|
The
key to China’s success
Mr Sanjaya Baru makes much of China’s “investment in human
capital” to explain its manufacturing success. But does he
explain what those “investments” are? No. This so-called investment,
from my conversations with procurement specialists in North
America, is simply the ease with which a large company, such
as Black & Decker, Target, Toys R Us, etc is able to arrange
long-term supplies, often through a Taiwanese or Hong Kong
manufacturing entity. Mainland manufacturing arms of these
companies, through the city or provincial governments, reap
the benefits of assured land, utility, tax benefits and credits,
and, most importantly, human resource. Human resource is made
available like military draft — no unions, barrack facilities
(characterised by a large female component), basic amenities
and assured low pay.
Investment in human resource exists only to the extent of
providing abundant and steady supply. Let’s not kid ourselves
— this is no more than inventory supply at low cost. It would
not work in a democracy. What India could do is to provide
the basics — good infrastructure and a competitive market
for all services, including utilities and the labour market.
Our high cost stems from monopolies, state control and indirect
taxes through institutional corruption. What needs to go out
first is the small scale industry fixation.
— J S Iyer, on e-mail
General is stuck
With reference to ‘The failure of Indian diplomacy’ (Oct 30),
Chanakya has got it quite wrong. The alliance needs General
Musharraf more than it needs India. Pakistan is the only accessible
state that borders Afghanistan. Musharraf has to be propped
up if bin Laden is to be denied access to nuclear weapons.
Pakistan is an Islamic nation and this war has less to do with
the elimination of terrorism, and more to do with trying to
ensure the survival of moderate Islamic nations. As for the
issue of Pakistan receiving aid, this doesn’t reflect the failure
of Indian diplomacy.
We all know that Pakistan is in a financial mess. Withdrawing
aid will only push it over the brink. The only viable solution
is to give it a decent handout, a loan write-off and market
access. The western nations have to make it worth the General’s
while if he has to become a well-behaved poodle of a civilised
society. Remember Hosni Mubarak’s support for the Camp David
peace accord?
Will the General be able to govern Pakistan after his ‘grand
betrayal’? This is where Kashmir comes into his strategy. He
feels that the Pakistanis will forgive him if he can achieve
his Kashmir policy. As far as the West is concerned, Kashmir
could well be sacrificed in much the same way as Balfour promised
a part of Palestine to Lord Rothschild in return for more funds
for Britain’s rearmament efforts in 1917 after World War I.
Finally, managing our economy efficiently, and preventing our
politicians from stealing public money, is the best answer for
a whole range of foreign policy scenarios thrust upon us. Making
ourselves self-reliant in financial terms should be our aim.
— Pale Hill, on e-mail
Science’s calling
Scientists with a spiritual background can certainly change
the thinking of the common man. This was rightly recalled by
Mr Abdul Kalam recently. The purpose of science should be to
provide happiness to human beings but it fails to do so in many
cases. That’s because we have not yet learnt to make sensible
use of it.
— R N Lakhotia, New Delhi |
