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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 June 19, 2007 08:00 AM
Outstanding analysis, cheers for more in future. NIRAKAR
Posted by: Nirakar at June 29, 2007 08:01 AM
I would like to say in light of above discussion "India's core strength" that India of 2007 is different from India of 1990’s in the eyes of corporate world. The transition of Indian Image in corporate world is really a great thing because it is achieved in very short span. In 90's and early 2000 India was one of the emerging market now it has many companies which are one of the most discussed global investor, e.g., Tata Group of companies, Birla Group, Infosys etc. the number is growing day by day. TCS' and others started hiring Experts from USA. These neo-multinationals have good connections with reputed educational institutes there.
The current growth trends, FDI in India, appreciation of rupees etc shows that the corporate world and rating agencies have to find new methods and models to understand the dynamics of Indian economic growth and risk involved. We cannot compare India with other Democracies, not even with the other south Asian Countries even if there is a cultural similarity.
We have to treat India as a unique country- when we have to understand country risk or Business, or other types of risk. As this century is going to be ruled by the knowledge and Indian Knowledge industry is really growing. So we have to devise a new mechanism -model to rate and understand the effect of Indian cultural ethos on Indian companies and multinationals.
We have to understand glocalisation in Indian perspective. There exists significant deficiencies in Indian system (Political as well as economic) but they could not stop India’s economic growth. The risk professionals have to look Indian system from Indian perspective. Then they have to balance their understanding with global standards.
Ravi Ranjan Sinha
Email-rrsinha1974@yahoo.co.in
sinha.raviranjan@gmail.com
Posted by: Ravi Ranjan Sinha at June 29, 2007 09:31 AM
Besides what Mr Guha has listed, Indians are large-hearted; to believe, you have to see for yourself the humane behaviour and the warmth of the poor and the common man on the street when they are faced with adverse conditions like monsoon flooding, bomb blasts, police tyranny, etc.
The billion-plus human population, though not all are professionally educated or high-tech skilled, is the core strength of the country. They live in each day of their lives, in actual practice, the adage " we are the world, we shall prevail"
Posted by: P.Chandrasekar at July 3, 2007 06:34 AM
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