Sunday, October 26, 2008

Asian Tigers, and the Lumbering Elephant

There are a few things different about this post. First, I'm writing this the good ol'-fashioned way - using pen and paper. The reason behind this - and the second thing that's different about this post - is that I'm writing it not at my desk at home or office, but sitting on the Upper Berth of a Sleeper Class Compartment in the Udyan Express. I'm traveling to Bombay (this name oddly strikes me as more 'romantic' than Mumbai), and the train is running a couple of hours late. It's twilight and the train is meandering its way through the Western Ghats. We've just crossed Khandala, and gazing out of the window, I could see the vast valley and the little sleepy hamlets spread out below. The sky above was turning from crimson red to a dark orange and finally Night spread it's Cape over the villages and towns below (and us!). I could see the lights beginnning to twinkle in the houses of the village-folk. It was a really beautiful feeling - beauty is often found in simple things, and when you least expect it.
The journey has not been tiring - all I've done is eat, rest and read a bit and sleep a lot. But I'm beginning to feel the monotony of travel - the gentle swaying motion of the train, the sights and sounds of the countless hawkers plying their trade, and my co-passengers. Somehow, I couldn't strike up a conversation with any of them (well, try I did). My stop is still a couple of hours away (we should've been there by now!), and so I pulled out the little pocket notebook (the paper variety!) and my pen (not a stylus ;) ) and started scribbling to while away the time.
The rest of this post is about part of a book that I've been reading during the journey. I borrowed the book from a friend at work, and started reading it even as I was waiting for the train to arrive at the Bangalore City Junction. The book is India Unbound (Penguin Books, 2000) by Gurcharan Das. My friend had advised me "to carry something lighter for the journey" as well, saying that the book makes for some rather serious reading. Now serious it is, dealing with the Economic policies of Independent India, charting our course through the years of the "License Raj" (the term was coined by C. Rajagopalachari, I came to know) to the Liberalization of 1991, and India's almost meteoric rise in the Knowledge Economy of the present decade. A book on such a topic definitely makes for some serious reading. But I found the book (the part that I've read so far) very absorbing both in content and in the style of narration adopted by Das. The first part of the book (which I finished reading an hour back) looks at the period from 1942-65. The first chapter is interestingly (but very aptly) titled 'Ranting in English, Chanting in Sanskrit', and together with the second chapter looks at pre-Independence India, and how the English language and Western Education opened up the doors for Indians to the global world. It is often (incorrectly) said, that the Western Education only created clerks for the British bureaucracy in India. Well, that may be true to an extent, but it also created Engineers, Lawyers, Doctors and other professionals, and it brought the history of other cultures and Revolutions within the ambit of our thinkers and intellectuals. The first part of the book also examines a traditional Indian prejudice against businessmen and entrepreneurs. And this is most certainly true. Somehow creating wealth is deemed secondary - Das cites some philosophers' theory that the Vaishyas were the third in the caste heirarchy, after the Brahmins and the Kshatriyas. He also looks at the reasons why an Indutrial Revolution has always eluded India. Inspite of having a great Rail network. After all, in other countries, most notably America, the Railroad ushered in an era of prosperity, trade and commerce.
The way Das poses issues and examines various viewpoints and facets of the issue makes for very interesting reading. One thing was particularly interesting - the author delving into the traditional Indian psyche to explain one of the reasons why India did not witness a technological revolution. On why it did not, could not, innovate - and this is true for the last couple of centuries, and not just the past six-odd decades. He says that Indians, unlike Americans, are not "tinkerers". Manual labour is held in somewhat of a contempt, and tradition shows a bias toward the pure sciences rather than applied sciences or technology. I think that Das has hit the nail on its head. We Indians are generally not the "Just Do It" variety - we prefer to mull over theoretical problems rather than experiment and get our hands dirty - both literally and figuratively speaking.
Das also examines various economic policies expounded by various thinkers and economists during this period (1942-65). He describes his time at Harvard as one of "encounters with ideas rather than persons". He describes his own economic and social views at the time (liberal and socialist) and describes how he moved from being an uncritical exponent of Marx to a capitalist viewpoint. He also looks at the policies of the Indian Government at the time and how they nipped in the bud any trace of entrepreneurial spirit. He describes very nicely the travails of homegrown entrepreneurs like Kasturbhai Lalbhai and how the State instead of encouraging them, did the exact opposite - put in place excessive controls that made private enterprise virtually non-existent!
I'm continuing this part of the post on the 'morning after' (my train journey, obviously!) as the swaying of the train as it picked up speed on the plains made legible writing impossible. Getting back to the book, Das looks at how the flawed policies of the Government and the Bureaucracy instilled a culture of complacency at best, and inefficiency, low productivity, lobbyism, and corruption at worst in state enterprises. And how, surprisingly, Nehru defended the low productivity in Parliament! His reasoning - these enterprises were not 'set up to generate profit, but to meet social objectives'. The book looks at how ministers and bureaucrats, who had no experience whatsoever in running a business, presided in a shockingly ad hoc manner on business decisions. To sum it up, we got the 'worst of both worlds' by pursuing Nehru's brand of Socialism - the controls of socialism and the monopoly of capitalism'.
Reading the book really makes you think about a line Das uses a couple of times - "When individuals fail, it's a blunder; but when leaders fail, it's a catastrophe'. I've always wondered how the other Asian Economies who more or less started out at the same time as India did, have today become tigers, while India is still light years behind them! Of how, countries like Malaysia, or city-states like Singapore or Hong Kong have achieved so much with a fraction of the human and natural resources of India. Reading the book gives you some idea of the reasons behind this. Anyways, this post has already become long enough (and I'm really, really hungry!). So I'll sign off for now. But I'm sure that reading the remainder of the book will spur another post. Till then, ciao!!

Monday, October 20, 2008

Charge of the Young Brigade

A lot has been written on the future of the Famous Five of Indian Cricket, with the print, television and online media debating furiously on the future of Saurav Ganguli, Rahul Dravid, Sachin Tendulkar, VVS Laxman, and Test Captain Anil Kumble. Saurav has already set the ball rolling by announcing his decision to retire from international cricket at the end of the ongoing series with Australia. What spurred this post was the performance of the Indian team in the ongoing test match (Oct 15-19). Anil Kumble was forced to sit out and so MS Dhoni took over the reigns and Amit Mishra got to make his Test debut. And to say that both have excelled (especially Mishra, bagging five scalps in his very first match!) would be an understatement. At the end of the fourth day's play, the test is poised for an exciting finish (I read a few reports which said 'Australia heading for defeat', but I'm sure that the Indians would have to earn this win). The enthusiam of the younger lot of cricketers is definitely a huge bonus. Yes, you do need experience at the highest level. But fresh blood, and fresh legs, and most of all a fresh outlook tends to make up for some of that. A friend remarked today that Kumble had better step aside voluntarily, or else the day he'd have to accept a CRS (Compulsory Retirement Scheme) might not be far. And it couldn't have been truer. While the aging war-horses have brought glory to Indian Cricket, they must not be a stumbling block in the careers of those who would bring it glory in the months and years to come. And so, it's only fair that the Mishras, the Chawlas, and the Rohit Sharmas and Badrinaths get their chance at the highest level. It would be unfair to have them wait in the wings just so that the Famous Five can bow out on their own terms. Barring the case of Sachin Tendulkar and Anil Kumble, the other three have perhaps passed the stage of bowing out when people ask "Why?" rather than "Why not?!" Probably they should look back at the start of their own careers, to look at how excruciating the wait was to break into the team, to don the Indian colours. Finally, it would be nice to see them go out on their terms, rather than be shown the door... Change is the only thing that is constant, they say... It now remains to be seen who takes up the baton from Saurav...

Wednesday, October 8, 2008

Small car, Big gains

After a tumultuous time in the state, the Tatas' have finally said Tata to Bengal, and Singur and moved to Gujarat. So it's goodbye to one M (Mamata) and a hello to another (Modi)! The move has dampened Durga Pooja celebrations in Bengal, according to reports on the internet, and print media. Understandably as well, I would say. The Nano factory had provided a stimulus to the local economy in Singur. The local people are understandably both disappointed and angry at the Tatas' decision to move out. But I guess they have only themselves to blame. Indirectly, if not directly. Mamata Banerjee's protest wouldn't have any fire without support from the locals. This is a loss for the state, but also for India as a whole. What kind of signals does it send out, when an elected government is held hostage by a renegade opposition leader? When it cannot come true on the promises it made? Well, you can call me an unabashed capitalist, but there is no option to industrialization, if we are to progress. No, I'm not saying that snatching your land for setting up a factory is fine. But that's where the state has to step in. To ensure that you are compensated fairly for your land. That you've got a fair bargain. If the state cannot ensure that, you cannot blame the industrialist for that! And that was what Mamata did. Instead of working out a package where the farmers would be compensated fair and square, she demanded complete transfer of land back to the farmers. What would they do with just the land? Ultimately, as the Singur plant demonstrated, the gains to be had out of industrialization are immense. Creation of a micro-economy in the industrialized zone. Creation of jobs, of infrastructure - roads, transport, electricity and water. Is the transfer of land back to the farmers worth sacrificing all this? Mr. Ratan Tata famously said that he will not pull out, even if a gun is held to his head. In the wake of the decision (to pull out), he said, "Ms. Banarjee has just pulled the trigger".

Since August, when the agitation started in Singur, several states had shown interest in offering Tatas the necessary incentives for their project. Finally, Gujarat has pipped them all to the post. The speed with which the government moved clinched the deal. And I think that is what is really noteworthy. Whatever may be said about Mr. Modi's style of functioning (some say that he's autocratic), you cannot deny that he's moved swiftly and smoothly. In fact, this is what invites investors to the state. I'd once read an article a long time back (when Mr. Modi assumed office for his third term as CM) about how he personally takes initiative to cut red-tape and bureaucracy. Gujrati people have business in their blood. Give them a conducive environment, and they're sure to flourish. And Gujarat has indeed emerged as one of the most investor-friendly destinations. At the Vibrant Gujarat summit in 2007, Mr. Tata had said, "You are stupid if you are not in Gujarat!". That one of the foremost industrialists in the country (and worldwide!) should say this, says a lot about the economic scenario in the state. And with the Nano project moving into Gujarat, this image will doubtless be embellished. Though it's a small car project, the gains will be BIG. As they would say in Gujrati, "Project nu naam Nano chhe, par faydo bau moto!"

Apocalypse Now

As I'm writing this the BSE Sensex is about 700 points down, or almost 6 percent down. The bloodbath does not seem to stop, with the market losing anything between 4 to 6 percent every single day! And no one knows when or where it'll stop. The markets have already breached the two-year low in India, with the US markets touching a five year low! And the turmoil has already claimed a life, with an NRI shooting his family and then committing suicide, with the stock market crash turning him from a millionaire to a virtual pauper almost overnight. In an earlier post, I'd written about the fall of some of the biggest investment banks. But what is unfolding now is surpassing everything. It's a 'once in a lifetime' event, and may be a life-changing event for some.
The turmoil has left the small investor in a fix. The prices look very attractive, but everyday a new low is touched, surpassing the previous day's low by as much as 10 percent. Does he go out and buy, or does he sit tight? Well, I'm buying in small amounts, reasoning that nibbling at the stocks is the right way to go. That's the only bright side to this whole scenario, if you were to call it that. That it's a right time to buy if you have the cash to spare. But how far down will it go? Well, it's always darkest before the dawn, as they say...

Wednesday, October 1, 2008

The road less taken

Today evening talked to a friend after a long time. It'd been almost a month since we talked, and just thought I'd catch up on how things were going. This friend of mine is a really special person. No, I don't mean special to me (which he is!), but a special human being. Brilliant in academics right from the school days, he completed his Engineering degree from one of the most prestigious colleges. He was picked up by Infosys as part of their campus recruitment programme. He could have gone places, with his intelligence. But my friend was slightly different. He did excel at work, no doubt. The awards that he won (and I'm sure he hasn't told us about all of them) prove it. But he wanted to do more. More for society, more for those who aspired, but their conditions held them back. Right from the time he joined Infosys, he spent a lot of time volunteering to teach kids from the slums, the backward areas. It gave him a special joy, something much more than excelling at work. It gave him a sense of fulfillment. Every weekend he used to come to Mumbai from Pune (where he worked), and Saturday evenings and Sunday mornings were spent teaching slum kids. Ditto with festivals like Holi, Diwali, and important occasions like Independence Day. But it was not enough. He knew that he had more to give. So one day, he just decided to give up his job in Infosys, and pursue his passion, his dream full-time. All of us who knew him, though not shocked, were a little surprised. Full-time social service?! But fortune favors the brave, and he was offered a full-time position by the Akanksha Foundation, an NGO working in the field of education for the under-privileged. He now 'works' in a special school, where he conducts classroom and other activities for kids. We've talked a few times about his 'day at work', and all that it involves. Teaching kids is no child's play (no pun intended)!! The kids have boundless energy, and it is us volunteers who find catching up with them difficult, he said once. At the end of your day at work, you're totally tired. But it's a sweet tiredness. And with that tiredness comes a feeling of satisfaction. And to see a kid's smile... Well, it definitely makes it worth it.
Today he was talking about preparations that he does every evening for the next day's 'classroom'. It's difficult to hold the kids' attention for a long time (well, the adults don't do too better ;) ), so Akanksha has devised short activities, spanning not more than 20 minutes. Unless it is an activity like drawing, or coloring sketches. Or crafting something. And so, he spends about an hour to an hour and a half for each such 20 minute activity. Planning about what to capture in that 20 minutes, how to present it. And then making photocopies of the material to be distributed to the kids. There's a lot of planning and skill involved. And committment. To your dream, to your passion. It's not something for the casual altruist. Early next year he'll assume charge of a school in Pune, that Akanksha Foundation plans to manage. Assuming charge of a school!! That sounds like a Herculean responsibility. But we know he'll do it just fine. It couldn't have a better 'headmaster' ;) at the helm of affairs. When we heard that he's been given the responsibility, we were very happy for him. He'd always wanted to do this. Finally, he'd found his true calling.
My friend found very early on in life what his passion was. He found and worked hard towards pursuing his passion, his goal, his dream. Well, as he'd say, he's only started working on fulfilling his dream. But he's started. How many of us can say confidently that we've found our calling? To begin with, your's truly can't. But that requires listening to your inner voice. And daring to listen to it. Not be swayed by family, friends, society. Just pursue your heart. And being sure that it's leading you the right way. My friend dared to take the road less taken. He'll celebrate his 26th birthday in a few days. Here's wishing him in advance, that he sees his dream being fulfilled. Here's wishing you the very best in Life, now and always, Chikka. Here's wishing your kids that they achieve their dreams. For that is his only dream...