Treatise 2010

The International Thought Challenge

Event Details The event will be held in two phases First phase Teams are required to submit a ...
BASIC: Flash in the Firmament The progress of large developing countries has fuelled the muse of ...
In the hour of crisis, the mortals find solace in spirits and the men search ...
“Agriculture is the backbone of the Indian Economy”- said Mahatma Gandhi five decades ago. But today ...
Congratulations ! The following 7 teams have been selected for phase 1 of Treatise (in alphabetical ...
"...climate change negotiations have become less about fashioning a truly collaborative global response to ...
Defending the proposition “FDI fuelled growth of India is sustainable” There is no doubt that the ...
We would like to present our argument  that while the metaphor ‘Sone-Ki-Chidiya’ might have been ...
India, a nation of 1.1 billion people, has been always disproportionately unsuccessful at the Olympics. ...
“What can you say about a woman eight months pregnant who begged to be spare? ...
FDI inflows into India during 2009 have crossed Rs. 80,000 crores and this is the ...
Does the epithet “Sone Ki Chidiya” hold true for India still? Any attempt to capture the ...

Archive for the ‘Debate Posts’ Category

Live Webcast of British Council’s Debating Matters

Posted by Team Manfest On January - 14 - 2010 1 COMMENT

Kindly click on the following link to follow the Debating Matters Finals live!

British Council debating matters webcast

Debating Matters is a debate competition for high school students in India. The link to the official Debating Matters Website is:

Debating Matters Website

The competition consists of three stages; the online elimination test, the regional finals and the national finals. It is open to students of Class XI and XII of Indian Schools.
Debating Matters is very different from traditional schools’ debate competitions in India. The emphasis is entirely on content of the argument rather than style and diction. The format aims to engage students in debating the complexities of real world issues, like free speech, clinical trials, role of pluralism and diversity in India.

Live Webcast of British Council’s Debating Matters

Agriculture, and not services, is the warp and woof of the Indian economic fabric

Posted by Team Manfest On January - 9 - 2010 11 COMMENTS

“Agriculture is the backbone of the Indian Economy”- said Mahatma Gandhi five decades ago.
But today agriculture and allied sectors account for only 18.6% of the GDP and employ 60% of the total workforce and there is a continuous steady decline in this share of the GDP.

On the other hand the fact already floating in the air of “Territory Economia” that service sector has revivified the whole Indian economy by injecting life serum into it, is  ample enough to commend it as an indispensable growth component of the Indian economy. The sunshine of success in which the economy of Indian subcontinent is basking gay fully today is undoubtedly a contribution of sheer perseverance of the service sector which toiled hard against all odds to emerge as a winner. The fact that services sector accounts for 53.8% of the GDP even with 23% employment speaks volumes about its role in the Indian development saga.

What used to be the backbone of the Indian economy now stands as a mere contributor to it.

So does that connote that the services sector has taken over the metaphor “The warp and woof of the Indian economy” used from time immemorial, for the agricultural sector?

NO… It hasn’t…

Economic development has historically been associated with structural changes in national economies. It has most often, been defined as a process combining economic growth with changing share of different sectors in the national product and labor force. In a similar manner the change in sectoral composition of GDP exemplifies the structural shift Indian economy has undergone over the years. This structural shift has had significant ramifications for the growth and development of the Indian economy, making it highly unbalanced among sectors.

When the famous British historian Eric Hobsbawm said: “The most dramatic change of the second half of this century and the one which cuts us forever, from the world of the past is the death of the peasantry”, he was referring to a spectacular decline world over in the role of agriculture.

If you travel back two hundred years you would see that the US, the largest economy in the world, was almost totally agrarian, though today it has moved into a predominantly service-oriented economy. India also seems to be moving in this direction although in a unique way.

But this pattern of service-led development is not out of tune with the legacy of India’s past. During the colonial period, India’s comparative productivity performance was already better in services than in industry or agriculture. This emphasis on services is also in line with much recent research on long-run growth among the developed economies, which finds services playing a key role in comparative economic performance in the late nineteenth and early twentieth centuries as well as during more recent times. The recent emergence of a dynamic service-led Indian economy thus has long historical roots.

On the contrary though the share of the agricultural sector has declined it is still the backbone and the sheet anchor of the Indian economy. Its importance in the country’s economic, social, and political fabric goes well beyond indicators. It is the nucleus of food supply, livelihood of majority of population and a significant source of revenue and national income for the country.

Globalization and agriculture in India are both intricately connected to each other as agriculture in India prevails over all other sectors because it plays a pivotal role in the socio-cultural life of its people.
Hence, it is the most influential field as compared to others in India.

Another fact which needs to be re-emphasized is that, though the share of agriculture in GDP has declined, its contribution in terms of generating demand for the other sectors of the economy, especially the industrial sector, has become more pronounced. Indian agri-biotech sector has been growing at a whopping 30% for the past 5 years and India can become a major producer of transgenic rice and several genetically engineered vegetables by 2012. The food processing sector, which contributes 9% to the GDP, is presently growing at 13.5% and can be an important driver of the Indian economy.

India ranks second worldwide in farm output. India is the world’s largest and the second largest producer of many crops. It also has the world’s largest cattle population.  India is the largest fruit producer, accounting for 10% of the world fruit production. It is the second largest producer of silk in the world. It is the third largest producer of tobacco. Agriculture is still the largest economic sector and plays a significant role in the overall socio-economic development of India.

However, international comparisons reveal that average yield in India is generally 30% to 50% of the highest average yield in the world.

The challenges faced by this sector are many. Indian agriculture is currently suffering the brunt of lack of funds. Also, subsidies crowd out investment spending in the sector. India currently invests only about 0.5 percent of its agricultural GDP in agricultural research. The issue of food security in itself entails many challenges. With growing population, the dependence on agricultural sector becomes more pronounced.

In fact, development of agriculture becomes imperative to sustain the growth in manufacturing and services sector. In an agrarian economy like India, agriculture provides purchasing power to a majority of population, that is instrumental for growth of industries and services. The need of the hour is an innovation driven path, facilitated by an investment driven model. A necessary step to a forward looking policy for growth in agriculture is a shift in focus from producing products conceptualized in developed economies to investing in strategies that take into account the ground realities here.

A holistic approach and urgent reforms are needed to ensure the growth of this sector and to transform India into the leading agro economy of the world. We need to be able to compete on a global platform with respect to both cost as well as quality. A comprehensive and integrated approach is the need of the hour to attain sustainable development and growth in this sector. It’s high time we move ahead of the Mahalanobis model of treating agriculture as a bargain sector.

In the 2009–10 budget, the government has taken many steps to aid the growth of the sector and to focus on the achievement of self-sufficiency in food grains. Agriculture is set to play a more dynamic role in the economy, with the government’s increased focus on the sector.

On the other hand the rapid growth of income originating from the service sector is rationalized in terms of the support drawn from a strong demand base. The demand for products from the services and manufacturing sectors being more elastic than those from the agricultural sector, the process of development is said to have witnessed a shift away from agriculture towards manufacturing and services. Moreover, income growth increases the market for services and expands the size of service sector, which benefits the industrial sector in two ways-first, by enabling greater specialization and division of labor and second, by lowering the effective costs of service inputs to industrial production. The increase in intermediate demand for services emphasizes the role of increasing connections between manufacturing and services. Aggregate final demand appears to be the driving force to services’ employment growth balanced by enhanced labor productivity. The overall growth of the service sector in the economy is accompanied by expanding and modernizing banking, insurance, communication arrangements, facilities for tourism and transport, trade, etc. Therefore, the output of service sector is considered as having importance and the growth potential of the economy.

However, oft-cited facts and figures about services have created a perception that it alone can propel India to a growth trajectory of 10% and more. But should we be so complacent about service-dependent growth of the Indian economy? Can services alone drive India’s growth process on a sustained basis to a higher level? Would such service-led growth be desirable in light of objectives such as employment and equity and existing socio-economic conditions?

If India is to move to a higher growth path in a manner that is equitable, employment creating, and sustainable, then there must be a broad-based growth, across and within sectors.

India cannot grow by services alone.

It is imperative for us to move ahead of our hackneyed success stories…

Its time the labor intensive manufacturing sector takes off. India needs to put in more resources to make the traditional manufacturing base efficient and globally competitive. This sector has enormous forward and backward linkages in the economy that can benefit a whole spectrum of the workforce. India must emphasize and incentivize R&D; encourage good regulatory policies and labor reforms; provide opportunities conducive to entrepreneurship.

This is a journey of catching up; the journey will not be without its ups and downs. But, India is a juggernaut on the move!!!

If China is BASIC’s engine, India is the steam

Posted by Team Manfest On January - 9 - 2010 10 COMMENTS

BASIC: Flash in the Firmament

The progress of large developing countries has fuelled the muse of socio-economic observers for a decade hitherto. The world sotto voce acquiesced to the might of North America and the European Union until China and India jolted this somnambulism. The population of the world is more than six billion, of which less than one billion is in the industrialized countries; more than five billion is in the developing countries and more than 2.5 billion is in Brazil, South Africa, India and China or the BASIC nations (Nayyar, 2008). Thus, 40 per cent of the population in the world and 50 per cent of the population in developing countries lives in BASIC countries accounting for about 10 percent of the world’s GDP and more than 40 percent of that of the developing world (Nayyar, 2008). Rapid growth driven by strong domestic fundamentals in these four emerging economies is already changing power equations in the world economy. The BASIC countries accounted for 50% of the world economy in the early 1800s and although per capita data is far lower than that of the developed nations, it is only a matter of time before the world heads back to its BASICs.

China and India: First among Equals

The economies of India and China have clocked GDP growth rates of 7.09 and 9.0% respectively; while those of South Africa and Brazil are significantly lower at 3.06% and 5.08% respectively (Google – Public Data). Further, if one were to look at qualitative comparisons of the economies, both South Africa and Brazil are mired by debilitating problems which, unlike those of China and India do not have ready fixes. A significant chunk of South Africa’s GDP comes from mineral wealth and other natural resources – a not so reliable source of future growth potential. To complicate matters, South Africa faces a flight of human capital to North America and Europe on a scale which would make India’s “brain drain” theories seem like trivial bouts of paranoia (CIA World Fact Book: South Africa). While Brazil is on a significantly stronger footing, it has its own share of worries – Brazil’s growth comes at the cost of one of the planet’s greatest treasures, the Amazon Eco System. A sclerotic political system coupled with large, violence prone cities only exacerbates matters for the South American nation.

India and China’s growth has not only been far higher than the average world economic growth in the last four quarters (while South Africa and Brazil haven’t bucked the trend seeing massive slowdown commensurate with the down turn) but their growth has come at the back of private enterprise for India explosion and heavy FDI inflow for China. India and China clearly lead the way with sustainable growth fuelled by the demographic dividend of a larger population, lower wage rates and emerging technological capabilities to drive higher productivity. On the face of it, Brazil seems to have the numbers, but GDP growth has been just 2 per cent per annum for the past 25 years. Brazil has the economic size but not the growth rate to drive the world economy (Nayyar, 2008).

India and China are truly first amongst the equals.

China: The Alpha & Omega?

Economists are wont to place their bets on China given its phenomenal success. It is the second largest economy in Purchasing Power Parity (PPP) terms and has supplanted Germany as the largest exporter in the world (India Watch- India China Comparison). It has been the fastest growing economy in the world for over 2 decades now with an average GDP growth of 9.8%. From nuclear technology to the production of rice, their dominance covers a rather wide gamut. North America has reconciled to “Made-in-China” labels dominating consumer purchase. As much as India’s polity would love to thump their chests about India’s presence in the Copenhagen Summit, China’s voice was considered far more significant so much so that the European Union was sidestepped in the brouhaha. These facts and North America’s increasing reliance on China continues to rankle developed nations across Europe. China’s economy is indeed bigger and accelerating considerably faster than the other BASIC economies (weblink: India, Brazil, South Africa aim for free trade, sign seven accords).
These numbers however dispel important underlying truths about China’s evolution and its fragile growth as explicated below. China may not be the Alpha and Omega of BASIC after all.

India: Home-grown & Organic

China and India, though clubbed together as miracle economies, have stark dissimilarities in the paths they have followed. China has made the transition from being a communist nation with state owned enterprises to one that has opened up to private partnerships and FDI inflows with the administration playing the role of strict gatekeepers.

India has not attracted anywhere near the amount of FDI that China has, nor is there parity across a basket of development indices. India’s socialism emerged as an alternative to both communism and capitalism. Our leaders saw a need to mitigate evils in both systems to sketch an ideal middle path. While this saw heavy investment into Public Sector enterprises initially, the promotion of indigenous private enterprise in addition to disinvestment has been much stronger than in China. Our free market reforms have not been as forthcoming or as proactive as China’s given our circumspect approach against a democratic backdrop as opposed to China’s pseudo-dictatorship. However India’s growth is organic and thereby far more formidable as opposed to heavy reliance on foreign capital per se. India is a young and nimble nation on the move – and literally so: India’s median age stands at 25 years compared to China’s 34 years.  (Khanna, 2003)

BASIC: A Convenience?

Based on the sheer weight of growth parameters, China and India are rightfully the enablers of a better future by being the duo of a Locomotive (driver) and steam (fuel) of other developing countries, Brazil and South Africa included. Apart from fuelling the economic growth of the developing world, the BASIC countries are also beginning to engage in a plurilateralism. The G-3 or IBSA (India, Brazil and South Africa) strategic alliance and the Outreach-5 (China, India, Brazil and South Africa, together with Mexico) which has been invited to the G-8 summits are cases in point (Nayyar, 2008). Moreover, the BRIC summits in Yekaterinburg for the past two years have focussed on collaboration and collective effort towards improving the current economic situation (Purushotham, 2003).

But not all cooperation is by design. Cooperation has been both ad-hoc and a convenience. India and China have not actively engaged in taking a leadership stand representing the voice of the developing nations and the BASIC in particular.  The current trade agreements and international forums reflect the common geopolitical, social and economic issues faced by these countries.

China and India’s presence and motives however self serving have been invaluable for BASIC’s growing stature in international fora nevertheless. These two countries, given their potential superpower status in the future, have indeed been the engine and steam for Brazil and South Africa and will continue to dominate world politics in the future.

India & China: Soothsaying

Evaluating the facts, we are of the view that if China is the engine for BASIC then India is indeed the steam. India’s organic growth further impels us to believe that India could very well be a stronger China of the future that could truly foster growth for smaller developing nations. India could be the next engine for world growth in the next 3 decades given its progress anchored by a strong inclusive democracy. While internal ridges in the form of political instability in multiple states, growing income divides and the threat of terrorism loom large, the country continues to display steady progress. The rate of urbanization, the growth of SMEs and the explosion of consumerism are indicators of growth however febrile or slow. Critics also cite multiple bugbears that could disturb an optimistic future – impediments in the form of high external energy dependence (80% for India) as a moot point. There is some truth in these arguments, no doubt, but they fail to dent an aggressive yet natural growth trajectory that India is set out on.
India’s growth may not be controlled and shaped but it is this latitude that will mould a gradual yet natural evolution into a world power which will cease to play the second fiddle as the steam to the engine that is China.

Secular India will always remain an Utopian concept

Posted by Team Manfest On January - 9 - 2010 11 COMMENTS

“What can you say about a woman eight months pregnant who begged to be spare? Her assailants instead slit open her stomach, pulled out her fetus and slaughtered it before her eyes.”

“What can you say about a family of nineteen being killed by flooding their house with water and then electrocuting them with high-tension electricity?”

“What can you say about the gang rape, of young girls and women, often in the presence of members of their families, followed by their murder by burning alive, or by bludgeoning with a hammer and in one case with a screw-driver6?”

The above tales of macabre violence -“masses of pus released by slitting open large festering wounds9” – are accounts by an officer of the Indian Administrative Service, who is a key eye witness to the Gujarat riots. Gujarat 2002, sadly, is not a one-off occurrence. In the past two decades - India, the land of Gandhi and the Buddha, has been ravaged by so many acts of inter-communal violence that peace is an intermittent, temporal period of uneasy co-existence waiting to be disrupted by the next round of hatred.  These acts have metamorphosed the collective Indian mindset so much that communal tension and religious bigotry, shockingly, have been accepted as a way of life. Surely this was not what the founding fathers of Independent India had in mind when they adopted secularism as a constitutional and political ideal. Who is to be blamed for this – the Indian political elite who are blissfully disconnected from reality, or the broader Indian society and its inherent anarchy? When we proudly proclaim that we are a secular society, do we really understand what we mean?

SECULARISM AND THE STATE

Secularism in India, right from the days of Nehru when it got its most virulent and articulate political expression, has been understood as a political ideology that seeks to protect and guard equally the rights of individuals belonging to all religions to profess, practice and proselytize their religion. This is in stark contrast to how secularism evolved in Europe and America in the eighteenth century – it was a child of the age of enlightenment that sought to separate all the activities of the state from religious influences. There are historical reasons for why this is so.

On one hand, all the major political transformations in the 18th century western world came about as a direct or indirect consequence of grievances created by organized religion (the Church). Hence, these political transformations consisted of an element which sought to limit the power of religion over society and the law making process. For example, it must be noted that when Thomas Jefferson, the author of the Virginia Statuette for religious freedom, coined the famous phrase “wall of separation between church and state5”, he was trying to reassure the Baptists of Danbury, Connecticut, of state protection from the religious persecution threatened by the Danbury Congregationalists.

On the other hand, majority of the nationalistic and social reform movements of 19th and 20th century India were spearheaded by men and women who sought to find a basis for social transformation within the religious doctrines and texts of India. This could have been considered essential to unite a vast segregated population and to facilitate the process of accepting the liberal values of the west, which was then perceived as an agent of political dominance trying to push a “foreign culture” down the throats of Indians. Hence, a serious critique of religion was largely absent in the social reform movements in India, with the exception of the rationalist political movements of Tamil Nadu.  Added to this is the problem of identifying a strict definition of organized religion in India- with is myriad belief systems, practices and heritages – which made it impossible for such a critique to gather steam. Hence, even the best strains of Secularism one finds in India’s past – such as those during the reigns of Asoka and Akbar – have limited themselves to upholding plurality in public life and ensuring communal harmony than in divorcing religion completely from the body  of politics 4.

SECULARISM – EATING ITS OWN LIMBS?

The tumultuous days of Partition and the blood bath that ensued did not give rise to an immediate and concrete shift in the political outlook of the nation. It was one instance when the terrible human cost of religious intolerance was clearly evident and the political will for adopting a form of government which is religion-blind was the strongest. Yet, this opportunity was lost due to the simultaneous creation of an ‘Enemy State’, which was theocratic and predominantly Muslim. This demonized the Muslims of India in the eyes of the Hindu majority, forcing the founding fathers to formulate a state which assumed a patronizing role in protecting and appeasing the minority communities. With this attitude extending to its treatment of the majority, the state has continued on a trajectory that is farther and farther away from the secular ideal. Today, after more than 2 generations, when the memories of the civil war with which the nation began its existence are slowly fading away, a strong impetus which can overcome this social impasse is lost. This is in contrast with the governments of post-Nazi Germany, which proactively educated their people about the dangers of bigoted ideologies and brought in a permanent shift in the German national psyche for generations to come.

One of the many consequences of this distortion of the idea of secularism in India is absence of a common civil law even after 60 years of the republic’s formation. The governments at various levels require citizens to disclose their religious affiliations while religious conversions need to be registered and are subjected to various state laws, most of which have been enacted to  favor vested religious interests 1. Even the most progressive sections of the society today are in favor of Sharia – many of whose tenets are highly regressive- for the Muslims in India, preventing social reform within the Indian Muslim community3. All these have further prevented the emergence of an atmosphere for the gradual adoption of secularism as a social ideology.

SECULARISM AND THE MAJORITY

At the core of a secular heart is an affirmation of the equality of the goals of all religious traditions. Secularism, as it stands today, can then be understood as a manifestation of this belief in the daily lives of ordinary people. However, the Hindu social life had long been festered with unimaginable inequities, limiting to a huge extent the participation in mainstream religious activities by a huge section of the populace. Consequently, it has cultivated a mindset that rejects the rights of others to cultural and religious expression within its own sect. With the existence of such a mindset, extending similar rights to other religions remains unthinkable in modern India. References to Muslims as “outsiders” or those with a “non-indigenous/wrong faith” are numerous in popular Hindu discourse and such notions are further stoked by the Hindu Nationalist party, the BJP. The emergence of this party from the sidelines to the mainstream in the last two decades is a testimony to that fact that things are only getting worse. Moreover, this party has proceeded to build religious orthodoxy upon a vilified Muslim population unlike traditional conservative politics which derives its strength from absolutist values. With this party remaining the only political alternative to the current ruling coalition, the future does look bleak for Indian secularism9.

OLD HOPES AND NEW FEARS

Contrary to popular belief, there seems to be almost no correlation between the level of education or economic prosperity and the tendency to accept secular and humanistic ideals in the Indian society. Major instances of religious intolerance resulting in social unrest have happened post-liberalization in India, with the exception of the anti-Sikh riots of 1984. The religious bigotry that found its fullest expression in Gujarat in 2002 had grown out of the affluence of the state’s nuovo rich middle class and their passive but discontent coexistence with the Muslim minority there. In fact, most of post-independent India’s communal riots and bomb blasts have happened in the 1990s and 2000s indicating the ability of home-grown religious bigotry to feed from the new-found prosperity of the middle classes.

A recent poll of young urbanites in India also shows a lack of openness to religious conversion12. The behavior of Supreme Court judges in the Kanchi Mutt murder case is also a testament to the existence of religious orthodoxy among people professing to uphold the secular values of the Indian constitution. For long considered the secular bulwarks of the country, the fast developing southern states have begun to show worrying trends of religious intolerance. The attack on Christian minorities in Karnataka and Kerala, the riot in Coimbatore in Tamil Nadu and the blasts that followed it are testimonies to this. Higher Urbanization has been accompanied by riots that had their epicenter in the cities.  In the last fifty years, 96% of all riot deaths have occurred in cities, even though these cities are home to less than 30% of the total population of the country8. Home to the social, cultural and economic elite of the country, Mumbai has been the victim of many such communal tensions post the Babri Masjid demolition7.

The tribal people of Orissa, who had for long led a life of harmonious coexistence with nature, are now active and willing participants in the violence against Christian missionaries and converts2.  Kashmir, with its sizeable Muslim population and endemic violence has proved to the most striking example of the failure of Indian secularism. The communists, who are self-avowed atheists, contributed their bit to stifling secularism by banning the book of Tasleema Nasrin11. Army officers Lieutenant Col. Purohit and Major (Retd.) Upadhayay were arrested in connection with the Malegaon blasts of 2008, indicating that religious bigotry has entered even the Indian army.

CONCLUSION

These failures to learn from the past coupled with an ignorance of our own realities have made secularism a distant utopia to be just dreamt about. With secular ideals taking a back seat and losing to other priorities across social, cultural, economic and ideological groups and the visibly increasing tendency to get polarized along communal lines, secularism remains an unfulfilled promise and an unrealized hope.

Instituting more IITs and IIMs is the ideal boost to corporate India

Posted by Team Manfest On January - 9 - 2010 11 COMMENTS

Introduction

India is poised to become a knowledge economy and an information society. The country for long been associated with mystic saints, malaria and snake charmers is increasingly being seen as an economic powerhouse.  Indian corporate class and technical institutes such as IITs and IIMs are the principle levers of such a change in world’s attitudes towards India. The topic raises a pertinent question at a time when corporate India is traversing boundaries at a never before seen pace. Nehru, the architect of India’s modern temples exhorts his countrymen on the occasion of India’s independence, “The achievement we celebrate today is but a step, an opening of opportunity, to the greater triumphs and achievements that await us. Are we brave enough and wise enough to grasp this opportunity and accept the challenge of the future?”.[1] The same exhortation needs to be made to our corporates and the country at large in regards to the opening of more IITs and IIMs.

When faced by a problem we generally have the tendency to look for quick fix solutions without taking into account the long term effects. Such seems to be the case with the institution of more IITs and IIMs. Setting up of more IITs and IIMs may seem to be the answer to problems of corporate India. After all the alumni of these institutes have a proven track record of being the best in business. But advocates of such a policy forget the fact that an institute is not only about walls and laboratories. It needs to develop into an ecosystem which provides the students with opportunities for knowledge absorption as well as knowledge creation. Sadly the fundamentals seem to be missing with the proposed IITs and IIMs. The article looks at various factors to present an objective analysis of the scenario.

Shortage of Faculty

The principle actors in any educational institution are its students and teachers. In case of IITs and IIMs the second actor has become a scarce commodity. The approved faculty to student ratio in these institutions is 1:9 but almost all of them have exceeded the ratio. 9 centrally funded technical institutions, which include the prestigious IITs and IIMs, are currently short of more than 3,000 faculty members or about one-third of the sanctioned strength.[2] The political class’s misguided zeal of instituting more IITs and IIMs before addressing the issue of shortage in quality faculty seems to be a classic case of putting the cart before the horse.

Shortage of Skilled Labour

“Availability of skilled labour is a critical input for all firms and hence corporate India has an enormous self interest in the functioning of the education sector.”[3] Amit Mitra, secretary general FICCI opines,  “the quality of new graduates is a critical issue that needs to be addressed”.[4] They are short of skill on many fronts. The employability of such people is a big problem. So instead of hankering just after the IITs the time seems ripe to look towards options such as opening up more vocational colleges which can take care of this shortage. Vocational education needs to be given a boost to tide over the crisis of skill shortage on such a humongous scale which will definitely be a shot in the arm to India’s corporate sector.

Going further, if we chart the growth of Corporate India, the dawn of light was seen with the liberalization and ushering of reforms consequently. India’s success story got a big momentum with the services sector revolution. But the drivers of growth were the large pool of talent in India most of whom were not from IIT or IIMs. Take the example of the software industry; there success is owed mostly to the code-writing foot soldiers not majorly supplied by the IITs.

Importance of Research

Any economy in the long run can remain competitive only if it has the capability to foster innovation at a regular pace. Research forms the backbone of such innovations. Corporate India cannot wish to be the sweatshop of the world for all times to come. Philippines and China are breathing down are neck in having a share in the outsourcing pie. To move to the next level of economic development huge investments needs to be made for research purposes.

It is a well established fact that basic sciences are a precursor to path-breaking research in the field of applied sciences and technology. The obsession with engineering and management disciplines has led to an exodus of students from the basic science field. Enrolment rate has fallen from 30% to 20% in the recent decade.[5]

The research scenario is dismal. Just to quote some figures “In terms of sheer numbers, in 2007 China had 1,423,000 researchers, second internationally to the United States, which had almost 1,571,000. India by comparison had 154,800. India spends a tiny fraction of its budget on research which reveals the gross inadequacy in India’s commitment to research, considering our scientists’ potential and our aspirations as a nation.”[6]. To quote another fact “Less than 2 per cent of world publications in science and technology originate out of India”.[7]

The IIT’s and IIM’s were established with the purpose of not only imparting knowledge and training but also to develop as centers of excellence for research and development. While the former objective has been much glorified, the latter leaves much to be desired. In the long run, for corporate India to emerge a formidable force in the global scenario we need technological innovations and strategic research. If we care to look around the world the most exciting research is happening on the boundaries of disciplines. Multi-disciplinarity seems to be passé. Now is the turn of inter-disciplinarity. Instead of building new IITs and IIMs we need to seriously consider turning them into universities as has been consistently suggested by academicians such as Professor Yash Pal.[8]

Taking cue from the Silicon Valley which has been the cradle for many famous companies in the world from Google, Yahoo, Bose Electronics, it is undeniable that its proximity, physically and intellectually to Harvard, MIT kept up the steady flow of young minds which enriched and cultivated the entrepreneurship and innovation. If India Inc has to replicate such a success story then the biggest boost it can possibly get is an overhaul in the research and development facilities.

Brain Drain

One of the major challenges faced by India Inc today is the retention of talent in the country. A few decades ago, the first priority of the IIT and IIM pass outs was to ensure a lucrative job abroad. About twenty five thousand IITians have settled abroad since 1953.[9] The UNDP report put the figures as high as 70% at a certain point of time to 30 % which was the prevailing figure.[10]

The government spends no less than Rs 200,000 annually on an individual student.[9] Corporate India will get a real boost if the pie expands and to expand the pie we need more number up entrepreneurs and start-ups.

Demographic Requirements

The GER (18-23 age-group) of India stands at around 11% way below China and US.[11]The demographic advantage  of India can easily turn into its disadvantage if the youth is not engaged in meaningful occupations. A vibrant business climate needs political and social stability. No business can flourish for long in face of war or insurgencies. ‘Million Mutinies’ are already brewing in India. Education is the new necessity of the masses. Corporate India cannot exploit the resources from large sections of the north east or areas lying in the Red Corridor. It is only through education that such people can be woven into the mainstream. The inevitability of collateral damage does not merit a place in today’s discourse. We need to address the problems of equity and access in education for our large masses rather than concentrating on just a chosen few. It seems more relevant to concentrate on imparting primary and secondary education coupled with employability.

Conclusion

More IITs and IIMs cannot be the answer to the woes of Indian corporates. Even in the short run the high expectations of businesses may not be sustained and the long run will only make them lose interest in Brand IIT. Substandard products out of such a system can only lead to the dilution of brand IIT, touted as “the Biggest Indian brand after Tajmahal.[12]

These institutions could turn into white elephants owing to a sustained cost but poor productivity. Coming up of new IITs and IIMs is being guided by political provenance rather than any serious debate about its necessity and the places of institution. Such decisions cannot be left to the whims and fancies of a political class engaged in serving parochial interest in the name of opening up new IITs and IIMs. Expanding capacity in the existing institutions and not expanding in numbers should be the priority now. Prepare the ground before jumping on the IIT, IIM bandwagon. Surely Corporate India would appreciate the point.

In the path to global dominance, India must first prevail over Hindustan

Posted by Team Manfest On January - 9 - 2010 9 COMMENTS

We present our argument in favor of the statement that India must first prevail over Hindustan in the path to global dominance. We have hereby defined what we mean by global dominance and Hindustan and proceed with our argument.

Global Dominance

While Global dominance is a broad topic and can be interpreted in many ways, we have broadly classified it into three major components – significant economic wealth, adequate military power, and soft power. By significant economic wealth, we refer to a situation where poverty and other pressing privations are removed and the country is able to use its market size and power to protect the interests of its citizenry in international settings. Adequate military power is required for safeguarding the nation against threats, both internal and external to the country. Soft power refers to the ability of a nation to co-opt other countries and cultures rather than coercing them through threats of military might or the inducements of economic payments, both of which can be classified as hard power. Soft power arises as a result of being able to attract other countries and the ability to change the preferences of others (Nye, 2004). An important aspect here is that the role that governments can directly play to increase the soft power of a nation is quite limited. While traditionally global dominance has been viewed as hegemony, imperialism, or superpower, the current important happenings around the world such as global terrorism, economic sustainability, and the adjunct need for a global approach to solving issues dictate this new integrative definition of global dominance.

Hindustan

Hindustan is the culture and mindset of our people which has evolved over a long history of more than 3000 years culminating in today’s realities. While there are several strengths such as richness of diversity, cultural heritage and the power of intellect, we feel that there are ways in which the ill effects of “Hindustan” hamper India’s path towards global dominance by affecting at least one of the three ingredients discussed above. In the course of the debate, we have discussed the factors that illustrate how the ill-effects Hindustan either directly or indirectly hampers the progress of India.

Whither Tolerance?

Traditionally ours has been a very tolerant society. The native population absorbed various people who have come here, and have lived amicably – be it the Muslims who settled after the Mughal invasion, or the Parsees, and the Christians. Moreover the country has witnessed the rise of other religions like Jainism, Buddhism, Sikhism and surprisingly even atheism as a part of Hinduism (Carvaka). Secularism has been in our country’s DNA and must be strongly encouraged in our march towards global dominance. Soft power – which includes the richness of diversity, strength of tolerance and power of intellect – has been our strength and is crucial in the path towards global dominance. Infighting in the name of religion diverts productive energy towards destructive purposes. Communal organizations and religious political parties use this for their electoral advantage. Notable cases have been the Anti-Sikh Riots in 1984, Bhivandi-Bombay Anti-Muslim Riots allegedly instigated by Shiv Sena, and the Rath Yatra undertaken by L.K.Advani in 1992 (Engineer, 2000). Not only does perpetuating of communal terror for the so called establishment of Hindustan lead to insecurity of the citizens and minorities in particular, but there is tremendous waste of energy, property, resources and man power. Campaigns such as “do not buy from Muslim shops” (A.S.Pannerselvan, 1998), while may seem ridiculous, still exist in parts of India and is akin to the Nazi campaign and can dent the country’s soft power.

Low Risk-taking Propensity

In today’s economic system, entrepreneurs play a crucial role in a society by creating wealth and providing employment to citizens. According to researchers, the most important traits of entrepreneurs are risk-taking propensity, innovativeness, achievement orientation, and managerial skills. Both structural and socio-cultural factors play a role in how people acquire these traits. The risk taking propensity of Indians has been found to be low. In addition to factors such as uncertainty in the general environment, cultural factors such as the encouragement and support offered by family and facilitator organizations seem to hamper risk taking (Shradha Shivani, 2006). In fact, the traditional joint family system is seen as a factor in explaining India’s retarded economic growth (Tripathi, 1992). This doesn’t mean that the traditional family system in India has to be dismantled to promote entrepreneurship. However, it does mean that the challenge of building an environment that is conducive to accepting failure is definitely higher.

Not aiming Big

Dhirubhai Ambani once famously said, “Indians have lost the art of dreaming big” (Piramal, 1996). Be it an MNC that has made it to the Fortune 500 or a nation that is at the apex of global dominance, thinking big is quintessential. However an attitude that has existed amongst the people has been to stay satisfied with whatever one possesses. The attitude of “Sab Chalta Hai” exists among the people in our country and must be relieved. Eminent personalities including J.R.D.Tata and Jawaharlal Nehru have been irritated by this “Sab Chalta Hai” attitude of people. If India that aims to achieve its status for global dominance must not be satisfied with good, as James C Collins says, “Good is the enemy of great”.

Superstitions and Ascriptions to the Supernatural

Ascription of the outcome of events in the life of individuals to supernatural forces and “actions in past births” are evil effects that still remain among our people. These ideas probably made sense of life at an age when science and the spirit of enquiry were still nascent. Their deep rooted nature in the Indian society is clear from how technology, which is the manifestation of scientific knowledge and techniques has married these existing customs in the form of television programmes on horoscope, fortune messages on SMS, and performance of caesarean sections so that a child is born at a specific ‘auspicious’ time (Singh, 2007). Crimes against women and refusal to take medicines are still observed in parts of the country. Any nation which aspires to dominate the global stage in the 21st century needs to be forward looking and promoting scientific enquiry which starts at the level of individuals and communities. While India has covered significant ground in this direction there is still a long way to go.

The Global Indian Manager

According to an Executive Director of Tata Sons, (Gopalakrishnan, 2002) Indians are naturally adept at multi cultural tasking, a key component of global dominance. An Indian dons various roles in a day that contrast each other. At home, he speaks in his native language, chants a few prayers, and gets ready for work. At work in his natty suits he speaks quite fluently in English in a board meeting. Equally at ease is the same person in casuals at a pub in the evening. The strong cultural bond that has nourished Indians over the years makes Indians naturally adept at multi-cultural tasking. However, the constant tirade against opportunities for people belonging to a particular community, religion or region induces hatred and strips Indians off the natural advantage that they possess. The vehement tirade against Sonia Gandhi by the BJP inducing xenophobia (Deshpande, 1999) or the violence induced by Raj Thackeray against students appearing for railway examinations in Mumbai from Uttar Pradesh and Bihar (Raj Thackeray chargesheeted in railwa examinees assault case, 2009) are shameful to say the least. These are definitely aspects in which Hindustan is misused, that India must quickly get rid on its march towards global dominance.

The Easy Way Out – Caste based reservations!!

Indians are well known for taking the easier way out in most situations. The way reservations have been implemented in education, employment, and politics is a case in point. While we feel that reservations are very essential for providing opportunities to sections of society who have been socially discriminated against for centuries, currently, it has become a prize to be secured in competitive politicking. In the long run, when the communities for which reservations are provided reach the equivalent of the other communities, it might be nearly impossible to retreat the policy in India’s democratic framework. Also, something that is intended in reducing the differences between caste groupings ends up reinforcing the same. The current method of implementation has been done even when better alternative methods based on economic parameters suggested by scholars such as Yogendra Yadav (Yadav & Deshpande, 2006)aren’t even taken up for discussion by the decision makers. From these larger issues to smaller ones such as bribing a traffic constable to escape paying a fine, the whole system is caught up in a bad equilibrium.

Conclusion

Based on the above arguments, we conclude that to attain the status of global dominance, there is a need to shed the ill effects of Hindustan. India has tremendous potential to tread the path towards global dominance, however there is a need to sustain the advantages and leave the ill effects of Hindustan behind to suit the modern world.

Creative Freedom in Indian art should prevail over moral policing by Indian regulators

Posted by Team Manfest On January - 9 - 2010 10 COMMENTS

In the hour of crisis, the mortals find solace in spirits and the men search for it in Karma. Long revered and worshipped have been those who have stuck to the legion and their common good, paving a path for justice to prevail over the dreary sands of countless deviations. This is how the less travelled path finally emerges after the winds start to settle. In a world where wisdom and opportunism are often considered synonyms, the lesser mortals trudge the easier road in the name of art and culture and vicariously disburse a feeling of creativity and thought leadership. The true leaders emerge out of practice, possibility, preparation, performance and poise. And they are the ones who we look up to as moral guides.

“The central conservative truth is that it is culture, not politics, that determines the success of a society” – Daniel Patrick Moynihan

The rich Indian culture as we often address it has been thriving in the virtues of silence, tolerance and patience, keeping the world in awe of it. More often than not, these virtues have been considered as the chinks in our armour rather than the steel in it, and on every occasion that reckoned, we have shown that these are the strengths that have been ingrained into us. And those who thought the contrary have dropped their jaws in admiration of our moral and ethical victory. But wait for a moment, and take notice of how our virtues have changed the world and we realize that we would be travelling from the Black & White into the Grey. In the name of art and culture, we have been deteriorating to a nation seen more as a threat in this era of globalization than as an asset to this planet. Even when the whole world was applauding our ‘Slumdog’, there was no manifestation of the pride that we take in our economic and social development- They know that we are the ones who know the least about ourselves, and how true it is? Mockeries have been made of our Gods in the name of liberal arts and drama, and we have seen the ones we worship, reduce to mere characters and colours. Ironically and truly so in spite of all that we have achieved, we are always in a transition as we fail to accept that we are the leaders, because the rest show us a shaded mirror. Alas! We fail to accept that we are the gatekeepers of what our tradition has endowed us with. Who gave us the right to insult the conviction of the Mahatma, who gave us the roadmap that was paved with the alloy of culture, virtues and development, and whose last words were Hey Ram? A piece of art can at best make a statue of him, and to save time we choose to hire someone who could clean the morning ablutions of the birds on that statue, specially a day before 2nd October. However, we love to see more and more of him, albeit only in the form of currency notes in our account. Wait, ponder and decide- Where are we heading?

“Every age, every culture, every custom and tradition has its own character, its own weakness and its own strength, its beauties and cruelties; it accepts certain sufferings as matters of course, puts up patiently with certain evils. Human life is reduced to real suffering, to hell, only when two ages, two cultures and religions overlap.” -Hermann Hesse

As we try and swim to the opposite bank, we nominate the sergeants of our moral values and culture and inadvertently wrest the initiative with them- the onus to be caretakers of what we consider unimportant and secondary. Yes, we do. Yes, we are the ‘Cut, Copy, Paste Generation’, yes we don’t cast our votes ( for us the PAN card and Passport are the ID proofs and not the Voters Card), yes we are the next- gen, Yes We are proud of what we are, although only passively. Two pegs of scotch down in an Institute party and we shall be able to digest all of this and much more, to be ready to dance to the mindless music of the DJ and pass out all of it the next morning, just to rush to the morning lecture . Yes we are the cream, which melts faster than it freezes. Uggh! We are…We are…! So what if someone distorts the culture in the name of moral policing on Valentine’s Day, I have to run fast to grow and compete. Being liberal is in, being traditional is obsolete (Oh come on! Did you not see my ethnic couture in my friend’s wedding?)  Twist, malign and tolerate and if can’t do any of them, then just have another peg, we have bigger problems to tackle with our global view and competency.

Settling for the least worse is accepted in the garb of ‘Making the Best Choice’. The ‘Trickle Down Effect’ is hazardous for the society and our inherent Indian tradition, for what trickles down is just the residue of what we pour. Responsibility is for the capable, and liberalism is for the enlightened. In effect, where are we, still in a tryst. It makes sense to hold on to the previous step before we have put our foot firmly on the next- and the previous step is that of our rich tradition. It is and will always be the first step that we climbed and the firsts are always cherished and protected. To put it in perspective, let us analyze the current position of our culture in the modern context through a SWOT or a VRIO framework and the result would be evident. Regardless of what we do and where we reach, we shall always be Indians – then why not be proudly so with firm belief in our art and culture. For this very reason, we need to be the guardians of it. Awakened as we think we are, it is our duty to present it as our embellishment and let no one dare distort or misrepresent it. The regulatory authority is within each one of this awakened individual.

We often love to hear one of our friends whistle our favourite tunes, however whistling the same on the road may invite lesser appreciation. Thoughts, actions and their derivatives may be right in one context and detestable in the other. All of us have an equitable right to this nation, and hence an equitable responsibility towards each other. The reason why someone is allowed to indulge in policing is that we create a need for it. It is very much like asking the fox for the keys to the henhouse.

Awakening and Enlightenment are better alternatives to policing, whether that is for behaviour or for actions. The evolution of the world has seen the end of both extremes and the fittest remained so, because they could survive all conditions. No Government will ever be empowered enough to adjudicate if the citizens are not empowered to decide- A government is at best a sample of the large population. Paramount it is and will always be, to accept each other with clear definitions of public and private space. The regulation has to evolve from within, and in a manner that we don’t transgress these definitions.

Who is John Galt? As we out- trench and unleash our liberal self within clear space but demarcated boundaries, we would stand tall to discover him within us. So on, so on, so on….till then, who is John Galt?

The IPL – Another nail in India’s Olympic coffin

Posted by Team Manfest On January - 9 - 2010 12 COMMENTS

India, a nation of 1.1 billion people, has been always disproportionately unsuccessful at the Olympics. At the Beijing Olympics in 2008, host country China picked up 100 medals (51 golds), even a small country like Belarus managed 19 medals to India’s one gold, and two bronze — its highest tally ever1. India’s ratio of medal tally to wealth(GDP) is a mere 0.000119. The main reason attributed to this is India is a one sport nation. People of India treat cricket as a religion, as their fifth Veda, akin to a national game though it is not, thanks to its Board, Government, sponsors and the media. IPL, a new and exciting brand of Cricket has proved an enormous success raking in 10,790 crore2. But it has achieved this at the cost of other sports.

Economics of IPL

IPL bagged $714 million from sale of franchisee rights, $1.02 billion for sale of broadcast rights and $ 42 million for title sponsorship 3. Add to these the individual sponsorships for each team, the figure is mind-boggling. “IPL as a format and venture presents an opportunity for involvement which runs deeper than mere sponsorship” says a Reliance Official.4 “I invested in cricket because there was an opportunity available. I think investment in sports should come through a sensible business plan. I think a lot needs to be done for propagating sports among youth.” said Shah Rukh Khan. 5 IPL is a very commercialized venture whereas Olympic Games are played for the sake of national pride. So the Government and private sponsors have to provide the funding for development of these sports.

What makes IPL so attractive

The huge stakes involved in IPL has attracted the imagination of Indian masses like never before and any youngster who watches this is more likely to engage himself in cricket rather than other sports. The maximum remuneration for any player is around $1.6 million. The quantum of money involved can alone be the most dominant motivating factor for a youngster to pursue cricket. The close interaction of the entry level cricketers with international and star players acts as additional motivation factor to work hard and improve their competitiveness. The unavailability of such attractive options in other sports is attributed to the preoccupation of Indians to cricket.

Cricket-obsessed media

IPL-2 got TRP rating of 4.177 while Neo Cricket, a Cricket-only channel has clocked healthy TRP ratings of 5.497. Contrast this with the Olympics Broadcaster Doordarshan which got a mere Rs. 41 crore as revenues8. Obsessive attention given to cricket reduces the time given to other sports like hockey where India has rich Olympic record. Saina Nehwal rues that news channels cover even the birthday parties of young cricketers whereas little attention is given to other sports.18

Multiple world billiards champion Geet Sethi, a multiple Billiards World Champion remarks about IPL, “The fanatical obsession called cricket has just joined hands with the film world to create a new pastime (I consciously refrain from calling it sport) where it will gain even further visibility and media hype fuelled by both cricket and Bollywood. This in turn will almost certainly divert sponsorship which could have gone to disciplines with a genuine chance of winning India that Olympic gold.” 9

Lalit Bhanot, secretary of India’s athletics body, believes the IPL will impact other disciplines in the long run. “Sponsors will like to partner the premier cricket league for visibility; it will no doubt affect all other sports in terms of funding.” 9

Instances of other sports getting overshadowed by Cricket

A bronze medal by Karnam Malleswari during Sydney Olympics 2000 for weightlifting, the win by Gopichand in 2001 in All England Badminton Championship were all overshadowed by cricketing feats of Harbhajan Singh when he took a hat trick, Anil Kumble’s 10 wicket haul and VVS Laxman’s 281 against Australia10. Indian hockey players had to go on a hunger strike in order to voice their opinion about equality in compensation when the Indian cricket team won the T20 World cup. 11

BCCI and the Government’s initiatives

India now provides between 60% and 80% of world cricket revenues.12 IPL has been such a hit that $225 million has been set as the base price for franchises in the forthcoming IPL13. BCCI has announced that it would grant the All India Football Federation (AIFF) a sum of $5 million for the development of Indian football. 14 It is however a tiny share as compared to cricket’s budget.

The Indian Government has started taking measures recently to recognize the importance and uplift the other sports in the following ways15:

  • Scheme for preparation of indian teams in all disciplines for commonwealth games intiated
  • Pension to medal winners doubled
  • Sports and games disciplines which are affordable and involve mass participation like hockey, football, volleyball, basketball etc. were upgraded to ‘Priority’ status entitling them for increased financial assistance.

However given the lucrative offers of IPL, sportsmen are less likely to be attracted to other sports.

It’s an unequal world

Let’s face it. Everything in this world is unequal. Sponsors will support sports that sell. They are not for charity. Media will only focus on things that will gain them higher TRP ratings. Fans will be more for a sport in which the country keeps winning. Attractive prizes given in IPL and the riches that the board rakes in are as per law of nature. Or is it really?

Like in Business, in sports also monopoly is unhealthy. It is plain cruel if worthy sportsmen are denied Olympic medals due to lack of support. So Government has to carefully avoid the monopoly of cricket and steer the funds and infrastructure towards other sports. Australian Government is able to successfully grow a culture of sports and though Australia performs well in Cricket, it comes within top 5 in Olympics. The same cannot be said about India because Government does not encourage other sports like Australia does. In Australia, there are tremendous incentives for students to pursue sports as a career like scholarships in sports, coaching facilities, importance given to sports that is equivalent to academics, funding from government and other sources, university and state level training facilities in the form of sports complexes. In India, the Indian Athletes Training centres are not sufficient in getting to the grassroots. Anju George says: “If an Indian manages to win a medal in Olympics, it will be only because of her hard work and not due to any help from the government authorities.”16Moreover, recognition is given only when a player wins a major tournament.

Issues plaguing Indian Olympics

Appalled at the lack of infrastructure, independent groups like Olympic Gold Quest have come up with measures to support talented athletes and provide them with funds and infrastructure34.  However, such support structures are limited to a few sportsmen.

Indian athletes have won a total of only 17 medals so far.”I don’t think we’ve got the infrastructure to keep building champions like other countries do,” Bhupathi said17. “Countries with much smaller populations, like Croatia, or Germany, etc, they’ve got the right coaches, the right training, they’ve got teams travelling with sports psychologists,” he said. “We lack quality coaches in India. Our coaches are just good enough for the beginners,” says shooter Manavjit Singh18. “The system is slow and lethargic. Everything takes a lot of time to materialize. It requires a lot of effort to get anything done,” says Anjali, the former World No. 1 shooter18.

The way forward

If good infrastructure, coaching and funding are provided for other sports, more people will be attracted towards other sports and there will be all-round development.  When people start winning, more interest will be generated and more successes will follow – Chess in India is a case in point. This will force the media to cover other sports.

Moreover, average middle class parents in India stress their kids to focus academically because it guarantees them a career. If sports is developed as a viable alternative, this stress will go down and more Olympic medals are possible. The riches in IPL has made Indians believe that it is an alternative career option. But the other sports do not inspire such belief yet.

Conclusion

Soccer rules Europe while Basketball rules USA. But these countries have been careful not to let any one sport completely dominate other sports. India should also make sure that IPL, in general Cricket, does not overshadow its Olympic dreams. No matter how successful IPL gets it cannot equal the national pride when an Indian is awarded the Olympic Gold medal. IPL, though it does not directly affect other sports, its growth has proved to be another nail in India’s Olympic coffin. IPL is commercialising sports and growing at a frenetic pace. If action is not taken to revive other sports, it will spell the death knell of India’s Olympic dreams.