Satellite is Used to Forecast Production and Sales

As part of a growing trend among hedge funds, surveillance is being used to gather market-moving information. It is early warning or information system about the performance of the business. There are two surprising facts about how production and business performance can be forecasted.

First, on August 6, 2010 Russian government announced it was shutting down the grain exports because of production are going to decline in Russia.At the same time, Lanworth Inc. a private firm was ready to announce its forecast the food grain production in Russia. It informed its customers that it guessed the Russians would only be able to produce 45.6 million tons of wheat this year.

How they forecast the production of agricultural product? Satellite has been used to estimate the production of agricultural crops. An analytical firm Lanworth Inc. scrutinized satellite images of Russia to measure wheat production. “Using infrared and microwave images of the entire planet taken twice a day, Lanworth can distinguish between each type of corn, soybeans, wheat and on and on—and discover the total number of acres of each planted overall. Infrared images capture the chlorophyll in the plants, and microwave images pick up the degree of moisture in the crops.” It monitors the health of those acres over time; analysts can spot any changes that can affect supply of commodities in the markets: diseases, floods, fires and other agricultural calamities.

Second, by counting the cars in Wal-Mart’s parking lots month in and month out, ‘Remote Sensing Metrics’ analysts were able to get a fix on the company’s customer flow. From there, they worked up a mathematical regression to come up with a prediction of the company’s quarterly revenue each month.

Details can found Here & Here

Public Vs Private Enterprises

Most of the public enterprises (PEs) are burden to the government as well as to tax payer. However, there is no radical recommendation to government by Commission for Review of Government Budget Management and Expenditure System to correct the inefficient system of PEs. If private sector is able to provide the services, then we don’t need PEs. There is no hire and fire system in Nepal, it is making performance of PEs very much ineffective. Because, once worker or staffs are hired, it becomes long term liabilities for the PEs. They must be paid even there is no production. In addition, they demand bonus even PE is in loss. As an example, we recently saw a case in Nepal Oil Corporation (NOC), where staffs are found to think themselves as a proprietor of the NOC. They were demanding bonus even NOC is in loss. Similar problems are found in other PEs as well.

Therefore, there is only one alternative of PEs that is to make long term strategy to liquidate them and encourage private sector. Problem in liquidation arises only from one side that is from incumbent staffs and workers. There is also a solution for it. The existing capable staffs can be transferred to government sector. For example, dairy development corporation (DDC) can be liquidated and its staffs can be transferred to "Gunastar tatha Naap Taul Bivag" (Quality Control Authority) of government, where they can play a crucial role for regulation and monetoring the dairy industry. Similar procedure can be applied to other PEs like NOC, Sajha etc. Government should have a regulatory role, instead to participate in the commerce.

Private sector growth is the people's growth.Private business are the people's business.If one want to serve people with an expectation to earn profit then there is no reason for the government to block their business. Let us give a chance to private sectors in petroleum supply, electricity distribution, water supply etc. It is a key to development for Nepal. In Nepal, many private businesses performed well services. We can see the private sectors in various industries like internet services,telecommunication, banks, airlines which have good regulations of the government almost performed well in Nepal. Let us think out-of-the-box.

Market and Sports in Nepal

Market provides incentive and opportunity to capable people. It’s an example of "market is everything". However, in Nepal people expect from government, which is always an inefficient institution all over the world.

An example is here. National football player Sandip Rai has joined Mohammedan Sporting Club, Kolkata, a second division Indian football club. Rai, who had left for Kolkata with Sapan Das last week, signed with the club on Friday. Rai will get Rs 1.2 million for an eight-month contract. Rai who played for Three Star Club in the Martyrs Memorial League last season had signed with Manang Marshyangdi Club (MMC) about a month back for Rs 40,000 per month.

Rai has become the second Nepali footballer to play professional football in India in the last two years. Anil Gurung last season played professional football from Shillong Lajong, an I-League team of India. Gurung received Rs 6.3 millions for a three-year contract. His team has been relegated in the current season.

Unless there is economic growth in the country, sports also doesn’t grow. Expansion of the market spills over to the sports man and to the sports club. Moreover, the sport events also get sponsors. It expands opportunities for the players. Let us expect from market rather than from government.