"Fascination, fear and greed"

Time Magazine’s Asia edition has a cover article this week that details the life and travels of Marco Polo in the context of today’s emerging economies in China and India:

If history has taught us anything, it’s that Eastern and Western perceptions of one another are thoroughly unstable, an uneasy blend of fascination, fear and greed that lends itself to exaggeration. That all started with Polo (1254-1324), who left a detailed, and still controversial, account of his journeys and the years he spent in the service of the Mongol ruler Kublai Khan, a descendant of Genghis Khan. Polo’s Description of the World is the world’s first best-selling travelogue. He set off to the Orient from his native Venice with his father and uncle in 1271. For them it was a return journey; they had already been to what is now Beijing, where the Great Khan had given them a letter to the Pope, and asked them to return with learned men who could teach his people about Christianity. The route, as described by Marco Polo, took them through the Caucasus, Persia, Afghanistan, over the Pamirs and along the Silk Road to Cathay, as he called China. Hardship and danger were balanced by wonder, especially once he arrived at Kublai’s court, where he claimed to have become a court favorite who was sent off on diplomatic missions. He dictated his book, years later, long after his return to Italy, while in jail in Genoa in 1298. Some of the descriptions–from the miracle oil that cures skin trouble in the Caucasus to the giant griffin birds who pick up elephants and drop them into the Arabian Sea–earned him a reputation even in his day as a fairytale spinner rather than a credible witness. [Link]

Also in the issue is an article on western Big Pharma’s attempts to patent knowledge that Indians have been actively using for millenia:

It started with turmeric. An essential ingredient of most Indian curries, the spice was paid tribute by Marco Polo; he compared it favorably to saffron, and noted its importance in traditional medicines. Indeed, Indian doctors have long reached for the knobby yellow root to treat a variety of ailments from skin disease to stomachache and infection. So when two U.S.-based researchers were awarded a patent in 1995 on turmeric’s special wound-healing properties, a collective howl of outrage arose from the subcontinent. “Housewives have been using turmeric for centuries,” says V.K. Gupta, director of India’s National Institute of Science Communication and Information Resources in New Delhi. “It’s outrageous that someone would try and patent it.” The patent was eventually revoked, after a decade-long battle in which the Indian government and private sector spent millions of dollars in legal and research fees to prove that turmeric’s qualities were well documented in ancient medical textbooks. Gupta scrolls through a list of some 5,000 applications currently pending approval by U.S. and European patent offices, jabbing a finger at the most egregious examples of what he considers to be outright theft. He estimates that at least half of those scientific “discoveries” are established remedies in India’s ancient plant-based medical system, called Ayurveda. To Gupta, each application is a jewel plundered from India’s vast trove of medicinal knowledge. “If this isn’t piracy, I don’t know what is,” he says. [Link]
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Temper Tantrums at the WTO

Bernard Gordon at the Wall Street Journal criticizes India’s trade representative, Kamal Nath, in a recent Op-Ed:

Surprise, surprise, the WTO talks in Geneva are “suspended.” But in truth, hardly a surprise, since in May France’s agricultural minister said, “I would prefer that the negotiations fail rather than . . . raise questions about . . . agriculture.” At the G-8 summit this month President Jacques Chirac backed him up: “Only Europe has moved [and] gone to the extreme limits.”

Both were responding to America’s insistence that Europe do more to match its offer to cut farm subsidies — in order to break the logjam at the heart of the now-collapsed Doha Round. But Europe had a partner in its “my way or the highway” approach. India’s Commerce Minister Kamal Nath, presumably speaking for the developing nations, said more “flexibility” was needed, and then gave his definition of the word: “We can’t negotiate subsistence and livelihood . . . we should not even be asked to do that.”

Mr. Nath had walked out of earlier trade talks, arguing “there was no point” in continuing, which prompted the press at home to fault him for throwing a “temper tantrum.” Not a bad label in this case, since India in 2004 accounted for less than 1% of world trade. And speaking after the collapse, which Mr. Nath characterized as “between intensive care and the crematorium,” he sharply singled out the U.S. as the sole culprit: the “mind-set” of the Americans was “inverted . . . they’re thinking only of market access.” (link; subscription required)

(Note that he’s not inventing the phrase “temper tantrum,” only citing the Indian media’s use of the term approvingly.) Gordon goes on to try and poke holes in Nath’s criticism of the U.S. for the fact that the Doha round has gone aground. Gordon mentions that the Brazil representative was actually more critical of Europe than the U.S., and cites President Bush’s promise to reduce U.S. farm subsidies by 60% in keeping with the opening of U.S. markets.

While the intricacies of world trade agreements and the workings of the WTO are, admittedly, not my area of expertise, one does note that Kamal Nath actually has plenty of company in blaming the U.S. primarily for the collapse of the talks. Continue reading

The Mouse wants more of India’s cheese

The big news from the business world today is that Disney is going to be establishing a couple of new children’s entertainment channels in India as a way to strengthen its foothold on the subcontinent. Forbes reports:

What? It could happen.

When asked why he robbed banks, Willie Sutton famously replied “Because that’s where the money is.” Andy Bird has a similar rationale for The Walt Disney Company’s move into India: “If you’re in the children’s business, you want to be in the place where there are more children than anywhere else in the world,” the president of Walt Disney International explained in a telephone interview from Mumbai.

Bird has just handled the $30.5 million acquisition of Hungama, a children’s television channel in the country that broadcasts in Hindi, and that joins the Disney Channel and Toon Disney on the subcontinent.

Part of the deal will see The Disney take a 14.9% stake in UTV Software Communications, an Indian conglomerate that owns film and television assets, including – until now — Hungama. It means the next step for Disney could be into India’s glitzy movie industry. “We are actively working in the film business and looking for Disney branded movies in the Bollywood market,” said the British-born Bird. [Link]

This moves seems like a good one for Disney for exactly the reason mentioned in the first paragraph above. The growing middle class has a lot of children and children love being exposed/corrupted by western culture (even wholesome western culture). Why not be part of the delivery device, especially given that the advertising dollars that follow could end up being quite lucrative?

Time Warner has already benefited from first-mover advantage among U.S. media companies in India, controlling half the market share for children’s TV with its Cartoon Network and Pogo Channels. But Bird is not worried. “The Walt Disney Company is looking at a broader perspective in growing in India,” he said. “We’re more focused on building up franchises and brands across different sectors than in what our competitors are doing…” [Link]

Personally I hope that the possibility of domestic “foreign” competition will make Bollywood movies watchable better. I have to believe that the scripts that Disney backs will be a little better than the usual stuff I am exposed to out of Bollywood (*Abhi tries to stifle laugh*). Before you point it out I realize that I am a Bollywood curmudgeon. Please don’t recommend any films to me.

Bollywood, the popular name for the Hindi language film industry, also beckons as Disney will now co-produce UTV’s films.

“We have access to an important film-making capital, which is exciting because Bollywood’s family values resonate with Disney’s,” said Andy Bird, president, Walt Disney International. [Link]

Public Radio’s Marketplace has a nice summary of this deal as well as its implications. It also mentions that India isn’t yet ready for a Disney World-Delhi. Phew!

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Investment undeterred by fear

It is comforting to note that in these times of terror, hard-headed businessmen still make their investment decisions undeterred by threat. My newest hero is that Titan of Industry, the Captain of Capitalism, Laxmi Mittal. It seems that the world’s richest Indian is increasing his investment in India-na:

Mittal Steel Co. plans to begin a $10 million expansion of research and development laboratories in East Chicago. The first phase, to start this week, would add 22,000 square feet to a laboratory. It is expected to be completed within a year. The company is based in the Netherlands, but its U.S. operations are run from Chicago. [Link]

This announcement came the day after it was revealed that India-na is the state in the union most densely populated with potential terrorist targets:

Indiana, with 8,591 potential terrorist targets, had 50 percent more listed sites than New York (5,687) and more than twice as many as California (3,212), ranking the state the most target-rich place in the nation. [Link]

That’s 11% of all targets on the National Asset Database. This is a state so hated by terrorists that even a rural popcorn factory with five employees is considered a target! Clearly Mittal is a man of steel, a hombre without fear, somebody who does not blanch even in the face of terrorists as confused as Christopher Columbus. Who needs Hanu-man, Indian Super-man, a brown Justice League, or any other Indian superheroes when we have a Mittal-man of our own ?

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The Big Payback

My whole life I have secretly admired the profession of the loan shark. You know the guy I am talking about right? The big knuckled, leather jacket wearing thug in the movies that walks softly, carries a BIG ASS stick, and every so often utters phrases like:

You’d piss your pants if you saw me come calling for my money

“B*tch, you better give me my money”

or

‘Da f*ck you mean you ain’t got my money yet? muthaf*cka you best be comin’ up wit’ my cash or else you know what I’m sayin?… [Link]

Admit it. Even the nice guys/gals among our SM readers have wondered at least once in their lives what it would be like to collect on debts as part of their daily routine, to have people scared out of their minds and start to stutter when you came a calling for yo’ money.

In truth, despite the fact that my wallet does have the words “bad ass motherf*cker” embroidered on it, I am a sweet and non-violent guy. I just don’t have the disposition to be a loan shark, nor do I own a gun with which I can pistol whip anyone…not even some annoying commenters. 🙂

What I can do however is help to change the world one loan at a time. Sitting behind my computer I can provide loans…without being a shark. There is a great new service that has been started by former Paypal employee Premal Shah and others, called Kiva. Kiva allows people like you and I to make loans directly to small business owners in the developing world. By loaning them money you will be helping them to take care of themselves and their family through sustainable means. If the working class entrepreneur that you lend money to succeeds, then it is likely that the economic impact of their business will propagate to some extent throughout their community. At the end of loan period it is likely that you will get your money re-paid in full without having to break anyone’s arm.

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O, be some other name!

I have no idea how we managed to go even this long before this issue which plagues the Indian business community finally came to the forefront. All of us have known about this problem for a long time but have chosen to ignore it. No more:

What’s in a name?

A lot if you’re an Indian grocer, it seems.

Especially if you’re a Patel.

The surname — which is as common among people of Asian-Indian descent as Smith or Johnson is among Anglos – has sparked a brief but bitter dispute involving one of the largest vendors of specialty foods to the Indian community.

A suit filed by Patel Brothers, a Chicago-based food distributor with a chain of 27 stores, accuses an Iselin-based store of violating a trademark when it opened last month using the name “Patel Food Market.” A Patel Brothers grocery — Patel’s Cash & Carry — is across the street.

The case was settled last week, and both sides declined to comment. But the court papers offer a window into the fierce competition among Indian grocers, the importance of the Patel name, and the issue of whether companies can legally protect common names or words. [Link]

You guys got to suck it up and just read this whole article. It is filled with priceless gems like this one:

Swetal Patel filed an affidavit saying he hired two off-duty Woodbridge Township police officers to handle the expected heavy flow of traffic during the Memorial Day weekend. But the officers mistakenly reported to Patel Food Market, where they worked and were paid by the owner, the affidavit said. [Link]

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The Bilderberg Group is even more secretive than our blog

The secret organization of illuminati known as the Priory of Sion (that you read about in The Da Vinci Code) is a hoax, of course. What isn’t a hoax however, is the shadowy and ultra-powerful Bilderberg Group who are meeting in Ottawa, Canada this weekend:

It’s like Woodstock for conspiracy theorists.

A serene suburban setting has been transformed into a four-day festival of black suits, black limousines, burly security guards — and suspicions of world domination…

It’s not the Freemasons.

Forget those fabled U.S. military men who tucked away UFOs in the Arizona desert.

These guys, you’ve probably never even heard of, and if you believe the camera-toting followers who attend all their meetings, they control the world.

They’re called the Bilderberg group.

They include European royalty, national leaders, political power-brokers, and heads of the world’s biggest companies. [Link]

If you happened to be at the airport in Ottawa yesterday you may have noticed a bunch of limo drivers holding up a single letter. That would have been a sign that a Bilderberg attendee was near at hand:

Greeted at the airport by limousine drivers holding single-letter “B” signs, global luminaries such as Henry Kissinger, David Rockefeller and Queen Beatrix of the Netherlands began arriving in Ottawa Thursday for the annual gathering of the ultra-secretive Bilderberg Group. [Link]

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Computers Without Words

I have numerous jobs in addition to my writing, one of which involves working with new technology. I know it’s a stereotype to say that Indians are good with computers, but I welcome it in my case, mostly because it’s hilariously untrue. I’ve avoided technology as much as possible–I didn’t have an email address until 1996, and it’s still a crapshoot if my cell phone is working–despite coming from a family of technophiles. What they actually do to these computers, I have no idea, but despite being voted Most Likely to Spill Coke On the Keyboard Again, I find myself reasonably skilled at this new IT-oriented gig. Nature or nurture? Or dumb luck? Discuss.

But what about those who are not just computer illiterate, but actually unable to read or write? Microsoft has a plan: make computers that don’t depend on words. This March 2006 USA Today article talks about how a new breed of computers can help often-illiterate domestic servants:

Working with a local advocacy group, Microsoft has developed a prototype of a system that would connect illiterate domestic workers in India with families seeking their services. The system uses pictures, video and voice commands to tell women what jobs are available, how much the jobs pay and where they are.

Why hasn’t anyone thought of this before? For one thing:

they [the domestic workers] had trouble seeing why a computerized system for finding work was better than traditional word-of-mouth

Additionally, the computer’s images and pictures had to bridge language and cultural gaps, such as this one:

the women associated neighborhoods with landmarks rather than addresses, so an interactive map and verbal directions had to be tweaked to represent that.

Finally–the big hurdle: implementation. This CNET article discusses the difficulties poorer areas of India have getting computer literate. Apart from the most obvious issue of languages, there is problem of power:

To save power, the PCs run on car and truck batteries. Unfortunately, the batteries regularly need recharging and the public electrical power system can’t always handle the demand.

and crime:

Three weeks ago, the village transformer blew because too many people tapped into it illegally, a chronic problem here. The government refused to rebuild the transformer until the villagers promised to punish anyone who stole power.

and bad freakin’ luck:

The day after it was rebuilt, the transformer blew again.

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Zakaria: "First, be scared, be very scared"

In the latest issue of Newsweek, Fareed Zakaria examines what many Americans have recently been wondering: “How Long Will America Lead the World?”

…Americans have replaced Britons atop the world, and we are now worried that history is happening to us. History has arrived in the form of “Three Billion New Capitalists,” as Clyde Prestowitz’s recent book puts it, people from countries like China, India and the former Soviet Union, which all once scorned the global market economy but are now enthusiastic and increasingly sophisticated participants in it. They are poorer, hungrier and in some cases well trained, and will inevitably compete with Americans and America for a slice of the pie. A Goldman Sachs study concludes that by 2045, China will be the largest economy in the world, replacing the United States.

It is not just writers like Prestowitz who are sounding alarms. Jeffrey Immelt, CEO of GE, reflects on the growing competence and cost advantage of countries like China and even Mexico and says, “It’s unclear how many manufacturers will choose to keep their businesses in the United States.” Intel’s Andy Grove is more blunt. “America … [is going] down the tubes,” he says, “and the worst part is nobody knows it. They’re all in denial, patting themselves on the back, as the Titanic heads for the iceberg full speed ahead…” [Link]

I find many parallels between this and the long denied facts surrounding global warming. I saw Gore’s fantastic powerpoint presentation/movie two weekends ago and it struck me how slow to react people can be even when they know they are on the losing side of time. Zakaria goes on to point out the same thing that I mentioned in an earlier post and that Vinod tried to push back on a bit:

The national academies’ report points out that China and India combined graduate 950,000 engineers every year, compared with 70,000 in America; that for the cost of one chemist or engineer in the U.S. a company could hire five chemists in China or 11 engineers in India; that of the 120 $1 billion-plus chemical plants being built around the world one is in the United States and 50 are in China.

There are some who see the decline of science and technology as part of a larger cultural decay. A country that once adhered to a Puritan ethic of delayed gratification has become one that revels in instant pleasures. We’re losing interest in the basics–math, manufacturing, hard work, savings–and becoming a postindustrial society that specializes in consumption and leisure. “More people will graduate in the United States in 2006 with sports-exercise degrees than electrical-engineering degrees,” says Immelt. “So, if we want to be the massage capital of the world, we’re well on our way…” [Link]

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Deep in the heart of Desi

We at the Mutiny don’t talk as much as we should about the desi presence in the central United States. If you’ve wandered through the heartland you know that desis are everywhere, principally thanks to the hotel business. And then of course there are the major cities like Houston, Dallas or Denver where I know we have plenty of readers.

Indian corporations are ahead of us in this regard, as witnessed by the following item from Alabama. Now, for a few years the Deep South has been a hub for foreign investment. There’s an enormous Nissan plant in Jackson, Miss., and a Hyundai plant in Montgomery, Ala., that have created thousands of jobs. Part of what draws these firms is the abundance of cheap skilled labor marooned by the manufacturing recession, as well as the anti-union laws. Still, anyone who’s spent time in the South knows that foreign investment has wrought some powerful economic and cultural changes.

But Indian firms? Well, ITC Infotech has just committed to open its third US location in Birmingham, where it hopes to ramp up to $100m in annual business. And Alabama authorities hope this will start a flood of Indian investment:

ITC is the first company to announce plans to locate in the state since the establishment of the Alabama-India Business Partnership, a group set up to stimulate economic activity and investment. More are expected follow.

Automotive parts maker Span Industries has indicated it wants to come to Birmingham, as has another Indian auto parts manufacturer and a biotechnology firm, said Anil Agarwal, president of AK-Global Solutions Inc. and founder of the Alabama India Business Partnership.

“In the next five to 10 years, we will be doing the same thing we are doing for the Indian companies as we are doing for the Japanese and Korean companies today,” Agarwal said…

I’m all in favor of this sort of investment. But one thing that always amuses me in these stories is the special type of boosterism that they breed, in which the investment origin and destination are touted as perfect partners because they match up so well culturally:

Not only does Birmingham offer a geographical hub on which to build a solid Southeastern presence, Agarwal says, but culturally the two communities share several common denominators.

For instance, Agarwal says, both Alabama and India have strong agricultural backgrounds that transitioned to a manufacturing base and only relatively recently have begun to shift into research in areas such as biomedical science and biotechnology.

They also both have very traditional family values,” making India and Alabama compatible business partners, Agarwal says.

Meaning vaat exactly, Agarwal-saheb? I know some families down South that are anything but traditional. And those Baptist churches every twenty yards don’t leave much room for masjids and mandirs. What the regions really share is humidity, verandas, and big ol’ flying cockroaches. I trust Agarwal-uncle wasn’t trying to allude to something more sinister — Old times there are not forgotten — and instead look forward to a growing desi role in the cosmopolitan revitalization of the South. Continue reading