Entrepreneurship & Wealth Creation

By DR T.H. CHOWDARY

Director: Center for Telecom Management and StudiesChairman: Pragna Bharati (intellect India )

Former: Chairman & Managing DirectorVidesh Sanchar Nigam Limited &Information Technology Advisor, Government of Andhra Pradesh

T: +91(40) 6667-1191/ 2784-6137(O) 2784-3121®F: +91 (40) 6667-1111, 2789-6103

hanuman.chowdary@tcs.comthc@satyam.com

Talk @ Badruka College, HYD: Saturday, the 29th March 2008

What is Capital

• How is it formed? Savings/Consumption

• Industry, Business, Corporation– Banks Finance– Public Shares– Promoters’ Equity

• Profit/Surplus

• Risk & Rewards

Poverty/Inequality (1/2)

• Growth/Development & Inequality

• Who profits/gains or losses

• There can be no alleviation of poverty without growth; but Growth can create inequalities;

• True; Inequality can grow with growth but…

Poverty/Inequality (2/2)

• “Deng Tsiao Ping’s dictums - It is glorious to be rich• It matters little whether the cat is black or white

as long as it can catch the rats• Some people will have to become rich before the

poor can be helped to get out of poverty• Hu Jintao: Prez of China

“Harmonious Society” “From party-building to nation-building” “Socialism” with Chinese characteristics

Containing Inequality

• Education

• Re-skilling

• Population Stabilisation

[No negatives; simply withdraw welfare/subsidies]

• Population Migration

Essentials for Prosperity

• Human Resource • Entrepreneurship, not entitlement & Employment• Duties,not rights ( Every right is in a duty fulfilled)• Saving to form capital• Proper use of resources to generate surpluses/profit• Work Ethic First;• Welfare must be related to work

“He who does not work, neither shall he eat…”- V I Lenin

• Labour Productivity• Lower Trade Barrier• Private [domestic & foreign] capital, competition [eg.telecoms]• Flight of capital, talent, easy under globalisation

South & West India Vs North & East India

• Privatisation of Higher Education:

• Difference in

a. Rate of population growth

b. Literacy/Education

c. Casteist parties in UP/Bihar

d. Empowerment before enlightenment

Populism Destroys

• Degenerate democracy, Ignoble leadership.

• State Funding (Buying) of Elections (Voters)

• Give-aways-NREG; Rs.60,000 cr, loan waiver; Rs.1800 cr; Rs.1/Kg Vs Rs.5/cup of Tea

• Unjustified Pilgrimage subsidies

The Rising Cost of SustenancePrices for various food staples

(in US $ per ton)

$0

$100

$200

$300

$400

$500

$600

2007

2008

Maize

Wheat

Soyabeans

Rice

Source: TIME, March 31, 2008)

How Caste Can Wither Away

• Profession – Education – Access

• Opportunity to change profession

• “Educate our masters” - Disraeli

• “…above all things do not do harm….”

- Hippocrates

Subversion of India

• Unjust subsidies

• Reservations in private sector

• Finlandisation of India [China; Bangla….]

• India: safest haven & breeding ground for jihadis.

• Law & Order unenforceable

Abraham LincolnSaid:

• You cannot bring about prosperity by discouraging thrift • You cannot strengthen the weak by weakening the

strong• You cannot help the poor by destroying the rich• You cannot establish sound security on borrowed money• You cannot keep out trouble by spending more than you

earn• You cannot build character and courage • by taking away man’s initiative and Independence • you cannot help men permanently by doing for them• what they can do for themselves • -

Socialism: Wise thoughts from Sri Nani Palkhiwala (1/2)

• Socialism as practised in India has been a fraud: Our brand of socialism did not result in transfer of wealth from the rich to the poor but only from the honest rich to the dishonest rich

• The sleeping sickness of socialism is now universally acknowledged – but not officially in India… The public sector enterprises are the black holes, the money guzzlers and they have been extracting and exorbitant price for India’s doctrinaire socialism.

• A law suite once started in India is the nearest thing to eternal life ever seen on this earth….

Socialism: Wise thoughts from Sri Nani Palkhiwala (2/2)

• History will record that the greatest mistake of the India Republic in

the first 50 years of its existence was to make less investment in

human resources-education, family planning, nutrition and public

health-than in brick and motor dams and factories.

• Over taxation corrupted the national character overtly. The nation

survived only because the tax system continued to breathe through

loopholes and the economy used to breath through window of tax

evasion.

• We have too much Government and too little administration; too many

laws and too little justice; too many public servants and too little

public service, too many controls and too little welfare.

Indian Concept of Globalisation (1/4)

• Purusharthas

• Dharma, Artha, Kama, Moksha

• Prosperity, Power, Intellect & Ethics

• All Dharmaavirudha (not opposed to Dharma)

• Not merely economic & markets but also knowledge, spirituality, fraternity

Indian Concept of Globalisation (2/4)

• Aanoh bhadraah, ritavo yantu viswatah

(let noble thoughts come from all

quarters)

• Krinvantu Vishwamaaryam

(let us ennoble the whole world)

• Vasudhaiva Kutumbakam

( the whole earth is one family)

Eesavaasyamidam sarvam yatkincha jagatyaam jagat,Tena tyaktema bhujithaah;

Maa grithah kasya swith-dhanam.• “Everything in the universe abides in the Supreme

Being. Realise this well; realising it cast off the desires that rise in the heart, for example, the thought of possessing what is enjoyed by another. Joy comes only by the giving up of desires and attachments.

(Enjoy by renunciation of and sharing with others of what more is not needed by you; may you not accumulate; whose is this wealth?)-Isavaasya, Interpretation by Rajiji.

• Let us all strive to live in the light of this wisdom.

Indian Concept of Globalisation (3/4)

Indian Concept of Globalisation (4/4)

• Aum Saha Naavavathu Sahanau BhunaktuSaha Veeryam Kara VaavahaiTejasvi Naavadheetamastu Maa VidwishaavahaiAum Shantih Shantih Shantihi

• Meaning: May the Lord protect us both, may He nourish us both, may we work together with great vigor (divine strength). May we both acquire brilliance of our intellect through our studies, may we not hate each other. Let there be peace, peace, peace.

Who is a true leader:

• Those who claim to lead the masses must resolutely refuse to be led by them, if we want to avoid mob law and desire ordered progress for the country. I believe that mere protestation of one’s opinion and surrender to the mass opinion is not only not enough, but in matters of vital importance, leaders must act contrary to the mass of opinions if it does not commend itself to their reason.

- M.K.Gandhi

• Leaders should lead as far as they can and vanish. Their ashes should not choke the fire they have lit. (As we have about a Dynasty in India)

“If the people who are   elected are  capable  and men of character and integrity they would be able to make the  best  even of  defective Constitution. If they are lacking in theses, the Constitution  cannot help the   country.  …there is fissiparous  tendency arising out of    various elements in our life. We have  communal differences, caste differences, language differences, provincial  difference.  It runs them of strong  character men of vision, men who will not sacrifice the interest of the  country at large for the sake of smaller goods and areas and who will rise over the  prejudices which are born   of these differences. We can only put  an account  will prove out  such men in   abundance.  “…

-Dr Rajendra Prasad - from the speech at the final adoption of the Constitution.

“People who are elected”

“Here I could have ended. But my mind is so full of the future of our

country that I feel I ought to take this occasion to give expression to

some of my reflections thereon. On 26th January 1950, India will be

an Independent country. (Cheers) What would happen to her

Independence? Will she maintain her Independence or will she lose

it again? This is the first thought that comes to my mind. It is not

that India was never an Independent country. The point is that she

once lost the Independence she had. Will she lose it a second time>

it is this thought which makes me most anxious for the future. What

perturbs me greatly is the fact that not only India has once before

lost her Independence, but she lost it by the infidelity and treachery

of some of her own pr. In the invasion of Sindh by Mahommed-Bin-

Kasim, the military commanders of King Dahar accepted bribes from

the agents of Mohammed-Bin-Kasim and refused to fight on the side

of their King. - Dr B R Ambedkar’s speech after writing the Constitution

“…..Our Independence maybe lost for ever…………!!!” 1/2

• It was Jaichand who invited Mahommed Ghori to invade India and fight against Prithvi Raj

and promised him the help of himself and the Solanki Kings.

• When Shivaji was fighting for the liberation of Hindus, the other Maratha noblemen and the

Rajput Kings were fighting the battle on the side of Mogul Emperors. When the British

were trying to destroy the Sikh Rulers, Gulab Singh, their principal commander, sat silent

and did not help to save the Sikh Kingdom. In 1857, when a large part of India had

declared a war of Independence against the British, the Sikhs stood and watched the event

as silent spectators.

• Will history repeat itself? It is this thought which fills me with anxiety. This anxiety is

deepened by the realization of the fact that in addition to our old enemies in the form of

castes and creeds we are going to have many political parties with diverse and opposing

political creeds. Will Indians place creed above country? I do not know. But this much is

certain that if the parties place creed above country, our Independence will be put in

jeopardy a second time and probably be lost forever…….”

• Source: The Makers of Indian Constitution – Myth and Reality by Sheshrao Chavan,

Bharatiya Vidya Bhavan publication - Dr B R Ambedkar’s speech after writing the Constitution

“…..Our Independence maybe lost for ever…………!!!” 2/2

ANY DOUBTS/QUESTIONS

PLEASE?

Dhanyawad:

Thank You