Search blogs  
Browse by category
Deep Thought - Random thoughts in sequential order..
Piyush  Sethia
Author:Piyush Sethia
Design Engineer, Nvidia Graphics
Corporate Government, Anyone??
Thursday 03rd, July 2008
I have had this question asked to me a lot of times : wouldn't it be a lot better if we had a corporate style governance.. And while the proponents of this theory list out the obvious benefits like quick decisions, faster development, more transparent functioning etc, there is one aspect that they completely fail to recognize, and that is the social responsibility of the government..

If you look at how corporates work, they will feed the bread-winning horse the most, which is very fair on their part.. For eg, if a certain division is making most of the company's profits, that division will also get the maximum budget.. Aberration like the one in the case of Apple Computers, where the profit making Apple II funded the eventually proved disastrous Apple III for a long time, and caused a survival crisis, are considered poor managements decisions..

But now, consider a government setup in a country like India.. The profits will come in from the industries, the commerce centered around the cities, the taxes paid by the urban citizens etc etc.. However, most of this money is not spent back on them, unlike a corporate, but spent on rural education, health care etc, which by any model, will never be profitable.. That however, does not mean our money must not be spent on it, for we can not expect a village school in a tribal area to be economically viable, this just means that as a civil society, we must accept this form of subsidy, for these children of lesser mortals cannot be, and should not be denied education for want of funds.. Same goes with rural health care, and a variety of other such schemes..

And if the country was indeed run by corporates, you would see a eight lane and six track Golden Quadrilateral, lined up with all the industries, while the rest of the country would languish in the dark.. And after this, they might also claim to have no budgetary deficit, which shouldn't come as a surprise.. What we really need is better planning and investment in the rural areas, to make them self-sufficient and economically a "non-white elephant", atleast in three to four decades.. Till such a thing happens, my fellow brethren, we must share the burden for the greater good of the country..

 
Comments
Comment 1: By Piyush Sethia on 08th Jul 2008
@ Anil Rao : You bring an interesting perspective into the debate. Though a little offtopic, but very relevant in today's India. And yes, we need to understand, and envision what we would like from governance. And yes, only a small fraction of people are interested, but what the heck, its only a matter of time when this reaches the tipping point.

@ VS Gurumani : Yes, we need to take lessons from corporate government, but then, the basic socialist model of the government is different from the corporate style, and this different must stay.

Comment 2: By V S Gurumani on 07th Jul 2008
This debate is interesting. While I agree with Piyush's thinking, there are lessons which can be drawn from the corporates too. For example, leading an economy is all about dealing with change. The 'non corporate' model tends to take a long view, lives with cross subsidisation and a 'business as usual' situation. All these lead to incrementalism. Adopting the corporate style would infuse a sense of urgency to the governance process. It will also help inject a much stronger process and quality orientation in the management of economy, which in turn may result in greater accountability in public affairs.

Comment 3: By anil rao on 07th Jul 2008
Piyush,

Very interesting topic to provoke the thoughts, from readers with quite a different perspective of the country we live or lived in.

By looking at few comments on this article we can see some of them have given up stating change isn't possible to alternative comparisons of other countries.

India's democracy is still in its baby steps, most of the head honchos of politics today are old fashioned...new breed of politicians are being mentored and guided by those who still think of those days of struggle and the only way to get relieved by those pains was/is to fight for power.

Governance for these politicians meant only POWER (the way British ruled by stick), wasn't acceptable nor implementable, in Democratic India. The current generation (I'm sorry to say a very small percentage) is waking up to lack of governance and eager to see a change. Exposure to global economies by working in a cross cultural communities seems to be bringing in topics like to be discussed.

From my perspective governance starts at home, Are we ready t o stand to up the injustice which happens right in front of our eyes and take action, however small it may be? Can we teach the importance of Governance to next generation? Can we be Role Models by standing up for Justice?

Cheers


Comment 4: By Piyush Sethia on 06th Jul 2008
Comment 5: By sao cho on 04th Jul 2008
Hi Piyush, I don't fully agree with your point that corporate governance will bring "Golden Quadrilateral" with a majority of the country residing in "Nasty Dark Black-Hole".
I have not seen any profitable company with few nice fancy ultra-modern offices and 70% of its branches functioning in graveyard.
I would be interested to know one.

While "corporate governance" may show typical behaviour initially as it has been suspected in this blog but, that will be the behaviour any nation will show up in any possible condition that may have today.

After the first phase, productivity wont increase if rest of the nation other than "most hated businessmen" (even though we live on their taxes) live in dark alley. Corporate-India will need to upgrade citizen by improving their conditions and skills for their own "corporate-benefit".

But, the fact is, it is not "corporate-governance" or "present over-political pseduo-democratic self-absorbed governance" that matters. What we need is "Scientific Governance" - which will run a nation like an engineer designs control-system after taking care of all stability-conditions, phase, oscillations, proper feedback-gain

Certainly we won't have that, as government being a reflection of its own citizen doesn't have a clue of such detailed planning and execution. (Oh! for that matter a typical corporate don't have vision beyond few years they just fill gaps of business opportunity and fails at most of the testing times)

So, we won't have to discuss about the "scientific government". But, if we target for a less mindful "corporate governance" we will see people coming out with more ideas and many of them will convert themselves from "favourite poor" to "stinking rich". Surprisingly, we would find that, government wont be a "third-person-entity" behaving like a selfish-giant. We will find it submerged withing ourselves and working for us.

But, we could do this only if we could open our eyes and try to see how does this world actuall work.

Thanks!!

Comment 6: By Gunjan Sinha on 04th Jul 2008
Fully agree with your observations..We want "inclusive" growth. We have to scale up what is working well for us, but at the same time, we have to look at rural and other socially challenged areas, and ensure that we are transforming them into the next growth engine of the country. Social responsibility is key, and we need more social entrepreneurs. That is one of the reasons, why I am so excited about siliconindia, the opportunity to create a socially responsible India, one where we can as a large community voice our concerns, give feedback and professionally develop india into the next generation "siliconindia" - a digitally connected india, which includes people from all walks of life and all parts of the country.

Gunjan


Comment 7: By Piyush Sethia on 04th Jul 2008
Pritika, Two major points : First, I am not in favor of corporate governance. In fact, I stand for the social responsibility of our government. Secondly, Indians are anything but lazy, in fact they are quite enterprising. If you feel frustrated at the state of affairs in India, you obviously have not heard of Yugoslavia, Uganda, Sudan etc etc. Now, coming to your comment, you seem to contradict yourself. If Indians are lazy, all the more reasons to give governance to some corporate, and do away with the responsibility. So I do not understand what you actually meant. Please clarify, and we can discuss it out.

Comment 8: By Pritika De on 04th Jul 2008
Your suggestion is really,but do you think people would allow corporate governance to be implemented in India? I don't think so,in India people are most used to laziness and taking up issues which are non relevant. They don't have time to fight for issues that really concern them the most. Had we been really sensible we wouldn't had been here.

Post your valuable comment here
Email:      Password:  
Don't have SiliconIndia ID? Sign up      Forgot your Password?  Retrieve

 Latest postings

Fear Factor
Where the mind is without fear and the head is held high; . . . Into that heaven of freedom, my Father, let my country a... more >>
The Order of the Phoenix
When the history of contemporary India is written, Man Mohan Singh will find a special place in the pages of history.. Never before has an Indian le... more >>
A good riddance
Finally, the Leftists are out of the government. I am of the opinion that this is probably the best thing that could have happened to Manmohan Singh... more >>
Love, Really??
What is love really?? How do you know if you are falling in love with the person you went out with last evening.. Does a big gong go off somewhere war... more >>

NewIndia

Executive Worry about Innovation ROI
A global survey and report on innovation, Innovation 2008: Is the... more >>
By
SANDIP SHAMBHARKAR
An Initiative for WIT(Women in technology), network, cisco,ccna,ccvp etc......
An Initiative for WIT(Women in technology), network, cisco,ccna,c... more >>
By
hbf hbfites
Two-wheeler borne terminator seeds
Two-wheeler borne terminator seeds A two-wheeler is taken more a... more >>
By
jaypee Prakash
Growing Gracefully
Circa 2008 AD   My  10  year son&nbs... more >>
By
bobby sing
Cashmere
The beauty of the northern end of my country is far fetched than ... more >>
By
Mighty Zeus

Guest contributors

Arun Subramony
Arun Subramony
Vice President - Global Delivery, UST Global.
Azim Premji
Azim Premji
Chairman, Wipro
Rajendra K Misra
Rajendra K Misra
Author is the founder of Change India
Dr. Krishna Mikilineni
Dr. Krishna Mikilineni
Managing Director, Honeywell Technology Solutions Lab.
Vikram Shah
Vikram Shah
President - India Operations, NetApp.
 Our sponsors