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Technology

India: Cricket, Computers and Corruption

Extracted from Worksite

Russell Lansbury cuts through the hype to look out the so-called hi-tech revolution on the sub-continent.

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India is an impossible country to describe: it is full of contradictions, ever changing but eternally the same, an absurd blend of the ancient and post-modern, continually frustrating but always stimulating. Humphrey Hawksley, a veteran BBC journalist, commented to an Indian colleague that little had changed in the Mumbai slums since he first visited 20 years earlier. 'Ah', replied his friend, 'but they now have electric fans and television!'

On my most recent visit to India, I was struck by the fact that at least two national obsessions remained unchanged: the Indian passion for cricket and their antipathy towards Pakistan. The Indian cricket remains under a cloud despite recent success against Australia. Former captain and coach Kapil Dev and several other players currently 'resting' while charges against them for match fixing are being investigated. While the Indian army 'won' against Pakistan in the recent border skirmishes, a peaceful settlement of the Kashmir problem remains elusive. The Indian media has lambasted the government not only for its failure to resolve the Kashmir issue but also for preventing the Indian cricket team playing against Pakistan because they fear losing to a superior side!

IT Investment

The latest obsession in India, however, is with information technology (IT). On a recent visit to India, Microsoft Chairman, Bill Gates, pledged that his company would invest at least 50 million US dollars in its India-based software development centres, over the next three years. This was hailed by politicians and business leaders as a signal that India was joining the ranks of the most advanced economies! The city of Bangalore, where Microsoft has its Indian headquarters, has been proclaimed as a new Silicon Valley, with more than 75,000 professionals employed in IT-related activities. Yet there remains major problems with basic education as Bill Gates himself has acknowledged by donating 5 million US dollars for rural education and basic skills development.

Hi-Tech Hype

The hype surrounding India's new 'love affair' with IT illustrates the gap between image and reality in India. Every small business seems to advertise an internet address and 'cybernet' cafes abound. Yet trying to send or receive an internet message can be quite a challenge. Last year I spent several frustrating days failing to gain access to hotmail via the business centre in an international hotel in Chennai. This year the task was somewhat easier but getting a connection remained difficult, unless one was willing to pay a large fee to gain a fast connection.

The convergence of IT and media in India has recently captured the attention of Australia's own Kerry Packer. The Packers' Publishing and Broadcasting Ltd (PBL) has entered the cable TV business in India in partnership with Himachal Futuristics. The Indian media commented favourably on the Packer move based on his successful World Series Cricket initiative. For the moment PBL has only purchased time slots on an existing channel so that it can show its own programs (based on successful Australian programs such as The Price is Right), on Indian TV. It anticipated that PBL will eventually start its own channel. However, Packer is looking for a convergent platform - a channel and portal as one single avenue which could be commonplace once broadband becomes a reality. The Indian press noted that James Packer has already taken PBL into the Internet age by launching ninemsn.com along with Microsoft, in Australia, and could be looking at expansion into India and beyond.

Low Tech Reality

But while the Indian media remain mesmerised by Bill Gates and Kerry Packer bringing global communications and IT to India, the reality of life for the Indian masses remains grim. Approximately one-third of Indians are below the poverty line, which means that they are unable to get two adequate meals a day. Furthermore, India in among the less educated nations with only about a 50 per cent literacy rate. India is also one of the most unhygienic countries in the world with its mighty rivers like the Ganges highly polluted. Inadequate access to clean drinking water is arguably the greatest threat to public health in India. During the next 25 years, demand for water by industry and agriculture is expected to double while domestic use will triple.

There has been economic development in recent years, with impressive rates of economic growth during the 1990s, but it has not reduced the level of poverty and the economic disparities between rich and poor have increased. The economic problems facing India have a long history. When India gained independence from Britain in 1947, Prime Minister Nehru promised that this would mean the end of mass poverty. But an economic policy of import substitution or 'swadeshi', which lasted 40 years, meant that most Indian capitalists and government-owned industries were protected from foreign competition. In many cases, products were of lower quality and costs were higher than imported goods. By contrast, many other countries which practiced 'export promotion' were more successful than India, even though they were poorer at the outset.

Economic Gains

Under Rajiv Gandhi, India's protectionist economic policies were replaced by a more liberal regime. Foreign investment and the use of modern technology was encouraged, import restrictions were eased and many new industries were established. In the automobile sector, for example, a large number of American, European and Japanese manufacturers have entered the market and established new plants. Production has been growing by around 33 per cent each year since the mid 1990s. While the joint venture between Maruti and Suzuki still accounts for 60 per cent of the total output, and produces the best selling model in the small car segment, other manufacturers gained a larger share of this market. While most passenger cars in the small and medium sized sectors, there has been significant growth in the deluxe and luxury models, with Daimler Chrysler being among the fastest growing manufacturers. Yet the infrastructure of roads and highways remains woefully inadequate and traffic congestion is increasing rapidly in Indian cities. This has been exacerbated by a major shift in commercial traffic from rail to roads during the past decade. While economic liberalism has brought an inflow of private capital, there have been insufficient government funds to maintain or expand the required infrastructure. Recently, the Indian National Highway Act was amended to allow the private sector to construct highways and collect tolls in selected areas, but this is not occurring fast enough to solve emerging problems.

Since 1998 a diffuse array of around 13 parties, led by the Hindu-fundamentalist Bharatiya Janatra Party (BJP), has governed India under Prime Minister A.B.Vajapayee. The BJP has been gradually privatising public sector industries and has promised to increase outlays for power, communications and energy. However, this 'grand coalition' has been characterised by internal strife and indecisiveness. Although the BJP and its alliance parties were recently re-elected by a small margin, this was mainly due to the electorate's lack of enthusiasm for the Congress Party under the leadership of Sonia Gandhi (widow of Rajiv Gandhi). The BJP-led coalition government has recently faced an internal backlash from the Swadeshi Jagron March (SJM) which is demanding a total ban on the import of agricultural products, no foreign direct investment except in export-oriented areas and renegotiation by India of its membership of the World Trade Organisation (WTO). The SJM has strong representation with the BJP's traditional support base and poses a threat to an already weak government.

Self-Help

The benefits of the policies of economic liberalism, pursued by both the Congress and BJP governments during the 1990s, have not 'trickled down' to the vast majority of Indians who are engaged in small scale agriculture and industry. As successive governments have failed to provide a solution to poverty, there is growing support for policies of self help and mutual cooperation. Some non-government organizations (NGOs) have been advocating schemes, initiated by local communities and supported by some state governments, which rely on people gaining self confidence to find their own solutions to improve their conditions of life.

In the state of Maharashtra, in a region where there is a shortage of drinking water, several villages have cooperated to build small 'check dams' during the raining season. This has increased the supply of water not only for drinking but also for irrigation. It has also resulted in more water going underground to feed local wells. In the same area, villages also took the initiative to construct extra rooms for their primary schools in order to provide better facilities. In each of these cases, government support was achieved after the villagers had demonstrated that their local initiatives were successful.

During our visit to Cochin in the state of Kerala, we met a voluntary organisation which assists Muslim women in the slum areas to develop networks which provides both social and economic support. The group is called DARSHN (Development Action through Self Help Network) and it brings together groups of women in a neighbourhood and encourages them to pool their savings in order to obtain small loans to set up businesses within the community. Many of the women's husbands are working as labourers in the Arabian Gulf countries and send money back to their wives. Most of the women have little education and feel isolated just caring for their children. The network provides them with informal education, builds their confidence, extends their social contacts and provides them with a more secure economic base. The coordinators of DARSHN have been able to gain some financial support from government to extend the network and access low interest loans.

Community Development

The concept of community development by mutual cooperation between people at the local or grassroots level is by no means new. However, the application of the concept (as opposed to theoretical discussions) is becoming more widespread. This approach does not oppose market principles but it seeks to ensure that these work in favour of communities. Similarly, government assistance is not rejected but is tailored to the needs of communities rather than increasing dependence on government for initiatives and economic support. The local council (or panchayat) can also assist the process of community development if it is prepared to play a facilitative role. Not surprisingly, self development at the community level depends heavily on education for its success.

Education

The contrast between myth and reality in India is greatest in the field of education. Indians are rightly proud of their long traditions in science and philosophy sciences such as linguistics, medicine and mathematics can be traced back to Vedic times. The study of linguistics was formulated by Sanskrit scholars in the fourth century BC and the systematic study of mathematics developed from the fifth century. The origin of astronomy can also be traced to India. Many of the world's oldest religions, such as Hinduism and Buddhism, have their origins in India. However, while education is free and compulsory in India for all up to the age of 14, only half of Indian children aged 11-14 years are currently enrolled in school. Furthermore, half of all students from rural areas dropout before completing primary school. National literacy among those aged 15 years of age is more than 52 per cent (38 per cent among females). A major initiative to improve literacy in the 1990s, known as 'Operation Blackboard' failed due to lack of funds.

Although India boasts that it is the world's largest democracy, the nation remains plagued by corruption and political instability. There is great nostalgia for Jawaharal Nehru, the first post Independence Prime Minister, who led India from 1947 until his death in 1964. His daughter Indira Gandhi, had mixed success during two long periods as Prime Minister and was tragically assassinated while in office (as was her son, Rajiv who succeeded her). Since the Nehru-Gandhi period, there have been numerous Prime Ministers who have served only briefly in office. Narasimha Rao, who was the most recent Prime Minister from the Congress Party, has been charged with bribing another political party to support his government. The current Prime Minister, A.B. Vajapayee, is ailing and leads a weak coalition government which is unlikely to have a long tenure. Multiple levels of local, state and federal governments, which are often antagonistic to each other, are inimical to stable and effective government. Corruption at all levels of government, however, poses a more entrenched and long-term challenge to democracy in India. One small glimmer of hope is provided by the recent revival of the panchayat system of local government, which may help to revive participation by citizens at the local or grassroots level.

Strong Identity

It would be premature to dismiss India as a lost cause. The resilience of the Indian people, particularly at the village level, is formidable and the nation remains rich in human resources. Few countries have maintained a strong national identity over such a long period of history. Yet the problems of sustaining a population of more than one billion people are formidable. Water resources are woefully inadequate and soil degradation is of growing concern. Yet India is developing new industries, not only in IT but also in alternative forms of energy. During the 1990s, India became the world's third largest producer of wind energy and it is expanding its use of solar and hydro power (albeit controversial). The past decade has also seen a major increase in foreign direct investment. A major challenge for future governments will be to ensure that the advantages of economic growth and development are spread more evenly across society. The engagement of the India masses in democratic institutions, particularly at the village and grassroots level, is also important for the future development of the nation.

Professor Russell Lansbury, Work and Organisational Studies, University of Sydney.

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»	Union Journo on Death List
»	First 'Lab Rats' in Bank Hold-Up
»	Monk's Mad Power Grab from States
»	Big Print Merger Threatens Jobs
»	Anger as Labor Staffers Shun Unions
»	Unions Are Well Advanced In Change Unions Tell ALP
»	Unions Step Up Organising Drive
»	Education, Call Centre Unions Sweep Awards
»	Bank AGMs Focus of Worker Anger
»	Gender Balance in Transport Concessions
»	Concern As Sydney Collapses
»	Bakers Seek More Bread
»	CFMEU Forces Re-Think On Asbestos
»	Call Goes Out for Union Summer
»	Twelve Weeks Parental Leave For Kiwis
»	Organiser of the Year Nominations Open
»	Activists Notebook

»	The Soapbox
»	Sport
»	Labour Review
»	Tool Shed

»	What's Wrong With Labor
»	Why I'm Quitting the ALP
»	Compo Flak
»	Union Democracy
»	Multi-Skilling Corrigan Style

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