissão. Os benefícios obrigatórios amplificam os custos totais de mão-de-obra. Como resultado, o sector informal continua a ser considerável. Como relatou o correspondente do Sao Paulo, Paulo Prada, o ambiente empresarial restritivo do Brasil e o rígido código trabalhista remontam aos anos 40 e foram originalmente modelados nas políticas estadistas de Mussolini.43 O resultado, tragicamente para as pessoas no Brasil que aspiravam Para os padrões de vida da classe média, é que os altos custos gerados por essas políticas retrógradas impedem as empresas de contratar novos trabalhadores, atrapalhando muitos pequenos proprietários de empresas, trabalhadores e artesãos independentes nas sombras da economia informal. Como The Economist relatou: Muitos dos novos empregos são formais (isto é, legalmente registrados) é, apesar de, e não por causa, das leis trabalhistas. A tendência para a formalização é em grande parte resultado da maior disponibilidade de crédito bancário e de capital próprio, por um lado, e de mudanças recentes que facilitam o registro de microempresas, por outro. E coexiste com duas fraquezas brasileiras de longa data: alta rotatividade de empregos e baixo crescimento da produtividade.44 Liberdade Monetária. A taxa de inflação média foi de 5,2% em agosto de 2012.45 Políticas fiscais e monetárias prudentes ajudaram o Brasil a evitar o pior da crise financeira global de 2008 e 2009, embora sua economia em expansão (liderada por fortes exportações de commodities) possa forçar as autoridades a recorrer à política monetária Para reduzir futuras pressões inflacionárias. Embora os serviços públicos como ferrovias, telecomunicações e eletricidade tenham sido privatizados, as agências reguladoras supervisionam os preços. A Agência Nacional do Petróleo fixa o preço de atacado do combustível eo governo controla as tarifas aéreas. O sistema fiscal para a produção de petróleo inclui, além dos royalties, um imposto especial de participação (PE). Este imposto protege o governo do pagamento insuficiente por parte das empresas que descobrem grandes volumes de hidrocarbonetos. Tem uma taxa progressiva, variando de 10% a 40%, dependendo do volume produzido, da profundidade da água, da localização do campo, da receita líquida de produção e do tempo de produção.46 Liberdade comercial. Paulo Prada resume bem os desafios da liberdade comercial do Brasil, assim: Para os observadores casuais, as coisas ficarão melhores quando o Brasil se prepara para sediar a Copa do Mundo de 2014 e os Jogos Olímpicos de Verão no Rio de Janeiro em 2016. Novas estradas e terminais de aeroportos serão batizados juntamente com Estádios modernizados e passeios cênicos, bem policiados. Mas os fabricantes, exportadores e shippers, que aguardam dias ou semanas com atrasos nos portos e instalações aduaneiras para saberem claramente que o Brasil precisa de mais do que apenas mudanças cosméticas.47 De acordo com o Banco Mundial, a taxa média ponderada pelo comércio brasileiro em 2009 e 2010 foi de 8,7%. 48 O aumento da dependência de barreiras não pautais e da utilização de medidas anti-dumping é motivo de preocupação. Em setembro de 2011, o Brasil aplicou um imposto antidumping sobre os produtos siderúrgicos da China, um de seus parceiros comerciais mais próximos.49 Os investidores estrangeiros recebem tratamento nacional (o mesmo tratamento que os investidores domésticos recebem), mas sua atividade é restrita em alguns setores, Incluindo comunicações e mineração. O setor bancário emergiu relativamente ileso da desaceleração global, aumentando os créditos para o setor privado. Importações e restrições de importação, barreiras de acesso ao mercado nos serviços, impostos e taxas nas fronteiras, regras restritivas de regulamentação e de licenciamento, subsídios, procedimentos aduaneiros complexos e proteção problemática dos direitos de propriedade intelectual aumentam o custo do comércio. Liberdade de investimento. Apesar de alguns progressos, novos investimentos e produção continuam pesados e burocráticos. Os investidores estrangeiros recebem tratamento nacional, mas o investimento estrangeiro é restringido nas indústrias de comunicações, transporte e mineração. Em geral, os nacionais brasileiros devem constituir pelo menos dois terços de todos os funcionários e receber pelo menos dois terços da folha de pagamento total em empresas que empregam três ou mais pessoas. O ambiente tributário e regulatório é oneroso, e as disputas legais podem ser demoradas. Existem poucas restrições às transações cambiais. Os investidores estrangeiros, ao registrar seus investimentos no banco central, podem remeter dividendos, capital (incluindo ganhos de capital) e royalties. O banco central regula o investimento directo no exterior em alguns casos, incluindo transferências e remessas. Os investidores estrangeiros devem obter autorização específica para comprar terras ao longo das fronteiras. O Brasil deve privatizar empresas estatais, como a Petrobras, e abrir o Brasil a mais participação de capital estrangeiro para desenvolver seus recursos ricos e melhorar sua pontuação no Índice de Liberdade Econômica. A Petrobras precisará de um financiamento significativo para desenvolver bilhões de barris de óleo pré-sal e gás natural que ficam abaixo de 10 quilômetros de água, rocha e sal na plataforma continental do Atlântico Sul. Apesar de sua rentabilidade e alto valor de mercado, afirma The Economist. A companhia perdeu cerca de 50 bilhões de dólares em valor de mercado em janeiro / agosto de 2010 devido ao aumento dos níveis de dívida, embora em maio de 2012 a produção de petróleo voltasse a subir.50 Recentemente, a Petrobras aumentou seu investimento de cinco anos, Susan Kaufman Purcell, diretora do Centro de Política Hemisférica da Universidade de Miami, observou recentemente que o governo brasileiro está vivendo em 2008, não em 2013, quando se trata de suas políticas de desenvolvimento dessas reservas pré-sal. O maior trocador de partidas foi o tremendo avanço dos Estados Unidos em tecnologias de perfuração horizontal e fracking para extração de óleo de xisto, o que reduziu o custo estimado de produzir um barril de óleo de xisto para 70 que é menor que o custo de produzir um barril De petróleo das reservas pré-sal do Brasil, que alguns analistas colocaram em mais de 100 por barril. Além disso, o xisto existe em abundância. The largest deposits are in the United States, whose production of crude oil has increased 15 percent since 2008, making it the worlds fastest-growing oil and natural gas producer. The U. S. Energy Department projects that the daily U. S. output of oil could reach almost seven million barrels per day by 2020. Others think that it could ultimately hit 10 million barrels per day, which would place the United States in the same league as Saudi Arabia. Brazil currently produces about 2.5 million barrels per day of oil. The accessibility of oil from shale means that there will be abundant oil for years to come. This also means that world oil prices will continue to decline. Given this situation, Brazil needs to quickly begin reducing the cost of producing its pre-salt oil. Unfortunately, Brazil is going in the wrong direction, as the government continues to insist on demanding a high percentage of local content in the production of ships, drills and other assets needed to exploit its pre-salt reserves.52 In another sign of trouble for Brazil, new foreign investment in Brazilian equities plunged 70 percent in the first half of 2011, dragging down what had been one of the worlds most attractive markets for global investors.53 Although by December 2011 foreign investment had rebounded somewhat, a large portion of that new investment came from China Petroleum amp Chemical Corp. s purchase of a 40 percent share in Repsol, a domestic oil producer.54 In general, rising inflation, political interference in key sectors, and measures that slowed down credit growth have all dampened foreign investor sentiment toward Brazils equity market, forcing some companies to put off the initial public offering (IPO) of stock despite the overall strength of the countrys economy .55 Financial Freedom. Overall, Brazils well-regulated and supervised banking sector withstood the global financial turmoil of 2008 relatively well, and has expanded. It has become more competitive and diversified, although the states role remains significant. Loans to the private sector have steadily increased, with solid economic expansion and the formation of a new lower middle class. Public-sector commercial and development bank assets account for around 40 percent of the financial systems total assets. The two largest state-owned banks control about 25 percent of total assets, and the government directs banks to channel loans to preferred sectors. Three of the top 10 banks are now foreign-owned. Brazils insurance sector is now South Americas largest, and the reinsurance market was opened to private-sector competition in 2008. The domestic insurance and pension-fund sectors are important institutional investors in local capital markets. The sector is expected to continue to deepen as the domestic economy expands and real incomes of the middle class rise. The operating networks of non-bank financial institutions, however, continue to be underdeveloped. According to the World Economic Forums 2011 Global Competitiveness Report56 Brazil improved five places to rank 53rd overall due in part to having one of the worlds most efficient financial markets (40th place) and one of the highest rates of technological adoption (47th place) and innovation (44th place) in Latin America and the Caribbean. In order for the middle class in Brazil to grow, and entrepreneurs to succeed in starting and growing small and medium-sized businesses, the Brazilian government must reverse the countrys inadequate mechanisms for long-term financing. Public-sector bank assets accounted for 41.5 percent of total banking assets at end-June 2010, according to the central bank ( Banco Central do Brasil ).57 Despite the surge in lending by state-owned banks, the private sector still lacks access to long-term financing opportunities. The average annual market rate on bank loans was 35.4 percent in July 2010, significantly higher than the subsidized long-term interest rate (TJLP) of 6 percent.58 Despite well-intentioned efforts, the Brazilian Development Bank (BNDES) may very well be encouraging mal-investment and distorting market signals. BNDES enjoys preferential access to lower interest rates, cheaper credit, and government backing that private banks do not. Thus BNDESbacked by the deep pockets of the governmentthreatens to monopolize the credit market and obstruct competition among private free-market banks. This obstruction inhibits the only effective way to ensure optimal credit allocation.59 The rise of BNDES under Lula and Rousseff is fraught with moral hazard, not unlike the one in the United States involving U. S. government-sponsored enterprises (GSE) and mortgage industry heavyweights Fannie Mae and Freddie Mac. Conclusion Brazils progress the past two decades led Goldman Sachss Jim ONeill10 years after including Brazil in his BRICs formulation in 2001to conclude that his big, bold bet to include Brazil in the BRICs had been vindicated.60 Brazilians were finally going to shake off their old habits and turn their country into a world-class power. Notwithstanding ONeills cheery assessment in 2011, however, there have been numerous negative developments since Dilma Rousseff took the reins from Lula that same year. Stalling economic growth, higher inflation, growing regulation, and possible moves toward renationalization of some key sectors of the economy (such as mining and energy production), as well as numerous government corruption scandals, are raising old questions. Is Brazil back sliding Can Brazil ever permanently escape from its perennial trap of high inflation, due in part to the Dutch disease of overdependence on commodity exports Is Brazil fated to be the perennial country of the future As ONeill himself notes, If we look back 100 years, the majority of the successful world economies were not tied to commodities.61 Brazil needs to shake itself loose from its dependence on exporting commodities to China, no matter what happens with the PRCs own economic development. Chinas current statist model should not be emulatedit is Chinas earlier market-reform era that should be emulated. President Rousseffs government should implement the necessary structural reforms to spur growth in non-commodity sectors by further privatization (especially in infrastructure) and by eliminating barriers to entrepreneurial activity, burdensome taxes, inefficient regulation, flaws in long-term financing, and rigidities in the labor market. - James M. Roberts is Research Fellow for Economic Freedom and Growth in the Center for International Trade and Economics (CITE), Mark J. Schreiber is Associate Director for Strategy and Finance, and Derek Scissors, Ph. D . is Senior Research Fellow in Asia Economic Policy in the Asian Studies Center at The Heritage Foundation. CITE Research Assistant Ryan Olson and CITE intern Dylan DelliSanti made valuable contributions to this paper. 1 Such as the other so-called BRIC countries (Brazil, Russia, India, and China) and other large developing countries, such as Indonesia and South Africa. 2 In the 1960s, the Netherlands discovered large natural gas deposits. This ostensibly positive development had serious repercussions for important segments of the economy, as the Dutch guilder became stronger, making Dutch non-oil exports less competitive. This phenomenon has come to be known as the Dutch disease. Christine Ebrahim-zadeh, Back to Basics, International Monetary Fund Finance and Development . Vol. 40, No. 1 (March 2003), imf. orgexternalpubsftfandd200303ebra. htm (accessed August 7, 2012). 3 AQ and Efecto Nam Joint Report: Is Brazil Ready for the Olympics Americas SocietyCouncil of the Americas, August 5, 2012, as-coa. orgarticlesaq-and-efecto-naC3ADm-joint-report-brazil-ready-olympics (accessed August 16, 2012). 5 Mamta Badkar, Brazils 66 Billion Stimulus Could Signal a Shift in Its Growth Strategy, Business Insider , August 15, 2012, businessinsiderbrazil-66-billion-dollar-stimulus-2012-8 (accessed August 16, 2012). 8 Albert Fishlow, Starting Over: Brazil Since 1985 (Washington, DC: Brookings Institution, 2011), p. 9. 10 Lourdes Sola, Politics, Markets, and Society in Lulas Brazil, Journal of Democracy . Vol. 19, No. 2 (2008), pp. 3234. 11 The World Bank, Conditional Cash Transfers: Key Facts, 2011, web. worldbank. orgWBSITEEXTERNALTOPICSEXTSOCIALPROTECTIONEXTSAFETYNETSANDTRANSFERS0,,contentMDK:20615138 theSitePK:282761,00.html (accessed June 20, 2012). 12 Sola, Politics, Markets, and Society in Lulas Brazil. 13 Neo-developmentalism was first used in 2003 by Brazilian economist and former policymaker Luiz Carlos Bresser-Pereira in an attempt by statists to oppose the neo-liberal policies of the Washington Consensus. See A New Developmental State Heterodox Political Economy Blog . April 14, 2012, europeaneconomics. wordpress20120424a-new-developmental-state (accessed August 8, 2012). 14 Mara de Lourdes R. Mollo and Alfredo Saad-Filho, Neoliberal Economic Policies in Brazil (19942005): Cardoso, Lula and the Need for a Democratic Alternative, New Political Economy . Vol. 11, No. 1 (2006), p. 117. 15 Fishlow, Starting Over: Brazil Since 1985 . 16 Derek Scissors, China Drowning in Money: What It Means for the U. S., Heritage Foundation Issue Brief No. 3616, May 29, 2012, thfmedia. s3.amazonaws2012pdfib3616.pdf . 18 Brazil Sets Trade Records, Due to Chinese Demand, NPR, January 2, 2012, npr. org20120102144587105brazil-sets-trade-records-due-to-chinese-demand (accessed August 8, 2012), and John Whalley and Dana Madianu, The Deepening China Brazil Economic Relationship, CESIFO Working Paper No. 3289, December 2010, cesifo-group. deportalplsportaldocs11183998.PDF (accessed August 8, 2012). 19 Leslie Hooks, China: Beijing Will Drive Global Natural Gas Demand, The Financial Times . December 20, 2011, and Jikun Huang, Feeding Growing Food Demand in China, presentation at SAIS conference, Washington, DC, April 17, 2012, sais-jhu. eduagriculturePresentation201Jikun20HuangChina. pdf accessed August 8, 2012). 21 Terry Miller, Kim R. Holmes, and Edwin J. Feulner, 2012 Index of Economic Freedom (Washington, DC: The Heritage Foundation and Dow Jones amp Company, Inc. 2012), pp. 121122. 22 U. S. Department of State, Background Note: Brazil, November 30, 2011, state. govrpaeibgn35640.htm accessed August 8, 2012). 24 The World Bank, Enterprise Surveys: Brazil, 2009, enterprisesurveys. org accessed June 21, 2012). 27 Tina Sreide and Claudio Weber Abramo, Collaboration on Anti-Corruption: Norway and Brazil, Chr. Michelsen Institute CMI Report No. 2008:1, 2008, cmi. nopublicationsfile2935-collaboration-on-anti-corruption-norway-and-brazil. pdf accessed August 8, 2012). 29 International Monetary Fund, World Economic Outlook Database, April 17, 2012, imf. orgexternalnscs. aspxid28 accessed August 8, 2012). 30 Brazil Investment Regulations, Economist Intelligence Unit, October 4, 2011. 31 Doing Business, Ease of Doing Business in Brazil, International Finance Corporation and The World Bank, 2012, doingbusiness. orgdataexploreeconomiesbrazil accessed August 8, 2012). 32 Doing Business, Ease of Doing Business in China, International Finance Corporation and The World Bank, 2012, doingbusiness. orgdataexploreeconomieschina (ccessed August 8, 2012). 33 Kate OSullivan, Brazil is Booming (and Maddening), CFO Magazine . July 15, 2010, cfoprintablearticle. cfm14508833 (accessed August 8, 2012). 34 Jonathan Wheatley and John Paul Rathbone, Brasileiros no parecem desejar mudanas polticas, mas empresrios esto preocupados (Brazilians Do Not Seem to Want Political Change, But Employers are Concerned), in Portuguese, UOL, January 10, 2010, wap. noticias. uol. brmidiaglobalfintimes20101001brasileiros-nao-parecem-desejar-mudancas-politicas-mas-empresarios-estao-preocupados. htm (accessed July 5, 2012). 35 Tick, Tock: The Senate Debates a Small Measure to Help Disarm an Economic Time Bomb, The Economist . March 24, 2012, economistnode21551093 (accessed August 20, 2012). At the March 2012 exchange rate, 622 reals were worth about USD300. 38 Doing Business, Economy Rankings: Ease of Doing Business in Brazil, 2012, doingbusiness. orgrankings (accessed August 8, 2012). 40 Doing Business, Ease of Doing Business in Brazil. 41 Doing Business, Ease of Doing Business in New Zealand, International Finance Corporation and The World Bank, 2012, doingbusiness. orgdataexploreeconomiesnew-zealand (accessed August 8, 2012). 42 Doing Business, Ease of Doing Business in China. 46 Monica Rebelo Rodriguez and Saul B. Suslick, An Overview of Brazilian Petroleum Exploration Lease Auctions, Terrae . Vol. 6, No. 1 (2009), pp. 620 , 47 Prada, For Brazil, Its Finally Tomorrow. 48 The World Bank, Brazil: Trade-at-a-Glance Table, World Trade Indicators 200910, info. worldbank. orgetoolswtidocsBraziltaag. pdf (accessed August 8, 2012). 50 Brazil: State Role in the Economy, Economist Intelligence Unit, September 1, 2010, country. eiuarticle. aspxarticleid1307475115 (accessed August 8, 2012). 53 Samantha Pearson, Foreign Investment in Brazil Market Dives 70, The Financial Times . July 26, 2011. 54 Kenneth Rapoza, Brazil at Risk of Becoming One Big Petrobras, Forbes . February 2, 2012. 55 James Lord, Brazils Equity Market Runs Risk of Overheating, The Financial Times . January 19, 2010. 56 World Economic Forum, The Global Competitiveness Report 20112012: Country Profile Highlights, www3.weforum. orgdocsWEFGCRCountryProfilHighlights2011-12.pdf (accessed August 8, 2012). 57 Brazil: Trade Patterns and Regulations, Economist Intelligence Unit, September 1, 2011. 60 Jim ONeill, The Growth Map: Economic Opportunity in the BRIC and Beyond (New York: Portfolio, 2011).The management consulting industry . Growth of consulting services in India: Panel discussion Management consulting as a profession is a coveted aspiration for management professionals. This academic note seeks to define management consulting as an industry, draw its boundaries, highlight the unique contributions of management consultants and consulting firms, and elucidate the challenges faced by the management consulting industry, with a specific focus on the Indian context. The note is followed by a panel discussion in which experts from the consulting industry participated. Management consulting Indian consulting industry History and emergence of management consulting Challenges facing management consulting industry The management consulting industry: academic perspective Management consulting is one of business earliest instances of outsourcing. Firms and managers have been seeking external advice and support for issues as critical as strategy to seemingly procedural matters such as accounting and taxation. Though the use of consultants and consulting firms has been prevalent for long, there has been not much research conducted on the same. Management consulting as an industry and practice can be viewed through the lenses of institutional theories (institutional entrepreneurship), transaction cost economics (principal-agent problems, transaction costs of outsourcing advice and implementation), and organization theories that study professional service firms (PSF). Academic research on the consulting industry has focussed on studying the practice of consulting, the nature of assignments consulting organizations undertake, the value they generate for their clients, and the way consulting firms are organized and managed. Mukherji and Ramachandran (2007) labelled outsourcing as ldquopractice in search of a theoryrdquomdashwe could extend the same label to the consulting industry as well. The management consulting industry has received little academic attention due to a variety of reasons. First, it is highly fragmented with a variety of consulting firms, ranging from the ldquobig threerdquo global strategy-consulting firms to a large number of individualindependent consultants. Second, the industry has not been regulated, unlike other professional service firms such as accounting and law, and little attention has been paid to even the establishment of professional bodies such as consultants associations. Third, apart from the differences in size and scale, there exists a wide variety in the positioning and differentiation of the various consulting firms. There are firms that focus on a variety of issues in the same market such as the strategy-consulting firms, as there are firms that focus on a specific domain, such as information technology (IT). Finally, the lack of extensive studies on the consulting industry can be attributed to the nature of services they offermdashservices that are hard to study, measure, and quantify. The primary objective of this note is to elaborate on management consulting as an industry, and elucidate the critical role of management consulting firms. This note contains three sections. The first section outlines the boundaries of the consulting industry and lays out the landscape of consulting as a discipline, including its evolution. The second section extends the evolution of the industry to highlight the legitimate role of management consulting firms and the specific value they add to their clients. The third and final section describes the emerging challenges for the global and Indian management consulting industry. Management consulting as an industry The evolution of the management consulting industry is best studied through the institutional entrepreneurship lens. David, Sine, and Haveman (2013) found that in the emergent period of management consulting (in the years following the second world war), consulting entrepreneurs (a) highlighted significant contradictions between the status quo and broad cultural logics (b) used expertise from outside their field to propose solutions to these problems (c) highlighted the larger social benefits of these solutions (d) established the distinctiveness of their organizational forms by defining social codes, and (e) established relationships with prominent actors outside the field to legitimate their problem-solving models. Such institutional actions have contributed to the evolution of an industry that is populated by firms that are increasingly similar, though distinctively positioned. Semadini (2006) analyzed the management consulting industry and uncovered the dyadic and multi-dimensional nature of the competitive positioning decision. Positioning very near competitors provides firms with advantages including increased legitimacy, decreased uncertainty, and increased potential for spillovers, while reducing their opportunity to differentiate themselves from their closest rivals, hence increasing direct competition. Using service marks data from the US consulting industry, he elaborates how firms position themselves near or far from larger or older firms. While it is important to position the productsservices near larger competitors to gain legitimacy, reduce uncertainty, and gain from spillover benefits, it was found that firms positioned themselves farther from older, directly competing firms to sustain competitive differentiation. Of late, diversified corporations have employed corporate staff with titles that include ldquoconsultantrdquo as full-time exclusive resources. While such internal consultants provide firms with specialized expertise, they would be an integral part of the organization and not necessarily bring in the ldquooutsiderdquo perspective that clients most often seek. Fincham, Mohe, and Seidl (2013) identify three key characteristics of management consulting: (1) consultants provide support in diagnosing andor dealing with management problems (2) such consultants are external to the problem that is being addressed, with no implementation responsibilities and (3) such support is provided on a temporary basis. Based on these characteristics, they define management consulting as including ldquoany activity that has as its apparent justification the provision of some kind of support in identifying or dealing with management problems, provided by individuals, groups, or organizations that are external to the particular management domain and which are contracted by the management on a temporary basisrdquo ( Fincham et al. 2013. 6). Greiner and Metzger (1983) define management consulting services as ldquoan advisory service contracted for and provided to organizations by specially trained and qualified persons who assist, in an objective and independent manner, the client organization to identify management problems, analyze such problems, and help, when requested, in the implementation of solutionsrdquo (p. 7). Turner (1982). in one of the earliest articles about the consulting industry, elucidates eight fundamental purposes of consulting assignments, arranged hierarchically as: ldquo (1) providing information to a client (2) solving a clients problems (3) making a diagnosis, which may necessitate redefinition of the problem (4) making recommendations based on the diagnosis (5) assisting with the implementation of recommended solutions (6) building a consensus and commitment around corrective action (7) facilitating client learningmdashthat is, teaching clients how to resolve similar problems in the future, and (8) permanently improving organizational effectiveness. rdquo ( Turner, 1982. 120ndash121) Management consultants add value to organizations (including governments and public sector undertakings) by providing them with unique expertise not easily available within the organizations andor in cases where the organizations were slow to respond to the environment ( Momani, 2013 ). This combination of lack of diagnostic expertise with lack of innovationspeed of response in clients provides a rich opportunity for consulting firms to add value to their clients through their problem-solving skills. Therefore, the landscape of the management consulting industry is characterized by consultants who are (a) external to the organization (b) hired on a temporary basis (c) valued for their specialized experience and expertise that is not easily available within the client organization and (d) compensated for their advice on improving the organizations performance and educating the client on handling similar problems in the future. Management consulting industry: legitimacy and value addition The reasoning for the continued success of the management consulting industry can be studied through transaction cost economics ( Coase, 1937 ). The decision to engage consultants to address an issue can be viewed as the trade-off between internal deployment of resources (hierarchy) and hiring of consultants from the outside (market). The choice should be based on the economic value added net the costs of transaction. For the consulting industry to survive legitimately, consulting firms and consultants need to provide significant value additions that outweigh the costs of engagement. When the industry was in its emergent years, the primary value addition by the consulting firms was the provision of smart people with diversity of experience and exposure, who could lend an impartial outside perspective on the clients problems and challenges. Sarvary (1999) argues that the consulting firms value proposition has transformed from providing smart people to solve clients problems to providing clients access to the consulting firms knowledge base, since clients and consulting firms both have access to the same resource pools for hiring (MBAs from top business schools). The shift in value proposition means consulting firms have to emphasize the power of its collective knowledge (acquired through experience of handling multiple problems, synthesis of these experiences to create new knowledge, and the ability of the firm to codify and distribute this knowledge to make it easily available to its consultants and clients). Maister (1993) classifies consulting firms into three groups, based on the work they perform: (1) procedural (work for which the solutionapproach is well known, but the success is in the efficiency of implementation) (2) brain (work that requires a lot of creativity and innovation drawn from professional expertise) and, (3) grey hair (work that is based on accumulated experience). Each of these types of consulting firms requires different kinds of resources and organization. While efficiency-based organizations thrive on large bases of codified knowledge, innovation-based and experience-based consulting firms thrive on building a team that is either professionally qualified and respected, or has significant domain knowledge and deep expertise. Consulting firms are therefore those ldquoorganizations, whose expert knowledge workers (the operating core) exercise to a greater or lesser extent control over both the means and ends of service deliveryrdquo ( Kipping amp Kirkpatrick, 2013. 778).International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 226 Growth and Development of Tea Industry in Assam International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 227 Tea industry in Assam Assam is located in the North-East of India surrounded by seven states viz. Arunachal Pradesh, Nagaland, Manipur, Meghalaya, Mizoram, Tripura and West Bengal. It also shares its two boundaries with two countries viz. Bangladesh and Bhutan. The total geographical area of the state is 78,438 sq kms which is about 2.4 percent of the total geographical area of the country. According to the 2011 census the population of Assam stands at 3, 11, 69,272 of which 1, 59, 54,927 are males and 1, 52, 14,345 females. The economy of Assam continues to be primarily agrarian and the agricultural sector is providing employment to more than 50 percent of the rural population. This sector contributes 25 percent to the State Domestic Product (2010-11). Even though Assam is rich in natural resources and has a few agro and mineral based industries, still the state is industrially backward by Indian standard in many aspects. Economic development of the state depends on the production of the state. The government had been making continuous efforts to develop the already existing agrarian economy and to improve the other sectors of the economy in the state. Tea is considered as one of the main agricultural produce in the state and is reputed all over the world for its aromatic quality. The other agricultural produce in the state are rice, potatoes, pulses, jute, sugarcane etc. Different fruits like bananas, jackfruits, pineapples, mangoes, guavas are also produced in the state. The major industries in the states are petroleum and natural gas, coal, tourism, limestone, granite and tea industry, some other industries are fertilizers, sugar, paper, rice mills food processing and sericulture. Some traditional industries are brass-metal International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 228 works, bamboo and cane works, spinning of endi, muga silk, pat silk, black smith, wood carving, village carpentry, gold smith, pottery, weaving etc. Tea industry was doing well in the beginning of 20 th century and was recognized as one of the major manufacturing industry in Assam with an enormous potential. It boasted relatively better workforce due to its majestic position in those days. The organization of the British in this respect was quite commendable the infrastructure had reached snooty heights, the employment prospect were rising day by day even the freedom movement never actually affected the tea trade. After Independence, there was a radical change that took place in tea industry as some of the tea estates in Assam came under control of Indians by purchasing maximum shares at the stock exchange or buying the tea estates directly. Most of the new buyers were not aware of tea plantation and lack of knowledge of the trade and a desire to make fast money from the business they ignored the basic requirements of labour essential for plantation. They appointed unskilled labourers with low salaries and did not give adequate attention to improve the tea gardens. As a result, the quality of tea was adversely affected and consumers started complaining at the London tea auction. Countries like North America, Australia and Britain shared more than 80 percent of Indias export. Due to unprincipled actions of India owned tea gardens, lesser known tea producing countries such as Indonesia, Sri Lanka, and Japan began blowing up in the international market. The demand for Indian tea in the international level went down, but some Indian owned tea gardens in Assam priced significantly well in the international market as these tea gardens were given more attention by big agency houses in Kolkata and yielded better result. International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 229 The Indian Government abolished the managing agency system at the end of the 60s decade, which has destabilized the English stronghold on tea estates in India and forced them to walk out of the Indian tea plantations. The planning commission hereafter decided to restrain absurd practices of the tea estates to improve its form. Assam on its part has the largest domain for tea plantations and enjoys as the largest producer of tea in the world by employing utmost number of labourers. Tea industry in Assam contributes significantly in the development of state economy. The figures had moved on to more than Rupees 5000 crore annually as agriculture income, the number append up as the state also receives a share of income tax and export duties from the centre. After the departure of Europeans, the supplies of tea chest are being looked after by various plywood industries of Assam and these industries provided employment to a vast number of people. It also opens market for Assam coal and the fertilizer industry as fertilizers and coal is needed by the tea industry. Therefore, it can be accomplished that tea industry shares 15 a significant employment burden for the state of Assam directly and indirectly. Tea is considered as the most important crop in Assam. It has been producing some of the finest teas in the world. Assam produces about 51 of the tea produced in India and about 16 th of the tea produced in the world. The climate of Assam favours to produce sweetness and tangy tea in the region. The worlds largest CTC tea auction centre is in Assam and the worlds second largest in terms of total tea. Assam mainly exports its tea to Europe and Middle East countries and also to Pakistan, Egypt, Japan and Israel. Tea is grown in both the Brahmaputra and Barak plains in Assam. Tea gardens are mostly found in Dibrugarh, Tinsukia, Sibsagar, Jorhat, Golaghat Darrang and Sonitpur International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 230 districts of Assam. About 17 of the workers of Assam are engaged in the tea industry. Though Assam plantation generally produces black tea, the region also produces smaller quantities of green and white teas. There are more than 850 tea estates and more than 2500 tea gardens in Assam that covers thousands of acres of land. The tea industry in Assam is about 180 years old. This industry plays an important role in the state economy as well in the national economy. The first Indian tea produced in Assam was sent to United Kingdom for public sale in the year 1838. Subsequently tea cultivation was extended to other parts of the country between 50s and 60s of the last century. As of today, Assam tea has retained its international standard and commands significant share in the world market. The tea industry in Assam also gives average daily employment to more than six lakh persons in the state, which is around 50 percent of the total average daily number of labour employed by tea industry in the country. The total area under tea cultivation in Assam is accounting for more than half of the countrys total area under tea. In addition to existing big amp large tea gardens owned by reputed both Indian and multinational Companies, the profession of tea plantation in the State has taken up by common man as business venture at present, especially by unemployed youths Assam alone produces more than half of Indias tea production. The estimated production of tea in Assam was 511.9 thousand tons in 2007. During the year 2006, the quantity of production of tea in Assam was 502.0 thousand tons. International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 231 Tea statistics of Assam and India The development profile of tea industry in Assam in terms of production and growth rate of area during the last seventeen years (1990-2007) is given below: Source: Economic Survey Assam 2009- Tea statistics. Tea Board of India International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 232 It can be observed from the above table that the growth in number of tea gardens in Assam and India was nominal till 1995 number of tea gardens in Assam was 848 in 1990 which has enhanced to 30942 in 1999. The Tea Board of India included the small tea growers in its official statistics since 1998 and it has shown a massive 97.25 percent increase of tea gardens in Assam in 1999 and 85.98 percent increase in all India level which was lower than all Assam growth rate. The overall compound growth rates for the period 1990 to 2005 for Assam was 56.99 percent which was much higher compared to 29.37 percent of all India level. The area under tea in Assam was 231 thousand ha in 1990 which has grown only to 321 thousand ha in 2007 and the area under tea has increased to 28.03 percent, during the same period tea production in Assam has increased from 388,181 (000 kg.) to 511,885 (000 kg.) with a growth rate of 24.16 percent. The growth rate of area under tea at all India level was 28.02 percent and the growth rate of production was 26.97 percent. Although similar growth rate of area under tea was maintained in Assam and at all India level, however the growth rate of production at all India level was slightly higher by 1.05 percent than the growth rate of Assam. The compound growth rate of area under tea in Assam was 1.65 percent which was same with all India growth rate of 1.65 percent (1990-20070). During the same period the compound growth rate of production of tea in Assam was 1.39 percent and the all India growth International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 233 rate of production of tea was 1.58 percent which was marginally higher than the growth rate of Assam. The average yield of tea per hectare in Assam has reduced from 1,680 kg in 1990 to 1,593 kgha in 2007 showing an overall decline of -0.54 percent, even at all India level tea productivity had negative growth from 1731 kgha to 1706 kgha during the same period with an overall decline of -1.46 percent. The tea productivity growth rate of Assam was higher than the national growth rate. It has been observed that although the production of tea depends on the area under tea, it is also affected by factors like old tea bushes, heavy cost of production, unskilled workers, financial constrains etc. Due to fall in exports and slump in the international market, the producers opted to cut production in conventional tea and laid stress on production of quality tea to realize better per unit price. International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 234 District wise Area under Tea in Assam (1989-2007) Source: Tea Board, Guwahati (Figures in hectares) International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 235 The area under tea of different districts of Assam (1989-2007) is presented in the above table. From the point of tea growing areas, Assam is generally separated into two regions, viz. Assam valley and Cachar. Assam valley consists of the Brahmaputra valley with the districts of Dibrugarh. Sibsagarh, Lakhimpur, Darrang, Nowgone, Kamrup. Goalpera, Karbi Anglong and North Cachar Hills districts. Among the ten districts of Assam, Dibrugarh district with large area under tea has maintained the highest rate of increase of area under tea with 44.65 percent followed by Lahkimpur, Karbi Anlong (1990-2007), Goalpara, Sibsagarh, Nowgone, Kamrup, North Cachar (1990-2007) and Darrang districts with 38.54 percent, 37.84 percent, 29.54 percent, 27.78 percent, 11.31 percent, 10.19 percent, 9.16 percent, 5.14 percent respectively. However Cachar district has reflected negative growth rate of area under tea during the same period (1989- 2007). Dibrugarh has the largest area under tea with 33 percent followed by Sibsagar district with 28 percent next Darrang District with an area of 16 percent which followed by Cachar District with 13percent and Nowgone District with 3percent and remaining districts Lakhimpur, Goalpara, North Cachar, Kamrup and Karbi Anlong share with 2, percent, 1 percent, 2 percent, 1percent and 1 percent respectively. International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 236 District wise percentage of Area under Tea in Assam (1989-2007) International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 237 District-wise Production of Tea (In Thousand Kgs.) Source: Tea Board, Guwahati, NEDFi data bank District-wise production of tea, figures of Tea Board, Guwahati, and NEDFi data bank, revealed that Dibrugarh district has recorded the highest production during the period 1989 to 2007, which has significantly amplified from 139205 thousand kg to 225321 International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 238 thousand kg with an overall increase of 61.86 percent, followed by Karbi Anglong with 60.01 percent (1990-2007). During the same period Goalpara, Sibsagarh, Lakhimpur, Nowgone and Darrang, districts have reflected the overall growth rates of 45.21 percent, 25.19 percent, 13.80 percent, 11.99 percent and 8.46 percent of production respectively. Total production of Cachar district was 39112 thousand kgs in 1989, which has increased to 44131 thousand kgs in 2007 with fluctuating trend in between 2001 to 2006 with an overall growth rate of production of 12.84 percent. However, Kamrup and North Cachar(1990-2007) registered negative growth rates with -12.90 percent and -2.84 percent respectively. The total Assam tea production grew at 34.76 percent. During the last 19 years (1989-2007), district-wise production of tea in Assam, Dibrugarh district contributed the maximum with 38percent, followed by Sibsagarh district with 25 percent. The contributions to tea production from other Districts in Assam are Darrang, Cachar, Nowgoan, Lakhimpur, kamrup, Goalpara and North Cachar with 19 percent, 10 percent, 3 percent, 2 percent, 1 percent and 1 percent respectively. However Karbi-Anglong district registered zero contribution to total tea production in Assam. International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 239 District wise percentage of production of tea in Assam (1989-2007) Karbi An North - Cachar Source: Tea Board, Guwahati, NEDFi data bank The district wise growth rate of average yields of tea in Assam, in the last 19 years (1989-2007), more or less was negative in all the districts of Assam except Cachar, Darrang and Goalpara districts. Growth rate of average yield (kg hectare) for Cachar, Darrang and Goalpara districts were 22.29 percent, 3.13 percent and 2.26 percent respectively. However, the remaining districts Kamrup, Lakhimpur, International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 241 Dibrugarh, Nowgoan, Sibsagarh, Karbi-Anglong and North-Cachar registered negative growth with -21.89 percent, -30.05 percent, -10.42 percent, -0.69 percent, -9.58.6 percent, -0.51 percent and -11.68 percent respectively. The total average yield of tea in Assam during the period 1989 - 2007 has declined from 1655 kgs per hectares to 1593 kgs per hectares showing an overall decline of -3.74 percent. Tea producing regions have been recording unstable yields, which generally depend on a series of things including productivity of labour, the productiveness of land, and the technology to be used, the quality of seedlings and climate of the area. The causes for the low-yield position may be credited to a number of factors such as constant absenteeism and alcoholism, lack of workforce stability, poor equipment and improper management and old tea bushes. Low frequencies of replanting and in filling have also crimped yields in the region. Replanting involves uprooting old bushes, rehabilitating soil, planting and protection until maturity. International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 242 Growth of area (hectares), production (kgs), and yield in (KgHectares) of tea in Assam during 1989-2007 The Assam tea industry experienced ups and downs in its growth during the period of 18 years. Area under tea cultivation increased by 40.05 percent with an average annual growth rate of 2.22 percent and the percentage increase of production was 34.75 percent with an average annual growth rate of 1.94 percent. However, yield per ha decreased by -3.74 percent with negative growth rate of - 0.20 percent during the same period. The above table highlights that annual growth rate of area under tea cultivation was higher than the growth rate of production and productivity of tea. The area under tea increased steadily over the years but this did not lead to a proportional growth in productivity of tea. International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 243 Month-wise Production of Tea in Assam, (2007-2008 and 2008-2009): Source. Directorate of Economics and Statistics, Govt. of Assam. International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 244 Month-wise percent of tea produce in Assam 0 January March International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 245 Month-wise percent of tea produce in Assam, International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 246 It is observed from the above graph that in the month of September (2007-2008) the production of tea in Assam registered the highest production with 85999 tones. From April 2007-2008 to July 2007-2008 tea production had increased gradually from 33929 tons to 61908 tons showing an overall increase of 82.46 percent and in the month of August production declined to 52167 tones. After September, the production of tea shown a declining trend, from October to February the production declined from 67544 tons to 1714 tones with an overall decline of 97.46 percent (2007-2008) and yet again in March, 2007-2008, tea production has enhanced to 4738 tons. In the month of August 2008-2009 tea production has registered its maximum at 77555 tons. From April to August production enhanced from 37711 tons to 77555 tons showing an increase of 105.65 percent with a marginal fall in the month of May. In September 2008-2009 tea production has slipped to 56911 tons and yet again enhanced to 74139 tons in the month of October. In the period, November to February overall production has significantly declined from 38643 tons to 112 tons showing an overall fall of 99.71 percent. Which was a major concerned for the tea industry in the region although it has picked up yet again in the month of March with an enormous production of 16448 tons. It was observed that month-wise tea production in Assam during the financial year 2007-2008 and 2008-2009 show more or less similar tempo of tea production. In the region, production gradually picks up from March, continues until September-October, and slows down from November to February. This trend of tea production in Assam can be attributed to climate situation. Tea production is much higher during the period August to September. After November tea International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 247 production comes to an almost standstill due to severe winter which is not International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 268 Setting up of a Separate Cell to look into the developmental needs of the Small Growers. There is an increasing demand for opening new offices of the tea Board to meet the demands of the small tea growers of North Eastern Regions. As the existing Board is functioning with less manpower, pile up with heavy additional work load like implementation of SPTF and Orthodox subsidy scheme, small grower cell etc. It has become unattainable for the Board to meet the demands of the North Eastern Regions as well as small growers because the number of small growers has gone up enormously in recent years. Taking into consideration all these, a suggestion has been submitted to Government for expansion of technical manpower of the Board for efficient administration of small growers cell and for opening of new filed offices in all the important areas of small grower concentration. The suggestion of the Board is under active contemplation of the government. Problems of small Tea Growers (i)Unorganised growth - Green leaf production from the small tea growers is not able to harmonize with the requirement of tea market. Moreover, the entire production process of green leaf is not properly channelized to tea processing amenities. It was observed in many cases, for tea cultivation, incongruous land is used affecting the quality as well as productivity of tea. (ii) Land Patta and title - Most of the small tea growers do not have land patta and they are deprived of being registered with Tea Board. As a result, they could not avail the benefit of plantation subsidy scheme and bank loan. Although, there is a provision for issuing provisional registration to the small tea growers with annual patta, normal land, etc based on certificate holding for tea plantation. International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 269 (iii) Technical backup - There is a wide technological gap between trained and untrained small tea growers. Small tea growers may be imparted training in certain areas like drainage, manuring, weedpest control, pruning etc. (IV) Ecological Imbalance - The growth of small tea plantation has reported a large-scale ecological problem by way of clearing village wood lots. The commercial forestry (bamboo plantation, etc.) has vanished and crops like orange, pineapple, sugarcane, and citronella have been replaced by tea. (V) Climate Change - is bound to have major impact on the tea industry in Assam. Rising temperature, flood, drought and minimum temperature are the factors reducing yields and alternating the unique essence of the most popular drink. The changing taste of Assam tea is a serious concern for the tea growers and the changes will sharply slow down the demand for this variety of tea abroad. Assam promised to strengthen small tea growers Even though small tea growers are (STGs) not getting due attention from the Tea Board as well as from the government, recently the state government realising their significance contribution to tea industry promised to look into the welfare measures of this unorganised sector by forming a corpus. It demanded a separate directorate of the Tea Board in Guwahati for STGs and said will compel Tea Board to look into the issues pertaining to STGs and extend full cooperation to them. Supporting the contribution of STGs to tea industry, Chief Minister Mr Tarun Gogoi said We will not tolerate that Tea Board will look only the big tea growers. International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 270 We want inclusive growth. Tea Board will have to extend full cooperation or we will compel them to do so. The green leaf cess collected from STGs will be used to fund the special corpus, which can be utilized for the welfare of STGs and other tea labourers, said Assams industry minister Pradyut Bordoloi while releasing a data bank on STGs, which is a first such initiative for gauging STGs in the state. The data bank found around 68,465 STGs in Assam and their contribution to total tea production in the state is nearly 25 percent and around 5 lakh families are connected with small tea cultivation. Mr Pradyut Bordoloi, Industry Minister of the state has taken initiative for the welfare of STGs and related labourers by deciding to form a special fund to deal with problems of this unorganized sector. It was decided that about 35 percent of the total fund will be utilized for the welfare of the unorganized labourers connected to STGs as they are deprived from all benefits enjoyed by organized sector. With the help of this fund STGs will able to get trainings and other tea related research at Tocklai Tea Research Association like organized sector. Assam has been witnessing a silent revolution for the past 15 years as more and more people were taking up tea cultivation. Today, rural unemployment has almost ended in most of the Upper Assam districts as tea cultivation gave the people a new avenue to earn livelihood, said Bordoloi. According to the data bank, the total land under tea cultivation of small growers is 117 thousand acres. It found that there is shift from paddy to tea cultivation in high lands in Upper Assam. International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 271 It found that 59,717 small tea gardens have the holding size of less than 3 acres, which is 87 per cent of the small tea growers in the state are small farmers. Small tea growers produced around 400 million kgs of green leaf in 2008 and it is expected to touch 500 million kgs in the coming years. The State Government of Assam conducted a survey in 14 districts which indicated that there were more than 68,000 small tea growers. The State Government offers to continue the survey in the remaining 13 districts and also re-survey the 14 districts surveyed earlier so as to specify those small tea growers who have been left out during the initial survey. The Government of Assam has, on 7th February, 2011, notified the ASSAM CESS UTILIZATION POLICY, 2010. The main aim of this policy is to make stronger the small tea growers and workers related to the small tea growers gardens by providing financial support. The intent of this policy is also to organize the small tea growers into self-help groups for setting up of tea factories in the co-operatives sector so as to bring about quality, as well as to get better price of green leaf on the basis of price sharing formula of the Tea Board. The government of India through the Tea Board of India has taken several steps for the development of the small tea growers in the country. They are offered financial support for the re-plantation, rejuvenation of old tea bushes, modernization of tea processing units, market promotion and for the welfare of the tea garden workers. A separate Directorate is being established at Dibrugarh in International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 272 Assam to deal with the developmental requirements of small growers. The Tea Board of India is taking major step for the small tea growers in Assam to make the small growers sector an organized one, Vice-Chairman of the Board Shri Dinesh Sarma mentioned in one of the conference held at Kumarakom in Kerala, who is also the vice-president of All Assam Small Tea Growers Association. The vice-chairmanaposs post is important as he is the second-in - command and chairs meetings in the absence of the chairman and takes decisions. The small tea growers sector has long way to go as this sector is covered with several problems. The Tea Board is trying to help this sector and for the first time has projected an outlay Rs 300 crore for the development scheme in the Twelfth Plan, which would help them to turn into more organized and climb up the ladder of success. There was a time when members from the small tea growers sector were apprehensive about entering the offices of the tea board. The situation has changed now and we have emerged a major player by the sheer dint of hard work, quot Sarma said. Unveiling his plan, Sarma said the small tea growers would have factories of their own and their own brand too. Having a brand would help us have our own identity, quot he said. From official sources it has been confirmed that the Centre had sanctioned 95 posts for the small tea growers directorate comprising 82 technical and 13 non-technical posts. The placement envisages one development officer for every 3,000 growers and one factory advisory officer for every 25 bought leaf factories. International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 273 Despite of all these efforts only 4, 966 small growers could be registered till March 31, 2012, out of estimated one lakh small growers in Assam because of non-availability of documents. The small tea growers have been facing lots of criticisms for not maintaining quality of tea, so they are given extra attention by starting awareness campaigns for them to maintain the quality of their produce. Executive director, Tea Board Northeast, Rakesh Saini, said that the Board was now reaching out to small tea growers and would help them in every way possible. The Telegraph, Calcutta, India Thursday. June 28. 2012 ROOPAK GOSWAMI Sustainable Livelihood for Small Tea Growers through CSR (Corporate Social Responsibility) p 51-56 Promotion of Small Tea Industry in Assam. Press Information Bureau Government of India Ministry of Commerce amp Industry 21-March-2012 17:12 IST Business Standard July 30, 2011, Assam vows to uplift small tea growers - Supratim Dey Tea File Vol 1 April to September 2010 Bulletin Tea Board of IndiaPublished:2008-10-16 Author: Rajiv Sighamony Source: rexertea. blogspot ) Assam, India: The Assam Tribune Online, India Tea industry a road map ahead - Small tea growers in Assam and West Bengal (p513) Gd Banerjee and Srijeet Business Standard Aug29 2011 Supratim Dey Tea Industry of Assam 27th April 2011 The Telegraph, Honchos root for tea harvest, Santanu Ghose Feb 16, 2012 Singpho People and Organic Tea by Surjit Khound, Origin and development of tea Benoy B Sen Compiled and editor p191-194 International Journal of Scientific amp Engineering Research, Volume 4, Issue 7, July-2013 274 Tea Industry A Road Map Ahead, Issues of Tea in National Perspective, Chap18 P-338 Tea Industry in Transition Ch-7, Tea Farming in Northeastern Region an d Size Efficiency of Tea Estates p166- 167, GD Benerji and Srijeet Banerji The Hindu, Business industry, Assam Tea Output Crosses 500m kg, Sushanta Talukdar. Feb 17, 2012. Assam Tea Industry after Japan Fiasco Overview of Indian Tea Industry, Project report p1-p3. RAM SECTOR REPORT Tea Industry The Green Gold of Ceylon September 2010, P7-8
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