Communal riots belittle the idea of India

India – a country, which is eminent for its culture, history, values, ethics, etc. It’s a place where glorious battles have been fought and a country, which gave birth to deluge of men of letters. But, Alas! It is also a place where there had been bias and discrimination on the basis of religion, caste and class as well as gender, which is still prominent in many unheard corners of India.

When British invaded India, they had a policy of “divide and rule” which was based on the lines of communalism. The word communalism creates lots of havoc and catastrophic consequences. It gave nothing to humanity except hatred, jealousy, and most important bloodshed. The horrific riots at the time of partition of India in 1947 cannot be forgotten or erased from the pages of the history of India. These riots sowed the seeds of discord and soured the relationship between Hindus and Muslims whose bitterness is still omnipresent in this country. It created many psychological norms against each other.

The very idea of India is based on the principles of liberty, equality and fraternity. Even the Preamble in our Constitution says, “WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLIC and to secure to all its citizens…” India is known for its Unity in Diversity. It believes in the theory of Equality and most importantly, ‘Secularism’ which means all religions are equal and no discrimination should be based on it. It believes in respecting diverse culture and different linguistic approach of the people. These are some of the ideologies, which our Constitution of India and our values encompass. Yet, in spite of all these communal carnage and riots, it helps us to belittle the idea of India.

There is a long saga of communal violence in India. The Godhara riots were a shuddering episode for India, which she had never encountered except at the time of partition. The communal carnage in Gujarat shook the whole world. More than 2000 people were diabolically killed. This communal carnage began with burning of S-6 Coach of the Sabarmati Express. Another instance of communal riots is demolishing of the Babri Masjid at Ayodhya in 1992, which really at that time belittled the idea of India. This incident questioned the principle of SECULARISM in India. The question erupted in the minds of every individual “Is India a secular country?” The absurd reason for demolishing the mosque was that the 16th Century Mosque was located at that site; on the birthplace of the Hindus Lord Rama and that a temple had to be built there. The communal violence, which occurred against the Sikhs just after the assassination of Mrs. Indira Gandhi, is synonymous to Genocide. This riot tried to obliterate the whole species called Sikhs. More than 1000s of people lost their life especially in Delhi, Bokaro Steel City, Kanpur, etc.  There was an atmosphere of uncertainty, communal violence and curfew in those times.

From the above discussion, we can infer that the idea of India is very big, where it talks about secularism, culture, values, ethics, equality, etc. but at the same time there are prejudices and communalism that belittles the idea of India. That leads us to formulation about another idea of India which is the sum total of our prejudices. Hence the one side of India is projected beautifully, but when we look at the other side of the coin about India, its own people of India encourage jealousy, hatred and distrust against one another that helps us to justify that communal riots belittle the idea of India.

This article was originally published in The Indian Economist.

Move towards a Sensitive Capitalism

The Industrial Revolution in the 18th Century gave ‘Capitalism’ deluge of publicity. Its bottom-line is to make profit based on the premise of private ownership. It has also been heavily criticized by eminent men of letters due to its insensitive nature of operations. Karl Marx believes Capitalism brings destruction with itself. That brought many other ideologies like Communism, Socialism, Marxism, etc. but unfortunately those ideas also have its own sets of problems on its implementation and control like Capitalism for the Economy. These alternative ideologies to Capitalism aspire for removal of private ownership and want everything to be regulated and controlled by the State. But in the present epoch, with the rate our Economy is moving and growing we heavily need Private players and ownership for the proper functioning of the Economy and maintain the cycle of “one person’s spending is the income of another person”.

The Industrial Revolution in the 18th Century in Britain generated various employment opportunities to the people that were giving birth to Middle-class, urbanization, etc. at that time. But unfortunately these opportunities came with strict long working hours which decreased productivity, child labor, end of traditional and infant industry; the city grew without planning forcing workers to live in unhygienic conditions and any complaint and sickness by the laborers consequently lead to fire from the job. The present capitalistic structure is almost similar to the operation of Capitalism at the time of Industrial Revolution. Hence we can say that there is insensitive capitalism which is still revolving around the Economy. Professor Jayati Ghosh wrote about the lack of concern for human life towards workers from India and other countries migrating to Qatar for Jobs. She even said that 95 percent of all Indian Workers are in Informal activities which are exploitative and low-paying contracts. (Source: Jayati Ghosh, “Workers dying in Qatar”, www.macroscan.org). The other best example of insensitive capitalism is Walmart. Walmart is known for following effective cost-leadership strategy which is a good strategy to survive in the Retail Industry. But this company provides harsh and long working conditions for employees, gender-bias, cases of locking employees inside the stores, low wages, etc. They treat their employees in inhumane ways. The coming of MNCs is a boon for developing countries that provided variety of job opportunities with standard pay packages but unfortunately it also brought deluge of work with long-working hours, setting up their bases in farmer’s land thus depriving them of their livelihood, job-insecurity, negative externality to households and environment, for example Vedanta establishing its Plant in Niyamgiri Hills of Orissa and Pesticides in soft-drinks case, etc. Prabhat Patnaik in his article, “Class War at the Capital” wrote about the working conditions at the Maruti-Suzuki Plant in Gurgaon, India is also another example of insensitive capitalism where workers are not allowed to take fluids so that they do not violate their quota of five minutes of toilet visit per working day and are paid less wages.

Though Capitalism brought with itself a variety of opportunities and aspirations, it also brought insensitivity with itself. Hence what is required is more humane and sensitive form of Capitalism that will bring full stop to criticisms she is encountering. We need to provide the workers of all the Sectors in the Industry with congenial and ethical atmosphere to work that will increase their level of productivity which will help improve company’s profit. Also, if we want our economy to progress and prosper what we need is the combination of both Capitalism and State-intervention. This combination works very well in the Bertrand Trap Model especially in the Airline Industry where slashing of prices goes on-and-on by all the players in the industry. The Consequence of all this is they all fall prey to Bertrand trap causing mounting losses in the Industry and ultimately Government or State comes to save the Industry. Even at the time of Global Financial Crisis, US felt the need of Keynes’s theory of recession which speaks that Government, if needed, can help the Economy to recover from the recessionary phase of business cycle, most popularly known as fiscal stimulus packages. The sum total of humane and sensitive capitalism, Government Intervention and ethical form of business model will turn an Economy into a Robust Economy that will have ingredients of prosperity, peace and happiness in it otherwise insensitive capitalism with unethical model of business will invite resistance, crime, anarchy which will bring doom to the Economy.

This article was originally published in The Indian Economist.

The Feasibility and Viability of Small States

When India awoke with independence it was a situation of a tablespoon of honey with a teaspoon-full of vinegar. When India was celebrating its freedom with great zeal and enthusiasm, simultaneously there was series of debates on how to divide the states of India. India had a very tough time to accommodate and listen to the needs and aspirations of different and diverse cultural groups of our country. With lots of debates and opposition finally India took a decision to divide the states on the basis linguistic lines. Yet as time passed by in the pages of history the new demand for own states kept coming in whether it was Tamil Nadu where they were already a separate state aspired to become a separate country in order to save their language – Tamil or Nagaland separating from Assam.

The demand for creation of new states in the present epoch is endless with the hot and burning issue of Telangana as a separate state. The Times of India on the 5th day of August 2013 wrote, “If Demands met, India could have 50 states.” Now the Telangana bill has been given a nod by both the honorable Parliament and President of India, the question that is striking in everyone’s intellect mind is “How viable or feasible is it to create a small state? Will creating of small states would lead to more growth and development?”  Answer to such questions requires thorough investigation about the present conditions of those States that were partitioned in the past.

A majority of the creation of small states are driven by the political aspirations or on the basis of economic backwardness of sub-regions in a large state, for instance, Jharkhand. Jharkhand was created with an intention that if it separates itself from Bihar it has the competency to grow at a faster rate and even claimed that its abundant mineral resources could act as an engine to growth for Jharkhand Economy. 12 year have passed since Jharkhand was made and everyone knows with what rate its economy and political setup is moving. Mayawati’s demand in the year 2011 for quartered states in Uttar Pradesh was considered by many political parties as an election gimmick. The Nationalist Congress Party’s Praful Patel also expressed the desire for Vidarbha. The creation of Telangana was also motivated by political aspirations as it is said by many that it would give impetus to the UPA Government to win 2014 elections as they are insecure about winning the election this time. Many also believe that creation of small states would lead to good and better governance and better economic opportunities. Punjab and Haryana as a small state has strengthened the Indian Union. Uttarakhand ever since it was born with Jharkhand in the year 2000 has grown with a tremendous pace. Its Economy’s per capita income has grown by 168 percent from INR 19457 in 2001-2002 to INR 52125 by 2011-12. (Source: http://www.rbi.org.in). But the episode of Jharkhand, where Governments are formed everyday that has come twice under President’s Rule, tells us that although the size matters, there is no guarantee that small states bring political stability with them.

So creation of small states require thorough and intense investigation and realization that after separating “Are there enough resources that will generate future economic benefits after separating or Will they have to again depend and cry again to other States or Centre for the running of their Economy.” It should not be a situation of out of the frying pan into the fire after a State separates itself from a bigger state; we hope Telangana do not have to go through that idiom.

This article was originally published in The Indian Economist.

Intersection of Culture and Business in India

India – a country abundant with youthful and highly energized population with diverse culture. Before talking anything about ‘Culture’, we need to first ask a question to ourselves is “What is a Culture?” Culture is nothing but a set of values, assumptions, understandings and norms that are collectively programmed into the human mind that distinguishes the member of one group ofHomo sapiens from those of another. This culture influences and impacts our environment which we are surrounded with. One of the influences created by Culture is the amount of impact it generates on the Indian Business environment. The word ‘business’ refers to any activity or occupation in which people are engaged with a view to earn profit. When these two words come together they have a profound impact on the business environment of India and its economy.

Human resource facilitates in running of the different businesses in India. And one of the things which are much talked about in India when it comes to ‘human resource facilitating the business’ is its Work Culture. In India, we have a very hierarchal system of work culture where the boss is always right. We all come from a system where we are always taught that we should respect our elders, superiors, and highly experienced people and never refute or question on an argument made by them. Most of the bosses in India belong to that category of ‘I am right and my juniors should follow what I tell them’. There is a tremendous amount of ego and superiority complex in an Indian boss. Hence in that case many times there is no proper exchange and debate of ideas between the employer and the employee. Sapna Chadha, Director of Marketing and Product development in American Express, Gurgaon when she came from US to work in India in 2008 supports this point by saying, “India is definitely much more hierarchical. Many of my younger staffs are very wary about speaking out in front of me. I had to convince them that I really wanted to hear their ideas, and then they finally started giving me their opinions”. Therefore the culture of “Yes Sir” in India needs a vanish touch. Hence the gap between a boss and its subordinate needs to be bridged and Indian boss should act as being a positive leader rather than using hard power as a tool to get the work done.

With the inception of Globalization in the Indian Economy, culturally it has changed the ways of living for most of the Indian households. From Mc Donalds to KFC to wearing of jeans by both the genders to celebration of Valentine’s Day, cultural globalization helped India to change its style of living. Valentine’s Day creates huge business and market opportunity. The year 2013 Valentine’s Day, the market was pegged in India at INR 15 billion (Source:http://zeenews.india.com/business/news/economy/valentines-day-market-in-india-pegged-at-rs-15-billion_70092.html). Yet the cultural influence many times blocks the business opportunities during this time because of the protests and havocs performed by Shri Ram Sena, Bajrang Dal, etc. preventing people to celebrate Valentine’s day as according to them this is against the Indian Culture and do not want western influences. Hence our police system and government should instill a sense of security among its citizens to exercise the right to freedom of expression which will not only create harmony in the society but would also create business and market opportunities for business people.

When there is an intersection between business and culture of India many times it also creates an ethical dilemma for the businesses. The famous ‘GE Healthcare and ultrasound in India’ case in the year 2007 is the classic example. GE Healthcare’s Ultrasound machine sales went up by 10 percent in 2006 and was successfully able to capture its market share outpacing its competitors. However in 2007 those ultrasound was being used illegally for sex determination of human fetuses and GE Healthcare was even accused for this. In India, there is a norm and understanding among most of the Indians that raising a daughter is like watering your neighbor’s garden. Hence these all things created an ethical dilemma for V. Raja, CEO of GE Healthcare India whether to continue with the business of ultrasound or not with growing potential of this business.

Hence when culture and businesses meet in a country like India some way or the other it might create inefficiency in the business process. Therefore we need a revolution in our thought process and a transition in conventional ways of handling or supervising of various tasks in the business. This reminds me of Lord Buddha who once said, “All that we are is the result of what we have thought.”

References:

• http://www.executivetravelmagazine.com/articles/inside-indian-business-culture
• Case on “GE Healthcare in India: An Ultrasound Strategy?” (2008) by University of Virginia Darden School Foundation, Charlottesville, VA.

This article was originally published in The Indian Economist.

India Requires Quality And Not Quantity In Delivering Education

Education is the ticket to a better life. It helps us to develop a broad horizon, ignites rational thinking, helps in contributing to the Economy and more importantly it helps in getting jobs that further helps to get a better quality of life. Educated citizens in India act as catalyst in turning India into a developed country. Education fuels efficiency and productivity of the labor-force in the economy. Given the importance of education, Government has always tried to position the importance of education in the minds of the Indian households through various advertisements and programs. However, when it comes to implementation and enforcement of the education policies, they have failed miserably. This has invited a deluge of criticisms against the Government. Indian law has ensured access to education to all the children between the ages of 6-14 but is lagging on delivering quality education to these children.

Although the Government has spent a considerable amount of energy and money on the education yet the quality of education delivered to the students is very low. A large number of students, who cannot afford education, complete their schooling from Government-run schools, as they are affordable for poor Indian households. A majority of Government-run schools are lacking basic infrastructure facilities like tables, chairs, blackboards, teaching materials, libraries, etc. This leads to a gap in the learning process in these schools. As teachers are paid less, they lose their motivation to teach and as a result teachers who have not even managed to pass class 12 are recruited. Moreover, since funds allocated to education pass through multiple layers of bureaucracy, it gets misused and at the end a small portion of the allotted fund is used for its true purpose.

At this time it is very important to encourage and incentivize teachers to teach in Government-run schools, especially in rural areas. Strategies needs to be studied and it needs to be figured out as to why private schools are manufacturing quality and English-speaking students whereas Government-run schools are failing to do the same. Moreover, a transition of the mindset and thinking regarding teaching as a profession is required. Many people think this as a downtrodden profession today. Hence this ideology needs to be altered maybe through a better pay-package. The other thing that is required is monitoring the use of Government funds and strict action should be taken if the funds are being misused. If the corruption is not checked, it will keep eating the economy like a festering wound.

Private companies need to be encouraged to invest in the education sector and to improve the status of quality education in India. A complete education policy needs to be implemented properly and successfully for producing quality students who will lead India towards development.

This article was originally published in The Indian Economist.

Sexual Harassment and the Indian Economy

For a woman the mind is not without fear. Wherever she goes the fear of insecurity and encountering sexual harassment is there in one of the corners of her brain. And this creates a profound impact on the economy of a country. Hence it becomes important for an economy to make its women feel safe and make men realize how it can indirectly create a negative impact for them as well.

For an Indian Economy to grow, India requires deluge of talent pool where it cannot afford to do a gender bias. When Indian households encounter or hear cases of sexual harassment from various sources or forums, it prevents women to contribute to the economy (out-of-fear and pressure from her family) and thus decreases workforce participation. This leads to sheer waste of thousands of talents. Female workforce participation rates have fallen seven percentage points to 22.5 percent between 2004-05 and 2011-12. India ranks 10th from the bottom among countries in female labor force participation rate, according to World Bank.(Source:http://www.livemint.com/Politics/zIQeewlbvuKrW6aZw5bHyI/The-gender-divide-in-the-Indian-labour-market.html). Hence these data clearly shows that absence of safe and amicable environment in workplace is one of the factors why women are missing from workplace. Globally, Women control about $20 trillion in annual consumer spending and they are an important force to initiate recovery in the economy and generate new prosperity (Source: Harvard Business Review (HBR), September 2009, The Female Economy by Michael.J.Silverstein and Kate Sayre). Unfortunately, the issue of safety does not allow a woman’s family to encourage her to participate in the labor-force and contribute to the economy. Hence the labor supply in the economy shrinks that leads to low disposable income in the household. Low disposable income leads to less consumption that further affects the economy negatively. If we talk at sociological angle, it will encourage Patriarchy to govern our society.

According to India Risk Survey 2013 by FICCI it clearly mentions that effects of crime in the workplaces showed a 65% decrease in productivity. Now this decrease in the productivity decreases the zeal to perform that affects the business. For a successful economy it is very important for women to be financially independent which is possible only when she enters the labor market devoid of pressure and fear.  So if India has to grow it is very important to create a congenial atmosphere in the workplace and cases related to sexual harassment needs to be dealt with strict attitude. It is the duty of every company to make its employees believe in the system they are working with as well as the ethics and conduct of their work culture. Also with the rising number of sexual harassment case, a stereotyping  had been spread among male workers and they have become fearful as well as conscious of what acts of theirs might perceived as sexual harassment by its women colleagues. Recently in The Economic Times, 28 Nov 2013, Saundarya Rajesh, Founder and Head of Avtar Career Creators, a talent strategy Consulting firm said, “Some CEOs have told me their male managers are refusing certain postings where there are women-intensive roles.” Now this is again a different emerging problem which also needs heed and attention. Hence today’s Organization needs Gender sensitization which needs to be created between both men and women employees and a robust awareness needs to be created regarding sexual harassment at the workplace with effective workshops.

If these issues are not taken seriously, the pace with which Indian economy is growing now will be directly proportional to deceleration of growth numbers in the long run. Hence it becomes important for an economy to make its women feel safe and make men realize how it can indirectly create a negative impact for them as well.

This article was originally published in The Indian Economist.