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India _ 75 by usmanjee123

VIEWS: 11 PAGES: 36

									                India @ 75

                 C.K. Prahalad
Paul and Ruth McCracken Distinguished University Professor
               The University Of Michigan
   My Vision for India @ 75
Actively Shape the Emerging World Order

               Through

          Economic Strength
         Technological Vitality
           Moral Leadership
The Potential of India
         What India can be in 2022
1. World’s largest Pool of Trained Manpower:
       200 million college graduates (16%)
       500 million trained, skilled workforce (40%)
       Universal literacy
       Education : Stretch that allows us to innovate

2. World’s Leaders in Industry and Commerce
      30 of Fortune 100 from India
      25% of yester years we have lost

3. India Accounts for 10% of World Trade
      A broad scope of products and services

4. India as a Source of Global Innovations
      New Businesses , New Forms of Organization, New Technologies
         What India can be in 2022
5. Focus on the Bottom of the Pyramid as a
      Source of Innovations for the World
      (Leaders in Health, Education, Energy, Transportation, Sustainable Development for all)

6. A Flowering of Art, Literature, and Science
      ( 10 Nobel Prize Winners from India)

7. A New Moral Voice for People Around the World
      India as a country where Universality and Inclusiveness is widely practiced. India
             becomes the most Benchmarked country for its capacity to accept and benefit
             from its diversity
          Principle Number #1
The Essence of Entrepreneurial Transformation

                          Situation A Situation B

            Resources        Low         High
            Aspirations      High        Low
Principle Number #2: “Fold the Future In”

          Extrapolation
          Budgeting Orientation
   2007
                                         2017 / 22


                Fold the Future in
                Innovation Orientation
Principle Number #2: “Fold the Future In”


   2007
                                      2017 / 22


            Clarity to Direction
            Willingness to Discover
            Clear Milestones
            Speed and Stamina:
               400 meters at a time but a Marathon
Principle #3: Focus on Next Practices




  Well Known       Best           Next
   Practices     Practices      Practices



                              Amplify Weak
                                Signals
 Focus on Here and Now:
       Tactical , Blocking and Tackling




Focus on New Opportunities:
            Aspiration > Resources
             Folding the Future in,
           Focus on Next Practices
 Thinking Differently about the Here and Now
        India: Potential Vs. Reality
1. Incrementalism will not work. We need a Radical Rethink of
   Policies and Practices
2. Key to becoming a Developed Nation :
      Shared Commitment to Goals
      Creativity and Innovation
      Focus on Entrpreneurship
3. The essence of Entrepreneurship
      Aspiration > Resources
The Emerging Context:
   2005 – 2017/22
           Agenda for the Session :
1. The Emerging Issues : 2007 – 2022
   a.   Abject Poverty to Income Inequality
   b.   Income levels to Life Style Measures
   c.   Unique needs to Universality of Aspirations
   d.   Affordability to BOP to impact on Price-Perf.
   e.   Low Tech. to Universal Access to High Tech.
   f.   From BOP to “ Straddle the Pyramid”
   g.   Provisioning Products and Jobs to Environment


2. The Emergence of a New Model of Development?
The Paradox of Rapid Economic
        Development.


Rapid Movement of             Increasing Income
 people away from                 Inequalities
  Abject Poverty                (e.g. G – Coeff.)
    ($1 / Day)

      China                         China
      India                         India


        The Emergence of Social Tensions
             Measures of Inequality:
                Gini coefficient
              USA    China   India   Brazil   South Africa
1985- 1986     +     22.4     32     59.3
1989- 1991    42.7   34.1    32.1     64
1995- 1996    45      39     33.8    60.2
1999- 2001    46.3    42      36     59.6
  2006        46.9    47     39.5    57.2        59 +
         Inclusive Growth Means…
1.   Elimination of Abject Poverty ( $ 1 / day?)
2.   Reducing Income Inequalities ( G- coeff.?)
3.   Eliminating Unequal access to opportunities
4.   Changing Life Style inequalities
5.   Reducing inequalities in Choice
6.   Reducing inequalities in Share of Voice
         Inclusive Growth Means…
1.   Elimination of Abject Poverty ( $ 1 / day?)
2.   Reducing Income Inequalities ( G- coeff.?)
3.   Eliminating Unequal access to opportunities
4.   Changing Life Style inequalities
5.   Reducing inequalities in Choice
6.   Reducing inequalities in Share of Voice




          Redistribution of Wealth Vs. Wealth Creation ?
     Public Policy Focus Vs. Entrepreneurship/ Market Focus ?
        The Changing Value Equation

                                         Rich

Price
                    Middle class


           BOP

            Performance (Functional + Emotional)
        The Changing Value Equation
                             $ 30 Cataract Surgery
                             $ 35 DVD Player
                             $ 30 Cell Phone
                             $0.01 Shampoo in a sachet
                             $ 2000 car
                             $ 20 hotel Room


                                            Rich

Price               Middle class

           BOP
            Performance (Functional + Emotional)
What are the Implications…

                      Straddle the
BOP Market New         Pyramid?
Price Perf. Levels
      for All
                     Access to High
                      Tech for all
Explosive Growth
 in Market Size,
     Scale of        Environmental
   Operations.         Demands.
     The Focus on Price-Perf. Forces…
1.   Scale : Local Responsiveness and Global Standards
2.   Focus on Costs
3.   Access to New Markets : Knowledge and Trust
4.   Technical and Social Insights




       Emergence of a New Social Compact for Business:
      Collaboration with CSO; Private- Public Partnerships
Let us Look at Data From Around the World


1. GDP/ Capita in PPP terms
      (Source : World fact Book,2002)
2. Human Development Index
     (Source : UNDP, 2003)
3. Quality of Governance : Corruption
      (Source: Transparency International, 2002)



      Selected 25 countries from very rich to very poor
                  My Takeaways:
• Human Development is not about More Resources but less
  corruption in the Deployment of Resources.

• Good Governance (less corruption) leads to High Levels of
  GDP/Capita; not the other way around.

• Focus on Human Development (Focus on Individuals) and not
  Groups’ Rights Leads to Rapid Economic Development
  (GDP/Capita)
        India as a Developed Nation :
           What is the Trajectory?

              2003                                2020

           GDP/ Capita                         GDP/ Capita
           $2500 (PPP)                         $25000 (PPP)




Rank in HDI              CPI Rank   Rank in HDI               CPI Rank

 127/175                 2.7/ 10      20/175                   7/ 10
  How do we Correct the Trajectory?
   High

                                                     2022
Accomplishment
 Technological

   Economic




                                     ?
     And




                       2007

                                                    1947
   Low
                 Low                                         High
                  Commitment to Rights of the Individual, National
                         Character, Universal Principles
        What are the Prerequisites:
1.   Change in Mental Models
2.   Data Driven not Dogma Driven Debate
3.   Individual Rights not Group Rights
4.   Principles not Rituals
5.   Corruption is treated as Treason
6.   Focus on Performance, Accountability
7.   Imagination not Resources
What Impact Does Poverty Alleviation
     have on the Environment?

           1 Billion Micro Consumers
                   Urbanization
     Creation of New Jobs- Micro producers
Sustainability is multi-dimensional:
BOP Experiences Environmental Impacts First
 Many Dimensions of Eco Systems will
        become Stressed…
1. Water:
      Quality of Water
      Availability, access
      Usage Mix: Agriculture, Industry, home


2. Energy
      Fossil Fuel and Substitutes
      Regressive to progressive Fuels


3. Health
   Phase II of India’s Development

The Emerging Issues : 2007 – 2020
   a.   Abject Poverty to Income Inequality
   b.   Income levels to Life Style Measures
   c.   Unique needs to Universality of Aspirations
   d.   Affordability to BOP to impact on Price-Perf.
   e.   Low Tech. to Universal Access to High Tech.
   f.   From BOP to “ Straddle the Pyramid”
   g.   Provisioning Products and Jobs to Environment



The Emergence of a New Development Paradigm?
      What are the Dominant Themes:
             2007-2015/2022
1.   Primary Market Based Solutions
2.   Social Equity in Development
3.   Rule of Law, Individual Rights
4.   Scale
5.   New Price-Performance Levels
6.   Ecologically Sustainable Development
The “Sandbox” for Economic Development

              Global Scale




              Innovation
             within These
             Constraints



              Market Based
The “Sandbox” for Economic Development

              Global Scale


             Accountability
            for Performance
                Business,
            Politicians, Civil
                 Society,
              Bureaucrats


              Market Based
              The Emerging World Order:
              C.K Prahalad’s view in 1989

                                                USA,
World Scale                                  Europe,
Domestic                              (2000) Japan
Market                                China
                                       India
                               ?
               China                       S.Korea,
Small                                       Taiwan
Domestic       India,
                                            Finland
Market         Brazil                   Switzerland


                 Local Firms       Global Firms
The Poor of India are Ready for this
             Journey:
     Are the Leaders Ready?

								
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