Public sector strike set to be largest for a generation

The strike is expected to be the biggest single day of industrial unrest since the Winter of Discontent

Up to two million public sector workers will stage a strike over pensions from midnight in what is set to be the biggest walkout for a generation.

Schools, hospitals, airports, ports and government offices will be among sites disrupted, as more than 1,000 demonstrations are due across the UK.

It would "achieve nothing", Downing Street said, calling for more talks.

Unions object to government plans to make their members pay more and work longer to earn their pensions.

In a statement on the eve of the strike, Cabinet Office Minister Francis Mr Maude branded the action "indefensible and wrong".

"While discussions are continuing, I would urge public sector workers to look at the offer for themselves rather than listening to the rhetoric of their union leaders," he said.

"These are the sort of pensions that few in the private sector can enjoy."

Shadow chief secretary of the treasury, Rachel Reeves, told BBC's Newsnight that Labour did not support the industrial action.

"We do not support the strike because a strike is a sign of failure," she said.

"But we think the government needs to give something more to low-paid public sector workers. They've just seen their pay is going to be frozen effectively for another two years.

"We understand why they are striking, because [there is] effectively a tax increase on public sector workers."

Earlier, union leaders reacted angrily to Chancellor George Osborne's Autumn Statement announcements of a public sector pay cap of 1% for two years, as well as bringing forward to 2026 the rise in the state pension age to 67.

'Failure to negotiate'

GMB union leader Paul Kenny said: "As well as the shameful unfairness of further pay restraint on already hard-pressed public sector workers, the chancellor's announcements will push the possibility of a pensions deal further away.

"The [pension] contribution rises government want are plainly unjustified and unaffordable, while moving the goalposts on retirement age mid-negotiation smacks of deliberate deception. No doubt this will boost the strike turnout tomorrow."

Paul Noon, leader of civil service union Prospect, said members felt the chancellor was "aiming yet another punch at them".

The 24-hour strike is expected to disrupt courts, job centres, driving tests and council services, such as libraries, community centres and refuse collections. Highways Agency staff will be on strike, as will many Police Community Support Officers (PCSOs).

It is feared as many as 90% of England's schools could be forced to close by striking teachers.

Education Secretary Michael Gove has said it is "unfair and unrealistic" to expect taxpayers to foot the growing public sector pensions bill.

General secretary of the National Association of Head Teachers Russell Hobby responded that "blame for any rise in union militancy - particularly among moderate unions - belongs fairly and squarely at the government's door: A failure to negotiate in any meaningful sense until the last minute".

Contingency plans

The UK Border Agency is set to be hit by the walkout of Public and Commercial Services (PCS) union members, and the agency has warned that "people travelling into the UK may experience delays at border control".

Heathrow operator BAA has said that, with contingency plans in place, it hopes that delays at immigration "could be contained to within two to three hours".

The government has said no border controls will be relaxed to ease queues.

Hospital managers are planning to postpone thousands of non-emergency operations because of the strike.

Patients needing urgent treatment such as chemotherapy and kidney dialysis will still be able to get it, and maternity units will remain open.

Calls to 999 will still be answered, but patients are being urged to think carefully and call only if it is a genuine emergency.

The strike was "irresponsible and reckless", said John Longworth, the director general of the British Chambers of Commerce.

He added: "Trade unions are living in a bubble and ignoring the fact that Britain has to make its way in a competitive world."

Weather forecasting staff at the Met Office, catering staff in the House of Commons and museum curators are also among those due to walk out on Wednesday.

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Poor rural villages show China's economic dilemma

Liu Wenxiang (l) and her mother say they get little help from the government

Continue reading the main story

The debt problems in Europe have led many to hope that China will use its financial muscle to save the world. But China has its own pressing economic problems, as Michael Bristow finds out.

China's remarkable economic development is reflected in its booming cities of skyscrapers, expensive cars and designer clothes shops.

Few foreign visitors travelling to Beijing, Shanghai or Guangzhou fail to be impressed by the country's recent achievements.

But there is another side of China that is less visible - the poor rural areas that suggest growth has been uneven, or worse, has left some behind.

China has the world's second-biggest economy but, because of its 1.3bn people, it has a per-capita income on a par with countries such as Tunisia and Angola.

Just three hours drive from Beijing is the village of Yihezhuang - where nearly 300 people have an average income of less than 1,000 yuan ($157, £101) a year.

China's leaders are under political pressure to provide these people with basic services before helping out richer Western nations.

Wartime base

It is not easy to get to Yihezhuang, which has been built in the mountains that run along the border between Beijing and Hebei province.

There is just a basic track running about 7km (4 miles) from the main road to the village. Some homes can be reached only on foot.

Its isolated location - and its proximity to Beijing - is probably why the communists chose this place as a base to fight the Japanese in World War II.

Older residents still remember treating wounded soldiers.

The village was poor then and there is not much to suggest it has benefited from China's rapid economic growth over the last few decades.

Villagers in Yihezhuang eke out a meagre living by growing maize and raising animals

People live in dilapidated courtyard homes, where the only source of heating is a large bed warmed by a smoky fire underneath.

This is how most rural houses are heated in northern China, where temperatures regularly drop below freezing in winter.

"We don't get any subsidies from the government," said villager Liu Wenxiang, 54.

"We were enrolled in a pension scheme earlier this year, but we won't receive any money until we're 60. My mother's nearly 80 and she isn't covered at all."

One way in which China can help the world's economy is by persuading its people to buy more foreign products.

But in the home belonging to Mrs Liu's parents there is little that a Westerner would recognise as a consumer product.

A chipped teapot on a small table, a broken-down sideboard and an earthenware pot filled with water are the most obvious items in its main room.

It is going to be a long time before this family can afford expensive kitchen appliances or computer gadgets.

Escaping poverty

Liu Wenxiang's father has lung cancer and spends most of his time sitting on the heated bed, bundled up in multiple layers of clothing.

The family say they do not have enough money to give him proper treatment. "What can we do?" said the sick man's wife.

Villagers hope to turn their mountain homes into tourist attractions

China's government is in the process of introducing health insurance across the country, but coverage is patchy.

Yihezhuang's residents recently joined this scheme, but getting back money spent on health care is not easy, they say.

As in many Chinese villages, there are few young adults. Most have gone away to seek work in the towns and cities.

Those who are left eke out a living growing maize and vegetables - most of which is kept by households for their own consumption. Others keep goats, pigs and chickens.

The situation in the village is extreme - a fact acknowledged by provincial leaders, who visited in October to see what could be done to help.

"We must do all we can to help impoverished areas and villagers find projects and industries that allow them to escape poverty," said Shen Xiaoping, Hebei's deputy governor.

But there are thousands of villages like this one across China, whose rural people have not benefited as much as city dwellers from economic growth.

In urban areas, the average disposable income was 19,109 yuan ($2,990, £1,930) last year. It was less than a third of that in the countryside.

Independent economist Andy Xie said China should help these people by cutting their tax burden, and improving welfare and education provision.

That takes precedence over helping others. "Why would we rescue Greece? Does it buy from us or sell to China?" said the economist.

Change is already coming to Yihezhuang. The dirt path that once linked the village with the outside world - and was often washed away by floodwater - has now been replaced by a government-funded stone road.

The authorities plan to pave it properly in the next few years.

When than happens, village accountant Liu Dianshan said, people will turn their poor but picturesque homes into tourist destinations.

"Visitors will be able to stay in farmers' homes and we'll be able to move people to more convenient parts of the village," said a hopeful Mr Liu.

That might take some years, but China's leaders know that fulfilling these dreams - and others like them - is more important than sorting out foreign debt problems.

Will English kill off India's languages?

Why shouldn't India build on its advantage in English?

Whether the government, the private sector or NGOs should deliver development is a question which will not have much relevance unless India's wealth continues to grow to pay for that development.

English is one of the advantages India has which are said to be propelling it to economic superpower status.

There are all those Indians who speak excellent English. It's the mother tongue of the elite and effectively the official language of the central government. Then there is the growing number of parents who now aspire to give their children an education through the medium of that language. But is the craze for English an unmixed blessing?

Back in the sixties the British regarded Indian English as something of a joke. The comic actor Peter Sellers had mocked it so comprehensively that I found it well nigh impossible to get the broadcasters to allow anyone with even the faintest Indian accent on the air.

In India, we native English speakers laughed at quaint phrases like "please do the necessary and oblige", or more simply "please do the needful", and "it is suggested that the meeting be preponed", which appeared regularly in Indian official correspondence.

Feted writers

A senior British diplomat once suggested that his PA should find some less geographically specific way of answering the telephone when he couldn't take the call than saying, "Sahib is not on his seat". Much to the diplomat's dismay a colleague told him that his PA had misunderstood the instruction and been even more specific. He'd told the colleague, "Sahib is in the lavatory."

Indian writers are carrying off major literary awards

Now with Indian writers carrying off the major literary awards, and Westerners in the IT and BPO industries talking of being "bangalored" when they are replaced by English-speaking Indians, Indian English is anything but a joke.

But could the very success of English in India "bangalore" India's own languages?

The linguist Professor David Crystal speaking in Delhi said: "A language is dying every two weeks somewhere in the world today. Half the world's languages will no longer be spoken in another century. This is an extremely serious concern, and English has to share the blame." Others put it less politely, describing English as a killer language.

But should India worry if English kills off some of its 22 officially recognised and hundreds of its not-so-official languages?

Perhaps the answer is no.

In his book comparing the future of India, China, and Japan, the former editor of The Economist, Bill Emmott, said India fell short of China in almost every measure except the ability to speak English.

So why shouldn't India build on its one advantage? One practical reason is because, looking back over the history of India since it became independent in 1947, it is clear that any threat to Indian languages has the potential to provoke a violent backlash.

Dot brand versus dot com: Internet domains go head to head

Death sentence?: As brands are given the opportunity to have their own domains, could the dominance of .com be at an end?

Business is good. Your bathroom fittings company has replaced the conveniences in half the homes in your neighbourhood. But there's one small fly in your ointment.

You were a bit late to the game when it came to the internet.

And when you finally decided to go online, www.bloggsbogs.com was already taken. You're pretty sure this must be the reason you haven't made quite the splash you wanted in other towns.

Is there another way?

Domain dominion

Beginning in January 2012, applications open for a new class of gTLD (generic top level domain).

The people who control the use of internet domains, Icann (Internet Committee for Assigned Names and Numbers), announced in June they were extending the suffixes used for web addresses beyond the existing 22 (.com, .net, .uk, etc).

Interested parties can apply to run one, and either retain it for themselves, or set up as a registrar selling domains within groups like .car or .bank.

Icann voted to allow the proposals for the new domains at their meeting in Singapore in June 2011.

The suffixes don't have to be roman letters, so could for example be Chinese characters.

Some rules do apply - for instance, they must have at least three letters (Icann is holding onto the remaining two letter domains in case new countries are created).

So now companies can bid for their own gTLD for the first time. Think .hitachi, .coke, .facebook.

Could .com's dominance be coming to an end?

Time limited

If your dream of registering .bloggsbogs is going to become reality, you'd better get your skates on. The application period opens on 12 January 2012, and closes three months later on 12 April.

Miss this and you may be twiddling your thumbs till 2015 according to Tim Callan, chief marketing officer at domain experts Melbourne IT DBS.

"[Companies] have to be prepping, and they have to be getting ready and figuring out what they're doing so they're ready."

Some may be left behind, says Simon Briskman, partner and IT specialist at law firm Field Fisher Waterhouse.

Tim Callan: "Verisign predicts there will be 1,500 applications"

"I think it's difficult for brands to take this very short period we've got - the last quarter of this year - to assess and make a full business case."

Mr Briskman says some companies have stalled, initially put off by the cost.

"I think we've now got to the point where people are going: 'Hang on a minute, this is a drop in the ocean compared with the investment we make in the brand. We really do need to properly assess the business case.'

"[Some] big brands are going to miss the window - simple as that. You can't move large organisations at this speed."

Shirt off your back

Cost may cut out all but the megabrands.

Applying will set you back $185,000, and it doesn't stop there, says Melbourne IT DBS's Tim Callan: "Your corner mom-and-pop shop, this is not right for them.

"A good estimate is it will cost between $150,000 - $200,000 a year to run [a gTLD]. So costly yes, compared to your and my wallets, but for the companies we're talking about - trivial.

"I've yet to run into anybody who I would consider a prospect for this who has a cost objection."

Rebecca Moody, head of planning at advertising agency Euro RSCG, agrees: "It's a no-brainer for John Lewis or for Coca-Cola, for example, both successful big brands who can probably afford dot brand."

Bloggs Bogs may have to settle for registering for a dot category domain - if anyone applies for .toilet that is.

The cost of applying for your own gTLD will probably restrict it to megabrand corporations like Coca Cola

When the application period closes, Icann will decide who has a viable bid.

"They're taking the public facing internet, they're slicing chunks off and they're giving them to people to operate," says Mr Callan. "So they want to be confident people can run it correctly."

Where there are multiple qualifying bids, Icann has a set of criteria to decide who wins - in the case of dictionary words for example, open communities trump private ones.

If this process doesn't resolve the situation, then it goes to auction, with the highest bidder winning. The first gTLDs could be live by early 2013.

Return on investment

So what is pushing companies to buy their own dot brand?

Mr Callan says protecting your trademark is one motive, not only to thwart cybersquatters, but to beat other companies using the same name to it.

"Trademark law allows non-colliding trademarks to exist. If I'm operating in North America and you're operating in Europe and we don't cross over, then we can both have a trademark. But only one of us can have the TLD."

Continue reading the main story

New domains

• dot category: .bank, .music, .shop
• dot place: .london, .berlin, .nyc
• dot brand: .canon, .hitachi, .unicef, .motorola
• non-Roman scripts allowed: Arabic, Chinese etc
• minimum three characters
• no numbers, hyphens or non-letter characters
• no country names
• no two words that differ slightly
• no plurals if singular exists, e.g. bank not banks
• trademark holders can block cybersquatters

Then, he says, there's the marketing benefit.

"[Companies] think they can have a better connection between offline marketing and online traffic by having names that are shorter, more memorable, easier to pop out in a marketing campaign."

"For example, laptop.hitachi. Very crisp. Very easy to remember, very easy to communicate."

This includes the benefits a loaded url brings in terms of search engine optimisation (SEO) strategy, a process where sites are built to make them more attractive to search engines.

Security is another draw.

"There are a lot of people who won't do internet shopping because of the security, I think dot brand has a lot of potential there," says Field Fisher Waterhouse's Simon Briskman.

"[It] is going to really help as a seal of authenticity."

Perception is a big deal, according to Dr Jonathan Freeman, senior lecturer in psychology at Goldsmiths, University of London and managing director of i2 media research.

"A lot of this is consumer perception. Reassuring consumers is going to enhance the online behaviours and transactions. They'll feel a lot more happy dealing [with] it."

Despite this, he anticipates consumers will not immediately take to the new naming conventions.

Dr Freeman says finding dot brand sites without having to search could be easier on mobile devices

"What people are used to doing is going to be a big determinant in how consumers adopt and use dot brand as it rolls out.

"I'd expect it to take a while to embed in consumer behaviour, especially given the extent to which consumers rely on search engines today."

So where does this leave the brands that cannot afford to be part of the new world order?

"There will inevitably be a new brand ranking system, which in a way I find kind of concerning." says Euro RSCG's Rebecca Moody.

"Do you risk looking like a second rate brand?"

Out of the loop

Understandably, smaller brands are uneasy.

"What the small businesses and not-for-profits have been complaining about is there's a significant barrier to entry," says Field Fisher Waterhouses's Simon Briskman.

"People are selling off slices of the internet real estate, and they feel they're going to get closed out."

He says subsequent rounds may prove a little cheaper.

Continue reading the main story

“Start Quote

It's just not possible for everyone to get the names that they want in the new dot com space”

Simon BriskmanField Fisher Waterhouse

"I think people will start to aggregate the running of these day-to-day, which ought to bring down some cost. I still don't think that it will be accessible to Martha with her boutique in Marylebone."

And the ubiquitous dot com? It's probably safe for some time to come.

"I don't believe anyone is going to be shutting their dot coms in the next five years," says Tim Callan of Melbourne IT DBS.

"But does any of us think we're going to be typing dot com in a hundred years? No."

Simon Briskman is somewhat more tempered.

"The reason dot com will survive is [for example] the Times - there's the Financial Times, the New York Times. It's just not possible for everyone to get the names that they want in the new dot com space."

"If you want a good presence, but maybe not the best presence, if you want someone else to run the infrastructure, you'll probably use dot coms.

"They'll happily co-exist I just don't think they'll have the same power that the dot brand does."

Continue reading the main story

India's internet surfing and shopping boom

WATCH: India could become one of the world's top ten hubs for e-commerce by 2015
"Most people of my age today in India literally live online," says Seeya Malhotra as she unwraps a box that has been delivered to her desk at work.
The box contains a set of desk speakers which she had ordered on the internet a few days before.

Buying items at the click of a button is the way Seeya shops these days - she says almost half of her wardrobe has been purchased online, as well as her lunch and many other things.

India has a long and dominant tradition of small family businesses and street traders, but the online marketplace is growing here too.

As internet use rises at a rapid pace, so too does the uptake of internet shopping.

There are more than 65 million people logging onto the web in India, according to research group Juxt.

This might be a small proportion of the country as a whole, but in itself represents a sizeable market.

And Juxt estimates four in every five of these web surfers shop online.

At this rate, India could become one of the top 10 e-commerce hubs in the world by 2015, says Murali Krishnan, the boss of eBay India.

Continue reading the main story

“Start Quote

The prime reason we're selling online is because we can reach a larger consumer base in smaller cities other than the metros”

Payal KothariVeruschka shoes

His prediction is based not only on increasing internet uptake in India's smaller cities, but also growing consumerism, which is driving demand for foreign labels.

"The huge proliferation of retail malls has increased awareness of the latest brands and products," he says.

"As a result, the Indian e-commerce market is growing rapidly; in fact it's exploding."

India has more than 3,311 e-commerce hubs, according to research conducted by eBay India for its 2011 census.

The company analysed transactions made on the site between July 2010 and July 2011.

Delhi, Mumbai, Bangalore, Jaipur and Chennai remain the biggest cities in terms of e-commerce, according to eBay, but what is more telling is that around 40% of transactions now come from smaller cities.

It is this broadening reach and customer base which is enticing more of India's smaller businesses online.

Shoe surfers

In her studio in South Mumbai, Payal Kothari is sketching designs for her latest shoe collection.

Crammed into the small space are boxes upon boxes of footwear - from high heels with sparkly ankle clasps to wedge sandals encrusted with beads.

Ms Kothari's designs are worn by Bollywood stars and Bollywood wannabes alike.

Many sellers find it is easier to find buyers through the web

In the past year, she decided to start selling her wares through various internet shopping portals, having previously only sold to stores.

Ms Kothari says she has customers across India, and has orders from Chennai to Chandigarh.

"The prime reason we're selling online is because we can reach a larger consumer base in smaller cities other than the metros," she says.

"The country is vast so the only way we can do that is through several websites."

For Ms Kothari internet sales offer other advantages, such as avoiding the high costs of retail space, and a guaranteed sale before a product is shipped out.

"When we sell online, we can actually concentrate more on creating the product," she says.

Popular Indian online sites in the past decade have included travel booking portals - the Indian railways ticket site (IRCTC) is used by almost one in five of the country's web users, according to research company Comscore.

Recent successes include online books, movies, and accessories store Flipkart that has been styled as India's answer to Amazon.

The company, which started in 2007, is India's e-commerce success story and is reportedly valued at $1bn (£635m).

It now employs more than 2,500 staff, and has eight million visitors a month.

Hurdles

The diversifying e-commerce landscape is also demonstrated by the success of group buying sites in India, as well as Groupon India, which will soon operate under Crazeal.com site, in 11 cities.

Continue reading the main story

“Start Quote

If you're able to give Indians the right kind of price point that's what makes the market click, and you can taste the success of it”

Vijayanand ShekokarDealite.in

Snapdeal.com is another popular site that offers discounts to those who sign up.

Mr Krishnan says there has been a shift in Indian e-commerce in recent years, with more women buying online and a rise in the purchase of lifestyle products.

He estimates that the Indian online shopping market in the country is worth $500m (£317m), but is predicted to grow in the next year to $750m.

However, there are still hurdles associated with e-commerce in India.

Poor infrastructure and logistics make deliveries to some parts of the country difficult, and the relatively low uptake of credit cards has forced companies to think creatively.

The lack of credit means many firms in India offer cash on delivery as a means of payment.

Rahul Jagtiani, the owner of the online-only home accessories store plushplaza.com, says cash on delivery has helped to build up customer trust in the market.

Mr Jagtiani believes online is the best place for a start-up to operate in, but concedes that there are many Indians who are still fearful of buying a product online without having seen it first.

"A lot of people are still a bit unsure as to how a product is going to look when they receive it," he says.

Many Indian shoppers like Seeya Malhotra prefer to buy most things online

"In India they have that mentality, and are a bit paranoid about customer service. We speak to each customer individually and try and quell their fears and ensure that what they see is what they get."

Mr Jagtiani is one of many entrepreneurs in India who are betting on India's online market.

Vijayanand Shekokar is another - he left his career working at PayPal India and eBay India to start up his own online auction site, Dealite.in.

Mr Shekokar's site, which went live a month ago, works on the principle of using social media to advertise sales.

Despite some cultural hesitancies around online buying, he believes the medium is suited to Indians.

"Everybody is a deal seeker here," he says.

"If you're able to give Indians the right kind of price point, that's what makes the market click, and you can taste the success of it."

Investors see this potential too, and more venture capitalists are looking to invest in e-commerce businesses in India.

A report from research firm Venture Intelligence suggested that between January and August of this year $137m had been invested in e-commerce firms in this way, across 21 deals.

Internet use in India is predicted to skyrocket in the coming years, and so too could the profits of companies betting on the online future.