COPENHAGEN SUMMIT – A Success or a Failure?

What Copenhagen changed?

At Copenhagen, for the first time, unity amongst the developing nations shaped the design of the rules. Once the heat and the dust settles, this achievement will be seen as a game changer in leading the world on the pathway to the larger goal. The United States was desperate to secure such a deal.

The countries that brokered the text of the outcome, the US and the BASIC countries (Brazil, South Africa, India, and China), to the target of limiting global warming to 2C above pre-industrial temperatures, reflect a world in which the balance of power has significantly changed in the last 20 years. There is also increased public awareness with campaigns running around the world and the huge media coverage has made addressing climate change indispensable.

Green growth is now the prevailing economic model of our time. The idea that addressing climate change is bad for business has been buried. Countries from both developed and developing economies have announced low-carbon economic plans and are moving forward.

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What it did not change?

About 45,000 dignitaries travelled to the UN climate summit in Copenhagen – the vast majority convinced of the need for a new global agreement on climate change. But other than the acknowledgment by the US and the BASIC group of countries, there was no major agreement. Many of the key governments do not want a global deal. The big players prefer an informal setting where each country says what it is prepared to do where nothing is negotiated and nothing is legally binding. The political will, economic direction, and public pressure were not enough to overcome the concerns over sovereignty that many countries have in the context of international law.

According to the accord, reducing global emissions by 50% in 2050 below 1990 levels will take into account the right to equitable access to atmospheric space. A sustainable approach requires the atmospheric resource to be allocated fairly. However such reductions involve substantial financial allocations from developed to developing countries. The businesses also need to adjust to the targets and need to modify their processes. This implies significant cost implications. They need to look at cost-effective ways of running their business. Also, the outcome is far from the legally binding treaty which some had expected and for which many hoped.

For US, President Barack Obama was not able to pledge anything that Congress will not support, and his inability to step up the US offer in Copenhagen was probably the single biggest impediment to other parties improving theirs.

The reference to transparency in the text is significant as it will mean that for the first time actions by countries can be assessed globally, but there is no verification of the actions undertaken in the developing world unless they are paid for by the developed world.

It remains to be seen whether committed targets on emissions, which are due to be made at the end of January, will make a difference. There will also be a review of progress in 2015 which may offer the opportunity to adjust any targets. Many hoped the COP15 would lead to legally mandated coordinated action plan, but it appears that the outcome will be intergovernmental policy coordination with a focus on the implementation of the national strategies. The move to green growth is no longer in doubt, but the details, actions and time frame remain unclear at best.

Business 2010 - New strategy for small business owners

The arrival of the year 2010 is just around the corner. How will India look like in 2010? How different will the business scenario be in the coming decade?

Various indicators from renowned institutions like the World Bank suggest that doing business in India is not an easy task. With the large diversity, huge population, and tough competition catering to the needs of a wide range of people does indeed become difficult. But there is a silver lining at the end of the tunnel for those who want to establish their business in the new decade. Selling the concept of business is more important than selling goods and services. If the small businesses have a good concept in place and which is feasible, it will be easier to attract a niche segment of customers.

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The ease of getting credit, protecting investors are favourable for India compared to other countries. So, the small business owners can utilise the opportunity and can start their business without worrying if they would be able to get credit from banks or not. They can also find the potential suppliers, customers, and distributors at almost nil cost. http://ebusinesszone.net/ is one place where they can find unlimited information about doing e-business, B2B selling and buying.

Also India has the comparative advantage of low manufacturing cost and inexpensive labour. In fact India is the destination for outsourcing and manufacturing for many companies operating around the world. So, the whole cost of doing business in India is among the least. The new strategy that can play an important role among the already crammed area is to find the right set of customers with a suitable business concept. And to promote the concept, they need to have a marketing strategy that completely stands out among the rest. Otherwise the customers do not care to take notice of every brand that comes out in the market.

So, do you think that marketing your brand may be expensive? Absolutely not. Again technology comes to your rescue. It is important that you don’t lose out on the upcoming brand touch points like advertising on the internet and having your own website that speaks for you where you physically cannot reach. A good after sales service is also important to ensure that you deliver quality and value for money products. Hence technology gives you the opportunity to gain a firm ground at a very low cost.

As the eyes of the whole world rests on India, it’s important that the businesses, particularly the small firms take the fullest advantage of the low-cost opportunities to establish their businesses and take India to greater heights.