Why Bangalore and not Karachi?

I really like the way this guy expresses himself. The first thing I thought of is that the call center jobs he describes *could * have gone to Lahore or Karachi. Frequently I see pictures in the image gallery of students at a technical school in Pakistan, none of whom will have the same opportunites in their own country. Certainly not of the magnitude that will be experienced by the Chinese, or the Indians. The ongoing political/religious strife is having the effect of a slow gnawing decay of the hopes and dreams of young Muslim men and women. The comment on the youth of Palestine is even more telling…

30 Little Turtles
By THOMAS L. FRIEDMAN

Published: February 29, 2004

BANGALORE, India

Indians are so hospitable. I got an ovation the other day from a roomful of Indian 20-year-olds just for reading perfectly the following paragraph: “A bottle of bottled water held 30 little turtles. It didn’t matter that each turtle had to rattle a metal ladle in order to get a little bit of noodles, a total turtle delicacy. The problem was that there were many turtle battles for less than oodles of noodles.”

I was sitting in on an “accent neutralization” class at the Indian call center 24/7 Customer. The instructor was teaching the would-be Indian call center operators to suppress their native Indian accents and speak with a Canadian one — she teaches British and U.S. accents as well, but these youths will be serving the Canadian market. Since I’m originally from Minnesota, near Canada, and still speak like someone out of the movie “Fargo,” I gave these young Indians an authentic rendition of “30 Little Turtles,” which is designed to teach them the proper Canadian pronunciations. Hence the rousing applause.

Watching these incredibly enthusiastic young Indians preparing for their call center jobs — earnestly trying to soften their t’s and roll their r’s — is an uplifting experience, especially when you hear from their friends already working these jobs how they have transformed their lives. Most of them still live at home and turn over part of their salaries to their parents, so the whole family benefits. Many have credit cards and have become real consumers, including of U.S. goods, for the first time. All of them seem to have gained self-confidence and self-worth.

A lot of these Indian young men and women have college degrees, but would never get a local job that starts at $200 to $300 a month were it not for the call centers. Some do “outbound” calls, selling things from credit cards to phone services to Americans and Europeans. Others deal with “inbound” calls — everything from tracing lost luggage for U.S. airline passengers to solving computer problems for U.S. customers. The calls are transferred here by satellite or fiber optic cable.

I was most taken by a young Indian engineer doing tech support for a U.S. software giant, who spoke with pride about how cool it is to tell his friends that he just spent the day helping Americans navigate their software. A majority of these call center workers are young women, who not only have been liberated by earning a decent local wage (and therefore have more choice in whom they marry), but are using the job to get M.B.A.'s and other degrees on the side.

I gathered a group together, and here’s what they sound like: M. Dinesh, who does tech support, says his day is made when some American calls in with a problem and is actually happy to hear an Indian voice: “They say you people are really good at what you do. I am glad I reached an Indian.” Kiran Menon, when asked who his role model was, shot back: “Bill Gates — * starting my own company and making it that big.” I asked C. M. Meghna what she got most out of the work: “Self-confidence,” she said, “a lot of self-confidence, when people come to you with a problem and you can solve it — and having a lot of independence.” Because the call center teams work through India’s night — which corresponds to America’s day — “your biological clock goes haywire,” she added. “Besides that, it’s great.”

There is nothing more positive than the self-confidence, dignity and optimism that comes from a society knowing it is producing wealth by tapping its own brains — men’s and women’s — as opposed to one just tapping its own oil, let alone one that is so lost it can find dignity only through suicide and “martyrdom.”

Indeed, listening to these Indian young people, I had a déjà vu. Five months ago, I was in Ramallah, on the West Bank, talking to three young Palestinian men, also in their 20’s, one of whom was studying engineering. Their hero was Yasir Arafat. They talked about having no hope, no jobs and no dignity, and they each nodded when one of them said they were all “suicide bombers in waiting.”

What am I saying here? That it’s more important for young Indians to have jobs than Americans? Never. But I am saying that there is more to outsourcing than just economics. There’s also geopolitics. It is inevitable in a networked world that our economy is going to shed certain low-wage, low-prestige jobs. To the extent that they go to places like India or Pakistan — where they are viewed as high-wage, high-prestige jobs — we make not only a more prosperous world, but a safer world for our own 20-year-olds.

http://www.nytimes.com/2004/02/29/opinion/29FRIE.html?hp*

The same pro-globalization Freidman who proposed the Mcdonalds Peace Theory ? I really wish people realize this guy, who has been widely debunked by academics, stop posting junk from him.If only common sense was a prerequisite to obtaining pulitzer prizes. :rolleyes:

^ care to explain why you find the above observations ‘junk’? From where I’m sitting it seems like a perfectly normal and nice article, published in a normal and nice newspaper, the NYT.

There is nothing more positive than the self-confidence, dignity and optimism that comes from a society knowing it is producing wealth by tapping its own brains — men’s and women’s — as opposed to one just tapping its own oil, let alone one that is so lost it can find dignity only through suicide and “martyrdom.”<<

I couldn’t agree more! :k:

Complain all you want about Friedman, but the observation he is making is no doubt valid. I called a couple of months ago about a credit card problem, and was connected to New Delhi.

The same intelligence exists in Pakistan, but what Western executive is going to want the security risks inherent in Pakistan? Even if the risks are remote, even the PERCEPTION of risk keeps high quality jobs from even considering Pakistan.

My point is the same as Friedman is making, the instabilty of the relgious/politics in the Muslim world will quietly casue more harm than anyone can imagine. Sitting in Pakistan, one cannot imagine the economic opportunities that never arise due to the perceptions of instabilty. The result will eventually (if not already) result in a massive brain drain from Pakistan. The best and brightest will leave the country in search of opportunity.

And, India gets stronger on your border....

Ohio the change has to come from the Pakistanis wanting to build the call offices and not necessarily through direct american investments.

There is already some transcripting work thats going to Pakistan and as long as people focus on it there is hope of more. Also with the level of education and population relative to India its pretty surprising that we even get any contracts. There is no overnight cure as you already know and in most cases these things take 20 yrs or there about. India had its IITs set up a long time ago and we are just starting that process.

As for the religious aspects, there is nothing bringing extremism into the country even though the only news you see here is the scandalous type. Yes no doubt there are extremists in pakistan, the same way columbine would be something that would be considered extreme in Pakistan. However with the current efforts there has been significant changes occuring.Yes there are plenty of problems in Pakistan but its not like people are just dying all over the place - people can live decent lifes with some hard work

Interesting thread OG...Pakistan is not seen in a good light overseas, a lot of the assumptions are exaggerations though. Right now bomb blasts and other attacks are a byproduct of Pakistan's own policies and siding with the US now and the 1980's it's essentially blow back. You can't really compare a nation which is "at the front line in the war against terror" with another nation which has not experienced anything similar.

Pakistan does have the capcity to do a turn around, consider it was considered the ideal economic model in the 1960's of economic growth in Asia and it had a thriving private sector and the average Pakistani had a betetr quality of life than the average Indian. That advantage stayed till the early 1990's when Pakistan was hit by everything from local insurgencies to massive levels of institutional corruption, sanctions and several near wars with India.

the reason why Bangalore and not Karachi has more to do with how bad karachi was in the '90's and how Pakistan still has not recovered from Cold war commitments.

I guess I am trying hard NOT to draw stereotypes, and not to presume that the news coverage is entrirely accurate and representative. But, there have been a number of attempts on Musharrafs life, and if nothing else, there is the perception out there that Pakistan is a dangerous and unstable place.

My real worry is that everyday this continues, India accelerates ahead, the frustration and humiliation that is felt in the Muslim world wil be magnified by the lack of opportunity, the lack of stability, and the lack of good jobs. If the trend continues, ten years from now the economy of India can be significantly changed, while Paksitan moves at a much slower pace. The frustration at a regional rival getting ever stronger will become worse, not better.

The interview with the Palestinian engineers is even sadder. They are ambitious people, with great intelligence who have succeed against great odd, but thier clinging to Arafat may undo all of that hard work. Thirty years under Arafat have not advanced the Palestinian people one inch. (place blame where you may, but that is the track record).

Outsourcing and globalization, and particularly the internet are tools that are enabling opportunities around the world. The most innovative and hard working countries will accelerate on this wave, the rest will be left behind....

[QUOTE]
*Originally posted by Ohioguy: *
My real worry is that everyday this continues, India accelerates ahead, the frustration and humiliation that is felt in the Muslim world wil be magnified by the lack of opportunity, the lack of stability, and the lack of good jobs. If the trend continues, ten years from now the economy of India can be significantly changed, while Paksitan moves at a much slower pace. The frustration at a regional rival getting ever stronger will become worse, not better.

The interview with the Palestinian engineers is even sadder. They are ambitious people, with great intelligence who have succeed against great odd, but thier clinging to Arafat may undo all of that hard work. Thirty years under Arafat have not advanced the Palestinian people one inch. (place blame where you may, but that is the track record).

[/QUOTE]

Frustration and humiliation is not felt simply because India is progressing. there are plenty of muslim countrys that have done decently well. Now specifically to Pakistan, progress comes with time and hence you can not except Pakistan to catch up with India anytime soon, nor do we have the population to do so. Its the same as considering America beating China in the long run if it continues to grow at the rate its growing right now.

As for the Palestinian people, start by talking about the Isreali Arabs as well. They have a concern for the arabs in Palestine but by all rights they are full Isreali citizens, yet they live in rather poor conditions have poor schools etc. Yes Arafat is an issue but only one side of the coin. Right now Isreal faces an issue that in 20 yrs the Isreali Arab population would out number the Isreali Jewish population which makes for a huge political problem based on zionism (it would be the same problem that Pakistan would face is suddenly the christian minorty became a majority). It is not a matter or Arafat or Sharon but rather political systems in both countrys that prevent people from having the same constitutional rights that you would have were you living in the US.

Pakistan can take advantage of the growing Indian economy. Already countries like Singapore, Malaysia and Indonesia are working to take a pie from India.

Look what Singapore is trying to do to capitalize on the growth of India and China

http://www.georgiapost.com/p/c5/f7e72210f5eeaf.html?id=WNATc0e6c32a28ad56907abea4fa192bd144

Speech by Minister George Yeo, at the Opening of the Council of Logistics Management - Asia Pacific Conference, 01 March 2004, 9.30 am

India is also changing fast. Its strength in IT software is well known and already causing a protectionist reaction in the US as services jobs get outsourced overseas. Less well known are the thousands of kilometres of highways being built every year. The political decision to privatize ports and airports has already being taken. Although not obvious now, the internal connections in India will get better year by year opening up all kinds of new opportunities in the Indian domestic market. Improvement in logistics will give an important boost to the Indian economy.

ASEAN’s Response

China and India are the two wings of our jumbo jet in Southeast Asia. The ASEAN economy will become increasingly integrated to both the Chinese and Indian economies. We are now negotiating free trade agreements with both to be achieved in stages, with the long-term objective of a free trade area with China by 2010 and a free trade area with India by 2011. Our air, sea, road, rail, river and electronic links to China and India are improving steadily, with Singapore playing a key role in providing this connectivity.

Are you kidding me? India may be a bit ahead but the truth is that all major cities in Pakistan, including Karachi, are hosting call centers...and they are increasing by the day!

I recieved this very interesting column in the mail, it’s a bit old but relevant to the topic. The writer talks about looking at the stars even if you’re in the gutter, and that is the point Friedman so tellingly makes in his observation. I hope it’s allright to post it here.

The writer is a Lahore-based columnist and a well-known journalist

[email protected]

The sight of Indian actress Urmilla on the rooftops of the old city of Lahore is a sight for sore eyes any time of the day. This week another 270 delegates from India among which are Naseeruddin Shah and Shabana Azmi, are expected to cross over into Pakistan. As both countries take a series of steps, gingerly to start with, there is just that little light at the end of the dark and endless tunnel that has held us “prisoners of our own device” — as The Eagles put it in the famous number Hotel California. Will these measures lead to peace is a question for which even Tauqir Zia has no answers. All we can do is hope, pray and contribute in whatever way we can to normalise relations and bury the many hatchets that we have brandished for the last half-century.

Travelling last week on the Wazirabad-Sambrial road towards Sialkot, the potholes and bumps on that narrow ribbon strip road began to revive memories of long forgotten journeys made on that same road. I could have, after a few violent and rib-shaking miles, sworn these holes and craters were the same when one was in Kindergarten. Nothing seemed to have changed except that the dust was thicker, the pollution dismal and the people in numbers too large to comprehend. Perhaps in most of India the situation is not very much different and our much-touted smirking observations that India has huge problems might have given us years of self-induced smugness, but things across the divide are changing at a speed that baffles the mind. Some years ago, an Indian said to a Pakistani, “It is true we are both in the gutter. The difference is, we are looking at the stars. You are looking at the gutter.”

Many of us associate India’s new progress with its IT revolution and it is partly true. Indian companies like Moser-Baer located in an equally unknown Noida are now the world’s third largest optical media manufacturer and the lowest-cost producer of CD-Recorders. Exports? Only Rs 1,000 crore — Indian rupees I might add. This firm sells data-storage products to seven of the world’s top 10 CD-R producers. There is another unknown. Tandon Electronics. Its hardware exports are Rs 4,000 crore.

There is more depressing data, all of it quite true and impartial. 15 of the world’s major automobile makers are obtaining components from Indian companies. This business fetched India $375 million last year and in 2003 the number will be $1.5 billion. In half a decade, they will reach $15 billion. Hero Honda with 17 lakh motorcycles a year is now the largest motorcycle manufacturer in the world. The prestigious UK automaker, Rover is marketing 1 lakh Indica cars made by Tata in Europe, under, wait a minute, its own name. Bharat Forge has the world’s largest single-location forging facility. It produces 1.2 lakh tonnes per annum and its clients include Honda, Toyota and Volvo among others. Asian Paints now owns 22 production facilities over 5 continents and is the market leader in 11 of these countries. Hindustan Inks has the world’s largest single stream fully integrated ink plant of 1-lakh tones per annum capacity and 100% owned subsidiaries in USA and Austria. Essel Propack is the world’s largest laminated tube manufacturer with presence in 11 countries and a global marketing share of 25% already. Ford has just presented its Gold World Excellence Award to India’s Cooper Tyres. Other industries are winning equally prestigious awards all the time. While on cars, Aston Martin has contracted prototyping its latest luxury sports car to an Indian-based designer and is set to produce the cheapest Aston Martin ever. Suzuki, which makes Maruti in India has decided to make India its manufacturing, export and research hub outside Japan. Hyundai India is set to become the global small car hub for the Korean giant and will produce 25,000 Santros to start with. By 2010 it is set to supply half a million cars to Hyundai Korea. HMI and Ford India are leaping ahead, posting astonishing results in the global markets from Brazil to China.

The Indian pharmaceutical industry is blazing ahead too. At $6.5 billion and growing at 8-10% annually, it is the 4th largest pharmaceutical industry in the world. Its exports are over $2 billion. India is among the top five bulk drug makers and at home, the local industry has edged out the MNCs whose share of 75% in the market is down to 35%. Trade of medicinal plants has crossed Rs 4,000 crore already.

As for technology, India is among the three countries that have built supercomputers on their own. The other two are USA and Japan. Not a bad club to be in, is it? India is among six countries that launch satellites and do so even for Germany and Belgium. India’s INSAT is among the world’s largest domestic satellite communication systems. Here are more depressing facts. India is one of the world’s largest diamond cutting and polishing centres. About 9 out of 10 stones sold anywhere in the world, pass through India. With China, India’s arch enemy, trade has grown by 104% in the past year and in the first 5 months of 2003, India has amassed a surplus in trade close to half a million dollars. In the recession-hit West, Indian exports are up by 19% this year and the country’s foreign exchange reserves stand at an all-time high of $82 billion. India is dishing out aid to 11 countries, pre-paying their debt and loaned IMF $300 million!! And since we think banning fashion shows is the way ahead, it might be interesting to know that Wal-Mart sources $1 billion worth of goods from India — half its apparel, GAP about $600 million and Hilfiger $100 million.

These success stories are not propaganda and haven’t happened overnight or by good fortune. The Indians have the same bureaucracy and many of the politicians simply play politics, the infrastructure creaks and poverty abounds, corruption flourishes and there are huge pockets of inefficiency and walls that block meaningful progress. Sure, it has an army that is not bursting with power-grabbing and subjugating its people every few years, but India’s success can no longer be denied and the gap between us and them grows wider by, if I may use my childhood idiom, leaps and bounds. What makes them tick? The answers are not simple and require great space and analysis by minds far superior to that of a weekly hack, but Cost and Brains are two factors. Add to that, a determination to rise above what faces you everyday, a vision of the stars as the man said. India provides IT services at one-tenth the price. No wonder more and more companies are basing their operations in India. An Indian MBA costs $5,000. An American MBA $120,000. Development of an automobile in the US costs $1 billion. In India, less than half. A cataract operation costs $1500 in the US. In India, $12. Bypass in the US anywhere up to Rs 6 lakhs. In India, it is Rs 40,000. Over 70 MNCs have set up R&D facilities in India in the past five years. 100 of the Fortune 500 are now present in India vs 33 in China. Intel’s Indian staff strength has gone up from 10 to 1,000 in four years. GE with a $60 million invested in India employs 1,600 researchers, while it has only 100 in China. With better systems comes efficiency. The turnaround time in Indian ports is down to 4 days from 10 and its telecom infrastructure in 1999 provided a bandwidth of 155 Mbps. Today, it is 75,000 times more and with fibre optic networks in 300 cities, it will change the face of business. Mobile phones are growing by about 1.5 million a month. Long distance rates are down by two-thirds in five years and by 80% for data transmission. The facts go on and on.

So what are the answers? They lie in the way we look at things, our discourse, our vision, our ability to look ahead and our desire to genuinely put our country on the right road. ** the people of the subcontinent are naturally talented and bright. When will we unleash the great potential of our people that lies dormant, crushed by the forces of evil that stop our progress for their personal agendas?**

Excellent article, and very much on point. The pace of advancement in India is staggering. Of course not much of this reaches the countryside, and on a per capita basis it is still not that meaningful. But the trend is important.

My major point is that the talents of Pakistani's are being clouded by political instability. Another bombing, shooting, grenade attack convinces western countries and executives not to take the risk of locating in Pakistan.

What's more, if you look at the crisis between India and Pakistan a couple of years ago, I think you will find a remarkable way in which globalization helped a political crisis. When the US and UK advised their foreign nationals to leave India, due to the tensions over Kashmir, the politicians in India saw all of this progress going out the door. It was very soon thereafter that tensions eased and foreign executives returned. Western business will not invest in unstable countries.....

Globalization 3.0 from small to tiny
By THOMAS L. FRIEDMAN

BANGALORE, India -- Jerry Rao wants to do your taxes.

Ah, you say, you've never heard of Jerry Rao, but the name sounds vaguely Indian. Anyway, you already have an accountant. Well, Jerry is Indian. He lives in Bangalore. And, you may not know it, but he may already be your accountant.

"We have tied up with several small and medium-size CPA firms in America," explained Rao, whose company, MphasiS, has a team of Indian accountants able to do outsourced accounting work from across the United States. All the necessary tax data are scanned by U.S. firms into a database that can be viewed from India. Then an Indian accountant, trained in U.S. tax practices, fills in all the basics.

"This is happening as we speak -- we are doing several thousand returns," said Rao. American CPAs don't even need to be in their offices. They can be on a beach, said Rao, "and say, `Jerry, you are particularly good at doing New York returns, so you do Tom's returns...'" He adds, "We have taken the grunt work" so U.S. accountants can focus on customer service and thinking creatively about client needs.

Rao's ability to service U.S. accounts this way is at the core of a business revolution that has happened over the past few years. I confess: I missed this revolution. I was totally focused on 9/11 and Iraq. But having now spent 10 days in Bangalore, India's Silicon Valley, I realize that while I was sleeping, the world entered the third great era of globalization.

The first era, from the late 1800s to World War I, was driven by falling transportation costs, thanks to the steamship and the railroad. That was Globalization 1.0, and it shrank the world from a size large to a size medium.

The second big era, Globalization 2.0, lasted from the 1980s to 2000, was based on falling telecom costs and the PC, and shrank the world from a size medium to a size small.

Now we've entered Globalization 3.0, and it is shrinking the world from size small to a size tiny. That's what this outsourcing of white-collar jobs is telling us -- and it is going to require some wrenching adjustments for workers and political systems.

Globalization 3.0 was produced by three forces: First is the massive installation of undersea fiber-optic cable and the increased bandwidth (thanks to the dot-com bubble) that have made it possible to globally transmit and store huge amounts of data for almost nothing. Second is the diffusion of PCs around the world. And third (what I missed most) is the convergence of a variety of software applications -- from e-mail, to Google, to Microsoft Office, to specially designed outsourcing programs -- that, when combined with all those PCs and bandwidth, made it possible to create global "work-flow platforms."

These work-flow platforms can chop up any service job -- accounting, radiology, consulting, software engineering -- into different functions and then, thanks to scanning and digitization, outsource each function to teams of skilled knowledge workers around the globe, based on which team can do each function with the highest skill at the lowest price. Then the project is reassembled back at headquarters into a finished product.

Thanks to this new work-flow network, knowledge workers anywhere in the world can contribute their talents more than ever before, spurring innovation and productivity. But these same knowledge workers will be under more pressure than ever to constantly upgrade their skills in this Darwinian environment.

"We created a worldwide network which connected all the resource pools on the planet, and suddenly we changed the rules of the game," said Nandan Nilekani, CEO of the Indian software giant Infosys -- which last year received nearly 1 million applications from Indian techies for 9,000 software jobs. You cannot wish away this new era of globalization, he added. "It will not go away."

So now I wonder: When they write the history of the world 20 years from now, and they come to this chapter -- Sept. 11, 2001, to March 2004 -- what will they say was most important? The attack on the World Trade Center and the Iraq war? Or, as Rao suggests, the convergence of PCs, telecom and work-flow software into a tipping point that allowed India to become part of the global supply chain for services the way China had become for manufacturing -- creating an explosion of wealth in the middle classes of the world's two biggest nations, India and China, and giving both nations a huge new stake in the success of globalization. I wonder.


Friedman is a columnist for The New York Times and a three-time Pulitzer Prize winner.

There is really no reason why properity of India by outsourcing means Pakistan has to go in reverse gear. Customers will go where the price and quality are best and supply is reliable. In outsourcing reliability means stability - economic, political and cultural. lThe basic quality of people in Pakistan and India are probably close, price ofcourse can be matched or even beaten. But the reliability question has to be addressed. That is why stories of OBL, proliferation etc cost Pakistan economy more than any kind of pride.

I remember a time not too far back when Pakistan was almost #1 in textile exports? what happened? Similarly even good potential can be wasted by loosing focus on important aspects and giving in to emotion.

[QUOTE]
*Originally posted by Ohioguy: *
My major point is that the talents of Pakistani's are being clouded by political instability. Another bombing, shooting, grenade attack convinces western countries and executives not to take the risk of locating in Pakistan.

[/QUOTE]

Sadly very true.

Here is another interesting article worth reading.

Lookout by Naomi Klein

Outsourcing the Friedman

Thomas Friedman hasn’t been this worked up about free trade since the anti-World Trade Organization protests in Seattle. Back then, he told New York Times readers that the work environment in a Sri Lankan Victoria’s Secret factory was so terrific “that, in terms of conditions, I would let my own daughters work” there.

He never did update readers on how the girls enjoyed their stint stitching undergarments, but Friedman has since moved on–now to the joys of call-center work in Bangalore. These jobs, he wrote on February 29, are giving young people “self-confidence, dignity and optimism”–and that’s not just good for Indians, but for Americans as well. Why? Because happy workers paid to help US tourists locate the luggage they’ve lost on Delta flights are less inclined to strap on dynamite and blow up those same planes.

Confused? Friedman explains the connection: “Listening to these Indian young people, I had a déjà vu. Five months ago, I was in Ramallah, on the West Bank, talking to three young Palestinian men, also in their 20’s… They talked of having no hope, no jobs and no dignity, and they each nodded when one of them said they were all ‘suicide bombers in waiting.’” From this he concludes that outsourcing fights terrorism: By moving “low-wage, low-prestige” jobs to “places like India or Pakistan…we make not only a more prosperous world, but a safer world for our own 20-year-olds.”

Where to begin with such an argument? India has not been linked to a major international terrorist incident since the Air India bombing in 1985 (the suspected bombers were mostly Indian-born Canadian citizens). Neither is the 81 percent Hindu country an Al Qaeda hotbed; in fact, India has been named by the terrorist network as “an enemy of Islam.” But never mind the details. In Friedmanworld, call centers are the front lines of World War III: The Fight for Modernity, bravely keeping brown-skinned young people out of the clutches of Hamas and Al Qaeda.

But are these jobs–many of which demand that workers disguise their nationality, adopt fake Midwestern accents and work all night–actually the self-esteem boosters Friedman claims? Not for Lubna Baloch, a Pakistani woman subcontracted to transcribe medical files dictated by doctors at the University of California San Francisco Medical Center. The hospital pays transcribers in the United States 18 cents a line, but Baloch was paid only one-sixth that. Even so, her US employer–a contractor’s subcontractor’s subcontractor–couldn’t manage to make payroll, and Baloch claimed she was owed hundreds of dollars in back wages.

In October, frustrated that her boss wouldn’t respond to her e-mails, Baloch contacted UCSF Medical Center and threatened to “expose all the voice files and patient records…on the Internet.” She later retracted the threat, explaining, “I feel violated, helpless…the most unluckiest person in this world.” So much for “self-confidence, dignity and optimism”–it seems that not all outsourced tech jobs are insurance against acts of desperation.

Friedman is right to acknowledge, finally, that there is a clear connection between fighting poverty and fighting terrorism (a step up from his usual practice of blaming suicide bombing on “collective madness”). He is wrong, of course, to argue that free-trade policies will alleviate that poverty: In fact, they are a highly efficient engine of dispossession, pushing small farmers off their land and laying off public-sector workers, making the need all the more desperate for those Victoria’s Secret and Delta call center jobs.

But even if Friedman genuinely believes that low-wage export jobs are the key to economic development, holding them up as the cure for hopelessness in Ramallah verges on obscene. Every credible study on the economy in the occupied territories has concluded that the single greatest cause of Palestinian unemployment–now at over 50 percent–is the occupation itself. Israel’s brutal system of sealing off Palestinian towns and villages–through checkpoints, roadblocks, curfews, fences and now the vile “security” wall–has “all but destroyed the Palestinian economy,” states a September 2003 Amnesty International Report. “Closures and curfews have prevented Palestinians from reaching their places of work… Factories and farms have been driven out of business.”

In other words, economic development will not come to Palestine via call centers but through liberation. Friedman’s argument is equally absurd when applied to the country where terrorism is rising most rapidly: Iraq. As in Palestine, Iraq is facing an unemployment crisis, one fueled by occupation. And no wonder: Paul Bremer’s first move as chief US envoy was to lay off 400,000 soldiers and other state workers. His second was to fling open Iraq’s borders to cheap imports, predictably putting hundreds of local companies out of business.

Laid-off workers looking to land a job rebuilding their shattered country were mostly out of luck: The reconstruction of Iraq is a vast job-creation program for Americans, with Halliburton et al. importing US workers not only as engineers but also as cooks, truck drivers and hairdressers. Second-tier jobs go to migrants from Asia, and Iraqis pick up the trash. It seems worth noting that John Kerry and John Edwards, while eager to condemn the loss of American jobs to “offshoring,” have had nothing to say about this massive outsourcing of desperately needed Iraqi jobs by US corporations.

Yet these policies, maybe more than any others, have fueled the violence that now threatens to push Iraq into civil war. The men Bremer laid off are “the water tap that keeps the insurgency going. It’s alternative employment,” Iraqi entrepreneur Hussain Kubba told Asia Times. It’s a view supported by Hassam Kadhim, a 27-year-old resident of Sadr City, who told the New York Times he is so desperate for work that “if someone comes with $50 and asks me to toss a grenade at the Americans, I’ll do it with pleasure.”

Friedman’s bright idea of fighting terrorism with outsourced American jobs seems overly complicated. A better plan would be to end the occupation and stop sending American workers to steal Iraqi jobs.

Naomi Klein, overhyped author of No Logo. Young, white, pretty, anti-US imperialism, publisher's pet.

Should we make Lubna Baloch the symbol of mean american values and abolish call centres.

Should we forget Bali was bombed and there were no Israeli or American occupiers.

karina,

I do agree that Friedman makes some good points but there are other sides to a story too, like Naomi pointed out and you don't necessarily have to agree with them. And as far as Bali bombing is concerned, you have to note that Indonesia has got it's fair share of benefits from Globalization with trade partners with other Asian giants like China & Japan as well as with US and enjoys relatively better per capita GDP than India. They might not have as many call centers as India but foreign companies are frequently investing there. So, the whole analysis of Friedman doesn’t quiet fit [if Naomi’s don’t fit either] which shows that such problems are far more complex.

Also, one thing Friedman in his quick trip to the Sub-continent doesn't realize is that Karachi has shot itself in the foot when it comes to peace within its city limits. And it’s not only a problem with religious extremism; it has other factors involved too. And that’s the reason an estimated of 70% of Pakistan IT industry is based in Lahore.

A Tale Of Two Countries

By Rob Spiegel – Electronic News, 3/9/2004

When companies outsource to Asia, manufacturing work typically goes to China while call-center services and software engineering support usually goes to India. Although this division may seem coincidental, it is actually based on deep cultural differences between the two countries. There are specific reasons these two cultures have attracted different types of outsourced business.

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India benefits from its legal system, which strongly supports ownership rights of intellectual property. Most Asian countries have a poor history of supporting and enforcing IP rights, which makes U.S. companies shudder when it comes to software development. India’s legal system was developed in concert with the British, dating back to the time of British occupation.

“India has an edge in working on intellectual property,” says Vinay Asgekar, research director at Boston-based AMR Research Inc. “India has a more stable IP environment. People are hesitant to send IP development to other countries in Asia.”

Asgekar notes that although the preference for sending software to India is based on the country’s legal structure, India didn’t change its system to entice IP trade. “It’s not by design so much as by happenstance,” says Asgekar. “India has a culture that is more conducive to protecting IP, and they use the British legal system.”

The lure of call-center work to India also is grounded in Indian culture. The education system in India emphasizes the importance of learning English in preparation for career success. This emphasis provides English-speaking companies with a rich pool of educated English speakers in India.

Piracy problems have kept China and other Asian countries out of the software business. Piracy has affected everything from software and movies to music and designer apparel.

Analysts note that China has made progress on the problem in recent years. “It’s not as wild as it was five or six years ago,” says Joe Abelson, director of China services, at iSuppli Corp. in El Segundo, Calif. “Smuggling used to be a big problem in China, but they’ve executed smugglers publicly, so they’re pretty serious about deterrents. It isn’t quite as wild as it used to be.”

China grabs the manufacturing business over India in part because China’s government intentionally encouraged the cultural elements needed to attract manufacturing. “China has about an 8 or 10 year leg up on India on engineers trained in hardware,” said Abelson. “India is good on software, but China has been focused on electrical engineering and mechanical engineering.”

Another element in China’s business environment that alters the way U.S. companies trade with China is currency. Distributors have stepped in to help their suppliers get funds out of China. “The value proposition of distributors in Asia is fundamentally different than in the U.S.,” said Abelson. “In China particularly, the currency is not a hard currency. So you can’t take it out. It’s a complicated and expensive process to get money or profits out of China.”

Since distributors like Arrow and Avnet do business within China, they can help their suppliers get paid for goods sold for manufacturing in China. So suppliers who might otherwise sell direct to OEMs in China use distributors. Using a distributor also solves trade-conflict problems.

“Suppliers don’t want to deal with currency exchanges in China, and they don’t want to chance bad deals,” said Abelson. “A manufacturer can say, ‘I don’t feel like paying for it,’ and there’s no recourse. A large symbiotic relationship has developed because distributors have more flexibility in how they use capital in Asia.”

http://www.reed-electronics.com/electronicnews/article/CA402396?spacedesc=news

[QUOTE]
*Originally posted by ahmadjee: *
karina,

I do agree that Friedman makes some good points but there are other sides to a story too, like Naomi pointed out and you don't necessarily have to agree with them. And as far as Bali bombing is concerned, you have to note that Indonesia has got it's fair share of benefits from Globalization with trade partners with other Asian giants like China & Japan as well as with US and enjoys relatively better per capita GDP than India. They might not have as many call centers as India but foreign companies are frequently investing there. So, the whole analysis of Friedman doesn’t quiet fit [if Naomi’s don’t fit either] which shows that such problems are far more complex.

Also, one thing Friedman in his quick trip to the Sub-continent doesn't realize is that Karachi has shot itself in the foot when it comes to peace within its city limits. And it’s not only a problem with religious extremism; it has other factors involved too. And that’s the reason an estimated of 70% of Pakistan IT industry is based in Lahore.
[/QUOTE]

Ahmedji - Friedman tries to offer a solution for 3rd world countries. He may have romanticised call centres and ignored the perils of free trade policies (which Naomi never does). Or completely misunderstood problems in countries like Palestine, Indonesia, Pakistan and Iraq.

His premise may be simplistic, but it isn't a bad place to start. I know in Delhi and surrounding areas it has changed people, their outlook and economic power. What's that saying - big trees grow out of acorns. All Friedman is saying is to use brain power rather than bomb power. And like it or not that brain power has to be harnessed to the west for energy supply. It's western globalisation and you either fight it and lose or join in. I don't know if I'm making sense, my knowledge of economics is tenuous.

I agree with what you say - that problems are complex and myriad, but I don't agree with Naomi. She only refutes without offering solutions. It wouldn't be so bad if she and Arundhati stuck to writing the odd column, but these dull left wingers write whole books.:)