Economy

  • Economy,  Society and Institutions

    In defence of IT

    Before anyone wonders, yes, this title is inspired by the book, “In Defence of Globalisation” by Jagdish Bhagwati. And no, this is not a book review. I remembered the book because it defends a phenomenon that has widely been criticised and maligned for all the ills that plague the world today. From International Organisations to NGOs to individuals, everyone blames globalisation for global warming, income disparities, conflict, human rights abuse and the like. The December 17 issue of Outlook Magazine carries much the same tirade against the IT industry and blames it for polluting Bangalore (known as India’s answer to Silicon Valley). Not just that, IT is also held responsible for the escalating land prices, changing moral values, and entry of “western decadence” into a city that was once a pensioner’s paradise. Of the many articles, two deserve comment, not so much because they represent two ends of the spectrum, but because they manifest an almost irrational resentment towards the IT industry.

    The first article is by Dr. C.N.R. Rao, currently Scientific Advisor to the Government of India. Dr. Rao is a respected and learned man. But, that does not give him the right to pass a moral judgement on what people in the IT industry do. And that, is precisely what he does in this article when he laments that,

    “Bright people at a very young age, before they are even 20, think of IT as an option because they can make quick money. Lots of intelligent people are doing jobs that are much below their intellectual capabilities. They are like coolies who are working for wages and not producing great intellectual material.”

    Does this mean that all IT professionals are idiots? Or is he trying to say they don’t use the brains they have? Both claims are false and imply that the work Dr. Rao is doing is intellectually superior to that of the IT professionals. Most importantly, can we do without IT? Secondly, in the introductory lines of this article, he calls himself a real Bangalorean. And goes on to say he was born in Basavangudi. Does that mean that all others are outsiders who have invaded what is rightfully his? If that is truly what he thinks, then he is being extremely intolerant and territorial. As Confused says on her blog, Indians have a problem against outsiders in general. And this problem seems to be particularly pronounced in Bangalore. Dr. Rao also seems to be upset that IT professionals are making a lot of money. What else could prompt him to say that “people have lost respect for scholarship. Money and commerce has taken over?” That claim is far from true. If he, or anyone else thinks that IT is a field where one does not need to use brains, they are gravely mistaken.

    Moving on, the second article by Subroto Bagchi, COO of MindTree Consulting, is equally critical of the IT industry. This, despite the fact that Mr. Bagchi is very much a part of the industry he criticises. Before I start about why I disagree with Mr. Bagchi, I must observe that he uses many words to convey absolutely nothing. His sentences seem grammatically correct, but make no sense to the reader. There are many things wrong with his article. First, he claims that the IT industry was built by a few anonymous people. I assume he means, unknown or lesser known individuals. He then goes on to examine the antecedents of our IT czars, like Narayanamurthy of Infosys and Azim Premji of Wipro. He comes to the conclusion that “all of them went on to build global organisations for India, without having to work the system. A few forward-looking bureaucrats and politicians helped from behind the curtains.” I wonder how much truth there is to that claim. My dad says they all had to go through the same hassles that all other budding industrialists do when they start a company. And he has been in the IT industry for over 30 years now. We must not forget that the first tax sops given to the IT industry are less than 10 years old. In fact, the government started taking IT seriously only in the late 90s. And the industry existed for at least 10 years before that.

    Why is IT suddenly the bad boy of Indian industry? Is it because, as Bagchi says, “the IT industry started choking cities, upsetting local culture, creating wage disparities. And in the process of wowing the world, it was creating social isolation?” Is it even fair to blame IT and IT alone for all that is wrong with the world today? Is the IT professional’s job not fundamentally different from that of the car mechanic, the doctor, the actor, the politician or the civil engineer? When that is the case, how can we compare salaries in IT with salaries in other industries? Is it not like comparing apples and oranges? Secondly, does a higher salary level for the IT professional mean that his job is qualitatively different from mine, or yours? Can we please stop this IT-bashing and respect them for what they are? Like every other industry, IT has its share of positives and negatives. It is time we stopped treating the industry like an outsider who has taken away jobs from the locals. If anything, IT has contributed to employment generation in a way that not many other industries have. We must remember that IT is here to stay, whether we like it or not.

  • Economy,  Education,  Literature,  Politics,  Religion,  Society and Institutions

    Education, business, Kolkata burning and Ms. Nasreen again!

    Yesterday, I read a satirical take on the state of education in today’s world. Humorous though it was, it deserves serious thought and discussion. This Rediff satire on the recent decision of the principal of a well-known Mumbai college to enforce a dress code in the middle of examinations is something worth talking about. Moral policing apart, the satire exposes one simple fact: that some colleges exist solely to make money. As the principal in Vadukut’s story puts it so succinctly,

    “Must I tell you every day? What do you think we are? A shady outfit merely run to siphon off funds? A platform for political manipulation? Some sort of ragtag institute run by the principal like his personal property?”

    “Sir. Why do you even ask such questions and insult me? Of course we are.”

    Well…can one make it any more obvious why such private colleges exist? The truth is that very few colleges today fulfil their duties as educational institutions. They are simply run to siphon off funds, or to whiten the black money made by their owners and patrons in other, equally shady business deals. Some of the private colleges assume the role of the moral police, when those who run the institutions are themselves totally immoral. Will this ever change? Will private colleges and deemed universities and the like actually be held responsible for their actions before a competent tribunal? It’s up to the UGC to take the responsibility. Whether they will actually do it is anyone’s guess.

    Moving on, CNN-IBN tells me, on television, that Kolkata is burning. When I first heard the news this afternoon, I assumed that the Nandigram issue had finally reached boiling point. But no, I was apparently mistaken. A rather shady outfit by name of the All India Minority Forum (AIMF) called for a roadblock this morning. Soon, the protest turned violent and the army was called in to maintain law and order. Now, in India, when the army is called in to restore peace, it means something is seriously wrong. Otherwise, the army just stays out of internal affairs. The policy will normally suffice. Only later in the afternoon did I realise that the protests were not just against the Nandigram issue. Apparently, the AIMF, which called for the protests, want eminent Bangladeshi writer Taslima Nasreen to be shipped out of India at the earliest possible instance. Her sin? That she said something, allegedly blasphemous, in her most recent book Shodh.

    This kind of behaviour goes against pretty much everything I was taught as a kid. Or am I being naive in wanting to actually practise what I was taught in school? I grew up in a liberal, rest-not-until-you-get-answers background. I was taught that it is Man’s (and woman’s) fundamental right to speak their mind. I was taught that, in a democracy, freedom of expression is paramount. I was also taught that even if you did not have anything to eat, you must have the freedom to say you are starving. What has happened to the India I know? What has happened to that sacrosanct freedom of expression? This censorship of personal opinion began with the banning of Satanic Verses way back in 1988, barely 10 days after its release. It has not stopped until today. The right to free speech is shamelessly curtailed and the press censored in the name of protecting minority sentiments. I do acknowledge that religious minorities in India must be given adequate protection. But, is this not going too far? If the AIMF can bring an entire city to a standstill today, forcing the army to step in to maintain law and order, is there not something seriously wrong with the way things are going?

    What irks me even more that the protests, is the fact that nobody seems to be talking about Ms. Nasreen’s right to say what she thinks is right. Nobody is arguing she is right. But even dissent must be within the acceptable framework of democracy. Burning public vehicles and causing infinite inconvenience to common people in the name of a protest march is simply unacceptable. Will someone please talk about it? Will the state government, and the Centre forget their pseudo-secularism for a moment and defend Ms. Nasreen’s right to live where she wants to and say what she wants to?

  • Economy,  Education,  Politics

    Nalanda, Asian universities and the former Yale dean

    This opinion column by Jeffrey Garten (former Yale dean) in the New York Times is worth both reading and commenting. First, he acknowledges and appreciates the importance of Asia to the world in general. Second, he realises, unlike most other western policy-makers that countries like India, China, South Korea and Japan joining forces to create a state-of-the-art university could have a significant impact on Asia’s future role in world affairs. As an external observer, he asks the many questions we tend to overlook in our euphoria about a potential superpower status in the near future. One important question is whether these countries, especially India and China can effectively cooperate and pool their individual strengths, given their obsession with national sovereignty. Not to mention that Nalanda is in Bihar, as Amit Varma puts it so effectively, and explains in the update to his post of November 14. In a state where there is no guarantee of safety of limb and life, can we honestly expect a world-class university. Ok, ok. I am not saying that Bihar is a horrible place. I am simply observing the apparent and total absence of any kind of government activity in the state. I know many of my readers will blame the state of affairs on the “neglect” of Bihar by the Central Government and lament that there are no national highways in that immensely large state. But still…

    That does not solve our problem of founding a world-class institution in India. India has many universities, both private and public. I could not find the actual number of universities in the country, but this Wikipedia article gives you a rather exhaustive list of recognised universities in India. Given the ungodly number of universities that already exist in the country, what exactly is the need to found yet another “world-class” university? As if that is not enough, our beloved policy-makers want to revive the Nalanda University, which is one of the world’s oldest universities. It is a Buddhist university. Need I say more? This is ample chance for the Hindutva brigade to appropriate credit for the existence of a university that disappeared in 1197. And also a chance for the wonderful “secular” forces to cry wolf yet again. I would seriously like to know why we cannot just improve the facilities in existing Indian universities, given that there are so many of them? Do countries like China, Japan and South Korea have any objection to contributing to the improvement of our IITs, IIMs and other universities? Maybe the name must change. After all, why would China want to contribute to the Indian Institute of Technology? But, what about others? What is stopping these guys from renaming the Jawaharlal Nehru University as the Pan-Asian University or something like that? Or improving upon existing infrastructure in any of the countries contributing to the task? This obsession with something that has been dead for more than 800 years is beyond my comprehension. As Garten says, we are simply not thinking big enough. We need to move ahead into the 21st century because great ideas are as important as tonnes of money.

  • Economy,  Politics,  Society and Institutions,  Technology

    Outsourcing revisited

    Yesterday, I watched, for the second time, a Discovery Feature by Thomas L Friedman that deals with the phenomenon of outsourcing in India. When I first watched it a year ago, I was impressed by the depth and range behind the feature. I stopped there. I did not bother to go through the comments to the video on YouTube. But yesterday, I found the comments more interesting. The video explores the changing relationship between the service provider and the customer. Call any service centre in the US and chances are, you will hear an Indian voice on the other end. You could have problems with your computer, your bank account, your investments, your food processor or your hair dryer and more often than not, it will be an Indian fixing it for you. This state of affairs would have been unimaginable twenty years ago. The internet, falling cost of communication and technological development have made this kind of outsourcing, not just possible, but very common. Think about it, you have decided to mortgage your house. The bank approves the mortgage. The next day, the formalities are complete and you have your money. Would this be possible in the pre-BPO world? I doubt it. For, when you are enjoying a good night’s sleep in the US, India is awake and working to complete the paperwork you will need in 12 hours.

    All this sounds fantastic, but some of the comments to the said video on YouTube are shocking. One person says,

    “i can hardly begin to tell you how disgusting this phenomenon is. You people that are so impressed by this “great” video do NOT seem to understand that 99.9999999% of Americans HATE getting an Indian voice when they call and need something. Please take a moment and let? it sink in. AMERICANS CAN’T STAND INDIA CALL CENTERS!!!”

    Need I even comment? This person, who so hates getting an Indian voice on a call can’t spell the word Indian properly. And yes, he seems to think that people are objects. No wonder people that are impressed don’t understand something. I mean, what the &^@!?? Being American does not give someone the right to be derisive of those who are not. The last time I checked, Indians spoke English as well as anyone else. In fact, we stick to conventional English grammar more closely that the Americans. And, I thought English was English and not American. Honestly, I don’t care what the Americans like and what they hate. If I were a call centre employee in India, I would do my job because I am paid for it. Whoever said I needed to speak with an American twang to be considered competent? Try telling the Quebecois that their French is not French. Or the Australians that their English is not English. You wouldn’t dare, would you? So why do people assume they can say what they want about Indian English just because we have other, well-developed languages? (Or is this guy/girl simply racist?) Are we any less fluent than the Americans because we don’t have an American accent?

    I have nothing against Americans in general. But, this comment by one American effectively ensures that other, moderate voices are never heard. This guy (or girl) goes on to claim that the American Customer Service people clean up the mess Indians create. Nothing could be farther from the truth. Don’t believe me? Visit a call centre and find out for yourself. Or, believe people like Friedman who are, at least, objective in their evaluation of outsourcing.

    No matter what the Americans, or anyone else for that matter, think, the fact remains that outsourcing is here to stay. Live with it! If people don’t like hearing Indian voices when they call, they should learn to live with their million gadgets that don’t work. I have lived in France for two years. It is a fact that people cannot survive in the west if their gadgets were to stop working. Try living with broken computers, banks that take 8 days to clear your cheque and investments that go haywire because the financial consultant is on vacation. Then, you will understand how much easier your life has become thanks to outsourcing. The reason is simple. Indians do the same job, as well as any American (or Brit/Frenchman/Australian) for half the cost. And companies exist to make money. Indian call centres are not disappearing any time soon. The sooner the world learns to cope, the better.

  • Economy,  Education,  Politics,  Society and Institutions

    Economic development and social welfare…among other things…

    Yet again, I am going to talk about two different things. But, this time around, the two are not entirely unrelated to one another. First, Amalia sent me a link a couple of days ago that spoke of the OECD report on India. It is an article of Le Monde, that says India can reduce its poverty levels to half the current level by 2015. The Policy Brief released by the OECD can be accessed in PDF format here. The report simply confirms what economist have been saying for years; that economic liberalisation has benefited large sections of society, but that further reforms are needed if we want the growth to be sustainable and more inclusive. The Policy Brief puts it rather succinctly when it says, “Reform must continue if government is to achieve its growth targets.” I am happy to learn that India is on the right track with liberalisation, no matter what the Left says or wants to believe. It is, of course, evident that there are several sectors that need to be reformed if the phenomenal growth rate of the past two decades is to be sustained.

    Of them, the most important is education. In a way, the report vindicated my post of July 22, that creativity is becoming a bad word for most schools, given the national obsession with grades. There are many things wrong with our educational system. The first is that we still pride ourselves on a system created to school a nation of clerks. The second problem is that a government that is so keen on making out IITs and IIMs as good as Harvard spends next to nothing on primary education. I repeat the question I asked some time back on the same blog. How does one get to the IITs or the IIMs when he does not know how to gain access to kindergarten? The government must now concentrate on enabling students from less privileged backgrounds, notably girls, to get at least primary education. Otherwise, we are closing the doors to sustainable development, both economic and human.

    That said, I also think the government is doing its best, given the circumstances, to improve the situation. As the Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia said on a programme on BBC today, we are an open society. It is easy to find weaknesses in the system. That is a good thing. But, we must also document the successes and find encouragement for further reforms in them. A second statement by Ahluwalia reassured me that our fate is in the right hands. To a question on whether development would ‘trickle down’ to the bottom, he said that he did not like the expression. As he put it, it implies that development takes place at the top and is distributed to the lower levels. He added that for growth to be inclusive, development must start from the lowest levels. I completely agree. And I hope he stays put at the Planning Commission long enough to ensure that he implements the policies he creates.

    Ok…now, moving on. This article of the International Herald Tribune caught my attention this morning. It made me wonder whether the world would have taken such a death in India so lightly. One case of a farmer committing suicide in India hits the headlines and everyone, including starving African nations start talking about how economic growth in India is not inclusive. A case of double standards? I certainly think so. Also, I think such a situation is practically impossible in India. Indian society is too close-knit, even in urban centres, to completely ignore a person like this for months. I only hope that, in the euphoria of economic development, we do not lose sight of the social support system that makes India so special. To me, it is something that must be preserved.