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A Mission for the President
Heard of the Bottom of the Pyramid?
At The Indus Entrepreneurs Conference, TiECon 2003, held in Mumbai
towards the end of last year, the venerable management guru C K
Prahalad postulated his theory on how BOP solutionsrather
than BPOwould ultimately be responsible for Indias transformation
and the realisation of President Abdul Kalams dream of India
achieving developed country status by 2020.
BOP, as you might be aware, is one of Prahalads favourite topicsthe
Bottom of the Pyramid. The Indian economic pyramid could essentially be divided
into four tiers. While the first three tiers represent relatively well-off people,
they account for just 25 percent of the population. The fourth tier, consisting
of 750 million, is at annual per capita incomes not too far above sustenance
levels, with a third of this hapless lot surviving on less than a dollar a day.
If we are to consider ourselves a developed country, per capita would have to
jump to somewhere around $3,500-$5,000 from the current level of below $500.
This can only be possible if our economic strategies and business models embrace
the Bottom of the Pyramid, instead of merely concentrating on the upper tiers.
Indeed, going a step further, Prahalad contends that a continued focus on Tier
1 alone would mean that there is no social legitimacy to business in this country.
But shouldnt Tier 4 be the responsibility of the government, queried
someone from the audience (surely not an entrepreneur, he!) Nah!
boomed Prahalad. We need the government to do just one thing: Eradicate
corruption! Private enterprise can take care of the rest. And, by the
way, theres also a fortune to be made at the bottom of the pyramid, which
consists of about 4 billion (two-thirds) of the worlds population. This
is a multi-trillion dollar market but needs innovative products and solutions
that are cost-effective, environmentally sustainable, and yet profitable. The
single-serve packaging of consumer items like shampoo, coffee, etc, in India
represents one hugely successful innovation for Tier 4; we need many more.
A few days after the conference I happened to read President Abdul Kalams
book, Envisioning an Empowered Nation: Technology for Societal Transformation.
Published by Tata McGraw Hill and co-authored by distinguished DRDO scientist
A Sivathanu Pillai, the book focuses on the importance of technology in nation-building.
Drawing from the studies of the Technology Information Forecasting Assessment
Council (TIFAC), the book looks at the areas India must concentrate on to achieve
the 2020 goals.
President Kalam, of course, is also Indias most famous rocket scientist.
Known especially as the architect of indigenous development of satellite launch
vehicles like SLV-3, and missile systems like Agni and Prithvi, his skills and
perseverance have helped make India near-self-reliant in defence and aerospace
technologies. Time and again, when sensitive technologies were denied to India
by the West, Indian scientists proved they were up to it by developing indigenous
alternatives, often at significantly less expensive levels than we would otherwise
have had to contend with.
In the book, the authors describe the extent of Indias successes in aeronautics,
space, defence and nuclear energy. Its quite an eye-opener, chronicling
the evolution of the countrys progress in these strategic sectors and
explaining the vision of such eminent scientists as Homi Bhabha and Vikram Sarabhai.
With such a solid foundation laid, the country could well become a world-beater
in aerospace technology in the next two decades. The two case studies in the
book, explaining the integrated approach to complex aerospace design involved
in SLV-3 and a surface-to-air missile, provide ample evidence of this potential.
But doesnt this all seem so far removed from our teeming Tier 4? Sure
does, from a surface view. But one needs to delve deeper, say Kalam and Pillai.
Indigenous design and development capabilities are the keys to gaining a global
competitive edge. But more important, the fallout from all this research and
development has an impact on every sector and every section of the population.
Some of the impressive spin-offs from defence technologies: a low-cost walking
aid for polio-afflicted children, cheaper cardiac stents, ophthalmic lasers
and dental implants.
In the book, the authors also provide a roadmap for the use of technology in
the areas of rural development, agriculture, manufacturing and healthcare. They
advocate harnessing our prowess in information technology to transform the country
into a knowledge economy. What exactly does India need to do to move from developing
to developed? Theres an action plan given, but, understandably, its
more prescriptive than practical. The most essential requirement for achieving
our goals is creative leadership, say the authors. And corruption, that millstone
around the neck of every single aspect of our countrys progress? It isnt
even mentioned.
Meanwhile, President Kalam has been extensively interacting with youth across
the country and seems to have struck the right chord with them. That many of
these 300 million ignited youth are deterred by corruption in every
walk of public life and absolutely sick of it, comes out very strongly in the
interviews the President frequently conducts with young people.
Wouldnt it be great if the President focuses some of his energies on eradication
of the one thing that can prevent the fulfilment of his dreams for the country?
Help eradicate corruption. Take this on as your singular mission, Mister President,
and well likely be home free by 2020.
Makes rocket science seem like a picnic in the park, eh!
Val Souza, Editor
valsouza@expresscomputeronline.com
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