Thursday, August 30, 2007

The ‘poor’ neighbour

The ‘poor’ neighbour

by William Dalrymple

AMID all the hoopla surrounding the 60th anniversary of Indian independence, almost nothing has been heard from Pakistan, which also turned 60. Nothing, that is, if you discount the low rumble of suicide bombings, the noise of automatic weapons storming the Red Mosque and the creak of slowly collapsing dictatorships.

In the world's media, never has the contrast between the two countries appeared so stark: one is widely perceived as the next great superpower; the other written off as a failed state, a world centre of Islamic radicalism, the hiding place of Osama bin Laden and the only US ally that Washington appears ready to bomb.

On the ground, of course, the reality is different and first-time visitors to Pakistan are almost always surprised by the country's visible prosperity. There is far less poverty on show in Pakistan than in India, fewer beggars, and much less desperation. In many ways the infrastructure of Pakistan is much more advanced: there are better roads and airports, and more reliable electricity. Middle-class Pakistani houses are often bigger and better appointed than their equivalents in India.

Moreover, the Pakistani economy is undergoing a construction and consumer boom similar to India's, with growth rates of seven per cent, and what is currently the fastest-rising stock market in Asia. You can see the effects everywhere: in new shopping centres and restaurant complexes, in the hoardings for the latest laptops and iPods, in the cranes and building sites, in the endless stores selling mobile phones: in 2003 the country had fewer than three million cellphone users; today there are almost 50 million.

Mohsin Hamid, author of the Booker long-listed novel The Reluctant Fundamentalist, wrote about this change after a recent visit: having lived abroad as a banker in New York and London, he returned home to find the country unrecognisable. He was particularly struck by "the incredible new world of media that had sprung up, a world of music videos, fashion programmes, independent news networks, cross-dressing talkshow hosts, religious debates, and stock-market analysis".

I knew, of course, that the government of Pervez Musharraf had opened the media to private operators. But I had not until then realised how profoundly things had changed. Not just television, but private radio stations and newspapers have also flourished in Pakistan over the past few years. The result is an unprecedented openness. Young people are speaking and dressing differently. Views both critical and supportive of the government are voiced with breathtaking frankness in an atmosphere remarkably lacking in censorship. Public space, the common area for culture and expression that had been so circumscribed in my childhood, has now been vastly expanded. The Vagina Monologues was recently performed on stage to standing ovations.

Little of this is reported in the western press, which prefers its sterotypes simple: India-successful; Pakistan-failure. Nevertheless, despite the economic boom, there are three serious problems that Pakistan will have to sort out if it is to continue to keep up with its giant neighbour -- or indeed continue as a coherent state at all.

One is the fundamental flaw in Pakistan's political system. Democracy has never thrived here, at least in part because landowning remains almost the only social base from which politicians can emerge. In general, the educated middle class is still largely excluded from the political process. As a result, in many of the more backward parts of Pakistan the local feudal zamindar can expect his people to vote for his chosen candidate. Such loyalty can be enforced. Many of the biggest zamindars have private prisons and most have private armies.

In such an environment, politicians tend to come to power more through deals done within Pakistan's small elite than through the will of the people. Behind Pakistan's swings between military governments and democracy lies a surprising continuity of interests: to some extent, the industrial, military, landowning and bureaucratic elites are now all related and look after one another. The current rumours of secret negotiations going on between Musharraf and Benazir Bhutto, the exiled former prime minister, are typical of the way that the civil and military elites have shared power with relatively little recourse to the electorate.

The second major problem that the country faces is linked with the absence of real democracy, and that is the many burgeoning jihadi and Islamist groups. For 25 years, the military and Pakistan's powerful Inter-Services Intelligence (ISI), have been the paymasters of myriad mujahideen groups. These were intended for selective deployment first in Afghanistan and then Kashmir, where they were intended to fight proxy wars for the army, at low cost and low risk. Twenty-eight years after the Soviet invasion of Afghanistan, however, the results have been disastrous, filling the country with thousands of armed but now largely unemployed jihadis, millions of modern weapons, and a proliferation of militant groups.

While the military and intelligence community in Pakistan may have once believed that it could use jihadis for its own ends, the Islamists have followed their own agendas. As the recent upheavals in Islamabad have dramatically shown, they have now brought their struggle on to the streets and into the heart of the country's politics.

The third major issue facing the country is its desperate education crisis. No problem in Pakistan casts such a long shadow over its future as the abject failure of the government to educate more than a fraction of its own people: at the moment, a mere 1.8 per cent of Pakistan's GDP is spent on government schools. The statistics are dire: 15 per cent of these government schools are without a proper building; 52 per cent without a boundary wall; 71 per cent without electricity.

This was graphically confirmed by a survey conducted two years ago by the former Pakistan cricket captain turned politician, Imran Khan, in his own constituency of Mianwali. His research showed that 20 per cent of government schools supposed to be functioning in his constituency did not exist at all, a quarter had no teachers and 70 per cent were closed. No school had more than half of the teachers it was meant to have. Of those that were just about functioning, many had children of all grades crammed into a single room, often sitting on the floor in the absence of desks.

This education gap is the most striking way in which Pakistan is lagging behind India: in India, 65 per cent of the population is literate and the number rises every year: only last year, the Indian education system received a substantial boost of state funds.

But in Pakistan, the literacy figure is under half (it is currently 49 per cent) and falling: instead of investing in education, Musharraf's military government is spending money on a cripplingly expensive fleet of American F-16s for its air force. As a result, out of 162 million Pakistanis, 83 million adults of 15 years and above are illiterate. Among women the problem is worse still: 65 per cent of all female adults are illiterate. As the population rockets, the problem gets worse.

The virtual collapse of government schooling has meant that many of the country's poorest people have no option but to place their children in the madrassa system, where they are guaranteed an ultra-conservative but free education.

Altogether there are now an estimated 800,000 to one million students enrolled in Pakistan's madrasas. Though the link between the madrassas and Al Qaeda is often exaggerated, it is true that madrassa students have been closely involved in the rise of the Taleban and the growth of sectarian violence; it is also true that the education provided by many madrassas is often wholly inadequate to equip children for modern life in a civil society.

Sixty years after its birth, India faces a number of serious problems -- not least the growing gap between rich and poor, the criminalisation of politics, and the flourishing Maoist and Naxalite groups that have recently proliferated in the east of the country. But Pakistan's problems are on a different scale; indeed, the country finds itself at a crossroads. As Jugnu Mohsin, the publisher of the Lahore-based Friday Times, put it recently, "After a period of relative quiet, for the first time in a decade, we are back to the old question: it is not just whether Pakistan, but will Pakistan survive?" On the country's 60th birthday, the answer is by no means clear.





Wednesday, August 22, 2007

AN INTERESTING CONVERSATION

An Atheist Professor of Philosophy speaks to his class on the problem
Science has with God, The Almighty.

He asks one of his new students to stand and.....

Prof: So you believe in God?
Student: Absolutely, sir.

Prof: Is God good?
Student: Sure.

Prof: Is God all-powerful?
Student: Yes.

Prof: My brother died of cancer even though he prayed to God to heal
him. Most of us would attempt to help others who are ill. But God
didn't.
How is this God good then? Hmm?

(Student is silent.)

Prof: You can't answer, can you? Let's start again, young fellow. Is
God good?
Student: Yes.

Prof: Is Satan good?
Student: No.

Prof: Where does Satan come from?
Student: From...God...

Prof: That's right. Tell me son, is there evil in this world?
Student: Yes.

Prof: Evil is everywhere, isn't it? And God did make everything.
Correct?
Student: Yes.

Prof: So who created evil?

Student does not answer.

Prof: Is there sickness? Immorality? Hatred? Ugliness? All these
terrible things exist in the world, don't they?
Student: Yes, sir.

Prof: So, who created them?

Student has no answer.

Prof: Science says you have 5 senses you use to identify and observe
the world around you. Tell me, son...Have you ever seen God?
Student: No, sir.

Prof: Tell us if you have ever heard your God?
Student: No, sir.

Prof: Have you ever felt your God, tasted your God, smelt your God?
Have you ever had any sensory perception of God for that matter?
Student: No, sir. I'm afraid I haven't.

Prof: Yet you still believe in Him?
Student: Yes.

Prof: According to empirical, testable, demonstrable protocol,
science says your GOD doesn't exist. What do you say to that, son?
Student: Nothing. I only have my faith.

Prof: Yes. Faith. And that is the problem science has.

Student: Professor, is there such a thing as heat?
Prof: Yes.

Student: And is there such a thing as cold?
Prof: Yes.

Student: No sir. There isn't.

(The lecture theatre becomes very quiet with this turn of events.)

Student: Sir, you can have lots of heat, even more heat, superheat,
mega heat, white heat, a little heat or no heat. But we don't have anything
called cold. We can hit 458 degrees below zero which is no heat, but we
can't go any further after that. There is no such thing as cold. Cold is
only a word we use to describe the absence of heat. We cannot measure cold.

Heat is energy. Cold is not the opposite of heat, sir, just the
absence of it.

(There is pin-drop silence in the lecture theatre.)

Student: What about darkness, Professor? Is there such a thing as
darkness?

Prof: Yes. What is night if there isn't darkness?

Student: You're wrong again, sir. Darkness is the absence of
something. You can have low light, normal light, bright light,
flashing light....But if you have no light constantly, you have
nothing and it's called darkness, isn't it? In reality, darkness
isn't. If it were you would be able to make darkness darker,
wouldn't you?

Prof: So what is the point you are making, young man?

Student: Sir, my point is your philosophical premise is flawed.
Prof: Flawed? Can you explain how?

Student: Sir, you are working on the premise of duality. You argue there is
life and then there is death, a good God and a bad God. You are viewing the
concept of God as something finite, something we can measure. Sir, science
can't even explain a thought. It uses electricity and magnetism, but has
never seen, much less fully
understood either one.

To view death as the opposite of life is to be ignorant of the fact that
death cannot exist as a substantive thing. Death is not the opposite of
life: just the absence of it.

Now tell me, Professor. Do you teach your students that they evolved from a
monkey?

Prof: If you are referring to the natural evolutionary process, yes, of
course, I do.

Student: Have you ever observed evolution with your own eyes, sir?

(The Professor shakes his head with a smile, beginning to realize
where the argument is going.)

Student: Since no one has ever observed the process of evolution at work and
cannot even prove that this process is an on-going
endeavor, are you not teaching your opinion, sir? Are you not a
scientist but a preacher?

(The class is in uproar.)

Student: Is there anyone in the class who has ever seen the
Professor's brain?

(The class breaks out into laughter.)

Student: Is there anyone here who has ever heard the Professor's
brain, felt it, touched or smelt it? No one appears to have done so.
So, according to the established rules of empirical, stable,
demonstrable protocol, science says that you have no brain, sir.

With all due respect, sir, how do we then trust your lectures, sir?

(The room is silent. The professor stares at the student, his face
unfathomable.)

Prof: I guess you'll have to take them on faith, son.

Student: That is it sir... The link between man & god is FAITH. That is all
that keeps things moving & alive.

. WANT TO KNOW WHO THAT STUDENT WAS

this is a true story, and the
student was none other than*.........

Dr. APJ Abdul Kalam, the Ex-President of India

Saturday, August 18, 2007

Conversation between GOD and ME

God : Hello. Did you call me?


Me: Called you? No.. who is this?


God : This is GOD. I heard your prayers. So I thought I will chat.


Me: I do pray. Just makes me feel good. I am actually busy now. I am in the midst of something.


God : What are you busy at? Ants are busy too.


Me: Don't know. But I cant find free time. Life has become hectic. It's rush hour all the time.


God : Sure. Activity gets you busy. But productivity gets you results. Activity consumes time. Productivity frees it.


Me: I understand. But I still can't figure out. By the way, I was not expecting YOU to buzz me on instant messaging chat.


God : Well I wanted to resolve your! fight for time, by giving you some clarity. In this net era, I wanted to reach you through the medium you are comfortable with.


Me: Tell me, why has life become complicated now?


God : Stop analyzing life. Just live it. Analysis is what makes it complicated.


Me: why are we then constantly unhappy?


God : Your today is the tomorrow that you worried about yesterday.You are worrying because you are analyzing. Worrying has become your habit. That's why you are not happy.


Me: But how can we not worry when there is so much uncertainty?


God : Uncertainty is inevitable, but worrying is optional.


Me: But then, there is so much pain due to uncertainty. .


God : Pain is inevitable able, but suffering is optional.


Me: If suffering is optional, why do good people always suffer?


God : Diamond cannot be polished without friction. Gold cannot be purified without fire. Good people go through trials, but don't suffer. With that experience their life become better not bitter.


Me: You mean to say such experience is useful?


God : Yes. In every terms, Experience is a hard teacher. She gives the test first and the lessons afterwards.


Me: But still, why should we go through such tests? Why cant we be free from problems?


God : Problems are Purposeful Roadblocks Offering Beneficial Lessons (to) Enhance Mental Strength. Inner strength comes from struggle and endurance, not when you! are free from problems.


Me: Frankly in the midst of so many problems, we don't know where we are heading..


God : If you look outside you will not know where you are heading.Look inside. Looking outside, you dream. Looking inside, you awaken. Eyes provide sight. Heart provides insight.


Me: Sometimes not succeeding fast seems to hurt more than moving in the right direction. What should I do?


God : Success is a measure as decided by others. Satisfaction is a measure as decided by you. Knowing the road ahead is more satisfying than knowing you rode ahead. You work with the compass. Let others work with the clock.


Me: In tough times, how do you stay motivated?


God : Always look at how far you have come rather than how far you have to go. Always count your blessing, not what you are missing.


Me: What surprises you about people?


God : when they suffer they ask, "why me?" When they prosper, they never ask "Why me" Everyone wishes to have truth on their side, but few want to be on the side of the truth.


Me: Sometimes I ask, who am I, why am I here. I cant get the answer.


God : Seek not to find who you are, but to determine who you want to be. Stop looking for a purpose as to why you are here. Create it. Life is not a process of discovery but a process of creation.


Me: How can I get the best out of life?


God : Face your past without regret. Handle your present with confidence. Prepare for the future without fear.


Me: One last question. Sometimes I feel my prayers are not answered.


God : There are no unanswered prayers. At times the answer is NO.


Me: Thank you for this wonderful chat.


God : Well. Keep the faith and drop the fear. Don't believe your doubts and doubt your beliefs. Life is a mystery to solve not a problem to resolve. Trust me. Life is wonderful if you know how to live. "Life is not measured by the number of breaths we take but by the moments that took our breath away!

Monday, August 6, 2007

A Bad Deal Gets Worse

Editorial in New York Times-Published: August 5, 2007


President Bush is understandably desperate for some kind of foreign policy success. But that cannot justify sacrificing his principled stand against weapons proliferation to seal a nuclear cooperation deal with India. The agreement could end up benefiting New Delhi’s weapons program as much as its pursuit of nuclear power.

The deal was deeply flawed from the start. And it has been made even worse by a newly negotiated companion agreement that lays out the technical details for nuclear commerce. Congress should reject the agreement and demand that the administration, or its successor, negotiate a new one that does not undermine efforts to restrain the spread of nuclear weapons.

Any agreement needs to honor the principle Mr. Bush set forth in 2004: that countries do not need to make their own nuclear fuel, or reprocess their spent fuel, to operate effective nuclear energy programs. The technology can be all too easily diverted to make fuel for a nuclear weapon.

Unfortunately, Mr. Bush’s accord with India jettisoned that essential principle. Washington capitulated to India’s nuclear establishment and endorsed continued reprocessing. And while United States law calls for nuclear cooperation to end if India detonates another weapon, the agreement makes no explicit mention of that requirement — while it promises that Washington will acquiesce, if not assist, in India’s efforts to find other fuel suppliers.

Bringing India — which never signed the Nuclear Nonproliferation Treaty — in from the cold is not a bad idea. It is the world’s most populous democracy, with a dynamic economy. And its record on nonproliferation — aside from its own diversion of civilian technology to its once-secret weapons program — is pretty good. The problem is that the United States got very little back. No promise to stop producing bomb-making material. No promise not to expand its arsenal. And no promise not to resume nuclear testing.

The message of all this is unmistakable: When it comes to nuclear proliferation, Washington’s only real policy is to reward its friends and punish its enemies. Suspicion of America’s motives around the world are high enough. America cannot afford another such blow to its credibility, especially when it is trying to rally international pressure against nuclear programs in Iran and North Korea.

The administration will argue that altering this agreement now would be a slap at India. But there is no good in compounding a bad deal. And there are better ways to deepen political and economic ties.

Congress accepted the administration’s arguments far too uncritically when it approved the first India-related nuclear legislation last December. It must now take a stand against the even more damaging companion agreement. At a time when far too many governments are re-examining their decision to forswear nuclear weapons, the United States should be shoring up the nuclear rules, not shredding them.

Saturday, August 4, 2007

Harshad Mehta-Who !?

"DOMAIN for sale", reads a blurb on what used to be Harshad Shantilal Mehta's once-famous website, "prices as low as $6.49". Although unintended, there could be no commentary more sharply ironic on the legacy on the person who became emblematic of all that is wrong with India's financial system. Massive cardiac arrest is believed to have caused Mehta's death on New Year's eve of 2002. The death at the Thane Civil Hospital of the architect of the Rs. 5,000-crore-1992 securities scandal has effected final closure on the legal proceedings against him. But the issues of accountability and justice raised then, and again in the context of repeated scandals over the past decade, remain.


It is now just over 25 years from April 1992, when news broke that State Bank of India had asked Mehta to return Rs.500 crores he had illegally put to work on the stock markets. By the end of that month, he was accused of having diverted funds from the public sector Maruti Udyog Limited (MUL) to his own accounts, provoking a record 570-point fall in the Sensex. From then until June 1992, when a sustained furore in Parliament led to the formation of a Joint Parliamentary Committee (JPC) to investigate the matter, revelations of misappropriation from banks and public sector units piled up on an almost weekly basis. Mehta, meanwhile, spent 107 days in jail, only to acquire upon his release renewed notoriety by claiming that he had made a Rs.1-crore payoff to former Prime Minister P.V. Narasimha Rao.

While the JPC Report soon provided a comprehensive and coherent picture of both the scale and mechanics of the securities fraud, putting together criminal evidence took much longer. It was only in October 1997 that the Special Court set up to hear the securities scandal-related cases could approve prosecution on 34 charges brought by the Central Bureau of Investigation (CBI). The CBI in all filed 72 sets of charges relating to criminal offences, while 600-odd civil cases proceeded alongside. Of these, so far convictions have been secured only in the case of four. In September 1999, Mehta received a four-year sentence for defrauding MUL, but an appeal is pending. April 1999, he secured acquittal in another case. His counterpart in the bear cartel, Hiten Dalal, is the only scam-accused person actually to have received a final sentence, after the Supreme Court dismissed in July 2001 his appeal against a 1999 conviction.

For anyone familiar with the pace at which India's criminal justice system works, it will come as no surprise that Mehta is not the only key securities scandal accused to have passed away over the past decade. Key accused M.J. Pherwani, former Chairman of the National Housing Bank, State Bank of India's Chairman M.N. Goiporia, managing director in charge of investments C.L. Khemani, and chief of vigilance R.L. Kamath, all died before they could give evidence. So too did top scam-tainted firm Fairgrowth Financial Services' top officials B. Ratnakar and K. Dharampal, along with bear cartel top shot Bhupen Dalal's aide, J.P. Gandhi. Now, legal experts say, further delays are certain, since charges will have to be recast to focus on Mehta's associates in the deal, notably his brothers Sudhir and Ashwin.

All this delay seems a little bizarre, given that there was little that was complicated about Mehta's scam. Consider the case of the MUL fraud. In one operation, for example, an MUL employee handed over 35 lakh Unit Trust of India (UTI) units, then valued at Rs.4.99 crores, to Mehta's New Delhi manager, Mohan Khandelwal, on January 23, 1991. The transfer was made in violation of the express orders of MUL's board of directors. The same day, a manager at the Hamam Street branch of UCO Bank in Mumbai, Vinayak Deosthali, forged a letter authorising the transfer of funds from Harshad Mehta through Bank of America to MUL. While the paper trail at Maruti was thus covered over, Khandelwal continued to hold on to the UTI units, leaving Mehta free to use them to raise more money.

ANZ Grindlays bank's (now Standard Chartered Grindlays) Ram Narayan Popli was another key player in the Mehta game. On one occasion in February 1991, he diverted a Canara Bank banker's cheque worth Rs.5.05 crores favouring Grindlays Bank to Mehta's account. On March 18 and April 24 that year, he pulled off the same trick, this time with banker's cheques worth Rs.10.84 crores and Rs.7.62 crores. Thus, MUL was not Mehta's only victim. Both UCO Bank and ANZ Grindlays suffered separately. That a few employees of these banks could routinely siphon off their employer's cash says not a little about the abysmal state of their supervisory apparatus.

Sucheta Dalal, the journalist who broke news of the securities scandal, recently pointed out that the media had not a little to do with Mehta's resurrection in 1997-1998. Some pliant financial writers wrote glowing accounts of his return to the markets, while The Times of India group offered him a print platform of his own. Among his first enterprises in a new round was allegedly helping to rig the prices of Videocon, Sterlite and BPL in association with their promoters. This enterprise, however, collapsed as a result of the Pokhran-II nuclear tests of May 1998, which provoked a precipitous decline in the markets.

The final chapter in the Mehta story began in November 2001, with the arrest of all three brothers on fresh fraud charges. In 1999, Mehta and Ashwin had claimed that they had either lost or misplaced 27 lakh shares in 90-odd companies, valued at over Rs.250 crores. They asked that these shares be restored to them, along with benefits accrued over the years. The CBI, however, rapidly discovered that the Mehtas had laundered the shares, by having them transferred to friends and relatives, who in turn introduced them back into the markets. Investigators found that the Mehtas had been introducing benami shares into the market from as early as 1996. Following their arrest on November 9, 2001, a bail application was rejected, and it was scheduled to be heard again on January 4.

Contrasting the appallingly slow progress in disposing of the 1992 securities fraud cases with experiences elsewhere in the world holds out some interesting lessons. Hours before he left the White House, United States President Bill Clinton pardoned 140 convicts, many of them convicted for financial misconduct. One who failed to obtain a pardon, despite energetic lobbying, and post-conviction charitable contributions of over $100 million was Michael Milken. He had been charged in 1988 by the Securities and Exchange Commission of market manipulation and insider trading that cost investors more than $1 billion.

Milken's rise and fall, documented in Oliver Stone's film Wall Street, was enormously greater in theatrical scale than that of the King of Dalal Street. Milken was for years reputed to be the highest-paid individual in the U.S., and the now-defunct securities firm of Drexel Burnham Lambert paid him a record bonus of $550 million in 1987 alone. Not much later, he pleaded guilty to market manipulation, and was sentenced to 10 years in jail, along with fines in excess of $ 1 billion.

Out of jail on parole after serving 22 months, Milken reneged on a deal he had made never to engage in the security business. In the January 22, 2001 issue of The New Yorker magazine, journalist James Stewart chronicled Milken's "facilitation" of securities transactions. These included a $500 million investment by Rupert Murdoch's News Corporation in New World in 1994, and MCI's 1995 $1 billion investment in News Corporation the next year. Milken reportedly made a neat $42 million for his efforts. Milken refused to accept the Securities and Exchange Commission's assertion that this violated the terms of his 1991 consent. But, rather than face a bruising criminal court confrontation, the businessman settled out of court a $47 million fine.

His ability to evade a longer prison sentence and renewed prosecution shows that in the U.S., as in India, money talks. But 22 months in jail and over a billion dollars in fines is surely better than no justice at all. The sad fact is that Harshad Mehta paid little for his crimes, a lesson his proteges have learned all too well.


‘The making of Sunil Bharti Mittal’


Sunil Bharti Mittal may have made big bucks out of the mobile telephony revolution but the man says it was a saga of struggle, fight and the "mother of all battles."

When he began his entrepreneurial venture in 1985, he was "ignored" and "laughed at" thereafter before the "fight" erupted in the telecom sector leading to what he calls "mother of all battles" from which he came out "fairly successfully," he said.

Sharing his thoughts in his convocation address at the Indian Institute Management Bangalore, the Chairman and Group Managing Director of Bharti Enterprises said: "I am a new age entrepreneur. I believe I represent the changing face of India."

"When I came out of college in 1976, I was told by all my friends and people generally older and guiding me in my hometown in Ludhiana that the pole-positions...the grand-stand positions have already been taken up by those who mattered."

There were large business houses, and the public sector had a huge grip, he recalled. For a young, struggling entrepreneur with very little capital who has just come out of college, the space was indeed very limited, he said.

"But somehow the heart was not willing to accept. And one had to push on and push forward with every little opportunity that one got in ones’ life." Mittal said the period-- 1976 to 1985--was a period of great struggle, a period of great pain but a period of great learning.

" I went straight to business after university. I picked up on the streets. I learnt my lessons on the streets and at every opportunity, tried to assimilate, gather, absorb some of the practices that were required to create an enterprise."

He said he saw his first battle with "big boys" in 1985-86 when he first launched India’s first push-button telephones. "My romance with telecom started in 1985."

Mahatma Gandhi once said: “At first, they ignore you”; “these were the times when I was being ignored."

"It’s important that at this stage you be ignored. Because spotlight at an early time of your lifecycle does not give you any extra advantage but certainly puts you at a great disadvantage."

Gandhiji said: “Then they laugh at you.” In 1992, Mittal said he applied for mobile license --India’s first attempt to provide mobile telephone services.

"I felt we had the passion to deliver India’s first mobile phone services. Many thought otherwise. We threw our hat in the ring."

He said 1993, 1994, and 1995 saw some major litigations around this area. First license was awarded in 1995.

"Bharti got license to provide mobile telephony in Delhi. People were still laughing. Because this was supposed to be a business with very deep pockets."

It was only later that he realised that this business needed "large monies". Those were difficult times, Mittal said.

"When it came to providing mobile services in the rest of the country..it saw the awakening of all those who missed in round one."

"Everybody who missed out in the first round...large industrial houses to many others came and jumped in round two. Bidding that happened in that round edged out almost all entrepreneurial initiatives. The bid went at Rs 85,000 crore and this was in 1996."

"Most of the bids were picked up by people who had less knowledge about this business," Mittal said, adding, Bharti then expanded slowly picking up the circles of Karnataka, Andhra Pradesh and Chennai followed by Punjab and Kolkata, among others.

"Then the juggernaut (Bharti) started rolling," he said. "Then they fight you. Then the big fight erupted in the telecom arena. They had ignored us, they had laughed at us and the fight had begun. And we were willing to fight this battle out because it was truly mother of all battles."

Mittal said the company believed that "if the business is about people and customers and not about money and technology, it can win the war."

"After three years of fight, we came out fairly successfully out of this. As Gandhiji said, ‘those who try hard with lot of passion, eventually win’.”

How a small trader became a metal king


Anil Agarwal, 52, dreams of being the best mining and metal-maker in the world. To get there, he thinks three to five years is a "reasonable" time. Surprised? Those who know him are not.

Agarwal, executive chairman and founder of the London Stock Exchange-listed Vedanta Resources, is growing at a very fast pace - from Rs 15 crore (rs 150 million) in 1985 to nearly Rs 20,000 crore (Rs 200 billion) in the nine-month year to 2006.

Agarwal's is a classic story of a small trader becoming metal king. The secret, he says, lies in believing in himself and in the country's potential.

"Also, I am fortunate to have wonderful people with me. Without them, it would not have been possible for me to reach this level," he told Business Standard after announcing the acquisition of Sesa Goa on Tuesday.

Agarwal came to Mumbai when he was 19 after completing his matriculation from Patna in 1975. He was so impressed with the grand edifice of the The Oberoi that he decided to lodge himself there as he set out to pursue his career as a scrap trader.

But due to his poor command over English, he had to seek the help of a friend to book himself in the hotel. Once there, he would eat out so the cost would not exceed the daily rent of Rs 200.

Today, his annual salary is over Rs 4.5 crore (Rs 45 million), not to mention his stock options and shareholding. He owns a home in Mayfair, London, drives a Bentley, wears the most expensive suits and has the best staff in the industry working for him.

But all this has not changed him. "I am a proud Bihari," he says. "But I have done nothing for Bihar and Jharkhand. In fact, this was the added attraction for my interest in Sesa Goa, which has a prospective licence in Jharkhand," he says.

An ambitious Agarwal wants to have a production capacity of 1 million tonnes each in his three areas of business - copper, aluminium and zinc, and wants to set up a 10,000 MW power plant. "We are investing $13 billion to achieve the target and are half way through [to it]," he says.

It was this ambition that drove him to launch a hostile takeover bid to acquire Indian Aluminium (Indal) from the American giant, Alcan, which failed. Instead, he bought the ailing Madras Aluminium.

Later, he acquired Bharat Aluminium and Hindustan Zinc from the government and purchased India Foils from the Khaitan group of Kolkata. In all these cases, the Birla group was one of the contenders. On his part, Agarwal shrugs off the theory of rivalry with the Birla group. "There is enough water in the sea for every fish," he says.

As of now, the uncrowned non-ferrous king of the country is making his foray in the ferrous market. Sesa Goa has a reserve of 207 million tonnes of iron ore and produces 10 million tonnes a year, and has mines in Orissa, Karnataka and Goa. He differs with those who believe that he paid a hefty premium.

"The premium of 16 per cent is actually cheap, compared to the international instances where the acquirer pays 40-50 per cent more than the market price," he says. With Sesa Goa in his fold, he seeks to be an integrated metal junction with interests in copper, aluminium, zinc, lead and iron ore.

As for failures, he has had his share. His acquisition of India Foils has proved to be unwise. The company is still bleeding. But he is candid in confession. "India Foils contributes a small portion to the group's overall turnover. We may disinvest our interest when we get the right price," he says.

Iron ore exporters, however, are a happy lot with the company coming under the Vedanta fold. They feel they now have a strong man to fight the steel lobby in the corridors of policy making.


Excerpts from his recent interview:

What is the secret of your spectacular growth in the past 20 years?

My efforts are to understand India, have faith in India and to show the world the strength of India. Outsiders do not know the potential of the country. They still believe we are from the land of snake charmers and Taj Mahal. It would be audacious on my part to say that I have fully understood the country. But I have realised that you can build a huge organisation out of this country, having your roots here. Also, I believe in empowerment. I am lucky to have wonderful people with me. They are really responsible for the success of the group.

What is your vision for the future?
I want to have one million tonne capacity each in three major areas I operate - copper, zinc and aluminium. We are half-way through our target. And I want Vedanta to be the best mining and metal company in the world in the next three-five years. I would love to see people calling Vedanta as India's CVRD, the Brazilian mining giant.

And how do you plan to achieve it?

We are investing $13 billion (Rs 54,100 crore) for organic and inorganic growth. The investment will be done in three years. Just to remind you, Vedanta is a debt-free organisation. Over the past years, we have funded all our projects from own resources. This tradition will continue.

This is for the third time you have outbid the Aditya Birla group, the first two being Balco and Hindusthan Zinc. How do you explain it?

There is nothing to read between the lines. The corporate rivalry in India is pass�. I believe there is enough water in the sea for every fish.

What is your plan with India Foils, the ailing aluminium foils maker. Do you intend to pull out of it?

India Foils' contribution to the group is small. We are trying to put the company back on the rails. However, we are open to the idea of divesting our interest in the company, if we get proper valuation.

How much will you invest in Sesa Goa in the immediate future?

We have not applied our mind on the future investment in the company. However, all I can say is that finance will not be a constraint for the growth of the company. This is among the lowest iron ore producers in the world. I am sure, the company will further prosper under the Vedanta realm.



Vedanta University

In the largest donation ever made to a single higher-education institution, a foundation created by an Indian tycoon has committed $1-billion to establish a large, multidisciplinary research university in the Indian state of Orissa. The institution, to be called Vedanta University, is scheduled to begin enrolling students in 2008, and will model itself after campuses like Stanford University. Its goal is to create an “economic hub” in India comparable to what Stanford has produced in Silicon Valley, according to a release issued on Wednesday by the Anil Agarwal Foundation.

Anil Agarwal, the chairman of Vedanta Resources, a metals and mining company in India, had said in February that he planned to finance an elite institution that would cater to more than 100,000 students. He recently announced the $1-billion donation, to be given in phases. During a brief ceremony at the State Secretariat in Orissa, he signed a memorandum of understanding with the Orissa government.

The government has identified 8,000 acres of land for the campus and plans to pass specific legislation to give the university complete administrative autonomy, according to a written statement by Werner Kreuz, managing director of A.T. Kearney, Germany, the consulting firm that is handling the project.

That autonomy will set Vedanta University apart from India’s most respected higher-education institutions, such as the All India Institute of Medical Sciences, the Indian Institutes of Management, the Indian Institutes of Technology, the University of Delhi, and the University of Mumbai, all of which are state-run.

Although the country has made public higher education a priority, the existing institutions struggle to accommodate India’s college-bound population, and many within the system criticize universities’ emphasis on rote learning and say they do not adequately prepare graduates for the job market.

Mr. Agarwal has high hopes for Vedanta University’s contribution to higher education in India. “The Vedanta University will make global standards of educational excellence more accessible to future generations of our country, thereby creating tomorrow’s Nobel laureates, Olympic champions, and heads of government and state,” Mr. Agarwal said after Wednesday’s ceremony, according to a news release.

As the university’s enrollment grows past 100,000, it is also likely to absorb a substantial portion of the Indian students who might otherwise have been expected to pursue a higher education abroad. More than 80,000 Indian students came to the United States in 2004-5, representing the largest foreign contingent on American campuses, according to data reported last fall by the Institute of International Education. Substantial numbers of Indian students also study in Australia, Britain, and Canada.

To design the master plan for the university, the Anil Agarwal Foundation has appointed Ayers/Saint/Gross, an architecture firm in Baltimore. The firm has 90 years of experience with higher-education projects, and has designed buildings and facilities at such institutions as Duke University, Georgetown University, and Swarthmore College. Dhiru Thadani, the project’s lead master planner, said in a written statement that “this is the project that I have been training for all of my life — to apply my 30 years of architecture and planning experience to further develop India as a knowledge economy.”




The Message in India's Rupee Rise

As U.S. politicians line up to bash Beijing for its weak currency and gigantic trade surplus, one message they might want to offer their constituents is, buy Indian. Unlike China, Asia's other emerging giant has allowed its currency to appreciate almost 9% against the greenback since January. You might not have heard much about that in the U.S. — where total imports from India last year amounted to $22 billion, compared with $288 billion from China — but in India the rupee's appreciation is one of this year's biggest business stories, as exporters and labor groups scream that the strong currency will mean lower profits and fewer jobs.

So, what's going on? The rupee exchange rate is neither completely free-floating nor fixed, but is "managed" by the Reserve Bank of India through buying and selling other currencies. Up until April, the Reserve Bank was buying lots of U.S. dollars — perhaps as much as $24 billion in the previous six months — to keep the rupee at around 44 to the dollar. But with investor sentiment so hot on India and money pouring in from abroad — international investors have bought more than $7.5 billion worth of Indian stocks so far this year, compared to $8 billion in all of 2006 — the Reserve Bank found itself having to spend more and more on foreign currencies just to keep the rupee stable. When inflation shot up to over 6% in April, Bank officials appeared to decide — they never comment explicitly on such matters — to stop buying dollars. The result was, over the next couple of months, a strengthening of the rupee to close to 40 to $1.

The stronger rupee hurts exporters because it makes their products more expensive overseas. Infosys Technologies, India's number-two software exporter, cut its full-year earnings forecast last week, blaming the rupee's sharp rise, which it said was hurting the company's operating margins. Analysts expect other big software and outsourcing firms, many of whom earn lots of their profits in U.S. dollars, to issue similar warnings when they announce their quarterly earnings this week. Indian news reports have also quoted an unnamed government official warning that the country would be lucky to match last year's total export figure — about $125 billion; way down from the $160 billion the government had forecast just three months ago — and also that up to 275,000 jobs might be lost as a result of exporters feeling the pinch.

The stronger rupee may have helped push inflation down, "but at what cost?" asks Paresh Nayar, head of currency and bond trading at India's Development Credit Bank. "Exports are slowing, imports are ballooning. Perhaps we should be more like China. Other countries might complain, but the Chinese still watch their exports boom and say 'Let the whole world cry.' "

But Armeane Choksi, chairman and managing partner of Hudson Fairfax Group, a U.S.-based investment fund focused on India, argues that the Reserve Bank is correct in maintaining its primary focus on suppressing inflation. If inflation spikes again, he says, poorer Indians will suffer most because food and housing will cost more. "The Reserve Bank is not an export promotion agency," says Choksi. "It's doing the right thing." A stronger rupee, he says, will also force Indian companies to become even more efficient, which will make them more competitive in the global market, especially as China's currency slowly appreciates over the next couple of years.

The strengthening rupee may also send an even more important signal: India is not China. It helps of course that India's trade surplus with the U.S. last year was just $11.7 billion compared to China's whopping $232.5 billion. But by allowing the rupee to strengthen over the past few months, India is showing it's prepared to play much more fairly in the global market. "India is seen as a more or less unambiguous ally [to the U.S.]," says Choksi. "China? Is it a threat? Is it a competitor? Is it a partner? We're still not sure."

Of course, the Reserve Bank could still intervene to push India's rupee lower again. There is some evidence that it did just that in a very small way last week. But both the anonymous government official warning of rupee-related job losses and investor Choksi see the rupee continuing to rise in the coming months. If that happens expect to hear a lot more bleating from India's exporters — and not a word of complaint from India's trading partners around the world.


By Simon Robinson/New Delhi/The Time

Monday, Jul. 16, 2007


India Awakens

Even if you have never gone to India--never wrapped your food in a piping-hot naan or had your eyeballs singed by a Bollywood spectacular--there is a good chance you encounter some piece of it every day of your life. It might be the place you call (although you don't know it) if your luggage is lost on a connecting flight, or the guys to whom your company has outsourced its data processing. Every night, young radiologists in Bangalore read CT scans e-mailed to them by emergency-room doctors in the U.S. Few modern Americans are surprised to find that their dentist or lawyer is of Indian origin, or are shocked to hear how vital Indians have been to California's high-tech industry. In ways big and small, Indians are changing the world.

That's possible because India--the second most populous nation in the world, and projected to be by 2015 the most populous--is itself being transformed. Writers like to attach catchy tags to nations, which is why you have read plenty about the rise of Asian tigers and the Chinese dragon. Now here comes the elephant. India's economy is growing more than 8% a year, and the country is modernizing so fast that old friends are bewildered by the changes that occurred between visits. The economic boom is taking place at a time when the U.S. and India are forging new ties. During the cold war, relations between New Delhi and Washington were frosty at best, as India cozied up to the Soviet Union and successive U.S. Administrations armed and supported India's regional rival, Pakistan. But in a breathtaking shift, the Bush Administration in 2004 declared India a strategic partner and proposed a bilateral deal (presently stalled in Congress) to share nuclear know-how. After decades when it hardly registered in the political or public consciousness, India is on the U.S. mental map.

Among policymakers in Washington, the new approach can be explained simply: India is the un-China. One Asian giant is run by a Communist Party that increasingly appeals to nationalism as a way of legitimating its power. The other is the largest democracy the world has ever seen. The U.S. will always have to deal with China, but it has learned that doing so is never easy: China bristles too much with old resentments at the hands of the West. India is no pushover either (try suggesting in New Delhi that outsiders might usefully broker a deal with Pakistan about Kashmir, the disputed territory over which the two countries have fought three wars), but democrats are easier to talk to than communist apparatchiks. Making friends with India is a good way for the U.S. to hedge its Asia bet.

Democracy aside, there is a second way in which India is the un-China--and it's not to India's credit. In most measures of modernization, China is way ahead. Last year per capita income in India was $3,300; in China it was $6,800. Prosperity and progress haven't touched many of the nearly 650,000 villages where more than two-thirds of India's population lives. Backbreaking, empty-stomach poverty, which China has been tackling successfully for decades, is still all too common in India. Education for women--the key driver of China's rise to become the workshop of the world--lags terribly in India. The nation has more people with HIV/AIDS than any other in the world, but until recently the Indian government was in a disgraceful state of denial about the epidemic. Transportation networks and electrical grids, which are crucial to industrial development and job creation, are so dilapidated that it will take many years to modernize them.

Yet the litany of India's comparative shortcomings omits a fundamental truth: China started first. China's key economic reforms took shape in the late 1970s, India's not until the early 1990s. But India is younger and freer than China. Many of its companies are already innovative world beaters. India is playing catch-up, for sure, but it has the skills, the people and the sort of hustle and dynamism that Americans respect, to do so. It deserves the new notice it has got in the U.S. We're all about to discover: this elephant can dance.


By Michael Elliott - The Time

Sunday, Jun. 18, 2006

Pakistan: Divided by Faith

A few weeks before Abdul Rashid Ghazi died in a shootout with Pakistani special forces, he told me about a young woman who had asked him to make her a suicide bomber. I was drinking tea with Ghazi, the deputy leader of Islamabad's radical Red Mosque, in his small office just off the mosque's main entrance. Outside, a man — a boy really, with barely a beard — paced nervously, an AK-47 gripped tightly in his hands. Inside, one of Ghazi's assistants updated the mosque's website, which promoted his campaign to spread Shari'a, or Islamic law, throughout the land. Another assistant was affixing labels to a stack of newly burned DVDs portraying American "aggression" in Afghanistan and Iraq. It was these heinous acts, said Ghazi, that inspired his young female acolyte to seek martyrdom. "Had I wanted to use her, I could have, because she was completely ready. But I sent her back, saying we don't need her, inshallah [God willing]."

On July 3, Pakistani forces laid siege to the mosque complex, which had housed some 5,000 students, teachers and clerics — plus a host of heavily armed militants. On the eighth day, after many had fled or surrendered, the soldiers raided the compound. Ghazi was killed, along with 11 soldiers, some 80 militants and a dozen women and children who may have been used as human shields. (The Red Mosque remains a magnet for violence: last Friday, a suicide bombing at a restaurant behind the mosque killed at least 13.) After the July 11 assault, the President, General Pervez Musharraf, addressed the nation. This was not a day of celebration, he said: "We have been up against our own people ... They strayed from the right path and became susceptible to terrorism." Then Musharraf posed wider questions meant for Pakistan but relevant, too, to the rest of South Asia: "What kind of Islam do these people represent? What do we want as a nation?" Today, 60 years after partition created Pakistan and India, Islam on the subcontinent is in the grip of a crisis whose central dilemma is the religion's place and role in modern society. It is a crisis 150 years in the making.

On the afternoon of March 29, 1857, Mangal Pandey, a handsome, mustachioed soldier in the East India Company's native regiment in Barrackpore, near Kolkata, attacked his British lieutenant with a musket, then a sword. At his trial Pandey swore that he acted alone, but his hanging a week later sparked a subcontinental revolt known to Indians as the first war of independence and to the British as the Sepoy Mutiny. Retribution was swift, and though Pandey was a Hindu, it was the subcontinent's Muslims, whose Mughal King nominally held power in Delhi, who bore the brunt of British rage. The remnants of the Mughal Empire were dismantled, and Bahadur Shah, the last Indian Emperor, was exiled to Burma. Five hundred years of Muslim supremacy on the subcontinent was brought to a halt.

Following the 1857 war, Muslim society in India collapsed. The British imposed English as the official language for both education and communication. The impact was cataclysmic. Muslims went from near 100% literacy in Urdu to 20% within a half-century. The country's educated Muslim élite was effectively blocked from administrative jobs in the government. Between 1858 and 1878, only 57 out of 3,100 graduates of Calcutta University — then the center of South Asian education — were Muslim. In the 1880s, only one Muslim was enrolled for every 25 students at the British-run colleges. While discrimination by both Hindus and the British played a role, it was as if the whole of Muslim society had retreated to lick its collective wounds.

From this period of introspection two rival movements emerged to foster an Islamic ascendancy. Revivalist groups blamed the collapse of their empire on a society that had strayed too far from the teachings of the Koran. They promoted a return to a more pure form of Islam, modeled on the life of the Prophet Muhammad. Others embraced the modern ways of their new rulers, seeking Muslim advancement through the pursuit of Western sciences, culture and law. From these movements two great Islamic institutions were born: Darul Uloom Deoband in northern India, rivaled only by al-Azhar University in Cairo for its teaching of Islam, and Aligarh Muslim University, not far from New Delhi, a secular institution that promoted Muslim culture, philosophy and languages, but left religion to the mosque. These two schools embody the fundamental split that continues to divide Islam in the subcontinent today. "You could say that Deoband and Aligarh are husband and wife, born from the same historical events," says Adil Siddiqui, information coordinator for Deoband. "But they live at daggers drawn."

The campus at Deoband is only a three-hour drive from New Delhi through the modern megasuburb of Noida. Strip malls and monster shopping complexes have consumed many of the mango groves that once framed the road to Deoband, but the contemporary world stops at the gate. Lost, my translator and I wander the campus in search of the guesthouse that Siddiqui indicated would be our meeting point. The courtyards are packed with bearded young men wearing long, collared shirts and white caps. The air thrums with the voices of hundreds of students reciting the Koran from open-door classrooms. My translator's requests for directions are met with averted eyes, vague gestures and mumbled responses. Finally we get an answer, but as we turn a corner, a voice calls out, "You are not supposed to be here; women are not allowed." That's not entirely true — later that day Siddiqui takes me on a tour through the same courtyard — but Deoband practices strict segregation between the sexes, and does not offer education to women. "They have their own institutions," says Siddiqui, waving vaguely in the direction of the gate.

Founded in 1866, the Deoband school quickly set itself apart from other traditional madrasahs, which were usually based in the home of the village mosque's prayer leader. Deoband's founders, a group of Muslim scholars from New Delhi, instituted a regimented system of classrooms, coursework, texts and exams. Instruction is in Urdu, Persian and Arabic, and the curriculum closely follows the teachings of the 18th century Indian Islamic scholar Mullah Nizamuddin Sehalvi. Graduates go on to study at Cairo's al-Azhar and Islamic University of Medina in Saudi Arabia, or found their own Deobandi institutions. Today, more than 9,000 are scattered throughout India, Afghanistan and Pakistan, most infamously the Dara-ul-Uloom Haqaniya Akora Khattak, near Peshawar, where Mullah Mohammed Omar, and several other leaders of Afghanistan's Taliban first tasted a life lived in accordance with Shari'a. Islamabad's Red Mosque follows the same school. Siddiqui visibly stiffens when those names are brought up. They have become synonymous with Islamic radicalism, and Siddiqui is careful to disassociate his institution from those that carry on its traditions, without actually condemning their actions. "Our books are being taught there," he says. "They have the same system and rules. But if someone is following the path of terrorism, it is because of local compulsions and local politics."

Sir Syed Ahmad Khan, founder of the Anglo-Mohammedan Oriental College at Aligarh in 1877, studied under the same teachers as the founders of Deoband. But he believed that the downfall of India's Muslims was due to their unwillingness to embrace modern ways. He decoupled religion from education, and in his school sought to emulate the culture and training of India's new colonial masters. Islamic culture was part of the curriculum, but so were the latest advances in sciences, medicine and Western philosophy. The medium was English, the better to prepare students for civil-service jobs. He called his school the Oxford of the East. In architecture alone, the campus lives up to that name. A euphoric blend of clock towers, crenellated battlements, Mughal arches, domes and the staid red brick of Victorian institutions that only India's enthusiastic embrace of all things European could produce, the central campus of Aligarh today is haven to a diverse crowd of male, female, Hindu and Muslim students. Its law and medicine schools are among the top-ranked in India, but so are its arts faculty and Quranic Studies Centre. "With all this diversity, language, culture, secularism was the only way to go forward as a nation," says Aligarh's vice-chancellor, P.K. Abdul Azis. "It was the new religion."

This fracture in religious doctrine — whether Islam should embrace the modern or revert to its fundamental origins — between two schools less than a day's donkey ride apart when they were founded, was barely remarked upon at the time. But over the course of the next 100 years, that tiny crack would split Islam into two warring ideologies with repercussions that reverberate around the world to this day. Before the split manifested into crisis, however, the founders of both the Deoband and Aligarh universities shared the common goal of an independent India. Pedagogical leanings were overlooked as students and staff of both institutions joined with Hindus across the subcontinent to remove the yoke of colonial rule in the early decades of the 20th century. But nationalistic trends were pulling at the fragile alliance, and India, an unruly collection of rival states coerced into unity under Mughal rule, then again under the British, began to splinter along ethnic and religious lines. Following World War I, a populist Muslim poet-philosopher by the name of Muhammad Iqbal began to frame the Islamic zeitgeist when he questioned the position of minority Muslims in a future, independent India.

Once called the prophet of Hindu and Muslim unity for poems espousing intercommunal unity, Iqbal became increasingly concerned with the fate of the Jewish diaspora in Europe. "Iqbal saw the solidarity of Jews crumble under the cultural majority of Christian Europe," says Fateh Mohammad Malik, chairman of Pakistan's National Language Authority and editor of a book on Iqbal's political thought. "He was worried that the same fate would befall the Muslims. He thought that if they sacrificed their culture at the altar of Indian nationhood, slowly they would be absorbed and made extinct."

The solution, Iqbal proposed to a stunned congregation of the All India Muslim League on Dec. 29, 1930, was an independent state for Muslim-majority provinces in northwestern India, a separate country where Muslims would rule themselves. The response was explosive. The then British Prime Minister, James Ramsay MacDonald, declared that "the poet Iqbal has spoiled all our efforts," to keep a united India. The next day, an editorial in the Times of London trumpeted a pan-Islamic plot to create a contiguous Muslim empire spanning the Middle East, Iran, Afghanistan and now the sensitive regions bordering the Russian empire.

When asked by a Muslim student group the name for this new nation, Iqbal was at a loss, according to Malik. As an afterthought he suggested taking letters from the names of the provinces: Punjab, Afganiyat or the North-West Frontier, Kashmir and Sindh, ending with Baluchistan. The Hindu newspapers derided the composite name, mocking both Iqbal and the idea of a separate Muslim state. But the name stuck, and the idea of Pakistan was born.

The embryonic nation might have been given a name, but its identity was still uncertain 17 years later when the idea became reality. Mohammed Ali Jinnah, the Savile Row-suited lawyer who midwifed Pakistan into existence on Aug. 14, 1947, as leader of the Muslim League, was notoriously ambiguous about how he envisioned the country once it became an independent state. Both he and Iqbal, who were friends until the poet's death in 1938, had repeatedly stated their dream for a "modern, moderate and very enlightened Pakistan," says Sharifuddin Pirzada, Jinnah's personal secretary from 1941 to 1944. But mindful of the fragile and fractious consortium of supporters for the new nation, whose plans for independence from both India and Britain were only finalized on July 18, 1947, Jinnah rarely elaborated on his religious views. "He was a very liberal-minded Muslim," says Pirzada. "He rejected the idea that Pakistan would be ruled according to the righteous caliphs of Islam; he did not want a theocracy. At the same time he was very careful not to make a commitment one way or the other so that Muslims would not be alienated."

Both religious conservatives and secular liberals have appropriated Jinnah's words, actions and manners to prove their claims on Pakistan's identity. Clerics that once dismissed him as an infidel for his secular leanings before partition now embrace him for his borrowings from the Koran in his talks. Liberal newspaper editorials quote fragmented speeches to bolster claims that he was an avowed secularist. Jinnah's own wish was that the Pakistani people, as members of a new, modern and democratic nation, would decide the country's direction. "There is no contradiction," says Pirzada, who has watched the debate rage for 60 years. "An Islamic state can be a fully modern state, unless you say it should be ruled by a theocracy. Jinnah was against theocracy. That is what matters."

But rarely in Pakistan's history have its people lived Jinnah's vision. The nation was barely a decade old when President Iskander Ali Mirza declared martial law in an attempt to save his presidency from growing unpopularity. "That was the blackest day in our history," says Senator Khurshid Ahmad, the deputy chief of Pakistan's largest Islamist party. "Even our elected rulers became despots." Pakistan has been cursed ever since. Only twice in its 60-year history has Pakistan seen a peaceful, democratic transition of power. Pakistan considers itself a democracy, but its governments have rarely had a mandate from the people. With four disparate provinces, over a dozen languages and dialects, and powerful neighbors, leaders — be they Presidents, Prime Ministers or army chiefs — have been forced to knit the nation together with the only thing Pakistanis have in common: religion.

Following the 1971 civil war, when East Pakistan, now Bangladesh, broke away, the populist Prime Minister Zulfikar Ali Bhutto embarked on a Muslim identity program to prevent the country from fracturing further. General Mohammed Zia ul-Haq continued the Islamization campaign when he overthrew Bhutto in 1977, hoping to garner favor with the religious parties, the only constituency available to a military dictator. He instituted Shari'a courts, made blasphemy illegal, and established laws that punished fornicators with lashes and held that rape victims could be convicted of adultery. When the Soviet Union invaded neighboring Afghanistan in December 1979, Pakistan was already poised for its own Islamic revolution.

Almost overnight, thousands of refugees poured over the border into Pakistan. Camps mushroomed, and so did madrasahs. Ostensibly created to educate the refugees, they provided the ideal recruiting ground for a new breed of soldier: mujahedin, or holy warriors, trained to vanquish the infidel invaders in America's proxy war with the Soviet Union. Thousands of Pakistanis joined fellow Muslims from across the world to fight the Soviets. As far away as Karachi, high-school kids started wearing "jihadi jackets," the pocketed vests popular with the mujahedin. Says Hamid Gul, then head of the Pakistan intelligence agency charged with arming and training the mujahedin: "In the 1980s, the world watched the people of Afghanistan stand up to tyranny, oppression and slavery. The spirit of jihad was rekindled, and it gave a new vision to the youth of Pakistan."

But jihad, as it is described in the Koran, does not end merely with political gain. It ends in a perfect Islamic state. The West's, and Pakistan's, cynical resurrection of something so profoundly powerful and complex unleashed a force whose roots can be found in al-Qaeda's rage, the Taliban's dream of an Islamic utopia in Afghanistan, and in the dozens of radical Islamic groups rapidly replicating themselves around the world today. "The promise of jihad was never fulfilled," says Gul. "Is it any wonder the fighting continues to this day?" Religion may have been used to unite Pakistan, but it is also tearing it apart.

In India, Islam is, in contrast, the other — purged by the British, denigrated by the Hindu right, mistrusted by the majority, marginalized by society. India has nearly as many Muslims as all of Pakistan, but in a nation of more than a billion, they are still a minority, with all the burdens that minorities anywhere carry. Government surveys show that Muslims live shorter, poorer and unhealthier lives than Hindus and are often excluded from the better jobs. To be sure, there are Muslim success stories in the booming economy. Azim Premji, the founder of the outsourcing giant Wipro, is one of the richest individuals in India. But, for many Muslims, the inequality of the boom has reinforced their exclusion.

Kashmir, a Muslim-dominated princely state whose fate had been left undecided in the chaos that led up to partition, remains a suppurating wound in India's Muslim psyche. As the cause of three wars between India and Pakistan — one of which nearly went nuclear in 1999 — Kashmir has become a symbol of profound injustice to Indian Muslims who believe that their government cares little for Kashmir's claim of independence, which is based upon a 1948 U.N. resolution promising a plebiscite to determine the Kashmiri people's future. That frustration has spilled into the rest of India in the form of several devastating terrorist attacks that have made Indian Muslims both perpetrators and victims.

A mounting sense of persecution, fueled by the government's seeming reluctance to address the brutal anti-Muslim riots that killed more than 2,000 in the state of Gujarat in 2002, has aided the cause of homegrown militant groups. They include the banned Student Islamic Movement of India (SIMI), which was accused of detonating nine bombs in Bombay during the course of 2003, killing close to 80. The 2006 terrorist attacks on the Bombay commuter rail system that killed 183 people were also blamed on SIMI, as well as the pro-Kashmir Pakistani terrorist group Lashkar-e-Toiba (LeT). Those incidents exposed the all-too-common Hindu belief that Muslims aren't really Indian. "LeT, SIMI, it doesn't matter who was behind these attacks. They are all children of Musharraf," sneers Manish Shah, a Mumbai resident who lost his best friend in the explosions. In India, unlike most of the time in Pakistan, Islam does not unify, but only divide.

Islam has also proved divisive in Bangladesh, even though the country is overwhelmingly Muslim. There, over the past few years, a similar fight for the soul of the country has taken place, between the secular vision of Bangladesh's nationalist founders, who led the 1971 war of secession from West Pakistan, and a more fundamentalist vision that embraces political Islam. After the Bangladesh Nationalist Party, the more Islamic of the two main parties, came to power in 2001 with the support of small fundamentalist Islamic political parties, Western diplomats and intelligence agencies feared that the pro-Islamic grouping was turning a blind eye as Bangladesh became a base for jihadi groups. A series of bombings around the country, including 500 near-simultaneous explosions in August 2005, finally forced the government to round up extremist leaders and jail them. Since then, according to opinion polls, support for fundamentalism, always small, has declined, and the country's problems have centered on its massive corruption and political violence, which led to a de facto military coup in January. Religious tensions, says Najma Begum, professor and chairwoman of the Department of Islamic History and Culture at the University of Dhaka, have been manipulated by mainstream politicians not because they genuinely believe in fundamentalist Islam but for political gain. "They exploit the support of lesser-privileged people so they can get into power and make money," says Najma. "We are not fundamentalist in Bangladesh; we are moderate."

Still, many South Asian Muslims insist Islam is the one and only force that can bring the subcontinent together and return it to preeminence as a single whole. "We [Muslims] were the legal rulers of India, and in 1857 the British took that away from us," says Tarik Jan, a gentle-mannered scholar at Islamabad's Institute of Policy Studies. "In 1947 they should have given that back to the Muslims." Jan is no militant, but he pines for the golden era of the Mughal period in the 1700s, and has a fervent desire to see India, Pakistan and Bangladesh reunited under Islamic rule.

That sense of injustice is at the root of Muslim identity today. It has permeated every aspect of society, and forms the basis of rising Islamic radicalism on the subcontinent. "People are hungry for justice," says Ahmed Rashid, Pakistani journalist and author of the seminal book Taliban: Militant Islam, Oil, and Fundamentalism in Central Asia. "It is perceived to be the fundamental promise of the Koran." These twin phenomena — the longing many Muslims have to see their religion restored as the subcontinent's core, and the marks of both piety and extremism Islam bears — reflect the lack of strong political and civic institutions in the region for people to have faith in. Pervez Musharraf asks Pakistanis what they want. But the real question is what they, as well as Indians and Bangladeshis, Muslims and non-Muslims, believe.

By Aryn Baker


The above article taken from Time CNN special issue on India August 2007

Why India's Rise is Business As Usual

The idea that india is a poor country is a relatively recent one. Historically, South Asia was always famous as the richest region of the globe. Ever since Alexander the Great first penetrated the Hindu Kush, Europeans fantasized about the wealth of these lands where the Greek geographers said that gold was dug by up by gigantic ants and guarded by griffins, and where precious jewels were said to lie scattered on the ground like dust.

At their heights during the 17th century, the subcontinent's fabled Mughal emperors were rivaled only by their Ming counterparts in China. For their contemporaries in distant Europe, they were potent symbols of power and wealth. In Milton's Paradise Lost, for example, the great Mughal cities of Agra and Lahore are revealed to Adam after the Fall as future wonders of God's creation. This was hardly an overstatement. By the 17th century, Lahore had grown even larger and richer than Constantinople and, with its two million inhabitants, dwarfed both London and Paris.

What changed was the advent of European colonialism. Following Vasco da Gama's discovery of the sea route to the East in 1498, European colonial traders — first the Portuguese, then the Dutch and finally the British — slowly wrecked the old trading network and imposed with their cannons and caravels a Western imperial system of command economics. It was only at the very end of the 18th century, after the East India Company began to cash in on the Mughal Empire's riches, that Europe had for the first time in history a favorable balance of trade with Asia. The era of Indian economic decline had begun, and it was precipitous. In 1600, when the East India Company was founded, Britain was generating 1.8% of the world's GDP, while India was producing 22.5%. By 1870, at the peak of the Raj, Britain was generating 9.1%, while India had been reduced for the first time to the epitome of a Third World nation, a symbol across the globe of famine, poverty and deprivation.

In hindsight, what is happening today with the rise of India and China is not some miraculous novelty — as it is usually depicted in the Western press — so much as a return to the traditional pattern of global trade in the medieval and ancient world, where gold drained from West to East in payment for silks and spices and all manner of luxuries undreamed of in the relatively primitive capitals of Europe.

It is worth remembering this as India aspires to superpower status. Economic futurologists all agree that China and India during the 21st century will come to dominate the global economy. Various intelligence agencies estimate that China will overtake the U.S. between 2030 and 2040 and India will overtake the U.S. by roughly 2050, as measured in dollar terms. Measured by purchasing-power parity, India is already on the verge of overtaking Japan to become the third largest economy in the world.

Looking back at the role Europeans have played in South Asia until their departure in August 1947, there is certainly much that the West can be said to have contributed to Indian life: the Portuguese brought the chili pepper, while the British brought that other essential staple, tea — as well as the arguably more important innovations including democracy and the rule of law, railways, cricket and the English language. All contributed to India's economic resurrection. But the British should keep their nostalgia and self-satisfaction surrounding the colonial period within strict limits. For all the irrigation projects, the great engineering achievements and the famous imperviousness to bribes of the officers of the Indian Civil Service, the Raj nevertheless presided over the destruction of India's political, cultural and artistic self-confidence as well as the impoverishment of the Indian economy.

Today, things are slowly returning to historical norms. Last year the richest man in the U.K. was for the first time an ethnic Indian, Lakshmi Mittal, and Britain's largest steel manufacturer, Corus, has been bought by an Indian company, Tata. Extraordinary as it is, the rise of India and China is nothing more than a return to the ancient equilibrium of world trade, with Europeans no longer appearing as gun-toting, gunboat-riding colonial masters but instead reverting to their traditional role: that of eager consumers of the much celebrated manufactures, luxuries and services of the East.

William Dalrymple's latest book, The Last Mughal: The Fall of a Dynasty, Delhi 1857, has just been awarded the Duff Cooper Prize for History and Biography


The above article is taken from Time CNN feature on India

Wednesday, August 1, 2007

"Leela is worth it." Capt. Nair

Whether it's been tactical maneuvers on the war front or corporate strategies in the company boardroom, Captain CP Krishnan Nair (or Capt. Nair, as he is fondly addressed) believes that the key to success is to learn to do something right. Then do it right every time.

It is a philosophy, which has underlined much of his life, at least from year 1950. "I was at a crossroad. On one hand was a promising career in the army - it was a profession I always wanted to grow in, and on the other my wife's insistence to do something for the upliftment of the handloom industry in which she was actively involved in. So taking courage I spoke to my senior. What he advised changed the course of my life. All he said was that in the army you can only reach to the highest rank but then what. In the road your wife has envisaged sky is the limit. So I made a promise to my wife that I will walk the unpredictable path she has foreseen and make it a success. And so it has been," he says.

Though the initial years after his foray into the world of business were riddled with hardships, he was able to withstand them. "As a company we were able to contribute substantially to make handloom grow into a Rs 3 billion industry in the early 1960s. In fact the major impetus to the handloom industry came when the government, then led by Jawaharlal Nehru, heeded to a simple suggestion, I made on the behest of the All India Handloom Board of levying a 1 paisa cess to develop handloom. In one year, the government had accumulated over Rs 300 crore which was used to further fuel the growth of the handloom industry," he says.

Just as handloom business was surging ahead, Capt. Nair, in the early 1960s, decided that he had had enough of success and money. His quest turned towards peace, tranquility and God and led him to Swami Sivananda in the Himalayas but the Swami advised Capt. Nair not to take up sanyas as that was not the chosen path for him. "He told me my calling was to serve people by shaping the fortunes and livelihood of innumerable people," states Capt. Nair.

His return to business proved even more successful. After consolidating in India, Capt. Nair established his textile export business in '70s and started to supply to America and Europe. His company pioneered a unique form of textile manufacturing technique - 'Bleeding'. The export business flourished and then he suddenly veered tracks to enter an entirely new segment - hospitality.

"Traveling has been my passion. I have been fortunate to stay in the best hotels in the world. I wondered whether it was possible to offer such hospitality with the essence of India. After much research in the industry and belief in the growth of the Indian hospitality industry, I made a decision to venture into this arena. From our first property in North Mumbai, where at that time no major hospitality player wanted to venture, we have carved a niche in India's hospitality sector. Currently, we have three hotels in Mumbai, Bangalore and Goa, and few in the pipeline in Chennai, Udaipur, Hyderabad and Delhi as well as internationally in Malaysia and Doha," informs Capt. Nair.

Today, at the age of 84, when he looks back, his achievements are many. Over 55 years of business building has culminated in a garment and textile business worth Rs 400 crore and a hospitality business whose expansion is as promising as the exponential rise in its stocks. And as the days go by, milestones and laurels get added, the latest being the coveted Lifetime Achievement Award by the American Academy of Hospitality Sciences at the ITB 2005 in Berlin - an award few from the hotel industry have been honoured with. He was even felicitated by the House of Commons, UK.

There's however still much to be done, if not at the business front then in the field of nation building. "It is my earnest desire to see India evolve as a super power. And we have the resources and talent to do so. Just that the private sector and government need to get together to achieve such a success. I see a realisation of that dream happening soon," he says.

But it is not the patriot in him that ranks India as a destination par excellence; rather it is an objective assessment that even though Indian tourism is 50 years late in its offing, it is a destination of reckoning. "It's never too late to focus on our tourism. Look at the sprawling expanse of the backwaters in Kerala, the angelic and scenic beauty of the Himalayas or the beaches of Goa. Isn't India divine?" he asks. Capt. Nair incidentally is the only Indian representative on the United Nations committee for Global Code of Ethics for Tourism established in 2004.

His favourite hotels abroad are Adlon Hotel in Berlin, Ritz in Paris and Waldorf Astoria in New York. "Each time I stayed at the Adlon, I said to myself, I would love to build and run a hotel of such class and elegance. What makes the property spectacular is that from the balcony of your room, you can see the Brandenburger Gate, a gate known for its vast history and whose exquisite design fascinated me," he says.

Ritz Paris he loved because of the allure of the city and about Waldorf Astoria he relates an interesting anecdote. "Once on an occasion to celebrate the success of the export business, I imported authentic Chicken Tikka Masala straight from Delhi and asked the attendants at the hotel to serve the freshly flown-in delicacy, which was a hit amongst our international guests," he remembers.

Of his countless leanings, the passion for environment ranks pretty high. Till date, Capt. Nair has personally planted over 200,000 trees across India. This passion is reflected in the green expanse surrounding each of his hotel property and the great lengths that he goes to procure rare species of plant life, like a lotus from the queen's garden in Thailand. The story goes like this; having seen this beautiful plant, Capt. Nair was so obsessed that he sent his assistant to get it. When the assistant's request was not paid heed to, Capt. Nair himself went to the people concerned and spent almost three days persuading them to give it to him. Today, from that one lotus, many lotuses adorn his various properties.

About his family, one question and one answer is sufficient. We ask him why the business is named after his wife and he replies with a glint in his eyes, "Leela is worth it."