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Mira Kamdar

Mira Kamdar

Posted: November 24, 2009 02:12 PM

Outsourcing India: For Obama And Singh, Democracy Means Business

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When the administration rolls out the red carpet to welcome Indian Prime Minister Manmohan Singh to Washington next week, the real action won't be around the elegantly set tables at the Obama's first state dinner. It will be over at the U.S. Chamber of Commerce. That's right: The same folks who are spending millions to fight any government action to prevent climate change are about to be put in charge of the relationship between two of the countries most essential to finding solutions for that and other pressing global challenges.

As Robert Blake, Assistant Secretary of State for South and Central Asia put it at an "India Day" celebration at defense and communications giant Honeywell: "The most important part of our relationship is that increasingly governments matter less and less and it's more about empowering the private sector and our businesses, our scientists, educators so that they can all work together to achieve great things." Honeywell's CEO David Cote is the head of the newly expanded India-U.S. CEO Forum which will meet during the Indian prime minister's visit.

The India side is headed by Ratan Tata, one of seven Indian CEOs who will accompany the prime minister. While in Washington, Prime Minister Singh will address the United States India Business Council, part of the U.S. Chamber of Commerce and the biggest lobbyist for the U.S.-India nuclear deal, which saw final approval in the last weeks of the George W. Bush administration. In fact, to clear one of the last remaining hurdles of the deal, the Indian cabinet just green-lighted a provision to make immune from liability U.S. nuclear plant builders in the event of an accident. This is no small feat in a country that still hasn't gotten over the Union Carbide poisonous gas leak in Bhopal, the worst industrial accident in history. The bill must still pass India's parliament.

Secretary of State Hillary Clinton has identified five pillars of the U.S.-India relationship: strategy, agriculture, healthcare, science and technology and education. In all cases, the Obama administration is putting the private sector in the driver's seat. As Robert Blake put it at meeting in Washington last Wednesday: "[T]he Obama administration would really like to do much more to try to engage the private sector, both in private-public partnerships, but also in advising and working with both governments, to see how we can make the private sector portion bring the private sector to the fore in all of these dialogues."

In other words, the goal of the Obama administration is to hand over policy making on the issues most critical to the people of India and the United States -- climate change, agriculture, education -- to major corporations. I hope the right-wing ranters who've slammed Obama for socialism are paying attention here 'cause this democratic administration is bent on boldly going where no Republican government has gone before in ceding a relationship it says is one of our most important to big business. Blake again: "Traditionally, the private sector has been mostly engaged on the economic side of things as you might expect in trying to promote trade and investment. But we now have an opportunity to work in some of these new areas like energy, education and science and technology."

When I asked Ambassador Blake at a meeting hosted by the Asia Society in New York on November 10 specifically about any possibility of room for sustainable agriculture in the U.S.-India relationship, which has privileged biotechnology, genetic engineering and other elements of a corporate-driven "second" Green Revolution he conceded there might be but reiterated that, in any case, it would be business that would decide, perhaps with the USDA. This amounts to pretty much the same crew, given the revolving door between the USDA and American agribusiness.

On privileging U.S.-India Inc. in the relationship between our two democracies, the government of Manmohan Singh could not be more in agreement. On the India side, free-marketeer and long-time head of India's Planning Commission Montek Singh Ahluwalia is credited with playing a major role in putting the focus of the relationship squarely on business, emphasizing India's relative economic strength to a still fragile U.S. economy, while India's Confederation of Indian Industry has worked hand-in-glove with the USIBC to chart a "pro-growth" agenda for Prime Minister Singh's visit.

This "pro-growth" strategy has done wonders for India, or at least for some Indians. On the latest Forbe's billionaire's list, Indians doubled their number from 27 to 54 in 2009. These 54 extremely wealthy Indians account for 25% of India's total GDP. As for the rest of India's 1.2 billion people, India still ranks a shocking 134th on the UNDP's Human Development Index.

In fact, as India has liberalized its economy, raised its foreign direct investment caps and embraced the kind of private-public partnerships the Obama administration is so bullish about, the gap between its have-mores and its have-nothings has grown not shrunk. Where the private sector has been in charge of agriculture, especially hawking the genetically engineered seeds the Obama administration wants to promote, Indian farmers have committed suicide in record numbers -- more than 100,000 in the past decade of India's high-growth boom times. Where the private sector has been entrusted with education, elite and expensive private schools have flourished. Ditto with healthcare.

We know what putting big business in charge with too little government oversight has done for our own economy. To the Obama administration's credit, outsourcing American jobs to India during these difficult times of record unemployment will not be on the agenda. Not directly. Instead, the administration plans to outsource the entire India-U.S. relationship to the private sector, a sector, whether in India or in the United States, whose job it is to put profits over people. Outsourcing won't be far behind, in fact that's pretty much what the business-to-business relationship is all about. The temptation of India's low wages and high potential in engineering, science and technology including biotechnology and genetic engineering in pharmaceuticals and agriculture is simply too attractive for corporations that have too much sway over both governments.

So, after the Singh-Obama summit this November, say good-bye to the interests of small farmers in India and ordinary working people in America where the real solutions to sustainability and green technologies should be focused, and hello to U.S.-India Inc. President Obama, if you happen to read this, know one thing: Mahatma Gandhi and Martin Luther King, Jr. both would be appalled.

 
When the administration rolls out the red carpet to welcome Indian Prime Minister Manmohan Singh to Washington next week, the real action won't be around the elegantly set tables at the Obama's first ...
When the administration rolls out the red carpet to welcome Indian Prime Minister Manmohan Singh to Washington next week, the real action won't be around the elegantly set tables at the Obama's first ...
 
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09:58 PM on 12/02/2009
U.S. has in India a real ally -----the connection is more real than any relationsh­ip with China or Pakistan will ever be. Pakistan is pseudo-dem­ocratic, all strings are really pulled by the military, the Intelligen­ce agencies are still holding on to jihadi elements in hope of using them against India one day. China is one giant forced labor camp, it is more a real threat to America than Soviet Union ever was; why? -------U.S­SR never had money—it was always broke, despite appearance­s. China has Trillion dollar slush fund to teach the Capitalist pigs a lesson, their army of cyber warriors and hackers stands ready to cripple anything and everything from air control to power grid. 9/11 is the best thing that happened to China. Anyone remembers the US military plane China forced to land on their territory? Satellites clearly showed the hardware being carried out the plane. I am sure that whole technology was reverse engineered in less than a year. First the Red Army shot down a ‘Satellite­’. Now we hear about the new Chinese land fired missile which can give any US carrier sleepless days and nights. I hope the search for Al-Crazeda doesn’t mean that sufficient resources are not being provided to counter this real threat looming over the horizon.
photo
HUFFPOST SUPER USER
sposton
right to tell what they don't want to hear
09:58 AM on 11/28/2009
No other country in the world cares so little about jobs within its borders. Kleptosphe­re's relentless propaganda has succeeded in selling the now generally accepted lie that any loss of jobs to offshoring is always counteract­ed by new and better jobs at home. This is now taken on faith by nearly everyone without a shred of evidence. Under Obama we continue with this faith-base­d economy. And how pathetic is that?
07:37 AM on 11/28/2009
A good post Mira. Under the Obama administra­tion outsourcin­g to India will indeed rise. More Indian businesses will be establishe­d in the USA, and the revenue they receive will be repatriate­d to India. Much of the funds placed into healthcare reform will go to India. So the US will be borrowing from China to pay India.

Now, I do admire the diligence and shrewd financial acumen of South Asians, but when they use their skills to siphon off huge sums back to the Indian economy to the detriment of Western economies in which they are establishe­d then it becomes a problem. It is a case of 'recolonis­ation'.

It is interestin­g how many Indian Americans tried flattered the President during the campaign giving him golden statues of their mythical figure hanuman to ensure his success, and the pujas that were done in Obama's honour. This groupd ingratiate­d itself with Obama the same way they did with Blair and Labour in the UK. The final result, is that many top jobs in the Obama Administra­tion, much more than in any other administra­tion before him, are held by Indian Americans. The purpose of these well placed employees, is to sway the mind of the employer to their benefit. One example, Vic Pandit from Citibank escaped being fired due to the interventi­on of his friends. If Obama does not become his own man then we are all screwed.
05:53 PM on 12/07/2009
Paranoid much?

First, it is wrong to attribute singular character traits to a billion people. It would be easy for me to say that all Americans are rude, ignorant, obnoxious red-necks who thump the bible and shoot at anything that trespasses their property. However, during the course of my life, I have interacted with enough people from the US of A to know that this is a great misconcept­ion. People are the same everywhere­, greedy, generous, conservati­ve, liberal, fearful and exuberant in equal measures.

Next, the amount of flattery that Indian Americans have done is no more and no less than that of other corporate leaders of non-Indian origin. Jeff Immelt? Bloomberg? To claim that this is a repatriati­on of "our" hard-earne­d dollars to a third-worl­d country thousands of miles away smacks of a subtle "nudge and wink" form of racism that I find disgusting­.

By your lofty standards, it is by all means just that American corporatio­ns should earn most of their revenues from outside America, like Coke does, but the reverse should not be allowed. To keep things in perspectiv­e, the biggest IT company in India is IBM. Yes, the reason most American IT developers face increasing competitio­n is because of America's Big Blue. So stop blaming other countries and other people for things that you still retain a modicum of control over.
07:17 PM on 11/26/2009
The headlines on Obama's india trip should have read

Obama gives away the industrial store to india and sells out US workers once again
HUFFPOST SUPER USER
vippy
Carpe Diem!
08:59 PM on 11/26/2009
Exactly! Now that China is done with us we have to beg India, borrow from them to pay China LOL!
11:49 PM on 11/24/2009
Ironically­, how the mantle of Gandhi and King, two of the greatest intertwine­d social reformers of the 20th century are being subordinat­ed to the corporate collaborat­ion in the despoilati­on and pauperizat­ion of the people of the both countries, both also under the mantle of ostensibly centrist government­s under the gun of the rabid fundamenta­list right of both countries. As such, it is with gratitude that this blog is published to shed critical light on this partnershi­p that benefits the elites for the most part, while underminin­g the gains of working peoples of both countries, and betraying the ideals of the past ideals that also connected both countries in the long journey of non-violen­t struggle for social justice.