India, 21st century’s one of the fastest growing country. From last 70 years, India has proved the mettle on various fronts of Poverty, Low Economic Development, Low Literacy rates, Lack of Industrialisation and what not. Just imagine any Economic or Social trauma, India has fought that.
But, In spite of all these challenges, the way India has moved on path of Economic Development is commendable. India as a country has come long way but as a Nation where all the members of Society have access to basic means of life is a matter of concern and topic for this article.
India’s Growth Paradoxes refers to all the contrasting situations which Growth instigating forces have created and thus creating newer challenges. Many a times, the methodology adopted to counter one issue has resulted into another issue, for e.g. after Independence in 1947, one crucial front for India was lack of Modern Industries and Subsidence Agriculture. Industries were present but mostly out of technology as well as resources hungry. Agriculture was backbone of Indian economy pre independence but it was mainly to feed the population that too in minimal sense. So, there was an urgent need to bring out the possible changes to fire the engine of Development. During that time, the task of instigating element of growth was given to Dr. P.C Mahalanobis, referred to as Architect of Indian Planning. He was an able economist and a well versed visionary. He knew that if Indian Economy has to perform, Industrial Sector has to play leadership role. It was his vision with which Rapid Industrialisation was started. Within a Five Year Plan from year 1951-1956, India’s GDP outperformed the planned number and started fetching desired result.
But on the same front, Indian Agriculture was not able to perform the way it had to.
It is very well established fact that Indian Agriculture is dependent on various Natural events like Monsoon, Droughts etc. During Rapid Industrialisation, Industries stated producing, Mines started Exploring but what remained at stagnation was the condition of Indian Agriculture and allied sectors on which major section of Population is dependent.
With the advent of foreign powers, India gradually lost its status of being Gold sink. With coming of British East India Company in India, the situation got worsened. British East India Company did all what was needed for Economic drain, so whether it was the demand for Raw materials to feed the resources hungry England’s factories, British East India Company followed the ‘Policy of Economic Exploitation’. So, earlier economically self sustaining Villages of India were converted into Raw material producing fields and their natives as Labourers.
This was beginning of troubles for Indian Population. Population which was earlier self sustaining and economically capable got into crunches of economic exploitation. Owners of Lands were converted into workers and Lands were converted into farms. The sophisticated fabric of economic, social and political unity of India was also damaged.
This could be credited as the ‘Mother of Growth Paradoxes/ of India’s growth and development. Mentioning this historical aspect of Exploitation of British East India Company is important for this article as without this, understanding the present challenges would become tough.
Coming to present time, India is an economy with a stable growth rate, an economy which very intelligently and efficiently faced the 2008 global slowdown. Today India is one of the favoured Destinations for Investment all around the world. Thanks to the credibility of ours economy to return a good profit.
But whether this magnificent 70 years of Growth has managed to trickle down from top to bottom of Indian Population? This is the question for which finding answer is need of the hour.
Indian Population is mix of various Religions with people belonging to the different regions. Our Geographical diversity has very well contributed to our Ethnic as well as Cultural Diversity.
But this diversity is not only limited to Socio-Cultural Diversity but it has also created a Diversity of Social and Political issues. Social Inequalities of Illiteracy, Casteism etc have severely damaged the fabric of Indian oneness. Economic Inequalities of Income Disparities in which major resources are owned by top 10% of the population. Rest 90% population has to manage in 10% of available resources. These are the Paradoxes of our last 70 years of Development where focus to Economic Development was stressed so much that it resulted in critical state of Social Development.
Answering these Paradoxes is very important if we have to make our Population free from the crunches of Socio-Political Inequalities.
Year 2014 has seen the emergence of a leader which enjoys the people’s credibility. The present Prime Minister of India Mr. Narendra Modi has come up to power with clear Majority in lower house of Indian Parliament, a rare occurrence in post Economic reform era of 1990’s. This Credibility reflects the clear aspirations of Indian people, aspirations of getting a Social Status where Inequalities of any kind would be a rare scene. Children getting proper nutrition and education. Social fabrics getting so strong that Indian sciety should get sense of oneness.
India is a nation which from last one thousand of years has shown a resilience to maintain a strong social oneness. It is very evident that from medieval era, Riots and clashes in Indian villages were rare events. Indian has accommodated the changing parameters so well that it has become a leading player in them, India’s performance in Information and Communication Technology is one such example.
But in spite of all favourable elements, People are still facing various socio-political issues. It is because till now Sensitivity is missing from our Socio-Economic planning. Sensitivity of accommodating the weaker section of population to changing global market requirements. Present Government’s scheme of Skill India, Stand up India is one such attempt to encounter these Socio=political evils in Indian Society. Understanding these Paradoxes of India’s Growth and Development is very crucial because these are creating issues for not only India but many other developing countries around the world.
Pakistani Gwadar Port: A double-edged sword for Iran
Authors: Vahid Pourtajrishi & Elaheh Shirvani
Gwadar port is located in the province of Baluchistan in Pakistan and on the coast of Arabian Sea. The port’s plan was first established in 1954 when it was owned by the Oman’s kingdom. The distance between Gwadar and Karachi, the main commercial city of Pakistan, is 533 km and the distance to Iran’s border is 120 km. After 200 years of Oman’s Kingdom governance over Gwadar Port, by US mediation in the negotiations between Pakistan and Oman, finally this port was sold to Islamabad on 8th Dec. 1958 at the price of 3 million dollars.
The initiary plans for the development of Gwadar was first introduced in 1992 but due to lack of resources on one hand and international sanctions against Islamabad for examining atomic bomb on the other, the plan did not become operational. Finally by the agreements that were reached between Pakistan and China and China’s investment in this project, the first phase of the development plan started to be studied and constructed in 2002. In 2007 the construction of the first phase was completed and on 15th March 2008 Gwadar Port was launched by the entrance of a 70000 ton cargo. (www.psagwadar.com.pk)
The new plans for developing Gwadar were first proposed by the Prime Minister Parviz Mosharaf in 2007 (New York Times, Jan 2013).
Gwadar Port’s Construction Trends:
In fact construction of Gwadar is divided into two separate phases which are as follows:
Phase I (2002-2006)
As it was mentioned earlier, the first phase of this project was first introduced in 2002 and was completed in 2006 by the cost of 248 million dollars. The measures which were taken in the first phase are as follows (the official website of Gwadar Port www.gwadarport.gov.pk):
• Docks: construction of 3 multi-purpose docks with the capacity of commercial ships of 30000 tons
• Length of dock: 6.2 m
• Dimensions of the port’s entrance channel: 4.5 km length, 12.5 m depth
• Turn-round tank: 450 m
• Repair dock: a dock with the length of 100 m
• The required infrastructure equipment in the port including staff boat, hauler, researching ships and etc.
But as we are aware, development of Gwadar Port goes back to the financial agreement which was signed between china and Pakistan (CPEC) in 2015. At the time of signing the contract, China guaranteed to invest 1.62 billion dollars for the construction and development of this port based on BOT contract (China Daily News Paper, July 2016). The goal of this project was connecting Pakistan to western China.
The two countries plans for development and construction of phase II are:
• Construction of 2 container docks along 3.2 km of Gwadar coast
• Construction of 1 bulk cargo terminal
• Construction of 1 grain special terminal
• Construction of 1 Ro-Ro terminal
• Construction of 2 oil terminals
• Port’s entrance channel: the depth of channel will be increased to 14.5 m
• Construction of a four-lane highway to connect Gwadar Port to Makran Coastal Hwy
• Construction of a new airport
• Construction of a gas terminal with a capacity of storing 500 million cube meters daily (for storage of the transported gas from Iran based on peace pipeline contract)
• Construction of special economic zone with the area of 2292 hectares
• Construction of water desalination center
• Construction of 360 MW power plant for electricity production with fossil fuel
Future plans estimated in phase II:
• Increasing port’s entrance channel to 20 m
• Constructing150 docks by the year 2045
• Increasing cargo arrival and departure capacity up to 400 million tons per year
But what draws the attention of each and every expert in the field of international transport is the reason behind Chinese investment in this new port and investigating the future of rival neighboring ports such as Chabahar Port in Iran.
1) China’s One belt-One road Policy:
As we know, one belt-one road Policy was introduced by China’s president Shi Jen Ping. The new Silk Road or one belt-one road plan is an investment plan in the infrastructure of more than 60 countries of the world and development of two commercial routes of “Silk Road Economic Belt” and “Maritime Silk Road” which were introduced by China in 2013. This plan plus China’s military power can lead to China’s hegemony in East Asia and turn this country into a super power (Monthly Review, Jan 2017). “Silk Road Economic Belt” links the traditional Silk Road to Europe through Central Asia, Russia and Middle East. “Maritime Silk Road” connects China to southeast of Asia and Africa via the sea. The reason behind introducing these two plans was that China’s economy including the development of the local economy infrastructure and exporting goods to the developing countries was not as effective as before. Furthermore, western economies have encountered recession and there was a decrease in returning of the local investment due to the industrial production surplus in China. Therefore the mail goal of the plans was to strengthen Chinese economy and turn the Chinese manufacturing companies into international companies which operate to develop the infrastructure in different countries under the brand “one belt-one road”. China has specifically designated 65 countries as the targets of infrastructure investments.
In order to develop goods and energy transport in Moscow highway to Kazan in Russia, Beijing is seeking investments to launch projects such as Kazakh Railway from Khorgas to Aktau Port on the bank of Caspian Sea, some pipelines from Turkmenistan to China, China-Kazakhstan-Uzbekistan railway, Trans-Asia railway from China to Europe via Kazakhstan and Russia, Silk Road railway from China to Iran (via Kazakhstan) and China-Pakistan highway (Financial Times, 14th Sep, 2015).
2) One belt-one path, Chinese Version of US’s TPP
By the time that Donald Trump was elected as the president of US in 2017, most of Obama’s adventurous goals and ambitions regarding a liberal economy and international trade reached to an end. One of the international accords of US during Obama’s government was the Trans-Pacific Partnership (TPP). Most of the opponents of this accord believe that accords such as TPP will do nothing for US except extensive costs.
In fact one belt-one rath is a substitute for Obama’s unsuccessful TPP which is proposed by Beijing this time.
3) Gwadar Port and China-Pakistan Economic Corridor (CPEC)
China-Pakistan Economic Corridor is considered as one of Beijing’s solutions for achieving one belt-one road policy and confronting the difficulties of passing through Indian Ocean without India’s disturbance as the most important regional rival of China. Providing the requirements for one belt-one road project will be burdensome and costly. The initiary investment for CPE was estimated about 46 billion dollars by China but later this amount was increased to 54 billion dollars. As estimated by Pakistan, the worn-out transport network of this country results in wasting almost 3.5% of Pakistan’s GDP. As the framework of this project, new networks of transport will be built which will connect Gwadar and Karachi ports to northern Pakistan, Western China and Central Asia. Based on the statistics given by Chinese experts, modernizing the mentioned transport network will cost 11 billion dollars, make 2.3 million job opportunities between the years 2015-2030 and increase the country’s economic growth by 2-2.5% annually. Based on what was mentioned earlier, CPEC is considered as China’s main plan for achieving the required technical and economic infrastructures in Pakistan.
4) Chabahar Port
In fact Chabahar International Port is the most important project of Gwadar port which is considered as one of the main competitions between Iran and Pakistan. Chabahar port at a glance:
1. Entrance to Persian Gulf and Indian Ocean which consists of a sensitive and suitable geographical location
2. The only ocean port in Iran
3. Consists of more than 541 km maritime border
4. The least land distance to Afghanistan, Pakistan and Central Asia. Transit of goods via this port is considered as the most economical port with the least transportation cost
Chabahar and International Transit of Goods
Chabahar port is the intersection of two important corridors; North-South and East-West corridor. In the recent measures taken by Pakistan’s government, Makran’s Coastal Highway was established in South of Pakistan which links Karachi port in Pakistan to Gwadar and then to Rimadan Border Market in Chabahar (Iran).
Chabaahr-Zahedan-Mashhad Railway Project, 1350 km
Chabaahr-Zahedan Railway is located in Sistan and Baluchestan province in Southeast of Iran. This railway connects Chabahar Port to the city of Zahedan and then Mashhad. Currently the speed limit is estimated to be 120 km/h for passenger trains and this number is 90 km/h for freight trains.
Based on the estimations, 300000 passengers and 1.3 million tons of freight will be carried by this railway in the first year of its operation and these numbers will be increased to 500000 passengers and 35 million tons of freight by the twentieth year.
Technical Specifications of the Project:
– Maximum gradient of the route: 15 in 1000
– Minimum radius within curve: 1000 meter
– Number of specific tunnels: 17
– Total length of tunnels: 11000 meter
– Number of tunnels: 20
– Number of stations: 5 main stations and 25 grade III stations
Based on the contract between Iran and India, New Delhi has undertaken to invest 500 million dollars for developing and launching Chabahar port based on BOT contract.
Lack of required rail infrastructure is the main difficulty of Chabahar port to transport the cargo to Afghanistan. Due to this reason the cargo needs to pass through Pakistan by road which decreases the competitiveness of Chabahar port since this will become a permanent challenge for the customers in long term. To transport freight from Chabahar to Herat in Afghanistan, 1784 km of rail is needed which is way less than Gwadaar-Karachi-Afghanistan route.
5) The Role of the Railways of the Islamic Republic of Iran:
Based on Chabahar’s project development plan, this port has been linked to the transit routes of Afghanistan, Turkmenistan, Turkey and Azerbaijan Republic via rail and in fact Chabahar links to the North-South Corridor at Bafgh intersection.
– According to China’s strong support of the construction and development of Gwadar port, the future of Chabahar is completely dependent on its construction speed.
– On the other hand, Kabol and Afghanistan do not fulfill their duties to RAI. Afghanistan is the only country which benefits from both Chabahar and Gwadar projects since linking to these two ports can solve Afghanistan’s geo-economic problems for connecting to international waters.
– Attempting to rehabilitate Pakistan’s worn-out lines and linking it to Zahedan is considered important since in this way Afghanistan’s attempts to become the rail transit path between Pakistan, Central Asia and Turkey will remain unfruitful.
– Another treat for Gwadar port project in one road-one path framework is China and Pakistan’s attempt to connect to Europe via the Caspian Sea.
Based on UIC reports, there are a total of 7 routes for connecting China to Europe. Due to inappropriate consition of the infrastructure along the route and the need for development, the travelling time for China to Europe via Tehran cannot be estimated.
Hurry up Iran!
Based on what was mentioned before, what is obvious is that the time factor plays an important role in making Iran as the key to access Poland as the main Europe transit hub. Iran needs to act faster in launching and strengthening all the corridors passing through the territory of Iran. Iran needs to put India under pressure by emphasizing the threats made by India’s rivals, i.e. China and Pakistan, to complete the project in the shortest time possible.
Another measure proposed to Tehran for confronting with the negative impacts of Gwadar port on the rail transit through south of Iran is to launch ITI corridor which is a win-win project for China and Iran since by putting Islam Abad-Zahedan route into operation, at least some parts of China’s exported goods to Europe can be transported through Iran to Turkey instead of being transported via the insecure route of Afghanistan. ITI corridor is way less expensive than the corridor passing through Caspian Sea. This is an opportunity for Iran to attempt to activate ITI corridor before China launches Afghanistan’s route.
First published in our partner Mehr News Agency
The Not-So-Missing Case of Indian Innovation and Entrepreneurship
Hitendra Singh and Gauri Noolkar-Oak*
Recently, an article published in Modern Diplomacy caught our attention. The author has cited Mr. Wozniak, co-founder of Apple, and found his famous statement on Indians lacking enterprise and innovation to be ‘music to his ears’. He has then gone on to paint Indians in broad strokes – ironic, for it is something he has accused Indians of doing – and labelled them as a nation lacking entrepreneurial and innovative spirit. While his reasoning certainly has an element of truth and an instant appeal, our response looks to add nuances to his argument and provide a more realistic and complete picture of enterprise and innovation in India.
To begin with, the terms ‘entrepreneurship’ and ‘innovation’ cannot be used interchangeably; not all entrepreneurs are innovators, and vice versa. There are more than 50 million medium and small businesses operating in India which contribute 37% of India’s GDP and employ around 117 million people. These numbers sufficiently prove that entrepreneurship is alive and kicking in the Indian society; Indians are running businesses not only in India but are leading and successful entrepreneurs in many countries of Asia, Africa and rest of the world. Hence, an argument that Indians lack entrepreneurship does not hold much strength.
In the case of innovation and creativity, a different story is emerging. It is slow but is happening and it is solving some of the largest social and developmental challenges in India – from grassroots, to research labs, to top-tier institutions such as ISRO and various DRDO labs. At a global level, India has not only moved up six places in its GII ranking in 2017, but is also ranked second in innovation quality. India has also won international acclaim for its innovative and cost-effective technology; such as its first mission to Mars in 2014, the Mangalyaan, was successful in the first attempt, made entirely with domestic technology, and cost less than the Hollywood movies ‘Gravity’ and ‘The Martian’. It is surprising that the author spots lack of innovation in a household broom but does not see innovation in a nation that sends a successful Mars mission on a budget that is less than that of a Hollywood movie about Mars.
At the national level, grassroots innovation and entrepreneurship are gaining more and more institutional recognition; the National Innovation Foundation (NIF) and the annual Festival of Innovation at the Rashtrapati Bhavan are perhaps the only high-level government initiatives supporting and celebrating innovation in the world. Additionally, many universities and educational institutes across the country host innovation competitions, festivals and incubators.
Several remarkable individuals are nurturing India’s growing innovative and entrepreneurial spirit.Prof. Anil K. Gupta founded SRISTI (Society for Research and Initiatives for Sustainable Technologies and Institutions) in 1993 and the Honey Bee Network in 1997 to connect innovators from all sections of the society to entrepreneurs, lawyers and investors. For more than 12 years, he has walked around 6000 kilometres across the country, discovering extraordinary grassroots innovations on the way. Dr. Raghunath Mashelkar, an eminent chemical scientist, has led multiple scientific and technological innovations in the country, earlier as the Director-General of Council of Scientific and Industrial Research, and now as the President of the National Innovation Foundation.
And then, there are thousands of common men and women, hailing from various walks of life, innovating continuously and creatively to solve pressing everyday problems in the Indian society. There are the famous Arunachalam Muruganantham, who invented a cost-effective way of manufacturing sanitary napkins, and Mansukhbhai Prajapati, who invented a clay refrigerator which runs without electricity. Then there are Mallesham from Andhra Pradesh, who sped up the process of weaving Kochampalli sarees and reduced the physical pains of the weavers, and Shri Sundaram from Rajasthan, who found a way to grow a whole tree in a dry region with just a litre of water. Raghav Gowda from Karnataka designed a cost-effective and painless machine to milk cows, while Mathew K Mathews from Kerala designed a solar mosquito destroyer. Dr. Pawan Mehrotra of Haryana has developed a cost-effective version of breast prosthesis for breast cancer survivors while Harsh Songra of Madhya Pradesh has developed a mobile app to detect developmental disorders among children.
Three women from Manipur, OinamIbetombi Devi, SarangthenDasumati Devi and Nameirakpam Sanahambi Devi invented an herbal medicine that is proven to promote poultry health. Priyanka Sharma from Punjab developed a low-cost biochip to detect environmental pollutants, while Dr. Seema Prakash from Karnataka revolutionised eco-agriculture by inventing a cost-effective plant cloning technique. AshniBiyani, the daughter of Future Group CEO Kishore Biyani, leads the Khoj Lab, which collaborates with the NIF to help commercialise grassroots innovations and ideas.
These and thousands of such examples present a very encouraging picture of the creativity and innovation of Indians. The innovation that the author admires are rooted in a context. Apple and Google (or Lyft or Uber or Spotify) could be created because there was an end consumer who was looking to pay for their products. There are many India innovator-entrepreneurs, such as those mentioned above, who have created products for a necessarily less glamorous but useful India context. Products like brooms and packaged food add convenience to the time-stretched urban and middle and upper middle classes; with a large unskilled and semiskilled workforce competing vigorously for such jobs, does the Indian society have an incentive to invest in innovating them?
Having said that, it is true that upsurge of innovation in India is relatively recent, i.e. about two to three decades old. It is also true that the Indian society has been experiencing socio-economic affluence on such a broad scale only for the past three decades, since the market reforms of 1991. It has been 70 years since Indians have gained sovereignty and control over their resources. The top five innovative countries according to the GII – Switzerland, Sweden, Netherlands, USA and UK – have been sovereign states for about at least two and a half centuries. It would perhaps then be more accurate to compare India’s current innovation scenario with, for instance, the USA’s innovation scenario in the mid-19th century.
Further, given the economic and resource drain faced by the Indian society over centuries, Indian innovation was geared more towards surviving rather than thriving. This explains the ‘group mentality’ strongly rooted in mainstream Indian society; staying and cooperating in a group increased one’s capacity to cope with and survive through all kinds of adversity. Individualistic aspirations, beliefs and actions were then a price to be paid for the security blanket it offered. And yet, once relative stability and affluence began to set in, the innovative and creative instincts of Indians lost no time in bursting forth.
Long story short, both innovation and entrepreneurship are thriving in India. They might not be as “macro” or glamourous as Apple or Uber, but they are solving fundamental problems for the Indian masses. Undoubtedly, there is a lot of room for improvement and growth – India has a long way to go to be recognised as a global leader in innovation and entrepreneurship. However, the scenario is not by any means bleak, as these many examples point out. The trajectory of enterprises and innovation in India is only upward. The future is promising.
* Gauri Noolkar-Oak is Policy Research Analyst at Pune International Centre, a liberal think tank based in Pune, India.
Views expressed by the authors are personal and do not reflect those of the organisation.
Changing Perceptions: How Pakistan should use Public Diplomacy
Traditionally in International Relations the concept of “hard power” remained the basic focus for states so as to achieve power and dominance in international anarchic system but with the changing scenarios in the age of globalization, economic interdependency and rapid spreading of information through various tools, “Soft Power” concept emerged which had great impact on states’ foreign policies. This term of soft power was first coined by Joseph Nye in mid-1960’s which could be defined as the ability of the state to influence others without coercion and this soft power technique basically revolves around three major instruments such as Culture, political values, and foreign policies. Apart from soft power concept, there is another basic concept called as “Public Diplomacy”. This could be described as the further dimension of soft power because by practicing Public Diplomacy state can initiate their soft power policies and can achieve the desired outcomes by winning the hearts and minds of foreign audience and non-governmental entities because by doing so it will enable government and decision making bodies of foreign states to act accordingly.
In context of South Asia particularly taking into consideration the important developing state Pakistan whose basic concern is to maintain friendly and neutral relations with other states Public diplomacy could, however, help it to maintain its relations in the regional complex structure where India is seen as the dominant power and alongside India the powerful rise of China as an external actor in South Asia. By efficient usage of Public diplomacy, Pakistan can improve its bilateral ties with the neighboring states.
The image of Pakistan in foreign media is portrayed as the state which is full of many internal and external challenges and it is also not portrayed as the safe country to travel into. In order to improve the image, Pakistan firstly needs to improve its relations with states within the region and for that India which is considered as hostile neighbor Pakistan should effectively use its public diplomacy tool it should introduce exchange programs because by educating youth and by deploying positive image in their minds Pakistan can influence them which could bring change in the coming years and also by increasing tourism activities. This would make foreigners aware of the fact that Pakistan is a secure state. Similarly, cultural activities, sports diplomacy, literature, art, and media could also have a great impact so as to change the perceptions.
Hence it could be suggested that for the development of state it is important for Pakistan to improve its public diplomacy by changing perceptions of public and elite of neighboring states it should take basic steps which could change the negative image which is in limelight since 9/11. Pakistan by enhancing the public diplomacy in other states as the tool to implement its soft power policies would, however, be able to economically, culturally and politically improve its stance in the International arena.
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