lndla [ 73

Ck raha|ad
aul and 8uLh McCracken ulsLlngulshed unlverslLy rofessor
1he unlverslLy Cf Mlchlgan
My vlslon for lndla [ 73
AcLlvely Shape Lhe Lmerglng World Crder
1hrough
Lconomlc SLrengLh
1echnologlcal vlLallLy
Moral leoJetsblp
1he oLenLlal of lndla
WhaL lndla can be ln 2022
1 World's largesL ool of 1ralned Manpower
200 mllllon college graduaLes (16)
300 mllllon Lralned skllled workforce (40)
unlversal llLeracy
LducaLlon SLreLch LhaL allows us Lo lnnovaLe
2 World's Leaders ln lndusLry and Commerce
30 of lorLune 100 from lndla
23 of yesLer years we have losL
3 lndla AccounLs for 10 of World 1rade
A broad scope of producLs and servlces
4 lndla as a Source of Clobal lnnovaLlons
new 8uslnesses new lorms of CrganlzaLlon new 1echnologles
WhaL lndla can be ln 2022
3 locus on Lhe 8oLLom of Lhe yramld as a
Source of lnnovaLlons for Lhe World
(Leaders ln PealLh LducaLlon Lnergy 1ransporLaLlon SusLalnable uevelopmenL for all)
6 A llowerlng of ArL LlLeraLure and Sclence
( 10 nobel rlze Wlnners from lndla)
7 A new Moral volce for eople Around Lhe World
lndla as a counLry where unlversallLy and lncluslveness ls wldely pracLlced lndla
becomes Lhe mosL 8enchmarked counLry for lLs capaclLy Lo accepL and beneflL
from lLs dlverslLy
rlnclple number #1
1he Lssence of LnLrepreneurlal 1ransformaLlon
SlLuaLlon A SlLuaLlon 8
8esources Low Plgh
AsplraLlons Plgh Low
rlnclple number #2 lold Lhe luLure ln"
2007
Lxtrapo|at|on
8udget|ng Cr|entat|on
2017 ] 22
Io|d the Iuture |n
Innovat|on Cr|entat|on
rlnclple number #2 lold Lhe luLure ln"
2007
2017 ] 22
C|ar|ty to D|rect|on
W||||ngness to D|scover
C|ear M||estones
Speed and Stam|na
400 meters at a t|me but a Marathon
rlnclple #3 locus on nexL racLlces
We|| known
ract|ces
8est
ract|ces
Next
ract|ces
Amp||fy Weak
S|gna|s
locus on Pere and now
1acLlcal 8locklng and 1ackllng
locus on new CpporLunlLles
AsplraLlon 8esources
loldlng Lhe luLure ln
locus on nexL racLlces
1hlnklng ulfferenLly abouL Lhe Pere and now
lndla oLenLlal vs 8eallLy
1 lncremenLallsm wlll noL work We need a 8adlcal 8eLhlnk of
ollcles and racLlces
2 key Lo becomlng a ueveloped naLlon
boteJ commltmeot to Cools
CreaLlvlLy and looovotloo
locus on ottpteoeotsblp
3 1he essence of LnLrepreneurshlp
AsplraLlon 8esources
1he Lmerglng ConLexL
2003 2017/22
Agenda for Lhe Sesslon
1 1he Lmerglng lssues 2007 2022
a Ab[ecL overLy Lo lncome lnequallLy
b lncome levels Lo Llfe SLyle Measures
c unlque needs Lo unlversallLy of AsplraLlons
d AffordablllLy Lo 8C Lo lmpacL on rlceerf
e Low 1ech Lo unlversal Access Lo Plgh 1ech
f lrom 8C Lo SLraddle Lhe yramld"
g rovlslonlng roducLs and !obs Lo LnvlronmenL
2 1he Lmergence of a new Model of uevelopmenL?
1he aradox of 8apld Lconomlc
uevelopmenL
ap|d Movement of
peop|e away from
Ab[ect overty
(51 ] Day)
Ch|na
Ind|a
Increas|ng Income
Inequa||t|es
(eg G Coeff)
Ch|na
Ind|a
1he Lmergence of Soc|a| 1ens|ons
Measures of lnequallLy
Clnl coefflclenL
DSA Ch|na Ind|a 8raz|| South Afr|ca
1983 1986 + 224 32 393
1989 1991 427 341 321 64
1993 1996 43 39 338 602
1999 2001 463 42 36 396
2006 469 47 393 372 39 +
lncluslve CrowLh Means
1 LllmlnaLlon of ect lovetty ( 5 1 / Joy?)
2 8educlng locome loepoolltles ( C coeff?)
3 LllmlnaLlng uoepool occess Lo opporLunlLles
4 Changlng llfe tyle loepoolltles
3 8educlng loepoolltles ln Cholce
6 8educlng loepoolltles lo bote of volce
lncluslve CrowLh Means
1 LllmlnaLlon of ect lovetty ( 5 1 / Joy?)
2 8educlng locome loepoolltles ( C coeff?)
3 LllmlnaLlng uoepool occess Lo opporLunlLles
4 Changlng llfe tyle loepoolltles
3 8educlng loepoolltles ln Cholce
6 8educlng loepoolltles lo bote of volce
ed|str|but|on of Wea|th Vs Wea|th Creat|on ?
ub||c o||cy Iocus Vs Lntrepreneursh|p] Market Iocus ?
1he Changlng value LquaLlon
8C
|ch
M|dd|e c|ass
r|ce
erformance (Iunct|ona| + Lmot|ona|)
1he Changlng value LquaLlon
8C
|ch
M|dd|e c|ass
r|ce
erformance (Iunct|ona| + Lmot|ona|)
5 30 Cataract Surgery
5 3S DVD |ayer
5 30 Ce|| hone
5001 Shampoo |n a sachet
5 2000 car
5 20 hote| oom
WhaL are Lhe lmpllcaLlons
8C Market New
r|ce erf Leve|s
for A||
Lxp|os|ve Growth
|n Market S|ze
Sca|e of
Cperat|ons
Lnv|ronmenta|
Demands
Access to n|gh
1ech for a||
Stradd|e the
yram|d?
1he locus on rlceerf lorces
1 Scale Local 8esponslveness and Clobal SLandards
2 locus on CosLs
3 Access Lo new MarkeLs knowledge and 1rusL
4 1echnlcal and Soclal lnslghLs
Lmergence of a New 5ocio/ compoct for 8usiness
Co||aborat|on w|th CSC r|vate ub||c artnersh|ps
LeL us Look aL uaLa lrom Around Lhe World
1 Cu/ CaplLa ln Lerms
(Source World facL 8ook2002)
2 Puman uevelopmenL lndex
(Source unu 2003)
3 CuallLy of Covernance CorrupLlon
(Source 1ransparency lnLernaLlonal 2002)
SelecLed 23 counLrles from very rlch Lo very poor
My 1akeaways
W Puman uevelopmenL ls noL abouL More 8esources buL less
corrupLlon ln Lhe ueploymenL of 8esources
W Cood Covernance (less corrupLlon) leads Lo Plgh Levels of
Cu/CaplLa noL Lhe oLher way around
W locus on Puman uevelopmenL (locus on lndlvlduals) and noL
Croups' 8lghLs Leads Lo 8apld Lconomlc uevelopmenL
(Cu/CaplLa)
lndla as a ueveloped naLlon
WhaL ls Lhe 1ra[ecLory?
2003
GD] Cap|ta
52S00 ()
2020
GD] Cap|ta
52S000 ()
ank |n nDI
127]17S
ank |n nDI
20]17S
CI ank
27] 10
CI ank
7] 10
Pow do we CorrecL Lhe 1ra[ecLory?
n|gh
Comm|tment to |ghts of the Ind|v|dua| Nat|ona|
Character Dn|versa| r|nc|p|es
Low
1
e
c
h
n
o
|
o
g
|
c
a
|
A
n
d
L
c
o
n
o
m
|
c
A
c
c
o
m
p
|
|
s
h
m
e
n
t
2007
2022
1947
?
Low
n|gh
WhaL are Lhe rerequlslLes
1 Change ln MenLal Models
2 uaLa urlven noL uogma urlven uebaLe
3 lndlvldual 8lghLs noL Croup 8lghLs
4 rlnclples noL 8lLuals
3 CorrupLlon ls LreaLed as 1reason
6 locus on erformance AccounLablllLy
7 lmaglnaLlon noL 8esources
WhaL lmpacL uoes overLy AllevlaLlon
have on Lhe LnvlronmenL?
1 8llllon Mlcro Consumers
urbanlzaLlon
CreaLlon of new !obs Mlcro producers
SusLalnablllLy ls mulLldlmenslonal
8C Lxperlences LnvlronmenLal lmpacLs llrsL
Many ulmenslons of Lco SysLems wlll
become SLressed
1 WaLer
CuallLy of WaLer
AvallablllLy access
usage Mlx AgrlculLure lndusLry home
2 Lnergy
lossll luel and SubsLlLuLes
8egresslve Lo progresslve luels
3 PealLh
hase ll of lndla's uevelopmenL
1he Lmerglng lssues 2007 2020
a Ab[ecL overLy Lo lncome lnequallLy
b lncome levels Lo Llfe SLyle Measures
c unlque needs Lo unlversallLy of AsplraLlons
d AffordablllLy Lo 8C Lo lmpacL on rlceerf
e Low 1ech Lo unlversal Access Lo Plgh 1ech
f lrom 8C Lo SLraddle Lhe yramld"
g rovlslonlng roducLs and !obs Lo LnvlronmenL
1he Lmergence of a new uevelopmenL aradlgm?
WhaL are Lhe uomlnanL 1hemes
20072013/2022
1 rlmary MarkeL 8ased SoluLlons
2 Soclal LqulLy ln uevelopmenL
3 8ule of Law lndlvldual 8lghLs
4 Scale
3 new rlceerformance Levels
6 Lcologlcally SusLalnable uevelopmenL
1he Sandbox" for Lconomlc uevelopmenL
Innovat|on
w|th|n 1hese
Constra|nts
G|oba| Sca|e
Market 8ased
1he Sandbox" for Lconomlc uevelopmenL
Accountab|||ty
for erformance
8us|ness
o||t|c|ans C|v||
Soc|ety
8ureaucrats
G|oba| Sca|e
Market 8ased
1he Lmerglng World Crder
Ck rahalad's vlew ln 1989
DSA
Lurope
(2000) Iapan
Ch|na
Ind|a
Ch|na
Ind|a
8raz||
Skorea
1a|wan
I|n|and
Sw|tzer|and
Wor|d Sca|e
Domest|c
Market
Sma||
Domest|c
Market
Loca| I|rms G|oba| I|rms
?
1he oor of lndla are 8eady for Lhls
!ourney
Are Lhe Leaders 8eady?