From: Malolan Cadambi
Date: Thu, 19 Aug 2004 06:51:24 +0100 (BST)
Subject: The Myth Behind China's Miracle
To: Indian Civilization
Srinivasan
http://www.nytimes.com/cfr/international/20040701faessay_v83n4_gilboy.html?pagewanted=print&position=
"Second, the business risks inherent in China's unreformed political
system have bred a response among many Chinese managers -- an
"industrial strategic culture" -- that encourages them to seek
short-term profits, local autonomy, and excessive diversification.
With a few exceptions, Chinese firms focus on developing privileged
relations with officials in the Chinese Communist Party (CCP)
hierarchy, spurn horizontal association and broad networking with
each other, and forgo investment in long-term technology development
and diffusion. Chinese firms continue to rely heavily on imported
foreign technology and components -- ****severely limiting the
country's ability to wield technological or trading power for
unilateral gains.**** "
Look at it this way - the tectonic shifts taking place in the
outsourcing sector are solely dependent on the scientific and
managerial skills of Indians. The Chinese couldn't hold a candle to
Indian firms because of their low trust society - so profusely
documented by Francis Fukuyama in his book on Trust. China and Italy
are low trust societies, no wonder fraud in Italy is a way of life.
Given our Prime Minister 'renunciate' who faked her degree from
Cambridge University.
China too is at a risk. Just as Business Process Outsourcing is
competing with the American/British service sector, 'Manufacturing
Process Outsourcing' will eventually compete with the Chinese
'prowess'. As wages rise in China, India still has a better distinct
advantage. Littoral states like Gujarat are located very close to the
Suez Canal - therefore even substantially cutting costs for freight.
Moreover, thanks to demographics, China's labour force is bound to
shrink. Despite it's huge size, only 50% of China is inhabitable.
Moroever, it does not produce enough grain to sustain it's
population. It 'stealthily' imports rice - yes, rice - from countries
such as Philippines, Vietnam, Laos, Thailand and from India. India is
one of the few countries that have a TRADE SURPLUS with China.
Come on my fellow countrymen, shake off the myth that you are
pussycats, you are tigers. - Swami Vivekananda.
Mahatma Gandhi said that we need one million indians doing one
million different things. Deng Xiaoping is making one million chinese
do only one thing.
To hell with China.
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