kairali_Dec07

Volume 2 Issue 12 Toronto December, 2007

Merry Christmas& A Happy New Year!

Merry Christmas& A Happy New Year!

. 2 Kairali - December, 2007

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<#> KairaliCanada - September, 2006Kairali - December, 2007 3

Kairali Canada Media Group

Chief Executive OfficerTom Varughese

General ManagerVijay Sethumadavan

Editor-in-ChiefBala Menon

Contributing Editors

TORONTO:Manjula-Das Parakot

HAMILTON:Nirmala Thomas

WINDSOR/DETROIT:Rakhi Nair

KINGSTON:Shaljan Areepattamannil

OTTAWA:Biju George

ILLUSTRATION:Vijay Mohan

PHOTOGRAPHY:Balu Nalelil

KERALA BUREAU:Vijay MenonMohana Chandran

Copyright © 2007 Kairali Canada Media Group. All rights reserved.

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There is some good news for our readers and well-wishers!Kairali will be undergoing a restructuring - in content, quality and frequency in the New Year - so that the bestinterests of our advertisers, contributors and readers will beserved in the best possible way.

We aim to make the magazine better and brighter in 2008 -building on the success of the past 16 months of uninterrupted publication - and the valuable input frommany quarters.

We thank our readers and our advertisers - for enabling us tostay in production and also allowing us to launch a newproduct - “The Kairali Business Directory” - the first of itskind in Canada. We are releasing it as a pilot issue nextmonth - in the hope that it will grow into a substantial publication covering the entire country in a couple of years.

Merry Christmas and a Happy New Year!

The Kairali Board

4 Kairali - December, 2007

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Continued on page 5

Kairali welcomes short stories, poems,essays, drawings etc. from its readers.

Write to the Editor-in-Chief [email protected]

Kairali - December, 2007 5

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From Page 4


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The rapid acceleration of the Indian economyin the past decade and a half has catapultedIndia from a laggard among nations to the

second most rapidly growing economy of theworld. India and Indians both at home and abroadare beginning to be accorded a place of honoramong the nations and peoples of the world. Inthis brief paper I will examine some of the salientstrengths and weaknesses of India's economy.

Let us also take a quick look at what Indiaachieved since Independence. In nominal terms,per capita income in 2005 was only US$720; thisroughly translates to an income over Rs, 10,000per month to a family of four. A better comparisonof standard of living with the West is provided bythe Per Capita Purchasing Power Parity level ofincome, which in the same year was U.S. $3460which is equivalent to a family income of a littleover $1,000 US per month. In the 40 years leadingto 1991, India's income growth averaged 4% com-pared to more than double that rate experienced byEast Asian economies like Korea and Taiwan andto 10% rate in China in recent years.

After 1991 Indian economy grew at a rate ofabout 6.4%; but this understates the achievementsince recent rates have been in the neighborhoodof 8%; a remarkable performance. While differ-ences between 4% and 8% are may not seem allthat impressive, to gain perspective, it would beinstructive to compare two economies at the samestarting point of per capita incomes, one growingat 4% and the other at 8% and each with a popula-tion growth of 2%. At the end of 50 years of suchdifferential growth, the faster growing economywould have per capita incomes that are more than6 TIMES that of the slower growing economy.

At a social level, life expectancy has increasedto about 65 years from a meager 28 years in 1947.Infant mortality rates (children dying before com-pleting a year of life) dropped from about 175 per1000 births to about 65 in recent years. Literacyrates increased from 17% in 1951 to over 60 inrecent years. Remarkable as these statistics mightappear, these fade into insignificance compared tosocial and economic progress that occurred in Eastand South East Asian economies.

In order to put India's performance in perspec-tive, I will start with a quick look at other Asiancountries that have managed better economic per-formance. The pioneering economic miracle wasthat of Japan that built its growth on exports ofmanufactured products; that model and perform-ance was imitated by S. Korea, Taiwan andSingapore; similarly Malaysia, Thailand andIndonesia focused on manufactured goods exportas the engines of their economic growth. China

has also followed the same route with veryremarkable success and has emerged as today'sfastest growing economy in the world. All thesecountries managed to record income growths intwo short decades what West in its heydays took acentury to achieve.

Nor was this growth confined to aggregateincomes only. In Japan, Singapore and Hong Konglife expectancy increased and infant mortality ratesfell rapidly enough to overtake the performance ofthe Western countries. Poverty all but disappearedin some of these countries. Prosperity was widelyshared, though in recent years, concentration ofincome and wealth has been increasing in most ofthese countries. Total fertility rates have fallen tolevels unheard of before - in Hong Kong, forinstance, the average number of children born to awoman on average has dropped below one - farbelow the replacement rate of about 2.1 childrenper woman. All social indicators point to theimprovements in standards of living as being realand substantial.

This relative lack of progress is in spite of theobvious competitive strengths that India has.India's middle class exceed the population of theUnited States in size. It has more people who canspeak English than in any other country in theworld. Truly democratic institutions, a remarkablyindependent judiciary, and rule of law distinguishIndia from all other Asian countries.India graduates more engineers than any othercountry. India that produced only 150,000 cars in1991 is expected to produce 10 million cars thisyear!

While in many superficial aspects, India mayappear to be following the well trodden path ofwhat are called the High Performing AsianEconomies (HPAEs), in very fundamental ways,India's pathway to progress has been significantly

PagesTalking Point

India on the march... By John Kurien

different. Until the dynamic emergence of Japan,poor countries could not find a way to capitalize ontheir low labor costs to develop competitive manu-facturing - something which most countries in Africaand Latin American still have not and somethingIndia is still struggling with. The Japanese modelgave the blue print that was followed by most of theHPAEs. Unlike them, India is in the vanguard ofcountries that are finding a way to capitalize on itspool of high skilled labor to develop competitiveprovision of an ever increasing variety of services.

Today, India is the leader in the globalization ofservice industries. While we hear mostly about theIT sector; the emergence of engineering designs,pharmaceuticals,medical tourism, and elite educa-tional facilities admired around the world are no lessreal. There are also other major services like callcenters and diamond cutting that are less glamorous;but they are also major income generators to India.India also exports services in the form of workerswho take jobs in other countries - but that form ofservice export is more traditional.

What Japan pioneered in manufacturing, India inpioneering in services. City states like Singapore andHong Kong have traditionally been service providersfor countries around them; the service exportsemerging from India would challenge not only them,but also the major cities of the developed world aswell in time. There are strong reasons to believe thatin areas such as banking and financial services, Indiawould be able to exploit its back office expertise,size, world class legal structures, and linguisticstrength to emerge as a world leader; but thesewould also require policy initiatives that perhapswould follow in short order.

While we glorify this success in the service sec-tor, we should remember that a significant part of itis attributable to just good luck. A very major factorthat resulted in increasing tradability in the servicesector is the development of the internet; a factor theemergence of which is almost entirely unrelated toany effort on the part of India. It is also worthwhileto point out that as late as 1990; it was widelybelieved that very high proportion of educationalbudgets going to post-secondary education was amisallocation of resources; and experience to thatdate indicated that the most rapidly growing coun-tries were focusing heavily on primary and second-ary education rather than elitist post-secondary sec-tor. The newly emerged tradability of elite serviceshas thus turned a misallocation into a golden oppor-tunity that benefited India more that any other lessdeveloped country.

It must also be pointed out that manufacturingexports as leading sectors in the HPAEs did notdemand very high skills on the part of most of its

Contd. on Page 11

Kairali welcomes short stories, poems, essays,drawings etc. from its

readers.Write to the Editor-in-Chief

[email protected]


Sabu Varghese FinancialAdvisor

798 Broadview AvenueToronto, ON M4K 2P7(416) 406-1140


Talking Point...

India on the march...(Contd. from Page 9)

workers and hence benefits of growth could be dif-fused much more easily in such growth based onmanufacturing. As it is, most of the services thatare being outsourced to India count on workerswith high skills. Consequently, the major benefici-aries of India's recent development are the highlyskilled and much of the population in India may bebecoming witnesses to the prosperity of theirneighbors. Recall that not being able to see thisaspect of our growth may have cost Chandra BabuNaidu, the politician who was most identified withthe IT push, the election in Andhra Pradesh. It hasalso been argued that the same might have been abig factor in the loss of BJP in the last nationalelection in India.

In the period prior to major forced reforms of1991, India's industrialization focused on industriesthat in most other countries were very capital inten-sive, reflecting the impact of the Soviet type plan-ning model it pursued. But limitations of resourcesalso meant that such industries developed in Indiaat scales considerably below competitive worldlevels. Since many of these industries were govern-ment owned, they also employed a much largerlabor force than necessary; these two factors com-bined to make the bulk of Indian industries uncom-petitive. Post-reform India has not been able tomove adequately from the shadow of these ineffi-ciencies and these industries remain both uncom-petitive and dominant.

One frequently discussed difficulty of the routeof emphasizing service industries in that the levelof employment created by the service sector issmall and we sometimes hear this discussed as"growth without jobs". For a country that has about13 million new entrants entering the labor force ayear, attention to job creation is unavoidable andIndia must therefore attempt to develop greatercompetitiveness also in manufacturing. This would

require an all out effort to develop an efficientinfrastructure; the ability to do so is being inhibitedby government's difficulties in controlling subsi-dies. Massive subsidies in pricing of electricity(and water) has resulted in a catch-22 situationwhere any expansion of capacity would add tolosses to governments and without adequate expan-sion of electricity supply, manufacturing costswould remain high in comparison to competingcountries. Any advantage that India has in lowerlabor costs are more than compensated by highercosts associated with infrastructure inefficiencies.These ever increasing subsidies have generated asituation where an economy that is expanding atabout 8% growth is having difficulty in reducingthe level of government deficits and in finding theresources to build the badly outdated infrastructure.

In manufacturing area, India is also facing spe-cial problems in consumer goods exports. Thesmall scale of operations has made it difficult tofeed into supply chains of large international retail-ers such as Wal-Mart who demand immense capac-ities to produce uniform goods at very low prices.At the same time, nothing much has been done to

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nurture brand name goods that can compete inter-nationally on their own.

Given the very remarkable performance of theservice sector and the tremendous potential it rep-resents, India also needs to find resources toexpand and improve its education sector. WhileSouth India has done well in this arena, the popu-lous Hindi belt of the North needs to catch up. Ifthis is does not happen, in spite of the vast poten-tial service sector growth might come to a prema-ture halt. Here again governments have a largerole to play.

Perhaps, one should look at the modest successin manufacturing sector as an opportunity. IfIndia can sweep aside the difficulties in develop-ing a successful manufacturing export sector-something that is possible in view of India'sremarkable strengths- and if it can keep themomentum that it has developed in the servicesector, it would be able to maintain a growthlevel that would be truly unprecedented. While itis true that it is difficult in a democracy to ignoreissues of distribution of income, having begun totaste the fruits of growth, if only India couldslowly increase its focus on growth of incomerather than on redistribution of poverty, it has apotential that could easily rival any country in theworld.


Kairali - December 2007 13

Poetry

What is it about a mother's touch?A feel in high demand?That brings forth consolationTo a dark and weary land?

What balm resides in her fingertips,Melodious as a song,Stroking her precious baby's head,It tells him: "I belong"?

Why does its absence dramatically leave,A hole in a grown man's heart?Who remembers her wondrous acts of love?Long after she did depart?

Perhaps it is something we'll never know,It will remain a mysteryA hidden but dynamic truthOf how God wants us to be

Ever loving, ever kind,Ever faithful and true,Always giving, always reminding"My child, I love you"

We need water, oxygen, food -Want this, that, and the otherBut know nothing in this worldCompares to the touch of a Mother

A Mother’s TouchBy O'Neil K. Walker

O'Neil K. Walker was a former student journalist at the BramptonGuardian in 1991. A year later, he furthered his education in the SocialService Worker program at Sheridan College. Shortly thereafter, he became aresidential supervisor with Digs For Kids Residential Services, establishing aclinical and therapeutic rapport with troubled teens and sex offenders.Presently, he works an educational resource facilitator to special need stu-dents with Peel District School Board.

Mr. Walker matriculated at Tyndale College University and UniversalMinistries School of Theology, acquiring a Bachelor's degree in Theology(B.Th) and a Master of Divinity degree (M.Div). He is currently a Doctor ofMinistry candidate at Tripp Bible Institute.

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Community News

More than a hundred childrenpresented a colourful varietydance show to a packed house lastweekend. Organized by the Nupura Schoolof Music and Dance, the programcovered most introductory aspectsof dance - beginning withVinayaka in RagamHamsadhwani, followed by EnniNee Maravathe in Ragam

Amruthavarshini.A group- dance performed by

junior students - VarinellinPaadathu - was very wellreceived by the audience for its liltand rhythm.

The Bharatanatyam segmentsaw 'Padam' a a pure 'abhinaya' oracting item. The leisurely exposi-tion of 'abhinaya' is the strikingfeature of this padam' which

Nupura presents colourful show

explained the various aspects ofKrishnaleela.

'Alarippu' - the invocatorydance was short, simple andattractive. A folk dance by thestudents featured the forcefulinduction of children into thebegging industry - which thrivesin some parts of India.

Other items featured includedKuchipudi dances, solo songs

with Kerala's traditional danceform 'Mohiniyattam' as a majorattraction. Chief Guest at theevent was Sasidharan Nair,President of Nair Social Society(Canada), who gave away tro-phies to the participants. A vote of thanks was proposedby Gayatri Vijayakumar of theNupura School of Music andDance.

The Torbram Pentecostal Church has opened its doors to worship-pers - at 8500 Torbram Road, Unit # 59 Brampton. The church isaffiliated with the Canadian Assemblies of God and the Sunday wor-ship will be held from 4:30pm to 6:00 pm. The Outreach program ison Friday - from 11:00 am to 2:00 pm.

For prayers and counselling, you can contact Rev. VarghesePuthuva or Babu Padinjarekara on Tel: 905-487-2809.

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