October 30, 2010

It’s Morning in India

By THOMAS L. FRIEDMAN
New Delhi

This week’s award for not knowing what world you’re living in surely goes to the French high school and college students who blockaded their campuses, and snarled rail traffic, in a nationwide strike against the French government’s decision to raise its pension retirement age from 60 to 62. If those students understood the hypercompetitive and economically integrated world they were living in today, they would have taken to the streets to demand smaller classes, better teaching, more opportunities for entrepreneurship and more foreign private investment in France — so they could have the sorts of good private sector jobs that would enable them to finance retirement at age 62. France already discovered that a 35-hour workweek was impossible in a world where Indian engineers were trying to work a 35-hour day — and so, too, are pension levels not sustained by a vibrant private sector.


What is most striking to me being in India this week, though, is how many Indians, young and old, expressed their concerns that America also seems at times to be running away from the world it invented and that India is adopting.


With President Obama scheduled to come here next week, at a time when more than a few U.S. politicians are loudly denouncing immigration reforms, free trade expansion and outsourcing, more than a few Indian business leaders want to ask the president: “What’s up with that?” Didn’t America export to the world all the technologies and free market dogmas that created this increasingly flat, global economic playing field — and now you’re turning against them?


“It is the Silicon Valley revolution which enabled the massive rise in tradable services and the U.S.-built telecommunication networks that allowed creation of the virtual office,” Nayan Chanda, the editor of YaleGlobal Online, wrote in the Indian magazine Businessworld this week. “But the U.S. seems sadly unprepared to take advantage of the revolution it has spawned. The country’s worn-out infrastructure, failing education system and lack of political consensus have prevented it from riding a new wave to prosperity.” Ouch.


Saurabh Srivastava, co-founder of the National Association of Software and Service Companies in India, explained that for the first 40 years of Indian independence, entrepreneurs here were looked down upon. India had lost confidence in its ability to compete, so it opted for protectionism. But when the ’90s rolled around, and India’s government was almost bankrupt, India’s technology industry was able to get the government to open up the economy, in part by citing the example of America and Silicon Valley. India has flourished ever since.


“America,” said Srivastava, “was the one who said to us: ‘You have to go for meritocracy. You don’t have to produce everything yourselves. Go for free trade and open markets.’ This has been the American national anthem, and we pushed our government to tune in to it. And just when they’re beginning to learn how to hum it, you’re changing the anthem. ... Our industry was the one pushing our government to open our markets for American imports, 100 percent foreign ownership of companies and tough copyright laws when it wasn’t fashionable.”

If America turns away from these values, he added, the socialist/protectionists among India’s bureaucrats will use it to slow down any further opening of the Indian markets to U.S. exporters.


It looks, said Srivastava, as if “what is happening in America is a loss of self-confidence. We don’t want America to lose self-confidence. Who else is there to take over America’s moral leadership? American’s leadership was never because you had more arms. It was because of ideas, imagination, and meritocracy.” If America turns away from its core values, he added, “there is nobody else to take that leadership. Do we want China as the world’s moral leader? No. We desperately want America to succeed.”


This isn’t just so American values triumph. With a rising China on one side and a crumbling Pakistan on the other, India’s newfound friendship with America has taken on strategic importance. “It is very worrying to live in a world that no longer has the balance of power we’ve had for 60 years,” said Shekhar Gupta, editor of The Indian Express newspaper. “That is why everyone is concerned about America.”


India and America are both democracies, a top Indian official explained to me, but emotionally they are now ships passing in the night. Because today the poorest Indian maid believes that if she can just save a few dollars to get her kid English lessons, that kid will have a better life than she does. So she is an optimist. “But the guy in Kansas,” he added, “who today is enjoying a better life than that maid, is worried that he can’t pass it on to his kids. So he’s a pessimist.”

Yes, when America lapses into a bad mood, everyone notices. After asking for an explanation of the Tea Party’s politics, Gupta remarked: “We have moved away from a politics of grievance to a politics of aspiration. Where is the American dream? Where is the optimism?”