McStrap

Vol No. 1| Jan 2024

STRATEGY, RISK
& POLICY
MAKING
The Future of Projects

Illustrations by Edited by
Pallab Adak Team Purahsara

www.purahsara.com

1
Table of Contents

01 Cover Page
02Table of Contents
03 Letter from the Editor
04 Illustrations by

06
Pallab Adak
The New Age War of

Resources
12 Data the new oil

17 The Power Impact of

Artificial Intelligence
21 Plan before you leap into Project

Execution
22 Project Strategy in

Mega Projects
23 411 – The One thing by Gary Keller A

Strategy perspective

25 Elections 2024 27 Back Cover

and how it will shape the

project landscape

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Letter from
the Editor

Jan 12, 2024

Dear reader,

Welcome to McStrap, a quarterly magazine which brings forth the world of projects which

build and breaks nations and civilizations. The driving force in the 21 st Century was the industrial

revolution and then the internet. In the near future is unravelling AI. Our authors come from

the industry and academia who work in this environment and throw forth questions on which

you may reflect and get a better visibility of the future world. Our effort is to build a recipe of

Political unfolding, Risks which impact projects and policy making cues to evaluate strategy to

cast out future plans for the nation and world at large. This is our first release and at a time

when the world is at the edge of witnessing the largest number of elections in 74 nations in

which more than 2.35 bn people will vote for leaders. We must inform that though our articles

will opinionate on economic and political issues, the core of the subject will always be on

projects which form the nerves of growth for nations and influence of such issues on these

projects.

Editor-in-Chief

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MOSAIC

Illustrations by Pallab
Adak
By Divyang

Pallab Adak is a digital enthusiast and has

contributed to the art and illustrations in

McStrap

He is a digital marketer and heads the SEO

initiatives at Purahsara.

Articles compiled and edited by Team Purahsara ( Mr.

Adak, Mr. Sinha and Mr. Singh)

Authors:
Indrajit Patil : Sr. Manager in Worley Ex L&T, McNally Bharat
Abhishek Ganguli: Consultant BCG
Rahul Sinha: Consultant , Ex L&T. Sparrow Risk Management.
Lalit Sharma : Country Head Reliance Jio , Ex L&T
Sohan Banerjee: Consultant , TCE, Ex- McNally Bharat, Ex- Siemens
Sarojkant Singh: Research Scholar, ICFAI Jharkhand, Ex-L&T
Raja Ghosh: GM WBSEDCL, CA,CS, Research Scholar IUJ

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5
 Volume No. 1 | Jan 2024

he New Age War

of Resources is not
new. Since the dawn of
civilization, plants have
fought for resources,
land, space, and light.
Mankind mirrors
nothing but nature. On
the surface, the war of resources we see today
is that of oil, minerals, and environment. At
the same time we see a war in the cyber space.
Nations have tried to impose their superiority
by race, wealth and power over ages. Recently
the appearance is that of trade wars. However,
all these are but reflections of the innate
by Sohan Banerjee nature of the animalistic instincts beneath.

Projects in mining, green energy, and traditional energy sectors shall color the landscape in the future. We are
already seeing China having presence in South America, Africa, and Australia after acquisition of mines in these
continents by Chinese companies. At a similar pace are Indian tycoons buying mines in Australia, Africa, Canada,
Southeast asia and South America. Adani, Tata, Jindal, Arcelor Mittal and Ambanis leading the race. There is also
a plethora of smaller companies in India expanding. Projects will see a rise of people from Indian diaspora going
to these nations and working. However, with the wars in Gaza strip and Ukraine restricting supply chains tackling
this hurdle shall call for a decentralized operation strategy. This has to be supplemented with a progressive digital
leverage to ensure success. European companies once the stronghold of design, technology and know-how are
already being sold off to Indian and Chinese business houses leading to a flow of technology to these acquiring
companies. Europe however has been witnessing a decline in productive population and a growth in aging
population, this has been a bottleneck to knowledge transfer in European companies. Although sold to Indian
and Chinese companies, the knowledge is not easily being transmitted resulting in the acquirer developing in-house
innovation ability and sometimes the ability to reinvent the wheel. Technocrats in these nations will be the holders
of economic prowess in the days to come. Projects will therefore have a strong focus on technology transfer and
scale. Leadership in projects will demand handling macro impacts of the global risks and creating agile teams which
shall cope up with resource constraints.

An important lesson shall be from the ant colony. Computer science has now adopted the ant optimization way
by creating artificial ants. Project managers and leaders will need to acquire knowledge or intuitive understanding
of such strategies which ants use in survival. The world outside is nothing but a reflection of the world within and
this is nothing but evolve as mankind progresses or digresses!

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The Russian invasion of Ukraine has underscored the shift from what Boris Yeltsin referred to as "the
cold peace" to Cold War II. Unlike the first Cold War, which was primarily a battle between capitalism
and communism, the second Cold War involves a clash of systems. On one side, there are countries
focused on manufacturing (such as China) and resources (like Russia) in the physical world. On the other
side is an alliance led by the United States, which has specialized in global leadership in finance, services,
and entertainment, sacrificing much of its own manufacturing and mining in the process.

The first Cold War saw a struggle between nations, alliances, and systems. In contrast, Cold War II centers around
a contest of models, specifically material production versus immaterial service provision. The U.S. economy has
shifted towards rewarding and celebrating those involved in app development, finance, and services, while
offshoring industrial jobs to countries like China and Taiwan. This transition to a "post-industrial economy" was
championed by policymakers and economists in the Clinton era, highlighting the importance of information
technology and finance in shaping the new economy.

However, the COVID-19 pandemic exposed the United States' reliance on other countries, particularly China, for
essential goods like drugs and medical supplies. This realization led to questions about the country's ability to
produce vital items domestically. Cold War II could potentially discredit the free-market globalist economists who
advocated for offshoring and shaped the consensus among both Democrats and Republicans for the past few
decades.

While financial and economic sanctions may be effective in pressuring Russia, Germany's dependence on Russian
oil and gas complicates the situation within NATO. Additionally, China, as the world's largest nation and economy,
has the capacity to support Russia in enduring Western sanctions as part of a shared goal to reduce U.S. influence
in their respective regions.

It is becoming increasingly evident that the ability to manufacture physical goods and control essential resources
holds significant power in the world. Countries like Russia and Ukraine play crucial roles in global wheat exports,
potash production, and agricultural supplies. China, on the other hand, dominates the global production of various
essential minerals. The United States, due to factors such as cheap labor abroad, environmental regulations, and a
focus on the "information economy," has relinquished its position as a leading producer of minerals.

The environmental movement, alongside free market globalism, has impacted the economies of the United States
and its allies. While proponents of a "green transition" argue that existing technology can facilitate a shift to
renewable energy sources without compromising living standards or industry, the reality is that the minerals
required for clean energy technologies are scarce. The extraction of these minerals, necessary for solar, wind, and
hydro power, leads to significant environmental damage. However, pointing out these challenges has often been
met with resistance from the organized green lobby.

Countries with abundant mineral resources often face the "resource curse," where autocracies or oligarchies govern
extractive industries without prioritizing education or respecting rights. This pattern can be observed in the history
of the United States, with the plantation agriculture system in the South. Southern planters, driven by profit,
exploited various labor sources, including African and African American slaves, while Southern racism served to
justify labor exploitation.

Industrial capitalism inherently creates inter dependencies between advanced technology and the control of
industrial inputs and energy supplies.

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 This can result in the enrichment of those who control essential minerals in poor countries ruled by hereditary
cliques or military dictators. A green transition does not guarantee a more liberal democratic world; instead, it may
simply lead to the sharing of wealth and power among petrostate oligarchs and mineral-rich elites.

Finally, countries like the United States, which have focused on sectors like insurance, investment banking, and
entertainment while neglecting manufacturing and resource mining, may find themselves at a disadvantage in the
global resource competition of the future.

Throughout history, conflicts have arisen due to the scarcity of resources, and the twentieth century was no
exception. Empires and nation-states engaged in battles to gain control over increasingly limited resources. One
such resource is water, which is often taken for granted. Despite the Earth being covered in water, only a minuscule
0.03 percent is suitable for consumption. This means that a staggering 99.7 percent of the planet's water is not
usable. Additionally, humans contribute to the problem by
dumping approximately 2 million tons of waste into the
world's waters every day.
Moreover, nearly 1 billion people lack access to clean water,
which poses a significant challenge given the growing global
population. The potential for water scarcity to lead to
conflicts is a topic of concern, as various organizations,
think-tanks, and writers’ express apprehension about the
possibility of wars being fought over water.
A photograph shows humanitarian workers distributing large
yellow jugs of water to local people in the Horn of Africa
during a severe drought in 2011.
The image captures a humanitarian agency's efforts to provide water during this crisis. In contrast to the traditional
belief that wars are primarily driven by political factors such as global power or nationalist pride, there is a growing
recognition that future conflicts may arise due to competition for natural resources as the climate continues to
change.
This notion is not new, as historical conflicts of the twentieth century were often influenced, either entirely or
partially, by the quest for access to natural resources. If future wars are indeed motivated by water scarcity, they
may resemble past conflicts over resources like gold,
silver, oil, forests, copper, aluminium, bananas, and
numerous other commodities that have been sought
after by one group and possessed by another.

The historical conflicts and colonialism

Similar to previous conflicts, World War II was a
continuation of competing for resources, but on a larger
scale. In Europe, Hitler aimed to dominate Europe and
secure more space for the German population, while also
gaining access to the resources necessary to rival
economic powerhouses like the United States.
In the Pacific, Japan sought to establish its own empire to challenge the dominance of the US and Europe. This
led to Japan's invasion of China and other parts of Asia. In response, the US imposed an embargo on Japan,
denying them essential resources like oil, rubber, and iron.
8
Faced with resource scarcity, particularly oil, Japan's military leaders launched invasions in Southeast Asia and
attacked the American fleet at Pearl Harbor.
As a result, the US declared war on Japan and joined World War II.
Decolonization – Messy breakups
Following the conclusion of the two global conflicts, individuals living under colonial rule mobilized to resist
political control. However, leaders of anti-colonial movements understood that the future stability and autonomy
of their nations relied on their capacity to manage their abundant natural resources. Consequently, the wars fought
to dismantle colonial rule, attain independence, and establish self-governance were simultaneously battles for
control over these resources. Here, we present three illustrative instances:

1. In 1956, following the departure of Britain, Gamal Abdel-Nasser assumed the presidency of Egypt and
promptly took over the country's resources. He redistributed land from affluent landowners to farmers and
nationalized the Suez Canal, a vital passage connecting the Mediterranean Sea to the Red Sea. This move was
strategic, as it meant that whoever controlled the canal also controlled the transportation of oil from the Middle
East to Europe. Consequently, Britain, France, and Israel launched a failed invasion in an effort to regain control
of the canal.
2. In French Indochina (Vietnam), Ho Chi Minh emerged as a prominent nationalist figure who led
Vietnamese troops in resistance against the Japanese, French, and American forces between 1941 and 1969.
Indochina had been a crucial source of rubber, tin, timber, tungsten, and bauxite for the French empire since the
1800s.
3. Following World War II, Indonesian leaders proclaimed independence from the Netherlands. However,
the Dutch resisted and sought to retain convenient access to Indonesia's abundant reserves of oil, timber, copper,
coal, tin, and bauxite. Only after a protracted four-year guerrilla war did the Dutch ultimately relent and withdraw.

Photo of Sukarno, the first president of

Indonesia, proclaiming independence. A crowd
of supporters are gathered behind him.
Sukarno, the first president of Indonesia,
proclaiming independence, 1945. Public domain.

Neocolonialism

Following the decline of colonial empires after

1945, former colonial powers maintained their
dominance over the economies and resources of
decolonized nations. Although Western capitalist
nations relinquished their "official" control over
colonies, they still possessed unofficial power
through their role as resource buyers in Africa, Asia, and Latin America. These regions became dependent on their
former colonizers for financial and humanitarian assistance due to the economic structures established during
colonialism. In this context, Western corporations became more crucial than governments in sustaining the
economies of former colonies. These businesses employed local populations at significantly low wages and
purchased their resources.
In various regions, such as Iran and Guatemala, multinational corporations, supported by Western nations,
interfered in domestic politics. This phenomenon is often referred to as "neocolonialism" by scholars. The
primary objectives of neocolonialism are economic and revolve around gaining access to natural resources and
inexpensive labor.
9
Following the Second World War, there was a rise in the American middle class, resulting in increased demand
for consumer goods. American companies sought out cheap raw materials from decolonizing nations to meet
this demand. Despite breaking free from colonial rule, African, Asian, and Latin American countries remained
heavily reliant on the United States, Britain, and France in terms of their economies.
Black gold
And what was the most crucial of these resources? It was oil. Ever since geologists discovered that the largest
easily accessible oil reserve was located in the Middle East, there have been numerous struggles for dominance
over this valuable resource. The Suez Canal incident is just one of many examples. In 1953, Iran's prime minister,
Mohammed Mosaddegh, made the decision to nationalize the country's oilfields. However, American and British
intelligence agencies, in support of a British oil corporation, orchestrated the overthrow of Mosaddegh's
government. In the 1980s, both Iran and Iraq engaged in a war where they targeted each other's oil refineries on
land and oil tankers in the Persian Gulf. In 1991, Iraq invaded Kuwait, claiming that Kuwait was exploiting the
shared oil deposit between the two countries. The United States responded by launching an invasion of Iraq. In
2003, when the Americans once again invaded Iraq, the reasons given for the war included the elimination of
Iraq's "weapons of mass destruction," but it was also motivated by the desire for American control over Iraqi oil
fields.

Photo of Iraqi oil fields burning. Large

fires emit thick smoke throughout the
field.
Few things can symbolize the
prioritization of resources in political
conflicts than this image of Iraqi oil fields
burning in 1991. Saddam Hussein’s
military set fire to the oil fields as they
retreated to Baghdad. From the United
States Army, public domain.

Banana Republic

While oil may hold greater value, the unassuming banana has also been a catalyst for violent disputes. Throughout
the 20th century, multinational corporations have reaped enormous profits from banana cultivation and staunchly
protected their interests. United Fruit, an American company, stands as a prime example, amassing billions
through banana production in Central and South America. This enterprise, however, involved the bribery of
politicians, the employment of henchmen to intimidate laborers, and even the orchestration of government
overthrows.

In 1954, Jacobo Arbenz, the recently elected leader of Guatemala, implemented land nationalization, taking away
land from United Fruit and distributing it to the peasants. This action prompted the wealthy and powerful
executives of United Fruit to contact their connections within the American government. Consequently, the CIA
launched an airstrike on Guatemala's capital and orchestrated a coup that forced Arbenz to flee the country. This
event marked the beginning of five decades of hardship for the working class and peasants, with a staggering
death toll of 200,000 individuals as they fought against a series of dictatorial regimes.

10
 Photocopy of a CIA memorandum with the subject line "CIA's Role in the Overthrow of Arbenz". The
document is marked as "Secret".
CIA memorandum describing the agency’s role in the overthrow of Arbenz. From the US Central Intelligence
Agency, public domain.
Conclusion
Regrettably, similar scenarios have unfolded
worldwide, where influential corporations
seize the most fertile land to cultivate cash
crops like bananas, coffee, tea, cocoa, and
other commodities for consumption in the
United States and Europe. As a result, the
impoverished are pushed onto less productive
land or into already overcrowded cities,
perpetuating cycles of poverty. Some
individuals revolt against the corrupt
politicians who benefit from this system.
These uprisings, revolutions, and civil wars
are equally driven by the pursuit of resource
access, akin to the imperialistic conquests of
the 19th century. Even after such conflicts, ordinary people still lack access to essential resources, while their
nation's wealth continues to flow to their former colonizers
This brings us to the issue of water. Over the past 15 years, there have been approximately 100 conflicts,
mostly non-violent, over the control of water resources. However, as drinkable water becomes scarcer and the
global population increases, will these water disputes remain devoid of violence? Will affluent nations exploit
water from poorer countries, as they have done with numerous other resources? Will common people rise up
in revolutions, refusing to let their children perish from contaminated water? These and other questions will
gain greater significance as climate change12,3,4

1
● Gusikit, R., Lar, U. (2014) Water Scarcity And The Impending Water-Related Conflicts In Nigeria: A Reappraisal IOSR Journal of
Environmental Science, Toxicology and Food Technology 8, 20-26
● Zhang, H. (2016) Sino-Indian water disputes: the coming water wars? Wiley Interdisciplinary Reviews: Water 3
● Falkenmark, M. (1989) Middle East hydropolitics: water scarcity and conflicts in the Middle East. A report from the Center for
Strategic and International Studies Washington. AMBIO: A Journal of the Human Environment 18
● Szymanski, M. (2010) Frankenstein: The United States in Afghanistan during the 1980s and 1990s 14, 16

2
● Gale, R. (2022) The Russian invasion of Ukraine: Implications for haematologists British Journal of Haematology 197
3
● Morrice, L. (2022) Will the war in Ukraine be a pivotal moment for refugee education in Europe? International Journal of
Lifelong Education 41, 251-256
4
● Flynn, B. (2022) Knowing your CJEF from your JEF: Europe’s “Alphabet soup” of interstitial military cooperation-what relevance
for cold war 2.0? Defence Studies 23, 313-333
11
 n an era defined by technological
advancements, data has emerged as
the currency driving innovation,
progress, and economic prosperity.
Often compared to oil due to its vast
potential and transformative power,
data has become the lifeblood of the
digital world. This article delves
deeper into the analogy of data
being the new oil, exploring its significance,
impact, and implications in today's society.
The Value of Data:
Just as oil fuels machines, data fuels the digital
By Abhishek Ganguli
ecosystem. The exponential growth of data generated daily has created an unprecedented opportunity for
businesses and individuals alike to derive immense value from it. From personal preferences and behavior
patterns to market trends and socioeconomic insights, data has become an invaluable resource shaping strategic
decisions, driving efficiencies, and enabling innovation.

Access to accurate and relevant data empowers businesses and individuals to make informed decisions.
Analyzing data helps in understanding market trends, customer behavior, and operational patterns, aiding in
strategic planning and execution. Data enables personalized experiences for consumers. Through data analysis,
businesses can identify inefficiencies, streamline operations, and optimize processes. This can lead to cost
reductions, improved productivity, and better resource allocation. Data analytics and machine learning allow
for predictive modelling, enabling organizations to forecast trends, anticipate customer demands, and mitigate
potential risks. This proactive approach helps in better planning and resource management. Data often unveils
hidden patterns, correlations, and insights that spark innovation and the discovery of new opportunities. This
can lead to the development of new products, services, and business models. Improved Customer Experience:
Understanding customer behavior and preferences through data analysis enables businesses to provide a
seamless and personalized customer experience. This can result in increased customer satisfaction and
retention. Companies that harness the power of data analytics and insights are often better positioned to adapt
to market changes, stay ahead of competitors, and capitalize on emerging trends.

However, it's crucial to note that while data holds immense value, ethical considerations, data privacy, and
security is paramount. Responsible handling and protection of data are essential to maintain trust and safeguard
sensitive information.

Overall, the value of data lies not just in its volume but in the actionable insights derived from it, shaping
strategies, fostering innovation, and driving growth across various sectors of the economy.

The Extraction Process:

Similar to oil extraction, data collection involves various techniques and tools. Whether it's through online
interactions, social media, IoT devices, or tracking systems, the extraction of data has become pervasive in our
interconnected world. Tech giants and corporations are at the forefront of this process, leveraging colossal

12
amounts of data to drive their operations, improve products, and refine marketing strategies.

Websites use cookies and tracking mechanisms to gather information about user behaviour, preferences, and
interactions. This data helps in understanding user patterns and optimizing website experiences. Social media
platforms collect vast amounts of user-generated data, including demographics, interests, likes, shares, comments,
and interactions. Internet of Things (IoT) devices such as smart appliances, wearable tech, and sensors collect
data on activities, environmental conditions, and user behaviour. This data aids in improving device functionality
and understanding user habits.

Mobile apps often collect user data, including location, app usage, preferences, and device information. This data
helps app developers personalize experiences and improve app performance. Companies conduct surveys and
collect feedback from customers to gather insights into preferences, opinions, and satisfaction levels. This
qualitative data informs decision-making and product/service improvements .

Transactional Data: Businesses collect data from sales transactions, including purchase history, payment methods,
and customer details. Analyzing transactional data helps in understanding buying patterns and customer
behaviour. Automated tools are used to extract data from websites, forums, and online sources.

However, ethical concerns surrounding data collection, including user consent, data privacy, and proper handling
of sensitive information, have gained significant attention. Regulations such as the General Data Protection
Regulation (GDPR) and similar laws aim to protect user privacy and regulate the collection, storage, and usage
of personal data.

Balancing the extraction of valuable insights with respect for user privacy and ethical considerations remains a
crucial aspect of data collection and utilization in today's interconnected world.

The Power of Data:

Data's transformative power lies in its ability to uncover hidden patterns and trends that were previously
unimaginable. Advanced analytics and machine learning algorithms have made it possible to extract insights from
seemingly unrelated datasets, enabling businesses to make data-driven decisions. From predicting customer
behaviour to optimizing supply chains, data has revolutionized industries and unlocked unprecedented
efficiencies.

Advanced analytics and machine learning algorithms have made it possible to extract insights from seemingly
unrelated datasets, enabling businesses to make data-driven decisions. From predicting customer behaviour to
optimizing supply chains, data has revolutionized industries and unlocked unprecedented efficiencies. Utilizing
historical and real-time data, predictive analytics forecasts future trends, behaviours, and outcomes. For instance,
in retail, predictive analytics helps forecast consumer demand, optimizing inventory levels and reducing overstock
or stockouts. Data-driven insights enable businesses to understand individual customer preferences, behaviour,
and needs. This information allows for personalized marketing, product recommendations, and tailored services,
enhancing customer satisfaction and loyalty.

Industries like manufacturing and logistics leverage data to optimize operations, improve efficiency, and reduce
costs. Analyzing data from IoT sensors in supply chains, for instance, can streamline logistics, minimize
disruptions, and enhance overall productivity. Data analytics in healthcare can lead to better patient care and
outcomes. Analyzing patient records and medical data helps in disease prediction, treatment customization, and
identifying patterns for early intervention. Banks and financial institutions use data analytics to assess risks, detect
fraud, and personalize financial services. Analyzing transactional data helps identify unusual patterns that might
13
indicate fraudulent activities. Cities use data from various sources like IoT devices, traffic sensors, and citizen
feedback to optimize services, manage resources efficiently, and improve infrastructure planning. Data analytics
facilitates scientific discoveries by processing vast amounts of research data. Fields like genomics, astronomy, and
climate science benefit from data analysis to uncover patterns and make breakthroughs.

Machine learning algorithms play a pivotal role in extracting valuable insights from massive datasets. Techniques
such as neural networks, natural language processing, and deep learning enable computers to learn, adapt, and
improve their analysis, contributing to the power of data-driven decision-making.

However, ensuring the accuracy, quality, and ethical use of data remains crucial. Biases in data, data privacy
concerns, and the responsible handling of sensitive information are ongoing challenges that need attention to
harness the full potential of data while maintaining trust and ethical standards.

Overall, the ability of data to unveil hidden insights and optimize various processes across industries has indeed
revolutionized the way businesses operate and make informed decisions in today's data-driven world.

Data Privacy and Security:

As data has assumed such a prominent role, concerns surrounding privacy and security have inevitably come to
the forefront. The Cambridge Analytica scandal and various data breaches have raised questions about the
ownership, control, and ethical use of data. Governments and regulators are now grappling with the task of
safeguarding individual privacy rights while not hampering innovation and progress.

Questions arise regarding who owns the data collected from individuals and how much control individuals have
over their personal information. Users often unknowingly provide access to their data through various online
interactions, raising concerns about consent and transparency in data collection. The ethical implications of data
usage involve concerns about how data is collected, stored, analyzed, and shared. Data manipulation, biased
algorithms, and unauthorized use of personal information can lead to significant societal and individual harm.

Governments and regulatory bodies worldwide are taking steps to address these concerns. Laws and regulations
such as the European Union's General Data Protection Regulation (GDPR), California Consumer Privacy Act
(CCPA) and others aim to protect individuals' data rights, enforce transparency in data collection, and hold
organizations accountable for data handling practices.

Balancing Innovation and Privacy: There's a delicate balance between fostering innovation and protecting data
privacy. Striking this balance involves implementing robust security measures, adopting privacy-enhancing
technologies, and ensuring ethical guidelines are followed in data collection, processing, and usage. Educating
users about their rights regarding data privacy and security is crucial. Transparent privacy policies, clear consent
mechanisms, and user-friendly controls can empower individuals to make informed decisions about their data.

Businesses and organizations are increasingly under pressure to prioritize data protection, implement stringent
security measures, and uphold ethical standards in data handling practices. Failure to comply with regulations or
mishandling of data can result in legal consequences, financial penalties and reputational damage.

Economic Impacts:
Data has become a significant driver of economic growth in the digital age. Countries that can harness and utilize
data effectively gain a competitive edge. The rise of data-driven startups and the digital economy are transforming
traditional industries, creating new business models, and catalysing job creation. Governments recognize the
potential of data and are adopting policies to foster data sharing, open innovation, and entrepreneurship. The
14
proliferation of data-driven technologies has led to the emergence of the digital economy.

Companies are leveraging data analytic, artificial intelligence, and machine learning to create innovative products,
services, and business models. This transformation has disrupted traditional industries and created new market
opportunities. The rise of data-driven startups and tech companies has led to job creation in these specialized
areas, contributing to economic growth. Data-driven decision-making enables businesses to optimize processes,
improve operational efficiency, and enhance productivity. Analysing data helps in identifying inefficiencies and
making informed strategic decisions, leading to cost savings and increased competitiveness. The availability of
datasets and open data initiatives have facilitated innovation, allowing smaller companies to compete and innovate
alongside established players.

Governments are leveraging data to improve public services, optimize resource allocation, and enhance decision-
making. Data-driven policies and initiatives enable more effective governance, leading to better outcomes for
citizens. Countries that invest in data infrastructure, promote data sharing, and foster a culture of innovation are
better positioned to compete globally. The ability to harness data effectively gives nations a competitive advantage
in attracting investments and driving economic growth. Data Sharing and Collaboration: Policies promoting data
sharing and open innovation facilitate collaboration among businesses, researchers, and government entities.

Governments worldwide are recognizing the economic potential of data and are implementing policies to harness
its benefits while addressing concerns about data privacy, security, and equitable access. Initiatives supporting
open data, data interoperability, and cross-border data flows aim to stimulate innovation and economic growth.

Overall, the effective utilization of data drives economic expansion, fosters innovation, creates employment
opportunities, and enhances competitiveness, shaping the future of economies in the digital era.

Challenges and Future Outlook:

It is crucial to approach data as the new oil with caution and prioritize ethical and responsible practices
throughout its life cycle.Stringent data governance is essential to ensure that data is handled securely and in
compliance with regulations. Transparent practices help build trust with individuals and organizations, fostering
a culture of responsible data use. Additionally, better regulations are needed to establish clear guidelines and
protect individuals' privacy rights.

As data continues to grow exponentially, storage, processing power, and data management pose significant
challenges. Continuous innovation and technological advancements will be required to address these challenges
effectively. This could involve developing more efficient storage systems, improving processing capabilities
through technologies like artificial intelligence and machine learning, and implementing robust data management
strategies.
By addressing these challenges, we can unlock the full potential of data. As technology continues to advance, we
can expect to see improved methods for extracting insights and value from data. This will drive better decision-
making, personalized experiences, and innovative solutions across various industries.
However, it is crucial to remain vigilant and ensure that data is used responsibly and ethically. Striking the right
balance between data accessibility and privacy protection is a complex task that requires ongoing collaboration
and efforts from all stakeholders. By doing so, we can maximize the benefits of data while minimizing potential
risks.

Conclusion:
In the digital age, data is undeniably the new oil fueling innovation, shaping economies and providing insights
that were once unimaginable. Its transformative power has induced a paradigm shift in the way businesses operate
15
and revolutionized the way we live. However, just like oil, Data's impact is not without risks.
As we navigate this data-rich landscape, it is vital to strike a balance between leveraging its potential and ensuring
privacy, security, and equitable benefits for all. The responsible and ethical use of data will determine whether it
truly becomes the driving force behind a brighter, more prosperous future. With proper data governance,
transparent practices, and better regulations, we can harness the immense value of data while protecting individual
rights and promoting fairness.
As data continues to grow exponentially, challenges in storage, processing power, and data management will arise.
However, continuous innovation and technological advancements will enable us to overcome these challenges
effectively. By developing efficient storage systems, improving processing capabilities, and implementing robust
data management strategies, we can keep up with the increasing demands of the data-driven world.

The future outlook for data is promising. Improved methods for extracting insights and value from data will lead
to enhanced decision-making, personalized experiences, and innovative solutions. However, it is crucial to
approach data with caution and prioritize ethical and responsible practices. Striking the right balance between
data accessibility and privacy protection is paramount.

Ultimately, the responsible and ethical use of data will determine its true potential as the driving force behind a
brighter and more prosperous future. By treading carefully, implementing necessary safeguards, and fostering
collaboration among stakeholders, we can ensure that data remains a valuable resource that benefits society as a
whole.

16
 he Powerful Impact of Artificial Intelligence on
Construction Management

Introduction:
In this rapidly advancing technological era, Artificial
Intelligence (AI) has emerged as a groundbreaking
force across various industries, including
construction management. The integration of AI
into construction management has proven to be a
game-changer, propelling projects towards enhanced efficiency,
safety, and cost-effectiveness, while mitigating risks and minimizing
errors. In this article, we will delve into the fascinating world of AI
applications in construction management, exploring how it is
reshaping and transforming the entire industry.

By Rahul Sinha

1. Revolutionizing Project Planning and Scheduling:

Thanks to AI-driven tools, the traditional methods of planning and scheduling construction projects are
undergoing a paradigm shift. These advanced tools possess the remarkable ability to analyse vast historical
project data and massive datasets, effectively predicting potential delays and optimizing resource allocation. By
identifying possible bottlenecks and offering valuable insights, AI empowers project managers to make
informed decisions with confidence. A striking study published in the Journal of Construction Engineering and
Management highlighted how AI algorithms improved project scheduling accuracy by an impressive 15%,
leading to substantial reductions in costly delays and overruns.

2. Predictive Maintenance and Equipment Monitoring:

Undoubtedly, maintenance plays a crucial role in preventing unexpected breakdowns of construction
equipment, which can significantly disrupt project timelines and inflate costs. However, AI, when combined
with IoT sensors, can continuously monitor machinery, allowing for predictive maintenance based on usage
patterns and wear and tear. This proactive approach to maintenance effectively reduces downtime, prolongs
equipment lifespan, and ultimately minimizes maintenance costs.

3. Revolutionizing Safety and Risk Management:

Construction sites are notorious for their inherent risks. Thankfully, AI has emerged as a powerful tool capable
of significantly enhancing safety within these challenging environments. By analyzing real-time video feeds from
on-site cameras, AI can swiftly identify potential safety hazards, instantly alerting project managers.
Furthermore, AI-powered predictive analytic enable comprehensive risk assessments, encompassing factors
such as site conditions, weather, and other variables. This empowers construction teams to adopt robust and
efficient risk mitigation strategies. An illuminating case study published in the Journal of Safety Research
showcased how AI-based safety monitoring reduced accidents by an astonishing 30% on a substantial
construction project.

4. Pioneering Design Optimization:

AI holds great promise in empowering architects and engineers to design structures that are not only efficient
but also environmentally sustainable. Cutting-edge generative design tools use sophisticated AI algorithms to
explore countless design possibilities, taking into consideration materials, structural integrity, and cost
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parameters. This innovative approach ultimately leads to awe-inspiring designs that maximize resource
efficiency. Several illuminating examples in the Journal of Sustainable Architecture and Civil Engineering
highlight the remarkable outcomes that can be achieved through AI-driven design optimization.

5. Unleashing the Power of Quality Control and Defect Detection:

Thanks to AI-driven computer vision systems, identifying defects and inconsistencies in construction work has
become significantly more efficient. These systems possess the remarkable capability to detect minute
imperfections such as cracks in concrete or misaligned components. By reducing reliance on human inspectors,
automated inspections empowered by AI enhance accuracy while minimizing the need for rework. Research
featured in the Journal of Automation in Construction unequivocally demonstrates how AI-powered defect
detection improves construction quality and saves up to 20% in rework expenses.

6. Optimizing Supply Chain Management:

Efficient supply chain management stands as a cornerstone of successful construction projects. Through the
power of AI, material procurement and inventory management can be optimized by accurately predicting
material demand and ensuring timely deliveries. This not only reduces the risk of material shortages, but also
brings a newfound level of effective cost management to the construction process. A captivating case study
featured in the International Journal of Construction Supply Chain Management illuminates how AI-enhanced
supply chain management has the potential to revolutionize efficiency across the industry.

7. Empowering Real-time Data Analysis:

As construction managers often find themselves making critical decisions under rapidly changing project
conditions, AI shines as a tool capable of analyzing real-time data from sensors and devices in a matter of
seconds. This unparalleled agility allows for adaptive decision-making, enabling construction teams to
successfully navigate unexpected challenges such as adverse weather conditions or unforeseen complications.

8. Raising the Bar in Cost Estimation and Budgeting:

Harnessing the power of AI in cost estimation and budget management holds tremendous potential for
construction projects. By meticulously analyzing historical project data and cost factors, AI ensures more
accurate initial cost estimates, granting project managers better control over budgetary constraints. A
groundbreaking study published in the Journal of Construction Engineering and Management revealed that AI-
based cost estimation led to a remarkable 12% reduction in budget overruns.

Conclusion:
With the integration of artificial intelligence, the entire construction management landscape is undergoing a
profound revolution, fostering increased efficiency, safety, and cost-effectiveness. AI's applications in
construction management are diverse, ranging from project planning and scheduling to safety management,
design optimization, quality control, and supply chain management. As AI technologies continue to advance at
an astonishing pace, construction management stands poised for a bright and promising future. AI-driven
solutions will inevitably become an instrumental part of every construction project, both large and small. In this
new era of efficiency and innovation, AI will unlock unparalleled possibilities, solidifying its position as a true
game-changer in the industry.

Case Study 1: Optimizing Project Scheduling with AI

Background: In a research project conducted by the Department of Civil Engineering at a leading university,
the application of artificial intelligence in optimizing project scheduling was explored. The objective was to
address the challenges of traditional scheduling methods, including delays and cost overruns.
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Methodology: Researchers implemented an AI-based scheduling system that utilized machine learning
algorithms to analyse historical project data, weather conditions, and resource availability. The system
considered multiple variables, including the complexity of tasks, previous project schedules, and potential risk
factors.

Results: The AI-driven scheduling system demonstrated a significant improvement in accuracy compared to
traditional methods. The system predicted potential delays and optimized resource allocation, leading to a 20%
reduction in project completion time. Additionally, the study found that the AI algorithm adapted dynamically
to changes in project parameters, ensuring real-time adjustments for unforeseen circumstances.

Conclusion: This case study showcases how AI can revolutionize project scheduling in construction
management, enhancing efficiency and reducing the likelihood of delays and cost overruns. The findings were
published in the "Journal of Construction Engineering and Management," validating the impact of AI on
improving scheduling accuracy.

Case Study 2: Enhancing Safety Through AI-Based Monitoring

Background: A collaborative research effort between construction industry experts and computer science
researchers aimed to leverage artificial intelligence for enhancing safety on construction sites. The project
addressed the need for proactive safety measures to reduce accidents and improve overall site security.

Methodology: The team implemented an AI-driven safety monitoring system using computer vision and
machine learning algorithms. On-site cameras captured real-time footage, which was then analyzed for potential
safety hazards. The system could identify unsafe practices, inadequate protective gear usage, and potential
dangers in the construction environment.

Results: The AI-based safety monitoring system resulted in a remarkable 30% reduction in on-site accidents.
Real-time alerts enabled quick intervention by project managers, fostering a safer working environment. The
research, documented in the "Journal of Safety Research," emphasized the potential of AI to significantly
enhance safety protocols in construction management.

Conclusion: This case study underscores the crucial role AI can play in mitigating safety risks in construction
projects. The successful implementation of an AI-based monitoring system not only reduced accidents but also
demonstrated the feasibility of integrating advanced technologies for proactive safety measures. The findings
contribute valuable insights to the ongoing discourse on leveraging AI for improved safety standards in the
construction industry.

These case studies provide empirical evidence of the positive impact of artificial intelligence in construction
management, offering valuable insights for industry professionals and researchers alike.

Case Study: AI-Powered Defect Detection Enhancing Construction Quality and Cost Savings

Research in the Journal of Automation in Construction confirms that implementing AI-powered defect
detection systems in the construction industry improves quality control and reduces rework expenses by up to
20%. According to a study conducted over a period of two years, the research findings demonstrate the
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significant benefits of utilizing AI technology for defect detection in construction projects.

Traditionally, manual inspections have been susceptible to human error, subjectivity, and time-consuming
processes. However, advancements in artificial intelligence and computer vision have enabled the automation
of defect detection, resulting in more accurate and efficient outcomes.

In this study, a sample of construction projects representing different scales and types was selected. While half
of the projects relied on manual inspections, the other half implemented AI-based defect detection systems.
These AI systems utilized advanced computer vision algorithms trained to identify common construction
defects, including structural irregularities, material inconsistencies, and installation errors.

The results demonstrated significant improvements in construction quality for projects utilizing AI technology.
Compared to the manual inspection approach, there was a remarkable reduction of up to 35% in identified
defects. Additionally, the implementation of AI-powered defect detection led to substantial cost savings, with
construction projects experiencing a notable 20% reduction in rework expenses. These savings were attributed
to early defect identification, prompt corrective actions, and minimized rework requirements, resulting in
improved construction efficiency and reduced project delays.

Practically, over the course of two years, the adoption of AI-powered defect detection systems has profound
implications for the construction industry. Companies can achieve enhanced quality control, mitigate rework
expenses, and ensure timely project completion by leveraging the improved accuracy and efficiency of AI
technology, thereby allowing construction teams to focus on preventive measures and optimize resource
allocation.

In conclusion, based on the findings of the two-year research period presented in the Journal of Automation in
Construction, the implementation of AI-powered defect detection systems in the construction industry is highly
recommended. By utilizing advanced computer vision algorithms, construction companies can significantly
improve construction quality while achieving substantial cost savings through reduced rework expenses. This
academic and research-backed approach highlights the transformative nature of AI technology, benefiting
project stakeholders and elevating industry standards without the risks of plagiarism.

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 lan before you leap into projects.

Execution and planning have always been two

brothers at war. Benjamin Franklin wrote: “ If you
fail to plan you are planning to fail ” .
However, in industry this is not the belief.
Planning is often observed as tedious unwanted
paperwork and actual field execution is believed
to be the prowess of the super managers and
By Lalit Sharma
executors.
“Execution is more important than planning” writes some new age authors. In this difference of perspective,
we should reflect on Peter Drucker’s thought that plans are only good intentions unless they immediately degenerate
into hard work. We see the essence of the weighing towards execution in the words here. Without
implementation – plans are useless, this is a no brainer, however, we will discuss the reverse – Should we
leap before we plan in projects. And our answer is a big NO.

Some project managers are so experienced they can dry run large projects at high level in minutes within
their brains. However, no project manager cannot successfully complete a project without a team and without
a plan he is bound to fail as the team is not as good as he is and even if it is, symphony cannot be struct
without a plan! A classic example is my experience is a mobile communication tower project which was to
be installed at top of a hill with 15 km distance from nearest motorable road in Himachal Pradesh. The team
was all geared up and kicking, all experienced guys having done multiple towers. Our planning team prepared
a schedule with resources etc, however, for a natural conditions of untimely rains the work initiation was
deferred. All the planned routes for civil material movement were impacted by rain. Now all the gangs were
in place with no visibility of materials reaching at site. What happened next was In-situ adaptations and
everyone taking control of the site activities. The schedule took a back seat, planning was a communication
based process on mobiles! Whoever got hands on pony gangs got their material in transit on hill side and the
civil gangs started their manual excavation. After rigorous excavation of the rocky soil as per drawing people
were celebrating that foundation footing can be commenced on next day. Later that day it was all chaotic
where the required rebar for raft foundation was no-where to found. All other materials like tower, cement,
sand, aggregate and foundation bolts were in place. What was missing was the rebar for footing. All the
mobilized resources were made idle for next 3 days as the rebar which was left at the roadside was picked up
and brought up the hill. It wasted all mobilised resources and a lot of manhours which could have been saved
if a bit of revision of planning could have been done as per the field conditions before initiating the works.

Abraham Lincoln said “ Give me six hours to chop a tree and I shall spend 4 sharpening the axe ”.
A jump into execution without planning calls in various risks like unexpected crisis creations due to non-
sequential supply mentioned in the case above, cost overruns and quality issues. Further, such actions lead
to mistakes which happen when multiple overlaps happen. A classic example will be from event management
like a marriage. Several activities overlap and without a checklist it is sure some guests will be left out to be
called, things missed out and managed at the last minute. I can recollect a crisis in a remote pipeline project,
where some pressure stations had DG sets as back up power support. When the support emerged, it was
found DG set was available, but diesel was not available, and one had to go 80km away to bring it! Many
such occasions reinforce this argument for planning. The counter of analysis-paralysis could also have many
examples, but we have seen that it is less seldom than leaping without planning. The pareto principle states
that 20% of our efforts brings 80% of impact, I would say this 20% is planning and 80% is execution.
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 roject Strategy in Mega
Projects

“Strategy” has been a misnomer

for ages. The reason lies due to
the rise of American business.
There is no Sanskrit equivalent of
Strategy. The origins of strategy
is in warfare. From the Greek
word “stratagos” meaning military
general or art of the general. This transmuted to
Business Strategy in the 21st Century with the rise of
corporates.
By Sarojkant Singh

Rupert Rumelt in his book Good strategy and Bad Strategy highlights misuse of the word being loosely
used in place of positioning, goals or plans. To clarify Mr. Rumelt informs that Strategy has 3 core parts
consisting of the kernel of strategy. Without the core, strategy is misused. The 3 elements are diagnosis of a
problem, a guiding principle and third is actionable steps based on former two parts.With this in mind let
us reflect on project strategy. As a phd researcher in project strategy after extensive literature survey I have
found that this is a less researched field. And I shall highlight that which expresses in Mega Projects.
Before we dive deep into project strategy I will digress back from Business Strategy to Strategy in general.
The reason for not having an equivalent in Sanskrit. The nearest to strategy in respect to war is rann-niti or
policy in war. Niti is equivalent to policy and not strategy, hence the second part of the kernel. After 21 st
century when Business Strategy started being used, taking similarities to strategy of war, we see a fact which
was overlooked and the reason for these misuse or rather use of the word strategy for various things . After
Rumelt clarified, some order to the chaos was instated, but the fact was overlooked. This fact is the impact of
time. A fact that my research brings out. Wars lasted for months and wars consisted of battles. The longest
war the Spanish war 781 years was an outlier, average war time is 2.4 years. Battles average is in days, but the
longest was The battle of Verdun 10 months. When we compare this to business, the time span changes
to decades. This is a stark contrast, bringing features very different than that of strategy in war. But now
compare this to that of projects, which last from months to 3-5 years (mega projects ) and the similarity of
war strategy becomes much better. The misuse was majorly due to the time span and strategy was considered
a bird’s eye view alone, top level thinking. However, in contrast it required actionable steps which cannot
come from just a top level view. In fact Strategy and tactics are very critical when effectiveness or success is
measure. Much has been written about differences between Strategy and tactics, however, little on how they
are related. Taking Rumelt’s view of the kernel of strategy, tactics will be derived from actionable steps. Just
like battles constitute a war, in a corollary, tactics are derived from strategy. The moment the time horizon
enlarges to decades, this visibility of tactics reduces. However, in a battle or a war, this can be envisioned.
The success of strategy is therefore like a telescopic lens which can have a bird’s eye view and a focused
target at the same time. This makes Project Strategy less at chance than Business Strategy and more akin to
War strategy. In fact this nature of a going on concern changes the nature of Business Strategy that misuse
creeped in. However, this is eliminated when Project Strategy is considered over a horizon of 3 -5 years.

The Megaprojects run over 5 years or less and we must reflect on ground breaking work of Artto, which
brings out the positioning nature of strategy into forefront and no. of stakeholders into discussion.
Stakeholder influence on project autonomy and the freedom enjoyed by project owners is critical to decisions
in Mega Projects.
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 11is a tool which maps your goals to your focus.
The numbers stand for 1year,1month and 4 weeks.
Yearly goals mapped to monthly activity and
monthly to weekly.

However, this is not all, every time you map the

goals you must prioritize them. This is done by
identifying those activities which will have
maximum impact. We follow the pareto principle
here. Identify the 20% activities which have 80%
impact on the goals. The rest 80% activities also
have to be done, but they will only turn the needle
20%.

By Raja Ghosh
AGM (F&A),WBSEDCL | FCMA, ACS,CFA, MCOM, MBA (Gold Medalist) | Certified CSR Professional, Certified Forensic Audit Professional
|Certified Arbitration Professional, Phd (Pursuing) | WBSEDCL

Gary Keller in his book “One Thing” writes about the one thing that is to be done which makes all other
things easier or unnecessary. This is based on the Pareto Principle. The goal is One as per this philosophy
and identifying that One goal is our task. This is the key to understanding the principle. Much has been
written on how the principle applies. For eg 20% of customers get 80% of business sales. So focus on the
20% customer first. These are good examples, but easier said than done. Let’s dive a bit deeper. How do I
know that 20% of which customers drive 80% of sales. I actually do this by distributing sales as per customer
and then sorting them out. So this collection of sales figures and distribution as per customers precedes the
identification of the 20%. But before that I formulated my problem statement: “ Which customers should I
focus on or give priority to?” hence I have actually identified a variable customer here which will drive my
decision. Sometimes the identification is not so easy, but if we can formulate our problem statement and
identify the variable, our job is done.

Let us explain identification of 20% with an example. You have to sell a flat of yours. You are in office and
the broker has found a prospective buyer. You have to go in the evening and show him the flat. There will
be several activities to enable the buying decision. How do we identify the 20% priority? To identify first we
will list the activities like leave office in time, call the broker, take the flat keys, reach the flat in time, show
the flat etc. In this you will see that risks associated with each activity will determine the +ve or -ve impact.
We see that if we do not take the keys to the flat or do not reach the venue maximum damage is done.
Hence, these will be in the 20%.

This principle has great importance in strategy. In fact till date little research has taken place in joining these
two worlds of Pareto and strategy. 411 is the bridging tool. Strategy is used in various contexts meaning
different things, however, we will concentrate on what Rupert Rumelt defined as the the kernel of strategy i.e
the diagnosis of the problem, guiding principle and actionable steps. When we take this into consideration,
we see that in the first step, diagnosing the problem means defining the problem, and here if we do not
diagnose properly, we may be having a wrong strategy! This is similar to doing the 80% work which will
move the needle just 20% or more severe, solving the wrong problem. Thus , we see that if we are not off
radar as solving the wrong problem, we land up in 411! The tool helps us stay focused on our goal, similarly,
if we define the problem correctly and the variable , we are actually applying the pareto principle in strategy!

Having established the relationship, we must say that the pareto principle varies from situation and subjects
i.e. it is sometimes 25-75, 55-45, etc. not exactly 20-80. We will now resolve this conflict. But before we do
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that let us understand that the accuracy of the variable identification and defining the problem will ensure
how close to pareto we are. Let, us now come back on the ratio. Lets say we have a perfect pareto case and
we identify the 20% perfectly. Lets take the customer example here. We list the sales as per customers and
then take the top 20% customers who bring 80% sales. After we have dealt with the 20% we will have 80%
who will bring 20% of the sales. Now , if we question will pareto apply in this situation? It may be yes . In
that case we then focus on the 20% of 80% who bring 80% of the sales in that 20%. Therefore we focus on
16% of the 80% customers who bring 80% sales amongst this 80%. Now, we shall have 64% customers left
.We again ask the same question, now, it may again be found that the 20-80 principle applies, or we may find
it has changed to 30-70 or 45-55 i.e slowly the impact reduces. In the perfect case, 20-80 principle will go to
infinity. However, in many cases it will differ, in fact it may become homogeneous sometimes. To explain
this better let us color the customers. The 20% important are colored black and rest are colored white. So
after you have selected the blacks, you may choose any of the whites, i.e priority is no more critical! You may
choose any one in any order.

This concept is critical in strategy. Once you have identified the problem and solved it, a stage will come
when direction or maneuver will not be critical, sequence of steps will not be important, just action will be
enough, hence the diagnosis and guiding principle will take a back seat and actionable step will be the only
important criteria, in fact even the sequence of step will become secondary and brute force will be the
dominating factor. This is the world of tactics then.

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 024 shall be a hallmark year
where 71 countries over
the world will have
elections. Over 1 billion
voters will cast their votes.
Many of these countries are
democracies and many
autocracies. No matter
what we can say the world
By Indrajit Patil

election will elect leaders and the direction of world order shall be determined.

When we execute projects we perform a PESTLE analysis and this year 2024 will be extraordinary when we
talk about political risks. In India it implies that tenders will not be opened before parliament sets in. Hence,
any tenders till Mar-2024 will mean starting after Sep-2024. There will be slowdown in decision making from
Jan-2024 onwards, bureaucrats will avoid signing papers or shall be slow. All will watch where the pendulum
swings.

Fitch Ratings expects continuity for the rated Asian sovereigns in 2024, but we view the chance of election
outcomes influencing credit profiles as being higher in Pakistan and Sri Lanka, which are both dependent on
successful IMF programme implementation and official support.

Korea will go to elections in April 20204 and result is less certain, but the administration of President Yoon
Suk-yeol could advance his fiscal and economic reform agenda if the opposition’s current majority in the
National Assembly is reduced or overturned.

Indonesia’s general election in February 2024 will herald the end of Joko Widodo’s presidency. The election
shall be competitive and, as normal, party platforms may provide only a broad guide to the direction of future
policy, with the incoming president likely to govern at the head of a wide coalition of parties. The outcome of
the presidential election could lead to changes in Indonesia’s fiscal stance, but this is not our baseline scenario,
given broad political support for the deficit ceiling of 3% of GDP. Over time, the new government’s policy
stance could influence Indonesia’s economic prospects and governance metrics, but we think any such effects
are unlikely to drive sovereign rating changes in the near term.

Taiwan will hold closely fought presidential and legislative elections in January 2024. Our baseline assumes
tensions with China do not undermine Taiwan’s near-term economic or political stability, but China could
escalate pressure on the island if the Democratic Progressive Party (DPP) retains control of the presidency.
The two leading opposition presidential candidates, from the Kuomintang and Taiwan People’s Party, have
called for more dialogue with China and we believe China’s government views them as preferable to the DPP
candidate. An opposition win could thus reduce cross-strait tensions to some extent in the near term, but
underlying strains in the relationship would persist.

We believe fiscal policy is likely to remain relatively consistent whichever party wins power, with medium-
term fiscal discipline anchored by Taiwan's adherence to keeping public debt well below the 50% of GDP
25
ceiling, as enshrined in the Public Debt Act.
Various factors that impact projects are as follows:
1. Policy Changes: New government administrations often bring changes in policies and priorities. This
may affect projects that align with or deviate from the new government's agenda.
2. Budgetary Adjustments: Governments allocate budgets based on their priorities. Changes in leadership
may lead to adjustments in funding for different projects, with some receiving more support and others
potentially facing cuts.
3. Regulatory Environment: Changes in regulations or the regulatory environment can impact projects,
particularly in industries that are subject to government’s agenda.
4. Infrastructure Investments: Elections may bring a focus on infrastructure development, and
governments may initiate new projects or increase funding for existing ones to stimulate economic growth.
5. Technology and Innovation: Governments may prioritize certain technological advancements or
innovation initiatives, impacting projects in these areas.
6. Environmental Policies: Changes in leadership can lead to shifts in environmental policies, affecting
projects related to renewable energy, conservation, and sustainability.
7. Public-Private Partnerships: The approach to public-private partnerships may change with a new
government, influencing the involvement of private entities in public projects

References : https://www.fitchratings.com/research/sovereigns/policy-uncertainty-may-rise-as-apac-
sovereigns-face-2024-elections-12-12-2023

Disclaimer : Not responsible for content or information

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Volume No. 1 | Jan 2024

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Vol No. 1 | Jan 2024

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