Inclusive Growth – Reaching out to the bottom of the pyramid, By Mr Kiran Karnik
Loading ...For a while now, we were trying to get Mr Karnik to address on a subject, which was of great interest and debate amongst the intelligentsia. Mr Pavan Vaish of IBM Daksh, who is also the chair for the Council, delivered the welcome address. He spoke very highly of the warm hospitality of the Genpact team led by Ms Anju Talwar and also jocularly remarked about the “pit”, where we were all seated; being the amphitheatre, where Mr Pramod Bhasin usually subjects his generals to grueling reviews. Mr Vaish remarked on the Satyam episode – a rare tragedy for all individuals, who had built the brand. In his words, the resurrection, of what is now Tech Mahindra Satyam, is equally stunning (in a positive way) lead chiefly, by individuals who were handpicked by the government. The ability to carve out a strategy at a time when managerial independence was only a relative concept, was truly an astounding feat – stuff that legends are made up of - and we were truly honoured to have a champion amongst us. Mr Vaish concluded by thanking Mr Karnik for taking time out and addressing the CEO Forum of NRC- Gurgaon. What Mr Karnik and the others at Satyam had achieved was a matter of great pride for all Indians and a shining example for others to emulate. The moment had finally arrived:
Mr Kiran Karnik:
Humble man that he is, Mr Karnik, thanked Mr Pavan Vaish and Avinash from NASSCOM for creating the opportunity. He started by turning the clock back in time, to 1991 when India had embarked on a new journey, which was to be a harbinger of seminal change. On a lighter vein, he added that he wasn’t so sure as to how many people, currently seated in the room, had been working at that time, but he for one, had already spent a significant part of his career when liberalization was ushered in with open arms. Within a very short time span, all known economic indicators would increase manifold and the Obamas of the world would put India on a pedestal, whereby suggesting that we too were part of the mindless battle of usurping IT space. In the early years, just after 1991, there were frequent references on alleviating the plight of the farmers, removing poverty and similar such measures. Albeit lip service, but at least it was somewhere there in the radar and featured in the government’s agenda. In sharp contrast to the “garibi hatao” slogan, the “India shining” campaign, somewhere fails to reach out to those at the very bottom of the pyramid – the marginalized society. In the past few years, this seems to have disappeared completely. When you have measurement metrics in terms of GDP growth, forex, sensex and others of its ilk, behavioural patterns are bound to change. This was perhaps the tradeoff, which was inevitable.
Mr Karnik said, that earlier most power projects in the country had an overall positivity around it, but now such projects were burdened with many environmental health hazards. Most of these projects were located in areas where the gradient was very steep, land inhabited by poorest of the poor. Rehabilitating them and reinstating them to a different lifestyle had many positives as well as negatives. Though, on the face of it, it always looks to be positive, but the sad part of life being, those who actually benefitted are most likely not to be the ones who lost out due to displacement. Both the countries, China & India were paying heavily in many ways, for their fast track growth, as there was enough evidence to indicate that poorest of the poor had not really benefitted. Of course, there were positives too, for instance, in the 1970’s, it took approximately 72 years to double one’s income, which can now be achieved in 12 years. This is highly commendable indeed. It is the bottom 15-20 % of the pyramid that has not only “not gained” but also lost out majorly in as many ways conceivable. The question, staring at us, right in the face is – how do we make growth more inclusive?
He also talked about some of the other radical approaches, as evidenced in Nandigram. This was the other end of the spectrum, where mankind resorted to such an obdurate stand that ultimately caused more harm than good. Mr Karnik said, the real beauty of technology lies in the fact, that it does not compel man to take any drastic measures – Maoist or otherwise; rather it is designed to equip us with information, which will only help, to make informed choices. Most certainly, technology has the power to take us to a different and necessarily better path. As an anecdote, he shared with us, the case of the fishermen near the coasts of Kerala. Earlier, the fishermen would take their boats and venture out into the sea. After the catch, they would return, at most times to the nearest point and sell. Since there was a concentration in one area, lacking storage facilities, there would be a lot of wastage, thereby leading to a drop in prices offered to the poor fishermen. Technology has solved this problem. Through mobile alerts, information about prevalent markets and its proximity can now be shared with the fishermen, enabling them to make an informed choice and fetch the best prices. Mr Karnik also touched upon ITC’s e-choupal and how it has empowered the farmers in rural India. It was one of the shining examples on what technology can possibly achieve through the concept of aggregation and removal of intermediaries. Information sharing ultimately benefits all and results in participative growth. Much oppression that exists in the world today is not because of wealth differential but due to information dissymmetry. IT helps create a level playing field and raises the ability to negotiate. Mr Karnik also talked about mobile technology and how it has the power to change lives in a rather cost effective way. Prices were falling but the device was getting more and more powerful with added features to make life much easier.
He finally concluded by saying that reaching out to the bottom of the pyramid is not just an idealistic concept. In his opinion, unless it is backed by a sound revenue model, it can never be a sustainable. Mr Karnik said, that though the margin per unit may be wafer thin, but the sheer volume was large enough to sustain a business model and for others to follow. It is an area for corporate to explore and also engage the government to bring about a change. Moreover to create a visible impact on society, let us not work in silos, but work in tandem, with all relevant stakeholders who are equipped to handle change at that level. Prospects were very exciting and this being his favourite subject, he could actually go on and on. He thanked the participants for patiently listening in and after a brief round of Q&A, it was back to Mr Vaish to make the concluding remarks. After such a riveting session, there was little left to say, as he reiterated that at NRC Gurgaon the motto has always been stop talking and start doing.
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