The Economist, which once again places Russian President Vladimir Putin on the cover to question his democratic credentials, leads it business section with a provocative question: “Is India’s computer-services industry heading for a fall?” India’s information technology sector, it notes, has thrived on a mix of demand and supply factors: “On the demand side, Western companies needed to cut costs, but their computer systems still required a lot of human labour. On the supply side, there was an army of well trained, English-speaking engineers demanding only a fraction of a Western salary. Fast fibre-optic links brought both sides together and a favourable exchange rate made this global connection even more attractive: customers paid in dollars, and employees were paid in rupees.” The obvious challenge posed by the recent appreciation of the rupee against the dollar, says the report, accentuates the need for some structural changes. One, there are infrastructural problems in terms of roads, etc, that curtail mobility and in terms of higher educational institutions. The talent shortage is already showing itself in rapid salary increases. Two, there is growing competition from regions like Central Europe. Three, an economic slowdown in the US could cut IT spending by companies.

Time indulges in that comforting year-end ritual, list-making. It’s top 10 news stories of 2007, in order: transition in Pakistan, the American mortgage crisis, protests by Burmese monks, publication of the seventh, and last, Harry Potter book, David Petraeus’s stint as America’s top commander in Iraq, the Chinese-made toy recall, the Virginia Tech shooting, the stemcell breakthrough in November whereby human embryos may not be required, American Barry Bond’s baseball record, the iPhone frenzy.

... contd.