Risk Management, PRMIA

June 19, 2007

India's Core Strengths

In his recent book " India after Gandhi: The History of the World's Largest Democracy" , historian Ramachandra Guha stresses some of the key strengths of India that shields it from many dangers and risks.

Key points from the historian's narrative that may be useful to modern corporate world and risk managers:

1. India is different :

In the words of Ram Guha " India is simply sui generis, it stands on its own, different and distinct from alternative political models on offer.." Its rejection of imperialism, stress on human rights, the denial to toe communists are all its strengths..

2. 50-50 Democracy

India, to Guha, is a moderately successful democracy ( Phipty-Phipty, as Indian comedian Johny Walker would say). " It mostly is when it comes to holding elections and permitting freedom of movement and expression. It mostly is not when it comes to the functioning of politicians and political institutions".( page 749 of Guha's Book)

3. Strong Foundations of Indian Democracy : Indian democracy survives because of its strong foundations laid down by extraordinary political figures like Nehru, Ambedkar, Patel and many others.

4. Proud Voters : Time and again , voters have thrown out the ruling party and gives chance to the opposition. Voter Dissatiasfaction with potical regimes has considerably reduced political recklessness leading to a stable nation.

5. Bollywood

To Guha, Bollywood films and film stars played a major role in cultural integration. It has done what State dictats at making Hindi the national language could not over the years. Hindi films gave Indians a common discourse.

6. Secular Tradition
Secularism is the source of India's core strength. As Guha observes " In 2007, the President of India is a Muslim, the Prime Minister a Sikh and the leader of the ruling party a Catholic born in Italy" ( page 751)

For the Risk managers, while measuring political risks, it is important not to discount the strong foundations of Indian democracy often described as a third class democracy with a first class constitution. Its institutional architecture is so well laid that India is capable of handing major shocks and stresses to its economic, political and social systems.

Posted by sunandoroy at 08:00 AM | Comments (3)