Re: India, Productivity, and Tropical Climes
At 11:31 PM 8/13/96 +0600, Arun Mehta wrote:
As regards IBM, its agreement with the government of India, under which it was allowed to operate in the country, stipulated that it would produce here, and transfer some technology. Instead, as the government found, all it did was sell time on second-hand computers (1401's as I recall, and this was mid to late '70s). IBM was asked to either dilute, or live up to its original agreement, which it wasn't prepared to do, so it left.
Every single foreign computer company left during roughly the same period, as did almost all foreign companies and anybody who had a choice. The reasons generally given by those who left, for this mass exodus, which eventually sent the government into insolvency, is that Indian ]officials were arrogant, rude, dishonest, corrupt, continually broke contracts and agreements, and attempted to exercise direct power over everyone and everything. If indian government officials have a different version, I would not regard that version as coming "from the horses mouth" --------------------------------------------------------------------- | We have the right to defend ourselves | http://www.jim.com/jamesd/ and our property, because of the kind | of animals that we are. True law | James A. Donald derives from this right, not from the | arbitrary power of the state. | jamesd@echeque.com
On Tue, 13 Aug 1996, James A. Donald wrote:
At 11:31 PM 8/13/96 +0600, Arun Mehta wrote:
As regards IBM, its agreement with the government of India, under which it was allowed to operate in the country, stipulated that it would produce here, and transfer some technology. Instead, as the government found, all it did was sell time on second-hand computers (1401's as I recall, and this was mid to late '70s). IBM was asked to either dilute, or live up to its original agreement, which it wasn't prepared to do, so it left.
Every single foreign computer company left during roughly the same period, as did almost all foreign companies and anybody who had a choice.
The reasons generally given by those who left, for this mass exodus, which eventually sent the government into insolvency, is that Indian officials were arrogant, rude, dishonest, corrupt, continually broke contracts and agreements, and attempted to exercise direct power over everyone and everything.
Not only: until at least five or six years ago, the trade unions had forced limits to the yearly increase in number of computers per year in the banking sector (if I remember well, 2% a year for private institutions and 1% for government owned). The government duly obliged, of course. Tropical climate or "corporate greed" has nothing to do with inefficiency and poverty: just compare the cases of Hong Kong or Singapore. Rather, corrupt and populistic governments are the key factor. Enzo
participants (2)
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Enzo Michelangeli -
James A. Donald