Saturday, December 13, 2008

why osama resembles bhindranwale

The Rediff Special/Colonel Anil A Athale (retd)June 09, 2004
On the eve of the 1971 war between India and Pakistan, I was posted in Punjab. My battalion of Gorkhas was located at Ambala and had the task of defending a section of the border north of Amritsar.
I had never been to the Golden Temple and took the first opportunity to visit the shrine. Being a compulsive smoker, I had a packet of cigerettes on me. At the entrance itself I was told to deposit the packet in the locker and then go ahead.
During my first visit to this holiest Sikh shrine, I heard the shabad kirtan (devotional songs) being sung from the first floor of the Harmandir Sahib. Being an avid fan of Indian classical music, for me it was a treat to listen to some of the finest music, that too free.
From this time onwards, whenever I was passing through Amritsar I made it a point to visit the Golden Temple and spend some time there. It was always a rewarding experience.
It was quite common to see, at that time, that Hindu visitors to the Golden Temple far outnumbered Sikhs on a normal day. In my army days most of my close friends were Sikhs and therefore one was quite familiar with Sikh rituals and often visited gurdwaras as a matter of course on Sundays.
But less than 13 years later, I found myself again in Punjab, this time on the unpleasant duty of dealing with terrorists who thought that pulling out Hindus from buses and gunning them down mercilessly was their highest religious duty. As a participant in the painful but necessary Operation Bluestar, I can vouch that when General K Sundarji said that the Indian Army entered the Golden Temple with a prayer on its lips, he echoed the sentiments of all of us.
Today, when the memory of those nightmare years seems distant, there is an attempt to give a very different colour to the whole episode. Gulzar did that quite effectively with his film Maachis. The tragic consequences of that were seen in the suicide of a Sikh police officer (former Tarn Taran superintendent of police A S Sandhu) who had dealt with terrorism. It is therefore time for all Indians to understand the truth that led to a ten-year bloodbath in Punjab and not attempt to glorify the terrorists under the garb of human rights.
Most analysts agree that the troubles in Punjab began with the Nirankari-Sikh clash that took place on April 13, 1978, in Amritsar. The Nirankaris are a heretic cult that violates the basic tenets of Sikhism and yet claims to be part of the Panth. Forty protesters died in that clash and a feeling spread that the government was supporting the Nirankaris. It is noteworthy that at that time Punjab was being ruled by the Akalis. The violent movement that began initially as an anti-Nirankari agitation soon turned against the government and, later, Hindus.
The origins of the Punjab crisis and Sikh separatism go back to the British days. As in the case of Muslims, giving Sikhs a separate identity, not religious but political, was a part of the divide and rule policy. But the trauma of the partition of Punjab did much to wash off that myth and the Sikhs returned to the Indian mainstream.
The Akalis often used the slogan of 'Sikh Panth in danger' (not unlike the Muslim League's equally false and disastrous slogan of Islam in danger!) to garner votes, but consistently failed in their attempts. Sikhs, by the dint of sheer hard work, prospered and came to occupy a dominant position in many fields, including in the armed forces. A distinction needs to be clearly made between a distinct religious identity and political separatism based on religion.
Why then did Punjab erupt in the 1980s?
Several explanations have been offered. Some attributed it to the deprivation of the masses in spite of the Green Revolution. Others felt that the Akali frustration at their inability to attain political power (as the SC/ST Sikhs and Hindus combined to support the Congress) was at the root of the violence. Machinations by Indira Gandhi, who was credited with having deliberately created Sikh militancy to gather frightened Hindu votes, has also been floated as a serious theory.
But none of these explanations suffices to understand the widespread support that militancy enjoyed at its peak. To understand this phenomenon, one has to go back to the decade of the 1960s and the Green Revolution.
In 1965, when the US effectively used food aid to browbeat India, Indira Gandhi and her dynamic minister in charge of food and agriculture, C Subramaniam, fashioned a strategy to attain food self-sufficiency in the shortest possible time frame. The irrigated lands of Punjab, Haryana, and Western Uttar Pradesh were targeted for application of miracle seeds, fertilizers and mechanisation.
The strategy succeeded and India became self-sufficient in foodgrain. But rising incomes and mechanisation brought in their wake social tensions.
In the hard work that intensive agricultural operations involved, the turban and the beard were seen as a hindrance. Sikhs in large numbers took to trimming or even shaving their beards and cutting their hair, both against the tenets of the Khalsa (pure) Panth. The hair and the beard are not mere external symbols for a Sikh, but a major part of his identity.
Worse, many took to smoking, a taboo in the Sikh ethos. A district like Amritsar, which has a majority Sikh population, became the highest revenue-earning district for cigarette companies. 'Paani piyo pump da te cigarette piyo Lamp da' was a catchy slogan that linked the smoking of Red Lamp cigarettes with water from the 'pump', subtly linked this symbol of the Green Revolution with smoking.
In travels through Punjab as an army officer, one was always welcomed with open arms. It was also common to share the charpoy and lassi with the farmers. During all these encounters, one frequently heard a lament from Sikh elders that at the rate at which people were deserting the faith, in a few years there would be no Sikhs left in Punjab.
The relationship between Sikhs and Hindus was such that the moment a Sikh shaved his beard and cut his hair, he became a Hindu. Sikh society felt insecure at the assault of this 'modernisation' and feared for the survival of its identity. This feeling was not confined to the villages but was commonplace even among the Sikh intelligentsia.
In this situation of fear and foreboding arrived Jarnail Singh Bhindranwale with his single-point programme of strict adherence to the Sikh symbols. His campaign against trimming of hair and shaving of beards found a groundswell of support amongst the Sikh masses. And he enforced his dictates with ruthless force.
His violent methods brought him into direct confrontation with the State and soon militancy began in Punjab.
But 'modernisation', the real threat, is a formless entity. So the violence first targeted the Nirankaris, then the government machinery, and then the Hindus. In the final stages, the terrorists turned increasingly against the Sikhs themselves and became predatory. It is at this stage that the militants lost support and were finally overcome towards 1993.
The situation was tailormade for Pakistan. It intervened with a generous supply of arms and ammunition and mayhem began in right earnest. The US and the UK also saw in this an opportunity to destabilise India, their long-term goal during the Cold War. The West used expatriate Sikhs as an instrument of its policy and gave shelter and support to all manner of terrorist groups.
Indira Gandhi saw this as a direct challenge to India's very existence and eventually decided to act, leading to Operation Bluestar. The rest, as they say, is history.
There is an uncanny resemblance in this to the Islamist terrorism that the world is witnessing today. Like Sikhism then, Islam today is afraid of modernisation and Westernisation. This also explains the wide support terrorists enjoy in the Muslim world. Osama bin Laden is a spitting image of Bhindranwale.
Like Sikh terrorism, the current wave of Islamist terror will subside once the terrorists turn predatory (as their recent attacks in Saudi Arabia and Pakistan indicate) and lose popular support. Only then will the world be able to deal with this modern scourge. Punjab does offer a valuable lesson.
Image: Uttam Ghosh
Operation Bluestar, 20 Years On
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Recent Specials
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The Rediff Specials

cont..........

The Rediff Interview/Lieutenant General Kuldip Singh Brar (retired)June 04, 2004
Lieutenant General (retired) Kuldip Singh Brar commanded Operation Bluestar 20 years ago, when the Indian Army entered the Golden Temple to remove the terrorists who had turned the Sikhs' holiest shrine into a private bunker. It was one of the Indian Army's most difficult operations, and undoubtedly the most controversial.
In the second part of a four-part interview with Deputy Managing Editor Amberish K Diwanji, General Brar looks back at the compulsions that forced him to send his men into the Temple:
Part I: 'Pakistan would have recognised Khalistan and crossed the borders'
Were you given a timeframe within which to act?
The fastest possible. When I met my CO [commanding officer] Lieutenant General K Sundarji [then General Officer Commanding, Western Command; he later became Chief of Army Staff] at Chandimandir [in Chandigarh], he told me he would fly down in 48 hours to hear my first briefing. Time was at a premium.
So we moved all night and got our forces into Amritsar and then the Temple.
What about a siege to flush out the militants?
A siege is easily spoken of. A siege is only effective when you are able to make the people under siege unable to continue to stay under siege. That means they have no water, no food, no electricity, no ammunition and are forced to surrender or to capitulate.
But, in the Golden Temple, there is no shortage of water. There are any number of wells; besides there is the Sarovar [the Holy Lake on the premises of the Temple]. There are a number of generators. There is no shortage of food -- every day, thousands of devotees flock to the Temple bringing with them food and provisions, so there is enough food to feed a few hundreds of thousands of people for over a month [food is served free of cost to the devotees every day in the Golden Temple; this food is made from offerings by the devotees], and here we are talking of forcing the hand of a few thousands…
The other problem of a siege was that, once laid, word would have spread to the hinterland within 24 hours. Every villager in Punjab would be told the Golden Temple was under siege. In those days, every rumour or fact was exaggerated; such messages are sent out emotionally, thus surcharging the atmosphere. People would have picked up their swords or lances and hundreds of thousands would have converged on Amritsar and the Golden Temple and besieged the army that was besieging the Temple! We can't fire at these people, and we can't surrender, so what are we to do? We didn't want such a situation to arise.
After asking the militants to surrender [on June 5], we waited and waited. It soon became 8 o'clock, then 9 o'clock and was nearing 10 o'clock. We were worried. We had to finish the operation before dawn [around 5.30 am] for fear of mobs amassing around the Temple. The news would spread fast that we hadn't cleared out the militants, then we would be under siege. People must understand these things.
It is very easy to say to we could have laid siege, we could have postponed it for a day or two, or carried out the operation without the loss of life. It is only we, who were there at that time, who know what our limitations and needs were. Our soldiers went into what you would call a death trap. They had no cover, they were out in the open [when moving from the entrances to the various rooms and sections where the militants were hiding]; in contrast, the militants had barricaded every window and were heavily armed…
So ultimately you had to finish off the operation in 48 hours, because you feared Pakistan coming in?
That was the biggest fear. It had to be a surgical operation and one that caused the minimum damage with least loss of blood but it had to be as quick as possible because once word got around, there would have been a flood of people… like the Brahmaputra. When the Brahmaputra floods, there is nothing you can do. No amount of sandbags can stop the flood.
What about the innocent pilgrims inside?
We were to go in at 7 pm [on June 5]. Since afternoon, we used the public address system to keep asking those who were inside to surrender. We told them we don't want to come in, we pointed out that there were pilgrims inside, there were women and children inside, and we told the militants that if they want to fight it out, do so but for God's sake to at least send the pilgrims, the old, the young, out safely. But until 7 pm, nothing happened.
I asked the police if they could send emissaries inside to help get the innocent people out, but the police said that anyone sent inside would not come out again. They said the militants were no doubt keeping the pilgrims as a sort of trump card, believing their presence would stop the army from coming in. Eventually, about 100 sick and old people were let out, but not the rest. They told us the others were not being allowed to come out.
I feel sorry for the innocent people who died in the crossfire.
In the fight, you were dealing with a former superior, Major General [retired] Shahbeg Singh [a highly decorated army officer who, after being dismissed from service for financial irregularities, became a close accomplice of Jarnail Singh Bhindranwale].
Yes, and he knew something was up because the day before, I had walked around the Golden Temple in civilian clothes and seen the militants and the barricades. And he saw me taking my rounds so he knew something was up. We had gone into Bangladesh together.
Was he a formidable enemy?
He was a very seasoned soldier who won the Mahavir Chakra [India's second highest bravery award in war] in 1971, who had to leave the army for whatever reason. He was a highly emotional person and had joined with Bhindranwale. Perhaps he believed that with the pilgrims inside, the Indian Army would not come in but he never realised there is always a limit to how much any country can take.
How difficult was the operation?
It was in the middle of the night. One cannot see and one is out in the open and under fire from the militants holed up behind barricades. Plus I was constantly screaming at the men inside that come what may, they were not to fire in the direction of the Harmindar Sahib [the sanctum sanctorum where the Sikh holy book, the Guru Granth Sahib, is kept during the day] and that even if there was fire from that side they were not to return fire. Later, there were a couple of bullet holes in the Harmindar Sahib, which could have been the militants' fire or odd stray fire from the soldiers. Otherwise there was no damage to the Harmindar Sahib.
Even at the Akal Takht [seen above], there would have been no damage. Our soldiers tried to lob stun grenades [which release gas that momentarily stuns people without causing any collateral damage]. But the Akal Takht was completely sealed and there was no way to lob the stun grenades inside. And when our soldiers were crawling towards the Akal Takht for some commandos to get in, they were being mowed down by enemy fire. They were being killed by the dozen, it was a terrible sight.
As you know Bhindranwale had shifted to the first floor of the Akal Takht. How did the Sikhs allow that? It was against the religion's tenets. The Akal Takht is where the Guru Granth Sahib [the Sikh holy book] is kept at night after being taken from the Harmindar Sahib. No one is allowed to stay above the Guru Granth Sahib, but Bhindranwale and his immediate accomplices were living on the Akal Takht's first floor.
The members of the SGPC [the Shiromani Gurdwara Parbandhak Committee which has managerial control of the Golden Temple and other gurdwaras in India] were living elsewhere in the Temple. They had long lost control of the situation and had no say in what was happening. The writ of Bhindrawale ran not just in the Golden Temple or in Amritsar but throughout Punjab.
Why were the tanks brought in?
Tanks were brought in late to illuminate the Akal Takht, so that the soldiers could see where they were going and to momentarily blind the militants in the glare of the lights. Those who have seen these huge halogen lights know these lights fuse in 20, 30 seconds, so the tanks had to keep going in and coming out. It was not an easy task at all.
Next: 'You are not acting against any religion but against a section of misguided people'
ALSO SEEPart I: 'Pakistan would have recognised Khalistan and crossed the borders'
Image: Rajesh Karkera
Operation Bluestar, 20 Years On
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The Rediff Interviews

terrorism......issues,bluestar operation,interview in rediff

The Rediff Interview/Lieutenant General Kuldip Singh Brar (retired)June 03, 2004
When military officers retire, they move into what the armed forces euphemistically call 'civilian areas,' where the likes of you and me live. But when Lieutenant General Kuldip Singh Brar retired, he had to reside in the cantonment area of Mumbai, in a bungalow guarded by a huge black gate, with army soldiers and policemen on watch round the clock.
Brar is probably the most protected army officer today, in service or retired. And all because one fateful night, 20 years ago, the then major general commanded Indian Army soldiers who entered the Golden Temple.
Operation Bluestar, as the mission was called, to flush out militants from the holiest Sikh shrine [on par with the Vatican for Catholics and the Kaaba for Muslims; the Hindu faith has no single equivalent to the Golden Temple] remains till date one of the military's most difficult missions.
The army had been ordered to destroy the movement to create Khalistan and to cleanse the Golden Temple of all the militants hiding there, including the leader of the militants, Jarnail Singh Bhindranwale.
June 6 marks the 20th anniversary of Operation Bluestar, the codename for the operation to enter and capture, dead or alive, the militants and terrorists who had turned the Golden Temple into their fortress.
At his home in Mumbai, the retired general agreed to journey back to that difficult time in an interview with Deputy Managing Editor Amberish K Diwanji. The first of a four part interview to understand the logic behind the Indian Army's most controversial operation.
Twenty years later, how do you look back on Operation Bluestar?
I look back in sorrow that it had to happen.
Apparently, the government had no other recourse. The events in Punjab had reached a complete breakdown.
The Sikh militants were in total control of the state machinery. There was a strong feeling that Khalistan was going to be established at any time. [Jarnail Singh] Bhindranwale was being seen as a prophet; he was making very strong speeches against [the then prime minister] Indira Gandhi and non-Sikhs; and trying to send a message across to the rural areas that the Sikhs are being given second-grade treatment and that it is high time we formed our own independent state of Khalistan. There was a strong possibility of Pakistan helping them and I think there was the possibility of a Bangladesh being repeated.
I can't comment on the inside of politics, but I assume that after taking everything into consideration, the prime minister and the government decided this was the only course of action left if we were to keep this country together, to prevent its fragmentation, to prevent Khalistan. And having seen reports of about 2,000 militants inside [Amritsar's Golden Temple] with any number of machine guns, different types of weapons, it was clearly beyond the capabilities of the police force to flush out the militants from the Golden Temple; the task had to be entrusted to the Army.
As a soldier, if I am given an order, I obey it and 20 years later, all I can say is I wish the situation had never risen that such an order had to be passed. And God forbid we have to do it again.
How did you motivate the soldiers?
No soldier enjoys or cherishes taking up arms against his fellow citizens. But they also know that there are many situations, be it in Nagaland, Mizoram, Assam, Tamil Nadu, Punjab or Kashmir, where the Army has to be called in. When the Army is called in, we don't think about of religion, caste, creed, ethnicity; we are sworn to the Constitution of India, our primary role is to safeguard the national security of the country and we have to act on orders to do so.
Why did the army go in just after Guru Arjan's martyrdom day, when the number of devotees is much higher?
That was a coincidence. You must try and understand that perhaps the government had just about three or four days to carry out the operation. We had some sort of information that Khalistan was going to be declared any moment. You try and figure out that one fine day, Bhindranwale declares Khalistan and hoists the Khalistan flag...
The Khalistani currency had already been distributed; Pakistan was pumping in money, they wanted a strong part of India, which is Punjab, to secede and for India to disintegrate.
Can you imagine if one fine day Khalistan has been declared, what would have happened? Pakistan would have recognised Khalistan and crossed the borders to support Khalistan, like we did in Bangladesh. The Punjab police might have crossed over to support Bhindranwale...
Did you fear that happening?
Of course! After all, emotions then were very high. I am not saying that the entire Punjab police would have crossed over, but a large section might have. If there could be desertions in the army, then the police, who were in Punjab, who were privy to Bhindranwale's speeches, might have [also deserted]; they were also emotionally charged by what was happening.
Moreover, Hindus and non-Sikhs were leaving Punjab while Sikhs in Delhi and Haryana were moving to Punjab, causing further fear and apprehension. The law and order situation in such a case would have been beyond the police force and difficult for the Army.
Would we have been on the border to stop Pakistan? Would we have been working on maintaining law and order with huge migrations underway? Would we be disarming the police and militia for fear that they might go over to the other side?
It would have been a task well beyond the army. So whether we could have waited a few days is something the politicians can best answer. But the impression given to us was that we had very little time.
Next: 'There is always a limit to how much any country can take'
Photograph: Jewella C MirandaImage: Rajesh Karkera
Operation Bluestar, 20 Years On

Thursday, September 4, 2008

shri R Gopalkrishnan Executive Director,TATA SONS speech

It is an honour to deliver the Sultan Singh Jain Memorial Lecture. From what I have read about the late Shri Sultan Singh Jain, he was a great entrepreneur and visionary, and contributed immensely to the management movement in the country. He belonged to the generation of people who helped free India to build up its basic repertoire of skills and capabilities. It is a fitting tribute to hld a memorial lecture in the name of such a pioneer.
Most of us try to understand a country through economists, historians and tour guides. I wish to present developments in India from a professional manager's perspective, which concerns itself greatly with the context of issues and its influence on the decision-making and strategic mindset. Nobel Prize winner Daniel Kahneman had studied the fuzzy way in which people in their daily economic lives perceive things. Mine is an attempt in the same direction (minus the Nobel Prize). It is flawed in its own way, but hopefully, it is different from the more common viewpoints encountered. Insaaniyat means humaneness, nobleness towards human beings. That is the central goal of all development, ushering in change with a human face, whether it is India, Zambia or South Africa. India is going through a tremendous experiment in economic and social development. What one observes is work-in-progress and it needs to be viewed in that perspective.
In management-speak, the term 'strategic intent' is used to connote three dimensions1 — a sense of destiny, direction and discovery. Put simply, this is tantamount to mindset. To truly understand what is going on, one needs to appreciate the changes in mindset, because that is what precedes agendas and actions. I will talk about the mindset at three inflection points in the last seven decades of India's development.
A. Mindset around independenceB. Mindset after central planningC. Entrepreneurial mindset ahead
A. Mindset around independenceIn 1930, Will Durant2 speaking about India noted that "the economic drain out of resources of the land… has reduced India to a land of famines more frequent, more widespread and more fatal, than any known before in the history of India or of the world". Not surprisingly, the priority of dealing with food shortage was fully grasped at the time of independence in 1947. At that time, Amartya Sen's thesis was not known3, i.e. that no substantial famine has ever occurred in any independent country with a democratic form of government and a relatively free press. However, it is entirely true to state that during the last six decades of independence, the exercise of political rights by the people of India has put pressure on the government, compelling it to respond to the acute suffering of the people. Potential famine has been prevented in India, often by creating countervailing employment.
It would be incorrect to derive the impression that avoidance of famine has been India's major achievement. The purpose of recounting the background elaborately is to illustrate how the mindset of a nation can be shaped by its experiences and images.
In the course of the freedom struggle, a nationalist economic platform had emerged in the country4. The leadership was acutely aware of the need for industrialisation to modernise the economy. The problem that some other countries faced was avoided, i.e. first, inadequate growth of food production and second, a lack of general economic growth due to an undiversified production structure. The nationalist economic agenda worked — imperfectly, but pragmatically.
B. Mindset after central planningAfter independence, the country had little foreign exchange, not much industrialisation and was in quest of an appropriate development strategy. In those days, all intellectuals were smitten with socialism, and so was Nehru who was deeply impressed by his visit to the Soviet Union. The nation embarked on a centrally planned, socialist model of development, but fortunately co-existing with private enterprise. Unfortunately, the results were not good enough.
It was in 1991 that liberalisation began in most peoples' reckoning. Intuitionally, I have felt that liberalisation in India began in the 1980s with Mrs Indira Gandhi. The firmly shut door was eased open in 1981, but swung wide open later in 1991, I feel. She probably had felt scarred and battered by the experiences of controls and the planned economy to which she was witness.
As has been observed by The Economist5, the long-term growth in India accelerated from 3.5 per cent up to the 1970s to 5.4 per cent in the 1980s and 5.9 per cent in the 1990s. Expressed more dramatically, it took 57 years to double per capita GDP in the 1970s, now it takes only 18 years6. Due to the reduction of population growth, the per capita GDP has more than trebled from 1.2 per cent in the 1970s to 3.9 per cent in the 1990s. So the question does arise: when exactly did the transition to high growth happen? I came across a paper that demonstrates that the transition to high growth occurred around 1980, a full decade before the 1991 liberalisation to which much credit (and criticism) accrues.
Dani Rodrik and Arvind Subramanian7 argue that the growth transition of the early 1980s was grounded in an impressive increase in productivity. Amazingly, the total factor productivity in the period 1980-1999 surpasses that even of East Asia in the first 20 years of the East Asian miracle. So what caused this sudden jump in economic growth and productivity? Through their analysis, they rule out factors such as external liberalisation, public investment, green revolution and internal liberalisation. They explain the transition through certain elements. First, an attitudinal change on the part of the government. Second, this shift was pro-business rather than pro-competition. Third, these small shifts elicited large productivity responses because the Indian economy was operating well below its potential. Lastly, the already developed infrastructure for manufacturing played a key role in growth due to the stimulation of these factors.
So to summarise, I feel very persuaded by the argument that there was a mindset change around 1980. Just as there was a pre-independence mindset fashioned by the legacies of colonialism, there was an inflection in 1980, fashioned by the legacies of over 30 years of a centrally planned economy. Thirty years, in which a whole generation of Indians lived in a world of idealism, turning to their dreams to escape reality. This was very much in evidence in the social fabric of those times, especially in the films that were being made.
This point about mindset will reappear in the third and last part of my speech. After several years of the deregulation mindset, there is an entrepreneurial mindset driving the agenda for the next future.
C. Entrepreneurial mindset aheadAn entrepreneurial mindset is re-emerging in India. Unlike the generations before them, young Indians are no longer obsessed with India's poverty, but with its future. This gives India a fighting chance. I wish to make four points regarding entrepreneurship:
First, that it has been in the national gene. Second, that the openness to productivity ideas has been a strong driver. Third, that entrepreneurship is contagious and success attracts others in a virtuous cycle, a cycle in which India is now happily placed. And fourth, it is manifested in three examples I will use — in manufacturing, knowledge and microfinance.
It is noteworthy that right from ancient times until 1900, India had been entrepreneurial, outward-looking and had a foreign trade surplus. As late as the 1920s, India was ranked fourth in world trade with a market share of 2.5 per cent as against 0.7 per cent today. Trading took Indians to Africa, the Caribbean, Malaysia and the Arab world over the centuries. Therefore, the first point that I wish to make is that the colonial period apart, during the first few decades of independent India, central planning and socialist policies frustrated the natural entrepreneur — I say, frustrated, not suppressed! That centuries-old DNA of entrepreneurship and restlessness has once again started to find release — that is why Indian businessmen are again in a mood to go out and do business with the rest of the world.
The second point I wish to make is that the adoption of productivity techniques has been a strong instrumentality. For instance, until the 1980s, one would not find global consultants operating in India. Today, you would find McKinsey, BCG, A.T. Kearney, Accenture and several others, serving clients who are hungry to cut costs, improve margins and become competitive. Or look at the area of quality — the first time any Indian company got the Deming award was in 1998, but after that one in 2001, two in 2002 and five in 2003. Same with respect to the TPM Excellence Award — one each in 1995, 1998 and 1999. Thereafter, three in 2000, seven in 2001, eight in 2002 and fourteen in 2003. Of all the software firms in the world certified at the highest level of CMM level 5, three-fourths are in India! So, for sure, one can recognise some of the instrumentalities that have been responsible for the changes that are occurring.
The third point I wish to emphasise is that entrepreneurial behaviour8 is contagious, it creates a flocking mentality, a bit like gold prospecting. Idea entrepreneurs in knowledge industries create new ideas, new segments or entirely new markets. Thus, it was Texas Instruments which first set up a global R&D centre in Bangalore 20 years ago. Several others flocked and today there are 100 global R&D centres in Bangalore. Prior to 1995, venture capitalism was unknown in India. Venture investment in India in 1996-97 was $20 million, last year it reached $1 billion! Thus, there is a mindset change among VCs as well as entrepreneurs.
The fourth and last point is for me to illustrate this entrepreneurship through three anecdotal examples of manufacturing, knowledge and microfinance.
ManufacturingJust a few years ago, the constant refrain of Indian industry to the government was that MNCs would dominate and protection was essential. In December 2003, the finance minister dropped the effective import duty by 5 percentage points. Between April 2003 and March 2004 the rupee appreciated by 9 percentage points whereas Indians have had 50 years' experience with devaluation. Both were noticed, but that was about it. Indian industry went ahead to attend to its agenda rather than crib or complain. Between November 2003 and April 2004, Indian companies have acquired 44 companies abroad worth two billion dollars9. A few years ago, Tata Tea acquired Tetley in the UK, recently Tata Motors acquired Daewoo Heavy Commercial Vehicles in Korea, Bharat Forge acquired a company in Germany, Reliance Infocomm acquired Flag Telecom and so the list goes on.
There is also something happening out there in manufacturing. Moser-Baer, a firm near Delhi is the world's largest optical media manufacturer, and the lowest cost producer of CD-recorders. Its exports are over a quarter of a billion dollars!10 Hero Honda is now the largest manufacturer of motorcycles in the world with a production of nearly 2 million vehicles per year. Hindustan Inks is the world's largest, single-stream, fully integrated printing inks plant with subsidiaries in the US as well as Austria. Essel Propack is the world's largest laminated tube manufacturer with a manufacturing presence in 11 countries. Tata Steel is the lowest-cost producer of hot-rolled steel coils in the world. It has been commented11 that "the key lesson from the economic performance over the past year or so has been the obvious recognition of India's competitive edge in numerous sectors… the Indian economy is rocking and rolling as it mounts a challenge to China's title for the world's fastest growing GDP". A bit hyped, but not entirely wrong, in my view.
KnowledgeThe second illustration of entrepreneurship that I wish to use pertains to knowledge. India has a long tradition of knowledge. The world's first university was established in Takshila in 700 BC. The value of pi was calculated in India, as also the invention of quadratic equations. There are today 250 engineering colleges producing 150,000 engineers out of a world output of 900,000 engineers per year. We have over 900 management schools which turn out about 80,000 management graduates, about similar to the US and much more than say in Britain or Germany.
Admittedly, the quality is very variable, but the best are truly outstanding. The list of multinationals setting up R&D centres in India includes General Electric, Microsoft, IBM, Cisco, Intel, Astra Zeneca, Motorola and Texas Instruments12. Patent applications in India have shot up from 4,000 in 1995 to almost 15,000 last year. The Indian subsidiary of Intel filed for 63 patents engaging 1,500 professionals at its R&D centre in Bangalore in "engineering challenges as complex as any other project on the planet."13 Inadvertently, I should not give the impression that India alone has captured the world's intellect to the detriment of other countries. All I intend to communicate is that we have set out on a new journey in R&D. Sarnoff, an American R&D firm, has correctly argued that of the three requirements for developing an innovation-driven industry, India has two: the technical skills and access to capital. What is missing is an indigenous business model.
So, why are foreign companies, some of whom having budgets higher than India's R&D budgets, moving their R&D in part to India?14 There are several reasons. First, the cost of doing R&D is a fraction of that in the developed world. Second, there is a pretty robust technical educational system, producing some excellent manpower. Third, foreign companies are seeking access to high quality engineers due to problems of availability / costs in their home countries. Fourth, R&D globally has become multi-geographic with innovation-specific patterns of collaboration and diffusion. These regions permit GE to set up the John F. Welch Technology Center at Bangalore with 1,800 engineers engaged in fundamental research for most of GE's 13 divisions15.
So, as you can see, knowledge is a strong entrepreneurial force in India. What about R&D in IT, you may wonder. I did not cover it because IT is better known. Today, Bangalore has 140,000 IT professionals; 20,000 more than Silicon Valley! Research agency, Frost & Sullivan, has reported in April 2004 that the R&D outsourcing market for IT in India will grow at 32 per cent pa, from $1.3 billion in 2003 to $9.1 billion in 2010.
MicrofinanceIt is not just about entrepreneurship being unleashed through manufacturing and knowledge.
Ideas are being generated and experimented with in the most potent area of rural entrepreneurship through microfinance. Microfinance is the small loan given to the poor by NGOs to help start small businesses. The world over, microfinance is synonymous with Grameen Bank, Bangladesh. In India too, organised entities like Share Microfin, Andana, SKS are pioneering microfinance initiatives in some pretty backward areas of the country16.
Now, an Indian-born venture capital specialist from Silicon Valley and a Berkeley professor have conceptualised a sort of Marshall Plan for the reconstruction of rural India. It is called RISC: Rural Infrastructure Services for Commons17. The authors argue that $1 million is enough to provide power, telecom, transportation and financial infrastructures to 100,000 rural people. Hence, with $5 billion, one can create the infrastructure to liberate, infrastructurally speaking, 500 million rural people. The village / community society receives the investment directly on behalf of its 100,000 members. Entrepreneurs in that village society receive their loans directly based on a business plan. The authors feel that even if the economic output is raised by only 10 per cent, the project will pay back for itself. Of course, this is only an idea, but a rather engaging one, you would agree!
ConclusionThe sheer adventure of India's economic growth with social justice and entrepreneurship is staggering, yet providing a human face to development. You can focus on its beauty spots or its warts and moles. And let me state upfront, there are warts and moles: the high fiscal deficit of our government, the urgent need to take development programmes and jobs to rural areas, the inadequate state of our infrastructure and so on. These are real problems awaiting solutions.
However, no such experiment of balancing growth, entrepreneurship and social justice has been undertaken in human history by any other developing country on such a large scale. To borrow from a generalisation of Lord Keynes, one hopes that India is likely to do the rational since most alternatives have already been tried!
In the next few decades, India has the real possibility to be once more at the top of the league tables among the nations of the world, a position she held for centuries, but lost in the last few hundred years. The coming decades will be truly momentous, as the script for India's insaaniyat journey will continue getting scripted. That is why there is a palpable air of excitement in the country.
References
Competing for the Future by Gary Hamel and C. K. Prahalad
The Case for India by Will Durant, Simon and Schuster
Development as Freedom by Amartya Sen, Knopf
The Evolution of Economic Policy in India by P. N. Dhar, Oxford
The Economist, India's Shining Hopes, February 21, 2004
India on the growth turnpike, Vijay Kelkar, October 2003
From "Hindu Growth" to Productivity Surge by Dani Rodrik and Arvind Subramanian, National Bureau of Economic Research, Cambridge, Massachusetts
The Entrepreneurship Dynamic by CB Schoonhaven and E. Romanelli, Stanford University Press
Charge of the Indian Brigade by Arun Shourie, Indian Express, April 2-4, 2004
Listen to the New India by Arun Shourie, Indian Express, August 15-17, 2003
India is feeling good, Aaron Chase, Institutional Investor, March 2004
R&D: India's new star industry by Swaminathan Aiyar, Times of India, April 11, 2004
Innovative India, The Economist, April 3, 2004
From Brain Drain to Brain Gain by Dr. R. A. Mashelkar, Convocation Address at Pune University, December 26, 2000
The Rise of India, Business Week, December 8, 2003
Microfinance, Business World, April 12, 2004
RISC: A Model for Implementing the Bicycle Commute Economy by Vinod Khosla and Atanu Dey, www.kpeb.com
*Sultan Singh Jain memorial lecture delivered by R. Gopalakrishnan, executive director, Tata Sons, on June 11, 2004, at the Meerut Management Association, Meerut.
More Speakers' Forum articles

Sunday, August 3, 2008

kiln ‘slavery’ exposé follows Olympic child labour

k kiln ‘slavery’ exposé follows Olympic child labour report


Corporate Social Responsibility | Labour and Migration | Law and Rights | Livelihoods | Media

Senior Chinese officials vowed to act on an international NGO and trade union report alleging abusive practices in four Pearl Delta factories contracted to produce goods for the 2008 Olympics, even as the report was overshadowed by shocking revelations of forced child labour in brick kilns in the provinces of Henan and Shanxi.

“No Medal for the Olympics on Labour Rights,” published by the PlayFair 2008 campaign, ‘named and shamed’ a Taiwan-owned stationery company and three Hong Kong-owned factories producing sports bags and headwear in Shenzhen. All four companies had been licensed by the Beijing Organising Committee for the Olympic Games (BOCOG) to supply merchandise for the Olympics.

PlayFair’s report alleges cases of “child labour, excessive working hours, routine underpayment of wages, and blatant disregard of Chinese labour laws.”

The child labour charge was levelled at the Rekit Stationery Company where an undercover investigator who took a job at the factory reported that more than 20 children aged 12-16 were hired during school holidays to work 13-hour shifts on packing lines.

According to PlayFair, three out of the four factories investigated were paying less than the legal minimum wage—in the case of Yue Wing Cheong Light Products Ltd, less than half the statutory minimum. The report also highlights compulsory overtime, unhealthy workplace conditions and heavy fines for workers who report for work late or take time off.

Executive Vice President of BOCOG, Jiang Xiaoyu (蒋效愚), said in Hong Kong on June 11 that he took the allegations seriously and that “If any factory is found to have broken the law it will be punished.”

Foreign Ministry spokesman, Qin Gang (秦刚), told a June 12 press conference that BOCOG upholds “very strict labour rights and social responsibility standards” and that licensees who violate those standards will be “punished severely.”

Chinese media and websites widely interpreted these official responses as meaning that BOCOG will revoke the four companies’ licenses to produce Olympics merchandise.

“We feel that is exactly the wrong response,” PlayFair campaigner Ineke Zeldenrust told China Development Brief in a telephone interview. “The [global] brands have already learned that to deny and to cut and run is exactly the wrong kind of response. We’re looking for a different response, a structural response.”

At present, Zeldenrust argues, “If the [BOCOG] orders go elsewhere we have zero guarantees that it will be any different.”

The PlayFair report had likewise suggested that conditions in the factories investigated were typical rather than exceptional, “no different from those which prevail in many thousands of workplaces scattered throughout China.”

Brands steady at the helm

Representatives of two major sportswear brands, Adidas and Nike, acknowledge that the conditions described in the PlayFair report are quite familiar in supply chains but say they are making headway with their own codes of conduct and plan no special action in light of publicity surrounding the Beijing Olympics.

William Anderson, Adidas’ Head of Social and Environmental Affairs for the Asia Pacific, said in a phone interview that in 2004 Reebok, which has since been acquired by Adidas, sourced from one of the factories named in the PlayFair report. But, he continued, Adidas “terminated the business relationship because we had issues with excessive working hours and no proper employment record keeping.”

Sonya Durkin-Jones, Nike’s Corporate Responsibility Compliance Director for North Asia, wrote in an email to China Development Brief that Nike had sourced periodically from the same factory from 2001 until February 2007, when “the factory was deactivated from our sourcing base for business

Wednesday, July 16, 2008

fitch cuts india's credit outlook,cuts in jobs

with the raise in crude oil prices,deteriorating fiscal position of the centre on account of increasing oil and fertiliser subsidy bill has prompted global credit rating agency fitch to downgrade india's credit outlook from stable to negative.(lon term local currency issuer default rating-IDR).

the sennsex also fell down on a flurry of bad news.
job insecurity spreding,with high inflation,global economic slow down.with IT sector,banking and financial services sector too ,is facing a slowdown in times of hiring.

Saturday, July 5, 2008

poverty allevation,remove corruption

recently I watched a program -panel discussion on corruption at loksabha tv. on 3rd july.
evening.the panel members included anuradha jha -executive director,Transparency international,
joginder sharma,former director C.B.I., loksatta convener and police reforms committee chairman.

this topic is interesting to me as I participated in my college debate titled Big Battle.and beat out 24
candidates and entered final .the topic was "should industrialists take on politicians".

some intersting facts-
least corrupt nations -singapore,

most corrupt government dept-police.

Saturday, June 21, 2008

big blow to generic drug industry

with the selling of ranbaxcy to japaneese co Daichi
the no 1 indian drug company ,there is blow to generic drug.

life is precious,(dedicating to my cousin arun)

the biggest gift of god is life.we dont know when we die ,but we have to lead a pious life ,helping
others.sometimes I feel god takes away good people.If I get a chance to meet god/lord shiva
then I would ask him what is the logic in deciding a persons life? it is fate or karma theory some leave so long,some die early.

my cousin who was good guy studying b-tech from BITS-Pilani died in accident.I still remember
old days.Iam unable to believe that he is no more.this is life.
what the use of puja,prayers.?

Friday, April 11, 2008

relationship

we always try to blame our parents,complaining that they are not providing this/that,but we never try to understand them.thats why relationships break up or spoil.

we have to always take of our parents,do service .their happiness is ours.

we get their blessings.

mothers love

sairam,
when we have our parents we do not recognise their love and affection,sacrifice.
when I went to my parents house,my mother took strain got up early in the morning at 3.30 am
and prepared all the food for my necessary.