It is indeed a privilege to be addressing you on the subject of “Why Foreign Policy Matters”, and particularly to do so at a time when are celebrating the 62nd anniversary of our Independence. At that midnight hour when, in Prime Minister Jawaharlal Nehru’s memorable words, India awoke to life and freedom, our country was deeply conscious of its international obligations. In his historic speech about India’s “tryst with destiny”, Nehruji, speaking of his country’s dreams, said: “Those dreams are for India, but they are also for the world, for all the nations and peoples are too closely knit together today for any one of them to imagine that it can live apart. Peace has been said to be indivisible; so is freedom, so is prosperity now, and so also is disaster in this One World that can no longer be split into isolated fragments.” These words are typical of that great nationalist that a time when the fires of Partition were blazing across the land, he thought not only of India, but of the world. In recalling that spirit 62 years later, I am pleased to see so many internationalist-minded young Indians here today.

In those six decades, the world has become even more closely knit together than Nehruji foresaw. Indeed, today I think it is fair to say that even those countries that once felt insulated from external dangers — by wealth or strength or distance — now fully realize that the safety of people everywhere depends not only on local security forces, but also on guarding against terrorism; warding off the global spread of pollution, of diseases, of illegal drugs and of weapons of mass destruction; and on promoting human rights, democracy and development.

Jobs everywhere , too, depend not only on local firms and factories, but on faraway markets for products and services, on licenses and access from foreign governments, on an international environment that allows the free movement of goods, services, and persons, and on international institutions that ensure stability – in short, on the international system that sustains our globalized world.

Today, whether you are a resident of Delhi or Dili, Durban or Darwin, Aligarh or Alabama – whether you are from Noida or New York– it is simply not realistic to think only in terms of your own country. Global forces press in from every conceivable direction. People, goods and ideas cross borders and cover vast distances with ever greater frequency, speed and ease. We are increasingly connected through travel, trade, the Internet; what we watch, what we eat and even the games we play.

These benign forces are matched by more malign ones that are equally global. When I was only a few years older than most of you, I began my United Nations career dealing with people without passports, refugees caught in the conflict in Vietnam and Cambodia. In my later career, I learned that these people personified what the United Nations was increasingly called upon to deal with, “problems without passports” — problems that cross all frontiers uninvited, problems of terrorism, the proliferation of weapons of mass destruction, of the degradation of our common environment, of contagious disease and chronic starvation, of human rights and human wrongs, of mass illiteracy and massive displacement. Such problems also require solutions that cross all frontiers, since no one country or group of countries can solve them alone.

Let us not forget that 9/11 made clear the old cliché about our global village – for it showed that a fire that starts in a remote thatched hut or dusty tent in one corner of that village can melt the steel girders of the tallest skyscrapers at the other end of our global village.

In such a world, issues that once seemed very far away are very much in your backyard. What happens in North America or North Africa – from protectionist politics to deforestation and desertification to the fight against AIDS – can affect your lives wherever you live, even here in North India. And your choices here – what you buy, how you vote – can resound far away. As someone once said about water pollution, we all live downstream. We are all interconnected, and we can no longer afford the luxury of not thinking about the rest of the planet in anything we do.

Our choice is clear: we must be globally active if we are to create and maintain the society we want at home. And our success at home is the best guarantee that we will be respected and effective abroad.

After all, your own lives reflect a variety of global experiences. What does it mean to be a young person in Delhi or Aligarh today? It can mean waking up to an alarm clock made in China, downing a cup of tea from leaves first planted by the British, donning jeans designed in America and taking a Japanese scooter or a Korean car to get to an Indian college, where your textbooks might be printed with German-invented technology on paper first pulped in Sweden. You might call your friends on a Finnish mobile phone to invite them to an Italian pizza or even what you think of as desi khana, featuring naan that came here from Persia, tandoori chicken taught to us by rulers from Uzbekistan and aloo and hari mirch that first came to India only 400 years ago from Latin America. And the most desi thing of all, of course, is suspicion of anything foreign.

Suspicion of things foreign has hardly been absent from our own country’s political experience. In India, self-reliance and economic self-sufficiency were a mantra for more than four decades after independence, and there were real doubts as to whether the country should open itself further to the world economy. Whereas in most of the West, most people axiomatically associate capitalism with freedom, India’s nationalists associated capitalism with slavery. Why? Because the British East India Company came to trade and stayed on to rule. So India’s nationalist leaders were suspicious of every foreigner with a briefcase, seeing him as the thin edge of a neo-imperial wedge. Instead of integrating India into the global capitalist system, as only a handful of post-colonial countries like Singapore chose to do, India’s leaders (and those of most of the former colonies) were convinced that the political independence they had fought for so hard and long could only be guaranteed through economic independence. So self-reliance became the slogan, the protectionist barriers went up, and India spent 45 years with bureaucrats rather than businessmen on the “commanding heights” of the economy, often, despite the best of intentions, subsidizing unproductivity, regulating stagnation and effectively, if unwittingly, distributing not wealth but poverty. (Which only goes to prove that one of the lessons you learn from history is that history sometimes teaches the wrong lessons.)

It was only after a world-class financial crisis in 1991, when our Government had to physically ship its reserves of gold to London to stand collateral for an IMF loan, failing which we might have defaulted on our debt, that India liberalized its economy under our then Finance Minister Manmohan Singh. Since then we have become a poster-child for globalization. Our growth and prosperity would be impossible without the rest of the world.

To the young people here, let me say that you are likely to spend a lot of your adult lives interacting with people who don’t look, sound, dress or eat like you; that you might work for an internationally-oriented company with clients, colleagues or investors from around the globe; and that you are likely to take your holidays in far-flung destinations. The world into which you will grow will be full of such opportunities. But along with such opportunities, you may also find yourself vulnerable to threats from beyond our borders: terrorism, of course, but also transnational crime syndicates, counterfeiters of currency, drug smugglers, child traffickers, internet spammers, credit-card crooks and even imported illnesses like swine flu.

Wouldn’t you want your government to devise policies to deal with such challenges that would affect your, and one day your children’s, lives? Should such policies, in an ever more interdependent world, even be called foreign? One of the reasons that foreign policy matters today is that foreign policy is no longer merely foreign: it affects you right here where you live. You want your government to seize the opportunities that the 21st century world provides, while managing the risks and protecting you from the threats that this world has also opened you up to.

Indians therefore have a growing stake in international developments. To put it another way, the food we grow and we eat, the air we breathe, and our health, security, prosperity and quality of life are increasingly affected by what happens beyond our borders. And that means we can simply no longer afford to be indifferent about our neighbours, however distant they may appear. Ignorance is not a shield; it is not even, any longer, an excuse. Knowledge of others, on the other hand, brings great advantages in today’s world.

At the same time, much of what we are in the process of accomplishing at home – to pull our people out of poverty and to develop our nation — enables us to contribute to a better world. This is of value in itself, and it is also in our fundamental national interest. A world that is peaceful and prosperous, where trade is freer and universally-agreed principles are observed, and in which democracy, the co-existence of civilizations and respect for human rights flourish, is a world of opportunity for India and for Indians to thrive.

If this century has, in the famous phrase, made the world safe for democracy, the next challenge is to make a world safe for diversity. It is in India’s interest to ensure that the world as a whole must reflect the idea that is already familiar to all Indians — that it shouldn’t matter what the colour of your skin is, the kind of food you eat, the sounds you make when you speak, the God you choose to worship (or not), so long as you want to play by the same rules as everybody else, and dream the same dreams. It is not essential in a democratic world to agree all the time, as long as we agree on the ground rules of how we will disagree. These are the global principles we must strive to uphold if we are to be able to continue to uphold them securely at home.

Because the distinction between domestic and international is less and less meaningful in today’s world, when we think of foreign policy we must also think of its domestic implications. The ultimate purpose of any country’s foreign policy is to promote the security and well-being of its own citizens. We want a world that gives us the conditions of peace and security that will permit us to grow and flourish, safe from foreign depredations but open to external opportunities.

At the same time there is a consensus in our country that India should seek to continue to contribute to international security and prosperity, to a well-ordered and equitable world, and to democratic, sustainable development for all.

This we will continue to do, and we will do so in an environment in which change is the only constant. If I may be permitted the indulgence of a personal reminiscence, let me tell you how much my old organization, the UN, has been transformed in the career span of this one former UN official speaking to you. If I had even suggested to my seniors when I joined the Organization in 1978 that the UN would one day observe and even run elections in sovereign states, conduct intrusive inspections for weapons of mass destruction, impose comprehensive sanctions on the entire import-export trade of a Member State, create a counter-terrorism committee to monitor national actions against terrorists, or set up international criminal tribunals and coerce governments into handing over their citizens to be tried by foreigners under international law, I am sure they would have told me that I simply did not understand what the United Nations was all about. (And indeed, since that was in the late 1970s, they might well have asked me – “Young man, what have you been smoking?”)

And yet the UN has done every one of those things during the last two decades, and more. It is a reflection of how much the world around has evolved since the era when the Cold War seemed frozen in place, borders seemed immutable, and the Soviet Union looked as if it would last for ever. If all of those things could change so dramatically within one generation, shouldn’t we be better prepared, as a country and a society, for similar changes to happen in the lifetime of your generation?

Indeed, the institutions of global governance have been expanding beyond the UN itself. There are selective inter-governmental mechanisms like the G-8, military alliances like NATO, sub-regional groupings like the Economic Community of West African States, one-issue alliances like the Nuclear Suppliers Group. Writers connect under International PEN, soccer players in FIFA, athletes under the International Olympic Committee, mayors in the World Organization of United Cities and Local Governments. Bankers listen to the Bank of International Settlements and businessmen to the International Accounting Standards Board. The process of regulating human activity above and beyond national boundaries has never been more widespread.

To these elements of international co-operation we must add a veritable alphabet soup of new bodies and new arrangements for multilateral engagement. India alone belongs to IBSA, to BRIC, to SAARC and the East Asian Summit; it is a member of the G-20 and the ARF; it observes the meetings of the SCO and attends the G-8. It pursues its interests in organizations as universal and well-known as the UN and as small and obscure as IOR-ARC.

It’s not just multilateral organizations we should think about: the world has changed in other ways too. Today, the smartest executive jets are made by Embraer of Brazil; the tallest building in the world is currently in Dubai, an incomplete structure that has just overtaken the previous tallest building, in Taipei; the world’s biggest plane is being built in Russia and Ukraine; the world’s largest Ferris wheel is in Singapore; the biggest shopping mall is in Beijing; and the country with the largest number of nationals in the Forbes list of the world’s ten richest people is India, with four billionaires whose combined assets, once valued at $180 billion, exceed those of the majority of the member states of the United Nations. Thirty years ago, all these categories would have been headed by the United States. The US remains the world’s sole superpower, but others are catching up fast in various areas where it had alone been dominant.

This is the world to which India must learn to adapt. It was Mahatma Gandhi who famously said, “You must be the change you wish to see in the world.” That applies to India too. We seek to redefine our place in a world that has changed from the geopolitical realities of 1945 which shaped the current international system, including the permanent membership of the Security Council. We are today one of the world’s largest economies, a proud player on the global stage with a long record of responsible conduct on international matters. But is our foreign policy apparatus commensurate with the challenge? Is our society as a whole imbued with a consciousness of the strategic opportunity that engagement with the globe offers? Can we be taken seriously as a potential world leader in the 21st century if we do not develop the institutions, the practices, the personnel and the mindset required to lead in the global arena?

Our foreign policy debates in Parliament and the media seem obsessed with Pakistan or with ephemera, or worse, ephemera about Pakistan. There is little appetite for an in-depth discussion about, say, the merits of participating in the Non-Aligned Movement or the Conference of Democracies, or the importance we should give to such bodies as SAARC or the Indian Ocean Rim Conference. As Minister of State for External Affairs I suppose I should be grateful, even relieved, at being allowed to get on with foreign policy making without the interference of the general public. But in my view foreign policy is too important an issue to be left to the Ministry of External Affairs alone. Our society as a whole, and particularly its educated young people, must care enough about India’s place in the world to participate actively in shaping our international posture.

And yet the picture around us is a pretty dismal one. International relations is a neglected subject on our campuses; I have deliberately chosen to speak on this topic at a college/university, which does not offer a course of study in international relations. The few colleges that do offer the subject do so in a formalistic and formulaic fashion that ill-equip the student to understand the realities of our contemporary world. JNU apart, few can hold a candle to the universities in China, Russia or the West that teach international relations to young people of a similar age to the majority of you.

We do have a handful of thinkers on international issues and a fistful of think-tanks, but in quantum and quality of expertise and range of output they all have a long way to go before they match the role played by, for example, their equivalents in the United States.

And what about the young people so well represented here today, who must shape the future orientation of India to the world? A young Indian scholar, Raja Karthikeya Gundu, recently wrote: “Few Indian students go beyond the West for study, and even if they wanted to, there are barely any scholarships or resources from government or private sector to do so. The average Indian has barely any understanding of foreign cultures, norms and worldviews, and satellite TV and Internet have not managed to change this. Hence, in the absence of global exposure, Indians continue to be an inward-looking nation burdened by prejudice. Thus, it is no surprise that when Indians travel abroad for the first time in their mature years, they are often culturally inadaptable and even mildly xenophobic.” This strikes me as somewhat overstated, and yet there is a kernel of truth in it.

The situation will not improve unless we improve the study of international affairs at our colleges and universities. Last year I was invited by my Singaporean friend Kishore Mahbubani to join a gathering organized by his Lee Kuan Yew School of Public Policy, of some of the most eminent scholars of International Relations to brainstorm on improving the current state of the discipline in India. I couldn’t join his effort but one scholar who did, Amitabh Mattoo, observed that “There are few other disciplines in India… where the gulf between the potential and the reality is as wide as it is in the teaching and research of IR at Indian universities. Interest in India and India’s interest in the world are arguably at their highest in modern times, and yet Indian scholarship on global issues is showing few signs of responding to this challenge.”

Today, IR is taught in more than 100 universities in India, but in Mattoo’s words, “most of the IR departments have a shortage of qualified faculty, poor infrastructure, outdated curriculum and few research opportunities”. More than half the departments do not even have access to the internet, and are deprived of the rich wealth of online resources that students elsewhere in the world can command. Books and journals are in short supply. Little expertise has been developed in specific areas or countries of concern to India; to take one example, despite all the fuss about the reference to Balochistan in the recent joint statement at Sharm-el Shaikh, there is no major scholar of Baloch studies in India to whom either the MEA or its critics can turn. Foreign languages are poorly taught, resources for study trips abroad are scarce, research is of varying quality and opportunities for cross-fertilization at academic conferences practically non-existent. Whereas China, a latecomer to the field, has already developed, in the last three decades, a critical mass of students and scholars of IR, we are behind where we were in the heady days of the Nehruvian 1950s when we established bodies like Sapru House and the Indian Council of World Affairs which we have allowed to atrophy.

My friend Kanti Bajpai has argued that “Rising powers seem to get the IR they need.” But it won’t just happen. We need to change the way we all think about international relations – you, the future leaders of this country, and we, its present ones. The MEA is willing to play its part, in collaboration with those responsible for educational policy, to bring about the change I have been calling for.

To return to Amitabh Mattoo, he warns “India’s inability to develop a sophisticated and comprehensive understanding of the world outside will have more serious consequences than just the dwarfing of a discipline. It could well stunt India¡¦s ability to influence the international system.¡¨ That is an outcome that, for all the reasons I have described, we can ill afford.

Mahatma Gandhi’s point about “being the change” applies to my Ministry too. Even though my experience of it from within is relatively new, I do believe there are some changes we ourselves can bring about and which I will be advocating in the months ahead. Some specific examples:

• As I said earlier, I believe foreign policy is much too important an issue to be left to the Foreign Ministry alone. Discussion of international relations should not be confined to the seminar rooms in Delhi, and that is why I was delighted on 11th August 2009 to lead a seminar on Indo-Arab relations in Cochin. All Indians, even 2000 kilometers away from the nation¡¦s capital, have a vital stake in the development of our foreign policy. I would welcome much more spirited exchanges between MEA officials and academia, the corporate sector and civil society, in person, through regular meetings and even email, respecting confidentiality but not fighting shy of ideas or opinion that challenges our entrenched mindsets.
• Foreign language assignments to IFS officers. I have been struck by how often I have come across Chinese speakers in our consulates in Germany or Anglophone diplomats in France. Surely we can aim at a time when every national language is spoken by at least one Indian officer and an eventual time when every one of our missions is headed by an Ambassador who knows the language, be it Khmer or Korean, Spanish or Swahili.
• I have written elsewhere of the need to develop and exploit India’s considerable “soft power”, by making this integral to the work of our territorial divisions, rather than leaving it solely to umbrella entities like ICCR and the Public Diplomacy Division. This will mean taking Indian literature, culture, music and dance abroad as an adjunct to Indian diplomacy, and doing so within a context of a coherent public diplomacy strategy that weaves together many institutions that currently function separately.
• Recently, we have seen the stirrings of a purposeful debate on whether the IFS exam should be distinct and separate from others in the UPSC. During my days in college, pretty much everyone aimed at the Foreign Service, and the Foreign Service drew exclusively from the top ten finishers in the national competitive examinations. Today, as working abroad for the government has lost some of its allure, this is no longer the case; indeed, for many applicants the IFS is a third or even fourth preference amongst the career options available to those who do well in the exams. I feel strongly that a diplomat should not be someone who fell short of his or her real goal of being an administrator, revenue official or police officer. We need internationalist-minded young Indians who see the chance of serving the country abroad not only as a privilege but as something indispensable to India’s growth and prosperity.

The tragedy of 26/11 confirmed yet again how much greater coordination we need among the many programmes and players in government involved with security and other international issues, and how essential is the modernization of our domestic and international instruments to keep Indians safe. We will have to work harder in government, and with Indians of all walks of life – including business groups interested in foreign markets and in international investors — to ensure that we break down the “narrow domestic walls” that Tagore wrote about and promote a coherent, visible Indian approach to the world, backed with sufficient resources to take action and to get our messages across clearly. This will help to ensure that India remains influential on issues of concern in an increasingly competitive world.

In other words, the sustainability and success of our international policy depends on both leadership by the Government of India and the active involvement of young Indians. The Government is committed to protecting and advancing the global citizenship of all of you, but it cannot be done without your strong involvement.

The world, I am convinced, is going your way. You are a new, globalized, impatient generation of Indians who rightly refuse to be confined to the limited worldviews of older generations. The horizons of your world are ever widening. The prospects for international engagement, for more widespread prosperity, for more borderless success, have never been brighter. But the world needs your commitment, too.

I call upon you all today to commit yourself to thinking about India and the world – about India in the world – and your own role in learning about it, helping to shape it, and one day, I hope, helping to lead it.

Thank you.

17 August 2009, New Delhi

I am honoured and delighted to be here for the release of this wonderful publication of ASSOCHAM on business and trade opportunities in the Arab world. I would like to compliment ASSOCHAM for this initiative and their efforts to foster business and trade links with the Arab world. I would also like to compliment the Arab Missions and the Arab League Mission for their cooperative efforts to bring out this publication. I am sure that this Manual will go a long way towards further enhancing our excellent relations with the Arab world.

2. India-Arab relations is a subject close to my heart. Personally, not only have I travelled to several Arab countries in the course of my international career, but after I left my job at the UN, I was temporarily doing business out of Dubai. This put me in direct contact with Arab people and I have come away very impressed not only with their intrinsic abilities and entrepreneurial skills but also with their deep sense of appreciation of the historic, cultural and civilizational ties that bind India and the Arab countries. As this is a business event, I would refrain from going into the history of our relations, although I must admit that I am tempted to do so. However, here it should be enough to say that the bedrock of our relations is strong and enduring. Having said that, just because we have had centuries-old relations does not mean that we do not have to endeavour to sustain and nurture our present day relations. If anything, it needs more hard work by all concerned so that we are not lulled into complacency. The enormous bank of goodwill and mutual comprehension between our two regions allows us to build a strong edifice of substantial contemporary relations.

3. India considers the Arab region very important in shaping our political, economic, trade, defence and security policies at both the regional and global level. Our approach on issues affecting the Arab world is based on principles, not expediency. India has endeavored to follow the spirit of South-South solidarity and cooperation in its dealings with the Arab world. In keeping with our desire to strengthen our relations with the countries of the region we are trying to put in place a structure of multifaceted cooperation covering all sectors. It is a matter of satisfaction that our efforts are being matched in equal measure by the countries of the Arab world.

4. Arab countries, as vital sources of oil and gas whether from the Gulf and Saudi Arabia or more recently from Egypt, Sudan and the Maghreb, have become essential to India’s energy security needs. Indian companies have secured concessions or have otherwise invested in the oil sector significantly in Sudan, Egypt and Libya. Less publicized, perhaps, is the enormous importance to India’s food security of countries such as Jordan, Morocco, Tunisia and Algeria as providers of rock phosphate and phosphoric acid and potash, all of which translate into fertilizer for our farmers. Egypt has emerged as a significant Indian investment destination with Indian investments estimated at over US $500 million. Some Indian companies are also exploring possibilities of setting up plants to manufacture phosphoric intermediates in Morocco, Algeria, Tunisia and Jordan. We are also examining the possibilities of working together with Syria in this regard. As Shri Agarwal has just informed us UAE is our second largest trading partner after China. These are important milestones on our road to enhance economic cooperation.

5. Besides the hydrocarbon and fertilizers sectors, Indian companies have executed or are in the process of completing a variety of projects including those financed by concessional lines of credit. Examples include a thermal power plant in Sudan, a cement plant in Djibouti, an architecturally complex bridge in Jordan and a variety of projects in Libya.

6. Now coming to the question of trade, we see that India’s trade with Arab countries is booming. A look at our figures of trade is illuminating. We have already heard that the Gulf region has emerged as a major trading partner of India. During 2006-2007 the total two-way trade was US $ 47 billion and in the year 2007-08 it reached more than US$ 76 billion. According to ASSOCHAM, this year over $ 100 billion is supposed to be our two-way trade with the Gulf region. Trade with the non-Gulf Arab countries totaled more than US$ 13 billion in 2007-08. Total trade with Arab countries was about US$ 90 billion in 2007-08.

7. I am happy to inform you that to give a boost to trade relations, we are negotiating with the Gulf Cooperation Council (GCC) to conclude an India-GCC Free Trade Agreement (FTA). This would complement our ongoing and rapidly expanding bilateral economic engagement with individual member countries of GCC. The third GCC-India Industrial Conference, which was held in Mumbai in 2007, was a success and it has further consolidated our economic interaction. We are working to hold the fourth GCC-India Industrial Conference in November this year. The 2nd Indo-Arab Investment Conclave, in which all Arab countries and Arab Ambassadors are partners, will be held in Delhi in February next year.

8. India has always shown its willingness to share with our Arab brethren our experience and expertise in institution and capacity building, governance, science and technology including Information Technology and biotechnology, healthcare and higher education including training of Arab officials, diplomats, soldiers and scholars. The Secretary General of the League of Arab States and my good friend, H.E. Mr. Amre Moussa, visited India in November-December 2008. We are working on spirited implementation of the Memorandum of Cooperation signed between India and the League of Arab States during the visit and on the establishment of an Arab-Indian Cooperation Forum. This will greatly deepen our relations in many sectors including energy, education, human resources development and trade and investment. I look forward to cooperation from all to carry this ambitious agenda forward.

9. Excellencies, Ladies and Gentlemen, the Arab world has always figured very high in India’s foreign and trade policy priorities. India considers the Arab world a key part of its strategic neighbourhood. India desires to strengthen cooperation to explore opportunities across the entire spectrum of potentialities that exist. We wish to work together today with an eye on tomorrow: to consolidate our ties in emerging sectors of the economy so that we can develop a framework for future generations. Our economies are complementary. In many areas, countries in the Arab world have the capital, while India offers the opportunities, especially for the development of infrastructure. The more the long-term linkages that India and the Arab world develop, the greater will be our mutual stakes and interests in each other’s success and prosperity. I want to assure our Arab friends that it is not only financial investments that we are thinking of: we are invested in the future of our relationship.

10. While concluding, I would like to underline that we have in place a framework for cooperation, which is constantly deepening and widening. While its pace could be faster, a critical mass has already developed to take us into a qualitatively upgraded relationship. There are many dimensions to Indo-Arab relations, some very old and some very new. I am sure that this Manual brought out by ASSOCHAM will contribute in substantive measure to one important aspect – business and trade relations. I would encourage ASSOCHAM to bring out a similar Manual on India in the Arabic language for distribution in all the Arab countries. I wish all success to our joint efforts and ASSOCHAM and the Missions of Arabic countries in India to boost Indo-Arab relations and take them to an even higher plane.

Thank you.

Mr Francois Stamm, Head of Regional Delegation, ICRC, New Delhi
Shri Mahesh Bhatt, Eminent Film Personality, who delivered the kind of speech we all like to hear but Ministers can never deliver,
Mr Arthur Mattli, Charge d’Affaires, Embassy of Switzerland
Dr S P Agarwal, Secretary General, Indian Red Cross Society
Mr Azmat Ulla, Head of the Regional Delegation, International Federation of Red Cross and Red Crescent Societies, New Delhi
Distinguished participants,

Excellencies, Ladies and Gentlemen, Friends

“Even wars have limits”. These four words sum up the Four Geneva Conventions of August 12, 1949, whose 60th Anniversary we are gathered here to celebrate. Not a retirement age, Francois, what we in India call Shastyabdapurti – a landmark 60th birthday.

For millions of people around the world, the rules enshrined in these Conventions have meant, improved detention conditions, fewer indiscriminate attacks against civilians and the availability of medical care for those affected by armed conflict over the past 60 years.

While war itself is inhuman, the Geneva Conventions have offered hope for persons under occupation, captured on the battlefield, shipwrecked at sea or being transported to receive medical care during some of the most difficult times – during armed conflict.

But rules placing limits on behaviour in war have their origins well before 1949. and the human instinct to provide succour to victims is as old as humanity.

The first laws of war were proclaimed by major civilizations several millennia before our era. Many ancient texts including Chinese warrior codes, the Mahabharata, the Bible and the Koran contain rules advocating respect for those no longer taking part in hostilities and for fellow warriors. For instance, in the Code of Manu, which we may have our differences with on feminist grounds, but which has many enlightened injunctions we find the following prohibitions: “when he fights with his foes in battle, let him not strike with weapons concealed (in wood), nor with (such as are) barbed, poisoned, or the points of which are blazing with fire.” (All techniques that had been used:- warfare up to that point.) Similarly, a branch of Buddhism includes the Vimalakirti Sutra, which contains the following verse, “In times of war, give rise in yourself to the mind of compassion…”

Since you are publishing a Hindi edition of “A memory of Sohana”, let me mention that we also have an early Indian example of a “Henri Dunant”. After the battle of Anandpur in 1704 between the Mughal army and the Sikhs, Bhai Kanhaiya, went around the battlefield serving water to and tending the wounded from both sides.

The codification of international humanitarian law (IHL, or the law of armed conflict) in treaty form, was sparked by the events of another anniversary this year, that of the 150 years since Henry Dunant, a 31-year old Swiss businessman, (and it is striking how young he was when he changed the world), witnessed the aftermath of a bloody battle in Solferino (Italy), between the armies of imperial Austria and the Franco-Sardinian alliance. Around 40,000 men lay dead or wounded on the battlefield. The wounded lacked medical attention and so he organised local people to attend to the soldiers’ wounds and to feed and comfort them. On his return to Geneva he called for the creation of national relief societies to assist those wounded in war, and sowed the seed for the future Geneva Conventions.

The as we have been reminded today, the Red Cross was born in 1863 when five men, including Henry Dunant, set up the International Committee for Relief to the Wounded, later to become the International Committee of the Red Cross (ICRC). In 1864, 12 governments adopted the first Geneva Convention, a milestone in the history of IHL, offering care to the wounded and sick on the battlefield.

This was followed by important developments in 1907 (protection of combatants wounded at sea), and in 1929 (protection of prisoners of war). On August 12, 1949 the Four Geneva Conventions were adopted, which included updates of the previous three Conventions and a new Fourth Convention protecting civilians. We also therefore celebrate today the international community’s decision 60 years ago to establish new rules on how civilians should be treated in armed conflict, as well as rules governing non-international armed conflict. In 1977 two more protocols were added and another in 2005. Without them our understanding of international law today would be very different.

The Fourth Convention in particular was one of the international community’s key responses to the horrors witnessed during the Second World War. Each of the Four Conventions is directed toward the protection of different classes of the victims of war, namely, the wounded and sick in armed forces in the field; the wounded, sick and shipwrecked among armed forces at sea; prisoners of war; and civilians.

The International Committee of the Red Cross has been instrumental in drafting the Geneva Conventions and in pushing for greater respect of these rules in armed conflict. The path Henry Dunant started led us to the Four Geneva Conventions of 1949, which, for the first time in history, constitute treaties now acceded to by the entire world’s treaty-signing States – in other worlds, they are truly universal.

When the Geneva Conventions were adopted, conflicts were more likely to take place between States. However, the last 60 years have witnessed more non-international armed conflicts than international armed conflicts, while fewer rules regulate internal armed conflict. “Common Article 3” therefore, has been invoked by the ICRC as often as any other provision of the 1949 Geneva Conventions. Access by humanitarian organisations, including but not limited to, the ICRC, to conflict areas, remains an essential element in seeking to alleviate the suffering caused by armed conflicts.

Since the 1864 Geneva Convention was open for signature, the Swiss Government has played the important role of depositary of the Conventions, and I am pleased to see their participation at this event. India was the fifth State in the world to deposit its instrument of ratification of the 1949 Conventions with the Swiss Federal Council, doing so after only Switzerland, Liechtenstein, Monaco and Chile. We are also the first country in the region to adopt specific implementing legislation for the 1949 Conventions, through the 1960 Geneva Conventions Act.

The Red Cross movement also has a long history in India. During the First World War, in 1914, there was no organization in India for relief services to the affected soldiers, except a branch of the St. John Ambulance Association and a Joint Committee of the British Red Cross. (It was for St. John’s that Mahatma Gandhi organized ambulances in South India.) A bill to constitute the Indian Red Cross Society, Independent of the British Red Cross, was adopted in March 1920, and The Indian Red Cross Society (IRCS) is a member of the International Federation of Red Cross and Red Crescent Movement. It partners with other national Red Cross and Red Crescent Societies, along with the International Federation of Red Cross and Red Crescent Movement (IFRC), and the ICRC.

The relevance of IHL in the present day international situation remains high. The nature of conflicts has changed over time. Unfortunately, the South Asian region is not an exception. We have witnessed conflicts in many different forms, including what is commonly referred to as ‘terrorism’. While the Geneva Conventions in particular and IHL in general do not provide a universal definition of terrorism, they explicitly prohibit most acts committed against civilians and civilian objects in armed conflict that would commonly be considered “terrorist” if committed in peacetime. Terrorism violates one of the most important tenets of IHL, the principle of distinction. Indeed, acts of violence directed against civilians or civilian objects in armed conflict constitute war crimes, or “grave breaches” of the Geneva Conventions.

Therefore, it is imperative for all of us to underline the significance of IHL. It is true that the lasting solution to conflicts would be possible not through mere legal reform but through certain substantive changes, which also include political and economic reforms. However, regulatory systems such as international humanitarian law mitigate suffering in situations of armed conflict, thus creating a conducive environment for establishing lasting peace. I believe that legal frameworks such as IHL are of enormous significance in shielding the victims of armed conflict from the worst effects of war. As one who had spent a large portion of my own professional life at the UN and laterally, though briefly, at the ICRC, I would like to stress that we therefore strive to ensure that the rules codified 60 years ago are respected in practice.

Thank you very much.

Dr V A Mohandas, Principal, Maharaja’s College
H.E. Dr Noureddine Bardad-Daidj, Ambassador of Algeria to India
H.E Mr Khidir Haroon Ahmed, Ambassador of Sudan to India
H.E. Dr Ahmed Salem Saleh Al-Washishi, the Chief Representative of the
League of Arab States Mission in India
Dr Ebraheem Mohammad Al Batshan of the Royal Embassy of Saudi Arabia
Dr Jameela Beevi, Vice Principal
Prof VN Chandramohan, Syndicate Member of MG University
Prof Jayakumar, Syndicate Member, MG University
Dr Liaqath Ali, Head of Arabic department
Faculty Members, Ladies and Gentlemen
And my dear Students,

I am honoured and delighted to be here to inaugurate this international seminar on “New Dimensions of Indo-Arab Relations” in this prestigious college in my home State, which is also a seat of excellence of learning in India. It gives me immense pleasure to further note that this Seminar is being organized in the Maharaja’s college with the support of the Policy Planning and Research Division of the Ministry of External Affairs. As some of you are no doubt aware, the Policy Planning Division of the Ministry of External Affairs undertakes studies on general foreign policy issues. For this purpose, it maintains interaction and liaison with the Area Studies Centres of the University Grants Commission. The Division also extends financial assistance to various academic institutions and think tanks located in different parts of the country for holding conferences, seminars and for research. Kerala has a long history of openness to the rest of the world and that is why we are particularly happy to be associated for this event with the Maharaja’s College.

2. I am happy to see the presence of many eminent personalities here including Ambassadors and diplomats from many Arab states. This will certainly provide this Seminar an added profile. The deliberations as well as recommendations of the Seminar will carry greater weight and reach the appropriate audiences. I would like to compliment the organizers of the Seminar for their initiative and their efforts to make this a memorable event.

3. India-Arab relations is a subject close to my heart. Personally, not only have I travelled to several Arab countries in the course of my international career, but after I left my job at the UN, I was temporarily resident in Dubai in my bid to work with various institutions to bring, amongst other things, quality and affordable education to my home state of Kerala. This put me in direct contact with Arab people and I have come away very impressed not only with their intrinsic abilities and entrepreneurial skills but also with their deep sense of appreciation of the historic, cultural and civilizational ties that bind India and the Arab countries. As a student of history as well as an ardent believer in the importance of history in shaping our destiny I propose to deal today with some aspects of our historical relations with Arab countries. This will show all of us how our relations cannot be anything but excellent.

4. Our ties predate our emergence as nation states. Not only did Arabs and Indians knew each other before the advent of Islam but it is said that the Arabs even played a crucial role in the emergence of the very notion of “Hindustan” and even in giving a name to the religion of Hinduism. We can argue whether it is to the Arabs, Persians or Greeks that we owe the concept of the Hindu – the people who live across the river Sindhu or Indus – but there is no doubt that the people of India were referred to as Hindus by the Arabs long before the Hindus themselves called themselves Hindus.

5. The Arabian Sea, which washes the shores of both our regions, has played a crucial role in the cultivation of our relations. India’s cultural links with West Asia can be traced to the early years of recorded history. There is evidence, for instance, of trade links between the Harappan civilization and that of Dilmun in the Gulf. In pre-Islamic times, Arab traders acted as middlemen in trade between Bharuch in Gujarat and Puduchery and the Mediterranean through Alexandria and even through the Palakkad gap as evidenced in archaeological finds of Roman coins and artefacts in southern India. On-going excavations in the Red Sea coast continually produce fresh evidence of perhaps even older links. And it is no accident that so many distinguished Arab families in many different Arab countries bear the surname al-Hindi, or that Hind is still a desirable name used by many Arab women.

6. Some scholars trace Indian studies on the hadith to the early days of the arrival of Islam in India in the South in the 7th century and in the north in the 8th century AD. Islamic scholars from the turn of the 8th Century AD to al- Baruni (d.1048 AD) have, in their writings, documented Indo-Arab cultural links, including Indian contributions to Arab thought and culture. Translations of Indian works were sponsored by the Abbasid Caliphate in Baghdad where, especially under Harun al-Rashid, Indian concepts in secular subjects ranging from medicine to mathematics and astronomy were absorbed into the corpus of Arab scientific writing. Scholars have also documented the compilation of a large number of Indian works in Quranic studies over the last 500 years as also in Islamic jurisprudence over a slightly longer period. Perhaps less remembered today is the contribution of Indians to Islamic scholarship in the medieval period. Amongst notable scholars was Shah Waliullah of Delhi and his descendants. Indeed, so important were these contributions that in an article in West Asia and the Region brought out last year by the Center for West Asian Studies of Jamia Millia Islamia, the following tribute from the Lebanese scholar Rasheed Rada is to be found:

If our brothers, Indian Ulama had not taken care of the science of hadith in this period, the same would have disappeared from the Eastern countries, because that branch of knowledge had become weak in Egypt, Sham (Syria Lebanon, Jordan and Palestine), Iraq and Hijaz since the 16th century A.D and it reached its weakest point at the beginning of the 20th century A.D.

7. Travellers between India and the Arab world were the vehicles not only for scholarly exchanges but also for cultural interaction at a popular level. Much of the Sufi tradition is the result of Indo-Arab interaction and Khwaja Moinuddin Chisti, whose shrine at Ajmer is visited by people of many faiths, was himself an Arab. Over centuries, stories from the Panchatantra have blended with the Fables of Aesop and stories from Alf Laila wa Laila or the Arabian Nights. Some Arab travellers, such as the Moroccan Ibn Batuta occasionally found themselves elevated to positions of power by their hosts; Ibn Batuta was, for a while, made the Qazi of Delhi, even though he was unfamiliar with the school of Islamic jurisprudence used in India. As Dr Liaqath Ali has reminded us, many Arabic words can be found in several languages particularly in Hindi and Urdu.

8. The adventures of seafarers who have ridden the waves and tides of the Arabian Sea on their dhows are the stuff of legend. I have even heard that story that it was an Indian seafarer who regularly traveled between Kerala and the Arab settlements on the east coast of the African continent who might have guided Vasco da Gama to the Indian coast at Kozhikode. It is for scholars of history to debate on the accuracy of this tale, but what is not debatable is that these ties have hundreds if not thousands of years of antiquity and are responsible for the civilizational melting pots that all of us have inherited and thrived in. Another compelling example would be enough to illustrate my point and this is the worldwide use of what are known in the West as Arabic numerals, but which the Arabs themselves acknowledge they learned from India.

9. The early years of the 20th century, marked as they were by the beginning of the end of Western colonialism, witnessed much interest in the fortunes of the Arab and Islamic world within our own freedom movement. The Khilafat struggle perhaps best exemplified this. And one of our great nationalist leaders, Maulana Abul Kalam Azad, was born in Mecca and studied at the famous al-Azhar University of Egypt. The leaders of our freedom movement closely monitored developments in Egypt and other countries, a trend that was also noticeable after we gained freedom. The struggle of the FLN in Algeria and President Nasser’s nationalization of the Suez Canal and the Suez Crisis of 1956 were but two important historical developments that found resonance in India’s support for our fraternal Arab peoples.

10. Having said that, let me now move to our contemporary relations. Just because we have had centuries-old relations does not mean that we do not have to endeavour to sustain and nurture our present day relations. If anything, it needs more hard work by all concerned so that we are not lulled into complacency. The bedrock of goodwill between our two regions allows us to build a strong edifice of substantial contemporary relations. India considers the Arab region very important role in shaping our political, economic, defence and security policies at both the regional and global level. Let me make it very clear. Our approach on issues affecting the Arab world is based on principles, not expediency. India has endeavored to follow the spirit of South-South solidarity and cooperation in its dealings with the Gulf and Arab world. In this context, it is not surprising to note that that the number of flights to the Gulf region, for instance, is more than the total number of flights from India to the rest of the world.

11. Whereas the world has heard of our “Look East” policy in South-East Asia, as far as the Arab world is concerned, we are proud that we have a “Look West” policy too, and “West” here does not refer to Europe or America. In keeping with our desire to strengthen our relations with the countries of the region we are trying to put in place a structure of multifaceted cooperation covering all sectors. It is a matter of satisfaction that our efforts are being matched in equal measure by the countries of the Arab world. 2008 witnessed several high-level visits, bilaterally manifesting the importance of the region in our relationship, peaking with our Prime Minister’s visit to Qatar and Oman in November 2008. The visit of the Vice President of India to Kuwait in April 2009 opened up new facets for cooperation.

12. Let me take this opportunity to address one important aspect of India-Arab relations i.e. the issue of Palestine. India’s solidarity with the Palestinian people and its attitude to the Palestinian question reflects, perhaps more than any other issue, the enduring nature of Indo-Arab ties. It was as early as in 1936 that the Congress Working Committee sent greetings to Palestine and on 27 September 1936 Palestine Day was first observed in India. The 1939 Session of the Indian National Congress adopted a Resolution on Palestine and looked forward to the emergence of an independent democratic state in Palestine in which Jewish rights would be protected. India was a member of the United Nations Special Committee on Palestine. In 1974, it became the first non-Arab country to recognise the Palestine Liberation Organization as the sole and legitimate representative of the Palestinian people. In March 1980, the Government of India announced in Parliament India’s decision to accord full diplomatic recognition to the PLO office in New Delhi. It was after this that the late Yasser Arafat paid a three-day official visit to India in March 1980. It was during this visit that Mr. Arafat described India as “an eternal friend”. In 1988, India recognised Palestine as a State. Construction of the Palestine Embassy building in New Delhi, a gift of the people and Government of India, is nearing completion. The continuing tradition of exchange of high level visits, which saw us welcoming President Bashar al-Assad of Syria in June 2008 and President Mubarak of Egypt in November 2008, also witnessed a State visit by President Mahmoud Abbas to New Delhi in October 2008.

13. India has had a consistent and unwavering record of support for the Palestinian cause since the days of our freedom struggle. Our policy is in line with United Nations Security Council Resolutions 242 of 1967 and 338 of 1973, the Quartet Roadmap and the Arab Peace Initiative. India supports a united, independent, viable, sovereign state of Palestine with East Jerusalem as its capital, living within secure and recognised borders side by side at peace with Israel. We have expressed concern for the continuing expansion of Israeli settlements in occupied Palestinian territories. India also supports Palestine in a variety of tangible ways. In March 2009, $10 million were contributed as budget support for the Palestine National Authority. We also assist Palestine in developing its human resources through the ITEC programme.

14. Reverting to the broad nature of India-Arab relations, Arab countries, as vital sources of oil and gas whether from the Gulf or more recently from Egypt, Sudan and the Maghreb, have become essential to India’s energy security needs. Indian companies have secured concessions or have otherwise invested in the oil sector significantly in Sudan, Egypt and Libya. Less publicized, perhaps, is the enormous importance to India’s food security of countries such as Jordan, Morocco, Tunisia and Algeria as providers of rock phosphate and phosphoric acid and potash, all of which translate into fertilizer for our farmers.

15. Egypt has emerged as a significant Indian investment destination with Indian investments estimated at over US $500 million. Some Indian companies are also exploring possibilities of setting up plants to manufacture phosphoric intermediates in Morocco, Algeria, Tunisia and Jordan. We are also examining the possibilities of working together with Syria in this regard.

16. Besides the hydrocarbon and fertilizers sectors, Indian companies have executed or are in the process of completing a variety of projects including those financed by concessional lines of credit. Examples include a thermal power plant in Sudan, a cement plant in Djibouti, an architecturally complex bridge in Jordan and a variety of projects in Libya.

17. Our trade with Arab countries is booming. A look at our figures of trade with the Arab world is illuminating. For instance the Gulf region has emerged as a major trading partner of India. During 2006-2007 the total two-way trade was US $ 47 billion and in the year 2007-08 it reached more than US$ 76 billion. Trade with the non-Gulf Arab countries totaled more than US$ 13 billion in 2007-08. Total trade with Arab countries was about US$ 90 billion in 2007-08.

18. I am happy to inform you that to give a boost to trade relations, we are negotiating with the Gulf Cooperation Council (GCC) to conclude an India-GCC Free Trade Agreement (FTA). This would complement our ongoing and rapidly expanding bilateral economic engagement with individual member countries of GCC. The third GCC-India Industrial Conference, which was held in Mumbai in 2007, was a success and it has further consolidated our economic interaction. We are working to hold the fourth GCC-India Industrial Conference later this year.

19. India has always shown its willingness to share with our Arab brethren our experience and expertise in institution and capacity building, governance, science and technology including Information Technology and biotechnology, healthcare and higher education including training of Arab officials, diplomats, soldiers and scholars. ISRO/Antrix Corporation was awarded a contract in July 2008 for launch of the Algerian satellites. Antrix has completed a remote sensing project involving setting up of an earth station in Algeria using Indian CARTOSAT imagery. India and Egypt concluded an agreement on the peaceful use of outer space during President Mubarak’s 2008 visit. Cooperation in Information & Communication Technology is another area worth mentioning. Recently, Memoranda of Understanding and agreements relating to this area have been signed with Tunisia and Syria.

20. The Secretary General of the League of Arab States and my good friend, H.E. Mr. Amre Moussa, visited India in November-December 2008.I am happy to inform you that during this visit the Memorandum of Cooperation between India and the League of Arab States on the establishment of an Arab-Indian Cooperation Forum was signed in New Delhi. This is a very comprehensive document that looks at deepening our relations in many sectors including energy, education, human resources development and trade and investment. We are looking forward to the spirited implementation of the Memorandum which we are sure will take our relations to new heights. I look forward to cooperation from all to carry this ambitious agenda forward. In this context, I am happy to note that last December, the Ministry of External Affairs worked with the Indian Council of Cultural Relations and the Federation of Indian Chambers of Commerce and Industry to organise the first Indo-Arab Cultural Festival in New Delhi with the support of various Arab Missions and governments. The Government of the UAE has recently selected Indian books for translation into Arabic to enhance understanding of our country’s history and literature. We too study Arabic here, as the presence of so many Indian scholars of Arabic here today testifies.

21. Ladies and Gentlemen, the Arab world has always figured very high in India’s foreign policy priorities. India considers the Arab world a key part of its strategic neighbourhood. The Arab world is the only region for which the Government of India has appointed a Special Envoy. India has worked with its Arab friends in a variety of multilateral forums including the United Nations, the Non-aligned Movement and the G-77. India is a major troop contributor to UNIFIL and provides elements to UNDOF. Indian peacekeepers also serve with the UN Mission in Sudan, UNMIS, which acts in support of the Comprehensive Peace Accord of January 2005.

22. Allow me to turn to a subject which is close to the hearts of people of Kerala – the welfare of the Indian community in the Arab countries in general and the Gulf region in particular. The people of India in the Gulf and the Arab world have contributed immensely to the economic development of both India and the countries they reside and work in. The remittances that India receives from the 4.5 million expatriates in Gulf, many of them from Kerala, in the order of more than US$ 10 billion annually, make a significant contribution to India’s economic development. In view of the large Indian population in the region, a number of issues come up from time to time in our relations with these countries which relate to our people-to-people contacts and to consular matters. Active steps have been taken and are continually being taken, in cooperation with the countries of the region, to promote the welfare of the Indian community, particularly expatriate workers. Memoranda of Understanding on manpower have been signed with some countries and are under negotiation with others. These and similar arrangements will enable us to jointly deal with issues relating to the welfare of the expatriate Indian communities in the region. I would like to take this opportunity to assure the people of Kerala that our Government gives high priority to the welfare of Indians in the Gulf and if anybody needs any help or assistance in this regard, my Ministry together with that of the Ministry of Overseas Indian Affairs will always be at your service.

23. India desires to strengthen cooperation to explore opportunities across the entire spectrum of potentialities that exist. We wish to work together today with an eye on tomorrow: to consolidate our ties in emerging sectors of the economy so that we can develop a framework for future generations. Our economies are complementary. In many areas, countries in the Arab world have the capital, while India offers the opportunities, especially for the development of infrastructure. The more the long-term linkages that India and the Arab world develop, the greater will be our mutual stakes and interests in each other’s success and prosperity. I want to assure our Arab friends that it is not only financial investments that we are thinking of: we are invested in the future of our relationship.

24. To summarize, I would like to underline that we have in place a framework for cooperation, which is constantly deepening and widening. While its pace could be faster, a critical mass has already developed to take us into a qualitatively upgraded relationship. There are many dimensions to Indo-Arab relations, some very old and some very new. I am sure the deliberations of this seminar will examine these relations from all perspectives and offer recommendations for augmenting our multi-dimensional cooperation. I look forward to reading and acting upon the recommendations of the seminar.

25. I would like to add another word on a broader theme. I believe strongly that foreign policy is too important a subject to be left to the Foreign Ministry alone. Discussion of international relations should not be confined to the seminar rooms of Delhi. That is why I am delighted by the initiative of Maharaja’s college because I believe all Indians, even 2000 km away from our nation’s capital, have a vital stake in the development of our international relations. I am sure there will be many more such occasions in the future to discuss our country’s external affairs in different parts of India and that we will have the privilege, as we do today, of seeing distinguished diplomats travelling out of Delhi to attend them. I call upon other educational institutions in this state and across India to emulate this example. I wish you well in your deliberations today.

Thank you.

Delegates from abroad, Young Friends

Ladies and Gentlemen

Dr Park Jai Chang, President, Asia and Pacific Alliance of YMCAs,
Mr K John Cherian, National President of YMCA of India
Prof O J Oommen, Vice President of Asia Pacific Alliance of YMCAs (APAY)
Mr Vijay Sewag, President, New Delhi YMCA

Delegates from abroad, Young Friends

Ladies and Gentlemen

I am delighted to be here to deliver the keynote address for the YMCA South Asia Peace Forum, to this gathering of people who are working towards achieving something which we all desire but sadly lack in large measure in many parts of the world. However, it is heartening to note that efforts to build peace and to achieve reconciliation, justice and sustainable livelihoods which would put us at peace with ourselves and with nature are not lacking and this gives us reason for hope rather than despair.

2. At the risk of sounding more formal than necessary, I would here like to highlight the important role that the YMCA movement has played all over the world not only in bringing together young people across the globe but also in serving as a forum for the expression of those precious human qualities which unite people of diverse cultures, ethnicities, religions, genders, and linguistic backgrounds. Although by name it is Christian organisation, we in India, have never seen the YMCA as only the preserve of our Christian brothers and sisters but as a body that belongs to every one of us. In fact, I know from personal experience that people of all regions and creeds actively participate in the activities and programmes of the YMCA. YMCA has become an integral part of the Indian ethos and the Indian way of life. It is not an exaggeration if I say that many of us have somehow and other been touched by YMCA in our lives, whether we have stayed in the YMCA hostel or undergone a training programme or honed our language skills in a YMCA institute, or, as in my case, made our first foray into local politics through a speech at a YMCA centre. This humanitarian and social work of YMCA has built enormous goodwill for the YMCA not only in India but all over the world.

3. In this context, when the message of peace-building and reconciliation comes from YMCA, it carries further and deeper and has greater resonance and relevance. For me, therefore, it is not surprising to see this initiative coming from the YMCA. I am also heartened by the tremendous response the YMCA Peace Forum has obtained, as reflected in the participation of so many delegates from India and abroad.

4. The notion of peace-building rests on an acknowledgement, particularly in post-conflict situations, that peace is not merely the absence of war and does not automatically follow at the end of war. To build peace, one must move from conflict and destruction to relief and rehabilitation, then to sustainable development, and to building democratic political institutions which will collectively help ensure that peace endures and the region does not lapse back into war.

5. With reference to our part of the world which is the focus of this meeting, I would say that as we are host to diverse communities, religions, ethnicities and ways of life, the message of this initiative is very important and relevant. South Asia is perhaps one of the most culturally diverse parts of the world. We are also the most populous and densely populated regions of the world with scarce natural resources. It follows from that we have the greatest requirement to live in harmony with each other and with nature. The mandate of the Asia Pacific Alliance of YMCA of (i) global citizenship and social responsibility; (ii) peace with justice; and (iii) sustainability for life – the three pillars on which Asia Pacific Alliance proposes to work- will find tremendous room for application in our South Asian context.

6. For centuries, South Asia has been the home for the peaceful coexistence of various peoples in harmony with nature. People of many faiths have lived together for ages and our region has given birth to many religions, be it Hinduism, Buddhism, Sikhism or Jainism. There were practicing Christians on the Malabar coast before Christianity reached Europe. Our society has since times immemorial placed virtue on frugal ways and on extracting the very least from nature. It is not a coincidence that a large percentage of our people are vegetarian. It is because, over the years, people in our region have realised that vegetarianism is a lifestyle that demands less from our planet. For instance, vegetarians contribute far less to global warming than meat-eaters! This is one possible example of the ways and means that this initiative can pick from our region and take the message forward.

7. The approach to implementing peace initiatives in this sub-continent could be learned from ground realities while implementing best practices from around the world. I know that I am addressing experts and therefore would not expand more on this subject. I would only like to reiterate my message that this initiative is most welcome and I am confident the deliberations of this Forum will throw up imaginative ideas on peace building and reconciliation in the South Asian context. I wish you all the best. I have great pleasure in inaugurating this Forum.

Thank you.
YMCA, New Delhi
August 7, 2009

[16 July 2009, 1600 hrs; Sovereign Ballroom, Le Meridien Hotel]

Chair of the session H.E Dr Abdul Waheed Khan, Assistant Director General of UNESCO,
Prof Binod Agrawal, Vice Chancellor, Himgiri Nabh Vishwavidyalaya
Dr Ang Peng Hwa, Chairman, AMIC
Dr Indrajit Banerjee, Secretary-General, AMIC
Distinguished experts and guests,
Representatives of media both from India and abroad,
Ladies and Gentlemen, Friends I hope that covers everyone

It is indeed a great honour for me to be here with you this afternoon. I would like to thank the Asian Media Information and Communication Centre, AMIC, for extending the invitation to me and bestowing on me the honour to speak to this distinguished gathering. I would like to compliment AMIC, Professor Ang Peng Hwa and in particular my friend Dr. Indrajit Banerjee on organizing this Conference in New Delhi on a very topical issue. On what we all know is a valedictory occasion for Indrajit, I would like to take this opportunity to warmly felicitate and compliment your outgoing Secretary-General for his enthusiasm, his dynamism and his commitment to the cause of Media and Communications in Asia. The AMIC we see today in many ways bears his personal stamp. I know I speak for you all when I wish him well in his new career at UNESCO.

2. I have been very impressed by the array of speakers and participants at this Conference. I am confident that the various plenaries and parallel sessions of the Conference over the last few days have produced papers and discussions with rich substance and high relevance on topics of interest to academics and practitioners alike – including media and democracy, media and gender, media and cultural identity, and current trends in the international media industry. I am sure that the Conference has also provided a valuable opportunity for all of you to interact informally.

Mr. Chairman,

3. I am conscious that I am addressing you as your Conference draws to a close on its fourth day today. I would have personally much preferred to learn from the renowned experts representing a multitude of disciplines gathered here rather than inflict another lecture on you. Unfortunately the tyranny of my schedule did not permit me to listen to you all and I am therefore speaking without the benefit of having heard the learned views of some of the best known experts and professionals in the spheres of media, government and development. I feel rather like a fisherman rising to deliver a lecture on the whale and discovering that Jonah is in the audience – and what’s more, has already spoken! I know there are many Jonahs in this audience and I apologize to them in advance.

4. But now to say that media occupy a significant place in our lives, especially in a democracy, would be an understatement. Many of us are aware of Thomas Carlyle’s reference to Edmund Burke turning his head to the press gallery in Parliament and saying: “…in the Reporters’ Gallery yonder, there sat a Fourth Estate more important [by] far than they all.” And the “they all” stood for the other three Estates! If media commanded that level of prominence when Edmund Burke spoke of it in the 18th century – when the wheels of the industrial revolution had just turned and when there was no television, no internet, no twitter, neither landlines nor mobile phones, and when the total circulation of newspapers in Britain, printed probably only in one language, would have been insignificant compared to today’s – then one can well imagine the impact media has in our lives now when large chunks of the human population are literally just a click away from one another. Any doubt that I might have had about the reach and influence of global mass communications was dispelled for years ago in my UN days when I happened to be in St. Petersburg, Russia, for a conference and was approached by a Tibetan Buddhist monk in his saffron robes, thumping a cymbal and chanting his mantras, who paused in his chanting to say: “I’ve seen you on BBC!” New communications technology has clearly shrunk the world, and in the real sense made it all one.

5. The most significant aspect of the media from the point of view of the subject of this Conference is its relation with, and contribution to, democracy. Simply put, democracy is impossible without free media. Press freedom is both the mortar that binds together the bricks of democracy and it’s also an open window embedded in those bricks. Democracy and free media constitute two sides of the same coin. It is this centrality which led Thomas Jefferson to say famously, and I quote: “Were it left to me to decide whether we should have a government without newspapers or newspapers without government, I should not hesitate to prefer the latter.” Unquote. I am not sure how solidly I agree with that, but

6. This Jeffersonian view of the criticality of free media for the existence of democracy is something India can attest to from our experience. Our national movement, our freedom struggle, itself saw several publications, such as Mahatma Gandhi’s Young India and Harijan, and the Jugantar of Shri Aurobindo, inspiring millions to join the struggle for independence. Moreover, these and other similar publications inculcated and fostered the democratic values and principles which independent India has come to champion. It is on this foundation which rests the edifice of the freedom of expression, guaranteed as a fundamental right in our Constitution, and zealously protected by its practitioners and guardians.

7. The idea of freedom of expression, which includes freedom of press and other media, did not come to us in India as a mere import from the West. Freedom of expression had been integral to Indian civilization and to the ever ongoing synthesis amongst its various traditions. Our Constitution codified what had been the essence of the Indian civilization: the freedom to express life in all its diverse manifestations. Diversity is central to the Indian experience; and diversity cannot be preserved without the freedom to say this is who we are, this is what matters to us, this is what we want to be. Freedom of expression and therefore of media is therefore fundamental to India’s constitutional democracy.

Mr. Chairman,

8. It is the diversity of India which expresses itself through an almost mind-boggling array of publications and audio-visual media today. In independent India, the soil has been fertile and the climate propitious for the media to play a key role in nurturing and buttressing both democracy and development, and at the same time to bloom in the form of more than a thousand flowers. At a time when media around the world is in a state of contraction amidst the financial crisis, India is a rare exception where all forms of media are growing. Newspapers are fading in the West but flourishing in India; television and radio are extending their broadcast reach; and the internet is slowly penetrating a growing percentage of Indian households. Today, more than 65,000 newspapers and periodicals are registered for publication in 123 languages and dialects. The total circulation of just about 8,500 of the largest of these 65,000 was more than 180 million. There are some states (such as Orissa and Maharashtra) which publish newspapers in more than one dozen of the twenty two languages listed in the Eight Schedule of the Constitution. While there are more than one hundred private TV channels, the widest reach is with Doordarshan, which has five national and eleven regional language channels. Now, in 1947, when we won our independence All India Radio, or AIR, had six stations covering 2.5% of the country’s area and 11% of its population. Today, it has 225 broadcast centres covering over 99% of the population through its programmes in 22 Indian languages. And its broadcasts also reach over 100 countries in 15 foreign languages.

9. Now, while these numbers give some indication of the high status and prominence enjoyed by media in Indian democracy, the real and full facts of its centrality lie behind these figures. Many of you are familiar with the metaphor of the media as the canary in the mine-shaft – the bird lowered into the depths to test the levels of oxygen at the bottom of the coalmine. Our canary continues to breathe and even to sing, so perhaps I could instead use a different medical metaphor. We in India have seen media, in different contexts, as a doctor’s mirror in which the patient sees a reflection of reality; as a diagnostic tool – a sort of MRI scan which, in the hands of an expert professional, has the potential to lay bare a hidden problem; and also, occasionally, as a scalpel – as if the radiologist sometimes decides to assume the role of a surgeon as well.

10. Apart from being a watchdog of public interest, the media acts as a two-way conduit between the people and those who have the responsibility for their governance and development. This is, arguably, the most important role of one media in a democratic developing country like ours. Media keeps the citizens engaged in governance by disseminating information, educating and mobilizing public opinion, and thus facilitating the active participation of citizens in democracy. But it should be remembered that media does not just reflect public opinion, it shapes it. When the media is engaged, the public is engaged. The media shapes our awareness of events and, by so doing, sometimes shapes events themselves. Events that the media ignores find it difficult to obtain traction in the modern world; events that the media focuses on, on the other hand, become impossible even for powerful Governments to ignore.

11. A complementary role of media is to act as a channel for feedback or information for the policy makers and administrators on the need for action in a particular sphere. To borrow the term used by our great Nobel laureate Prof Amartya Sen, the media acts as “the best early warning system” bringing out information that can have a significant impact on policies and programmes. “Information and critical public discussion are an inescapably important requirement of good public policy,” he writes. It is this role of the media which has made government more responsive and accountable in many countries and I am proud to say in my own. While free media is essential for all countries, we in India think it is even more important in developing countries because the challenge of development requires challenges from the public through the media. In India, the persistence of an inquisitive press has also made public servants more accustomed, and more open, to their presence, thereby promoting the notion of a partnership for the greater common good.

12. Press freedom is also a precondition for economic and social progress. Many of you are familiar with Amartya Sen’s famous argument that there has never been a famine in a democracy with a free press. Famines are the result of a lack of access to food, and Sen has proved, with extensive research, that they occur only when the media is not free to draw attention to the problem. Press freedom is also essential to generating awareness about development, about the environment, about education and about critical health issues like HIV/AIDS. And it continues to be a major building block in constructing governance that is people-centered, inclusive and progressive.

13. The new hallmarks of development are the ability to receive, download and send information through electronic networks, and the capacity to share information – including not only newspapers and journals, but also on-line web sites – without restriction. This is why censorship is so unwise; indeed, it is anti-development. For developing countries need to open up to the outside world, liberalize their mass media, and resist government control and censorship of information, if they are to be able to take advantage of the opportunities that the information revolution has made available to the world.

14. A corollary to the media’s role in good governance is its advocacy of inclusiveness. The media has and usually discharges the responsibility to bring the marginalized and the issues of their concern into the mainstream of public debate. A byproduct of this focus is the role media can and do perform in either building or promoting a consensus on key social and economic issues, or in highlighting a basic common denominator, where there is discord and conflict.

15. Now, so far I have been speaking about the news media. But even entertainment television educates people – children and adults – through the values it espouses in its popular shows. Television entertainment teaches about culture, about society, about history, about interpersonal relationships. It helps a society define itself.

16. It may surprise some that I speak of mass entertainment television as an educational medium. Groucho Marx once said that he found television enormously educational, because whenever anyone turned on a TV set, he went into another room and read a book. Now, doubtless there are people who imagine that educational entertainment television is an oxymoron. I suspect these are the same people who say that the reason television is called a medium is because it is neither rare nor well done.

17. And yet there is no escaping television’s reach and influence in every democracy. The question isn’t whether TV teaches, it’s what it teaches. Media can reinforce existing stereotypes, or build new positive ones. You can denigrate and dismiss cultures that are different from the mainstream. Or it can celebrate diversity.

18. To the broadcasters in this room, let me say this: As the custodians of the airwaves, you can choose to be purveyors of weapons of mass distraction. Or you can choose to be builders of a better world.

Mr. Chairman,

19. Our topic speaks of the media, democracy and governance in a digital age, and I haven’t yet mentioned the Internet. There is no doubt that the internet can be a democratizing tool. In some parts of the world, certainly in most of the West, it has already become one, since large amounts of information are now accessible to almost anyone.

20. But a person’s means of access to information has long served as a way by which you could determine his or her wealth – perhaps merely by glancing at the watch on their wrist. That is a source of information about a person. And the stark reality of the world today is that you can tell the rich from the poor by their Internet connections.

21. Today, the poverty line is linked to the high-speed digital line, the fibre optic line…. all the lines that exclude those who are literally not plugged in to the possibilities of our new world. There is a marked gap between the technological haves and have-nots – between those who know, and those who don’t – both between cultures and within them. This gap has come to be called the digital divide.

22. To put it simply, thus far, the information revolution, unlike the French Revolution, is a revolution with a lot of liberty, some fraternity, and no equality.

23. I am sure that in the deliberations over the last four days, the distinguished participants in this Conference have discussed and delineated the contours of the emerging paradigms relating to media, democracy and governance. As a person associated with governance, and often coming into interaction with media, may I say that the role of media in democracy and development, which I have briefly touched upon, leads me to surmise that it is the common man, the aam aadmi, as my Party likes to call them who holds the touchstone for the relevance, correctness and utility of any evolving paradigm in this area. Success of media both as a commercial venture and as a tool capable of moulding public discourse and policies, in my view, hinges and will continue to hinge on how it touches the life of the aam aadmi, the common man.

24. It is this belief, which brings me, Mr. Chairman, to the last of the points I wanted to make. I am sure the Conference has already addressed and discussed issues such as the inclusiveness issue implications of the competitive market and excessive commercialization on the quality and type of content and focus of media. This is particularly relevant for audio-visual media, which has real time reach. It may be due to this that all the time something is “breaking” on the airwaves in my country (in the form of ‘breaking news’), turn on the TV in India you cannot go 5 mins. without seeing something ‘breaking’, making us almost believe that something earth-shattering is happening somewhere all the time. All too often, the sensational prevails over the substantial; after all, in the US, it is said, “if it bleeds, its leads”. But we have to pause and ask: Does so much focus on ‘breaking’ leave enough space for ‘constructing’ through deeper and wider coverage and analysis? What serves the aam admi better: bits of information which may not be relevant or retainable the minute after, or a full picture on the issues of his concern? Should dramatizing or “dumbing down” the news in a quest for ratings points carry a premium over serious reporting? Should tight purses, particularly in difficult economic times, necessarily lead to “infotainment”, driving a shift in the focus away from what matters to the common man? Is there a danger that the media, in its quest to attract eyeballs, can drive public policy in a dangerous direction, for instance by stoking national chauvinism or jingoism on international questions where a more measured approach might be wiser? Or is there a middle ground, a way out, perhaps a harder way?

Ladies and Gentlemen,

25. Like all good and important questions, these may not have simple and straightforward answers and I am not going to venture any to you today. I would merely point out what India’s first Prime Minster Pandit Nehru had said, and I quote, “Freedom brings responsibilities…and we have to face them in the spirit of a free and disciplined people.” Unquote. I am sure that the Conference has discussed such issues. I am also hopeful that the deliberations of the Conference will point to the best possible answers. Meanwhile, let me reiterate that democracy, development and government on one hand and the media on the other continue to benefit in India from their symbiotic relationship. On our part, we in the government are committed to upholding the highest ideals and guarantees of freedom of expression that our Constitution enshrines.

Mr. Chairman,

26. The prospective benefits of the information age are clear; in a nutshell, we now have a powerful tool to address the disadvantages of under-development, of isolation, of poverty and of the lack of political accountability and political freedom.

27. But these benefits will only be made manifest when the entrances and exits to the digital information superhighway are open to everyone, when they are mapped and signposted in such a way as to allow everyone to know where they need to go, and when the road itself is suitable for all manner of vehicles, from sports cars to trams, and from rickshaws to bicycles. Access to information, in other words, is of paramount importance in a democracy.

28. Pandit Nehru had once said, “We live in a wonderful world that is full of beauty, charm and adventure. There is no end to the adventures that we can have if only we seek them with our eyes open.” Unquote. I would wish and pray that media remain our eyes for leading us from falsehood to truth, and from darkness to light – asato ma sadgamay, tamaso ma jyotirgamaya. After all the human mind is like a parachute – it functions effectively only when it is open.

29. So with these parting words, I would like to once again thank the Asian Media Information and Communication Centre for giving me the honour and privilege of speak in this distinguished gathering today. And I hope you have all had a wonderful Conference.

I thank you all for your attention.

Thank you.

It is my great pleasure and privilege to welcome you to the All India Annual Conference for Haj 2009. It’s a matter of personal satisfaction for me to be associated for the first time with Haj arrangements of the Indian pilgrims from this year as Minister of State for External Affairs, in-charge of Haj matters.

I would also take this opportunity to congratulate all the agencies involved in the Haj management i.e. Ministry of External Affairs, Ministry of Civil Aviation, the Haj Committee of India, State Haj Committees, Air India, Indian Airlines, Consulate General of India in Jeddah and others for the successful completion of the Haj 2008.

On behalf of all pilgrims from India, we have requested and would again urge His Majesty King Abdullah bin Abdul Aziz Al-Saud, Custodian of the two Holy Mosques, not only to maintain the same quota as last year, but also increase it, so that more Indian pilgrims who desire to perform Haj could do so without any hindrance. We have been assured of positive consideration, but are awaiting a response. We thank and felicitate the Saudi Government whose hospitality and arrangement year after year, have become more extensive and pilgrim-friendly.

Dear Friends, the Annual Haj Conference is an institutionalized platform for all stakeholders in the Haj, including the political leadership, the Haj Committees, the Government departments including the Consulate General of India, Jeddah, the Ministry of Civil Aviation, Air India, Members of Parliament and, of course, learned religious scholars to air their views through transparent discussions, frank exchange of opinions and brainstorming on all Haj-related matters. The deliberations in this forum have brought to the forefront many useful suggestions and ideas in the past, I am told, which had enabled the Government to further improve and strengthen the overall arrangements of the Haj.

Mr. Hasan Ahmed has already started the ball rolling. We have already taken note of them and I want to assure you that we would seriously consider the suggestions and recommendations. I would like to urge various States to depute sufficient number of Khadimul Hujjaj and to give them proper orientation so that they can be of use to the pilgrims. These Khadimul Hujjaj are supplemented and supported by community volunteers mobilized by the Consulate General of India hailing from different parts of India. Some States have not taken a proactive role in sending the Khadimul Hujjaj that tends to put further strain on the limited human resources available to us in Jeddah. I would, therefore, urge all State Haj Committees to make every possible effort so that Hajis from their States could be further assisted during the Haj.

This year we have had a particularly challenging task as the Saudi Government wanted us to comply with the requirement of travel by Hajis only on international passports. I am happy to inform you that this challenge is being successfully met with the cooperation of Ministries, the Regional Passport Offices, Central and State Haj Committees. If any difficulties are being faced, these should be addressed to the Gulf & CPV Divisions of the Ministry of External Affairs. I would also be happy to intervene, if necessary, so that no pilgrim is inconvenienced.

The Government has also taken a number of decisions to streamline the functioning of Private Tour Operators so that they can provide proper services and facilities for the pilgrims. It is a matter of satisfaction that over the years the Indian Private Tour Operators have been contributing significantly in providing necessary services to the Indian pilgrims. These pilgrims also benefit from the arrangements, for medical and general assistance, put in place by the Haj Mission in Jeddah.

I know it is the cherished desire of every Muslim brother and sister to perform Haj. However, as a result of the incidence of some communicable diseases like Swine-flu, the Saudi authorities have been advising the elderly, the pregnant women and children to refrain from undertaking the Haj this year. This is not mandatory but I would request you to at least inform our pilgrims of the inherent health risks, and take suitable precautions. In any case, we must ensure that all pilgrims are properly inoculated with all prescribed vaccines including H1N1 (Swine Flu). I could suggest that Hajis would need to be medically screened at embarkation points to avoid their being quarantined on arrival.

I would also like to request the Haj Committee of India and the State Haj Committees and all others who are concerned with Haj affairs to give the highest priority to the pre-departure counselling and orientation of the prospective Haj pilgrims so that they embark on their journey of a lifetime with greater confidence and perform their rituals in a safe and spiritually satisfying manner. I am happy to note that tomorrow and the day after, the first such training sessions are being started.

Although I am a new Member of Parliament and Minister, and have not yet visited Saudi Arabia in either capacity (I have visited privately for 1 day this year), I do look forward to my visit to interact with Saudi authorities especially His Excellency the Haj Minister and other senior dignitaries, who are committed to this holy task.

The Government and the Haj Committee of India constantly strive to make the Haj affordable and comfortable. While all possible measures are taken to cater to the diverse requirements of all our Haj pilgrims, considering the magnitude of the logistics of movement, accommodation and air transport, it is not always easy to satisfy all the pilgrims. I would, therefore, request the pilgrims to show patience and understanding. I do, of course, appreciate that most of the pilgrims have been cooperative and appreciative of the government authorities.

I would request all the participants at this conference to air their valuable views and suggestions so that useful policy decisions could be taken up as a follow-up to this Conference.

I thank all of you for your gracious presence and extend my best wishes for a very successful All India Haj Conference, and consequently a most rewarding experience to all our Haj pilgrims.

H.E. Mr Jaime Gama, President of the Assembly of the Republic of Portugal,
H.E Mr Luis Amado, Foreign Minister of Portugal,
Honourable Ministers in the podium and in the hall,
Excellencies, Distinguished Guests, especially our “matriarch” Secretary Madeline Albright,
Ladies and Gentlemen.

I would like to begin by congratulating our hosts, His Excellency the President of the Parliament and His Excellency the Foreign Minister and their staffs for the excellent arrangements made to host this major Ministerial meeting and for the warm hospitality of the Government of Portugal.

2. It is a particular pleasure to address this Inaugural Ceremony. India’s is a culture which values modesty in conduct and speech, but one boast we have not been shy of making is that we are proud of being the world’s largest democracy. It is India’s conviction, from its experience in maintaining this distinction, that democracy is the only form of governance that gives each citizen of a country a strong sense that her destiny and that of her nation is determined only with full respect for her own wishes.

3. India is also proud of being able to demonstrate, in a world riven by ethnic conflict and notions of clashing civilizations, that democracy is not only compatible with diversity, but preserves and protects it. No other country in the world, after all, embraces the extraordinary mixture of ethnic groups, the profusion of mutually incomprehensible languages, the varieties of topography and climate, the diversity of religions and cultural practices, and the range of levels of economic development that India does. Yet Indian democracy, rooted in the constitutional rule of law and free elections, has managed the processes of political change and economic transformation necessary to develop our country.

4. India is united not by a common ethnicity, language, or religion, but by the experience of a common history within a shared geographical space, reified in a liberal constitution and the repeated exercise of democratic self-governance in a pluralist polity. India’s founding fathers wrote a constitution for this dream; we in India have given passports to their ideals. Instead of what is sometimes known as the “narcissism of minor differences,” in India we celebrate the commonality of major differences. To stand the famous phrase on its head, India is a land of belonging rather than of blood.

5. So the idea of India is of one land embracing many. It is the idea that a nation may endure differences of caste, creed, colour, culture, conviction, cuisine, costume, and custom, and still rally around a democratic consensus. That consensus is about the simple principle that in a democracy you do not really need to agree all the time– except on the ground rules of how you will disagree. Indians are comfortable with the idea of multiple identities and multiple loyalties, all coming together in allegiance to a larger idea of India.

6. In my country, the largest electoral exercise in the history of humanity, the 15th General Election for our Parliament, was completed on May 16, 2009. It was a mammoth election, with over 460 million voters, out of 734 million eligible to do so, casting their votes in 830,000 polling booths over a period of four weeks. Though as a victor myself, I can celebrate the results, I can say with great pride and satisfaction that the exercise itself, and not just the outcome, demonstrated the vital strength of democracy. As President Gama said today, democracy is also about how to lose, and that is something Indians have repeatedly learned, as multiple changes of governments have confirmed. Democracy is a process and not just an event; it is the product of the exchange of hopes and promises, commitments and compromises which underpins the sacred compact between governments and the governed that we are all here to uphold.

Mr. Chairman

7. As we approach the 10th Anniversary of the Community of Democracies, I must compliment member countries and the civil society organizations present for their abiding interest and commitment to the principles of our Community. Since the first meeting in Warsaw in 2000, our Community has grown in strength. The principles enshrined in the Warsaw declaration, the Seoul Plan of action, the Santiago commitment and the Bamako consensus are a reaffirmation of our democratic ideals and values.

Mr. Chairman

8. Several challenges have emerged or been reinforced in the last decade that have a bearing on democracy. I would like briefly to touch upon three of them.

9. The first challenge, also evoked by the foreign ministers of Mali and Brazil, is the international financial crisis and the danger that poses to the fulfillment of the Millennium Development Goals, the MDGs.

10. Two reports were recently issued at the United Nations. The first was an Outcome Document of the high level General Assembly Summit on the Global Financial Crisis. The second was a report launched at the margins of the UN- ECOSOC high level segment meeting in Geneva earlier this month. Both have sharply underscored the serious negative impact of the financial crisis, also vividly described today by the foreign minister of the Republic of Korea. The second report indelibly and starkly brings out the clear signs of regression in regard to the MDGs as a result of the global financial crisis. In 2009, it states that an estimated 90 million more people will be living in extreme poverty than was anticipated before the crisis. In fact, before the crisis the number of people living on less than $ 1.25 a day was showing a downward trend.

11. In India we are conscious of the huge challenge of poverty alleviation and of the impact of the financial crisis. We have weathered the initial phase of the crisis ourselves due to our strong institutions. Our banks are well regulated, capitalized, and resourced. We have taken steps to maintain an adequate liquidity position while ensuring that delivery of credit remains on track. India’s public spending has been enhanced significantly. These measures have helped India to maintain an estimated 7% rate of growth despite the current crisis.

12. But we are conscious that many other democracies could be vulnerable to the societal pressures arising from the economic setbacks caused by the global financial crisis. This is a time for solidarity amongst democracies, developed and developing.

13. Which leads us to our second challenge. Democratic governance is imperative not only at the national level but equally at the international level. We are a community of nations which believes and practices democratic governance at home. We are unified in these values. However, in the larger international arena, the governance relationship between developed and developing countries remains skewed. The global governance architecture has elements of non-inclusiveness and less than fully participatory institutions. Such a democracy deficit is visible in almost every multilateral institution, including in the United Nations. This is why India and other countries present here have called for urgent reform of the United Nations, including in the Security Council. Reform of the international financial architecture is also an immediate imperative. We hope that our common ideals of democratic inclusiveness and a level playing field will guide members of this community in supporting reform of the international governance system.

14. Third:

Terrorism is a serious threat to democracy. I need not dwell on this subject at this forum, since all of us know that terrorism and those who practice terror have scant respect for democratic values, norms, institutions or governance. In fact, the very fabric of democracy is a target for the merchants of terror. Pluralism, diversity, human rights and freedoms are anathema to the agents of hatred and fanaticism. As a Community of Democracies we must stand boldly against terrorism and its perpetrators. Terrorism is, after all, an assault on the common bonds of humanity and civility that tie us all together. Our commitment to democracy should make us stronger in the face of terror and we should not relent till this scourge is extinguished effectively. A united and universal response is needed, which is why we should cooperate to adopt international agreements against terror, notably the Comprehensive Convention on International Terrorism which has been pending for the last eight years. On the broader issue of promoting understanding across Cultures, I am pleased to see President Jorge Sampiao here on behalf of the ‘Alliance of Civilizations’, a cause my government strongly supports.

Mr. Chairman

15. I have spoken of a few major challenges that face democracies today. What can and should be done to face them would be part of the debate in the three round table thematic sessions today. I look forward to hearing your ideas and approaches in addressing these and other challenges.

16. As we embark on our deliberations today, I would like to thank the current Chair, Portugal, for its leadership in the Community of Democracies, and to welcome Lithuania as the incoming Chair. Let me also take this opportunity to reaffirm India’s commitment to work with our partners in the Community of Democracies. Let us cherish and value what we have in common as democracies, but let us also respect what makes us different from each other, and appreciate that it is in the nature of democracies to be responsive to the very different preoccupations of their own internal constituencies. The last century has, despite many horrors along the way, given us, in the famous phrase, a “world safe for democracy”. Let us also work, in the 21st century, to establish a world safe for diversity.

Thank you.

June 30, 2009

Hon. Minister Shri Murli Deora (to whom I could not say no even when he was not yet a Minister), Hon. Minister of State Jitin Prasada, Dr. Omkar Goswami (whose grey hair betrays the greater wisdom he has acquired since we first met in college in 1976), IOC Chairman Sarthak Behuria, Secretary R.S. Pandey, Shri V.C. Agrawal, Excellencies (if any are still left),

Ladies and Gentlemen,

Friends,

It gives me great pleasure to be with you this evening on the occasion of the Golden Jubilee of the Indian Oil Corporation. Since we have heard so many significant words of praise and congratulation already on this occasion, I will not burden you with more except to join in my own appreciation of IOC’s contributions to our country, and its performance for 50 years in such a vital sector of India’s economy.

2. Having listened with interest to my old friend Omkar Goswami, I shall attempt instead to speak as a generalist — an author and former columnist rather than a minister — about India’s ongoing and incomplete transformation, not focusing on oil and gas (which everyone else on the podium knows more about than me) but taking a broader view of the place of India in the global economy.

3. As an Indian, I strongly believe that our country’s development will have a significant impact on the global system, and on the world’s sense of where international economic and political power may shift in the decades to come. In fact, according to the experts at Goldman Sachs, India, if it were prepared to pursue economic reform more vigorously, could even overtake the US economy by 2050. We are, of course, talking in gross terms here – no one expects the average Indian’s lifestyle to be better than the average American’s in 2050, since there will be four times as many Indians as Americans in the world at that time. But the very idea of overtaking the US’ GDP is mind-boggling, I’m sure, to many of us in this room. And yet that is where my input has to be recorded.

4. This kind of analysis assumes, of course, that recent rates of GDP growth are sustained by India for the next four decades – and we know that recent events suggest that that is an unduly optimistic assumption. Yet, the underlying positives do not make Goldman’s prediction such a foolhardy one. After all, India has multiplied its per capita income levels many times over since 1950, and has done so far faster in recent years than Britain or the US did during and after the industrial revolution. The idea that India could triple its current economy in the next fifteen to twenty years is not implausible to many economists, not even to the World Bank, if their annual assessment of Global Economic Prospects is any guide. Now I am not an economist unlike Omkar, but I have always been profoundly skeptical of those who issue forecasts of any sort; I’ve learned over the years the future is never quite what it used to be. But few will disagree that India is going to be richer than it is now, both in absolute terms and in relative ones.

5. Now, though economic reforms are here to stay, politics has of course remained a significant impediment, since reforms have been pursued over the years with the hesitancy of Governments looking constantly over their electoral shoulders. Today India’s economic reforms remind me of the old joke I first heard from a retired Indian Ambassador three decades ago about Indian diplomacy: he said that Indian diplomacy was like the love-making of an elephant – it was conducted a very high level, accompanied by much bellowing, and the results are not known for two years. That is no longer true of Indian diplomacy, I’m happy to say, but for some time it has seemed to be true of many Indian economic reforms, which were promulgated from on high with much fanfare and then took an age to be implemented because of all the vested interests and obstacles that had to be overcome. But we all know that economic liberalization in a globalizing world has changed India irreversibly, and that the present government is determined to accelerate the pace of the country’s transformation in the coming months and years.

6. Now I realise my elephant joke didn’t go over so well, but it’s just as well that I evoked the elephant, since my most recent book, now nearly two years old, is called The Elephant, the Tiger and the Cellphone. It is about the transformation of India, and two-thirds of the title is perhaps self-explanatory; I begin the book with a Panchatantra-type animal fable about India as a lumbering, slumbering, ponderous elephant, mired in its own dust and mud, covered in flies, slow to move, slow to change, which in recent years has appeared to be acquiring the stripes of an agile, lithe and sinewy tiger. But then where does the cellphone come in, you might well ask. Well, to me the cellphone is the instrument that most epitomizes this change. Like so many in this room, I grew up in an India in which telephones were both rare and virtually useless. When I left India in 1975 to go abroad for graduate studies, we had perhaps 600 million residents in the country and just two million land-line telephones. But having a telephone was a rare privilege: if you weren’t an important government official, or a doctor, or a journalist, or Murli Deora, you might languish in a long waiting-list and never receive a phone. Members of Parliament had amongst their privileges the right to allocate 15 telephone connections to whomever they deemed worthy. And if you did have a phone, it wasn’t necessarily a blessing.

I spent my high school years in Calcutta, and I remember that the phone sat then in the front hall. If you picked up your phone, you had no guarantee you would get a dial tone; if you got a dial tone and dialled a number, you had no guarantee you would reach the number you had dialled. In fact it was a common feeling that “wrong” number was a very common term then. Sometimes you were connected to someone else’s ongoing conversation, and they had no idea you were able to hear them; there was even a technical term for it, the “cross-connection” (these were connections that made us very cross). If you wanted to call another city, say Delhi, you had to book a “trunk call” and then sit by the telephone all day waiting for it to come through; or you could pay eight times the going rate for a “lightning call” which only took half an hour instead of the usual three or four or more to be connected. As late as 1984, when a member of Parliament rose to protest this woeful, appalling performance by a public sector monopoly, our then Communications Minister – I’m glad the present one isn’t here – replied in a lordly manner that in a developing country, telephones were a luxury, not a right; that the government had no obligation to provide better service; and that if the honourable member was not satisfied with his telephone, he was welcome to return it, since there was an eight-year waiting list for this inadequate instrument!
Jitin, I’d be listening for future tips!

7. Now fast-forward to today. When I finished writing my book, I was able to report in it that in April 2007 India had just set a new world record by selling 7 million cellphones that month, more telephone connections than any country had ever done in one month. Well, the book went off to the press, got printed and bound and arrived in your bookstores, and that figure was already out of date – because in each of the last three months of 2007, India beat its own world record, so when my book hit the stands in December 2007, India sold 8.3 million cellphones. The trend continued in 2008 – we crossed 9 million in July and 10 million in October – and now in 2009 India has sold 15 million phones in each of the last three months. So today in one month India sells more than seven times as many phones as the entire country possessed three decades ago.

8. But even more important is the issue of who carries these cellphones in today’s India. Most of you in this room are going to be chauffeur-driven when you leave this evening, and of course your driver carries a cellphone. If you live in any of our Delhi suburbs, you are familiar with our istri wallah on the side-streets: a man with a wooden cart that looks like it was designed in the 16th century, using a coal-fired steam iron invented in the 17th century to iron clothes from the neighbourhood; but you know in these changing times, he has a 21st century mobile phone, to know which apartment has clothes needing his services. Recently, I visited the country farm of a friend in Kerala. He asked if I wanted fresh coconut water; I said of course, and he pulled out his cellphone and dialled the local toddy tapper. A voice replied “I’m here”; we looked up, and there he was, on top of the nearest coconut tree, with his lungi tied up at his knees, a hatchet in one hand and a cellphone in the other was the toddy. Fishermen take cellphones out to sea to call the market towns on the coast on the way back to shore to see where they can get the best prices for their catch. Farmers who used to have to send an able-bodied relative on a gruelling walk to town to find out whether the market was open, whether their harvest could be sold and at what price, before walking back to the village to load their carts, now save half a day’s time and labour with a two-minute call on a cellphone. The cellphone has empowered the Indian underclass in ways in which 45 years of talk about socialism singularly had failed to do.

9. Why is it worthwhile today to recall all this? The reason is simple. Last year’s convulsions in the international financial markets have provoked an unseemly amount of gloating on the part of some in our country. Some have even claimed to be right in opposing liberalization all along. CPM politicians have been arguing that it was their obstructionism that saved India from de-regulating itself into disaster.

10. Well they are wrong. And it’s important to say so before too many people in our political classes find themselves persuaded by this lapse into historical amnesia.

11. See the debate between capitalist globalization and self-reliance is hardly new, but a few months ago one would have been justified in assuming that it had definitively been resolved. Yet we can’t forget that in India it had required a huge paradigm shift. Whereas, in the West, most people axiomatically associate capitalism with freedom, India is nationalists associated capitalism with slavery — because the British East India Company had come to trade and stayed on to rule. So, our nationalist leaders were naturally suspicious of every foreigner with a briefcase, seeing him as the thin edge of a neo-imperial wedge. Instead of integrating India into the global capitalist system, as only very few developing countries like Singapore were so effectively to do, India’s leaders were convinced that the political independence they had fought for could only be guaranteed through economic independence. And that’s why self-reliance became the slogan, the protectionist barriers went up, and India spent 45 years with bureaucrats rather than businessmen on the “commanding heights” of our economy, wasting, some would argue, the first four and a half decades after independence in subsidizing unproductivity, regulating stagnation and trying to distribute poverty. This only goes to prove of course that one of the lessons you learn from history is that history can sometimes teach you the wrong lessons. We suffered from the economics of nationalism. It would be tragic if recent events in the world of finance led us to learn the wrong lessons again.

12. The reactionaries today seem quickly to forget that it took a humiliating financial crisis in 1991 (a crisis in which the nation had to physically ship its gold reserves to London as collateral for an IMF loan) to prompt our country to change course. And change course we did, for the better. A measure of the extent to which the globalization debate had turned came for me last year in Kolkata when I spoke alongside the CPM Chief Minister of West Bengal, Buddhadev Bhattacharya, who declared and quote: “some people say globalization is bad for the poor and must be resisted. I tell them that is not possible. And” – then he added this is the crucial part—“even if it were possible, it would not be desirable.” When a Communist Chief Minister speaks that way about global capitalism, one could argue that that debate is largely over.

13. For decades, the theory of development economics had suffered from two intertwined historical circumstances – the experience of the Great Depression in the 1930s, when only robust government intervention saved a number of economies, and the fight for freedom from colonial rule, which of course involved the overthrow of both foreign rulers and foreign capitalists. The development gurus firmly believed in the wisdom of top-down rule and government planning by all-knowing, all-seeing economists, of whom India suffered from a superabundance. Our rulers, in turn, mistrusted what ordinary people could achieve for themselves when they were freed to pursue their own prosperity within a framework of government-supported structures that ensured a level playing field, fair regulation and social justice (the model that came to be adopted in the Western democracies that has come to be adopted in India, though increasingly dismantled in Republican-ruled America). Instead they created a license-permit-quota raj that denied Indian businesses the opportunity to prosper and grow.

14. The result was what was derisively called the “Hindu rate of growth”, at which India chugged along at 3 percent while much of the rest of Asia shot ahead. It is sadly impossible to quantify the economic losses inflicted on our country over decades of entrepreneurs frittering away their energies in queuing for licenses rather than manufacturing products, in paying bribes instead of hiring workers, in wooing politicians instead of understanding consumers, and in “getting things done” through bureaucrats rather than doing things for themselves. The country has changed for the better, as epitomized by the strength of the Indian Oil Corporation, a public sector giant that is now listed on the stock exchange and is an illustrious member of the Fortune 500.

15. Economic reform has worked in India. In the last 15 years, India has pulled more people out of poverty than in the previous 45 – averaging some 10 million people a year in the last decade. The country has visibly prospered, and despite population growth, per capita income has grown faster and higher in each of these years than ever before. In the current recent financial crisis, far from prompting us to retreat, should be an opportunity to safeguard those gains and to build on them.

16. And yet there’s a long way to go. It has become a cliché to speak of India as a land of paradoxes. The old joke about our country is that anything you say about India, the opposite is also true. We like to think of ourselves as an ancient civilization but we are also a young republic; our IT experts stride confidently into the 21st century but much of our population seems to live in each of the other twenty centuries. Our teeming cities overflow while two out of three Indians still scratch a living from the soil. We have been recognized, for all practical purposes, as a leading nuclear power, but 600 million of our billion citizens still have no access to electricity and there are daily power cuts even in our nation’s capital. India holds the world record for the number of cellphones sold (as I said), but also for the number of farmer suicides (someone estimated 17,000 last year, because when harvests fail, farmers are crushed by a crippling mountain of debt and feel the only way out is to take their own lives).

17. We have 24 dollar billionaires down from 58 the previous year, and we also have 260 million people living below the poverty line. And it’s not the UN/ World Bank’s poverty line of $1 a day, now revised to $1.25 that is Rs. 75 a day, but the Indian poverty line, which in the rural areas is 360 rupees a month, or 12 rupees a day – in other words, a line that’s been drawn just this side of the funeral pyre. As a newly-elected politician, let me stress especially to Omkar, that it is impossible not to be conscious of the fact that every single one of us represents a majority of poor people, since over 70% of Indians live below that World Bank global poverty line, and in making policy we have to be responsive to their needs.

18. So India’s challenges are enormous. Our growth was never only about per capita income figures. It was always a means to an end. And the ends we cared about were the uplift of the weakest sections of our society, the expansion of employment possibilities for them, the provision of decent health care and clean drinking water. Those ends remain. Whether we grow by 9%, as we once did, or by just over 6%, as we did last year, our fundamental commitment must still be to the bottom 25% of our society.

19. But there are plus points that all of us need to bear in mind. The Indian private sector is efficient and entrepreneurial, and is compensating for the inadequacies of the state. India is good at the art of channelling domestic savings into productive investments, which is why we’ve relied so much less on foreign direct investment, and is even exporting FDI to OECD countries. In other words, India’s entrepreneurial capital and management skills which we also are at work in some public sector companies like IOC, are well able to control and manage assets in the sophisticated financial markets of the developed West. As for our financial system, we suffer from very few of the creative and risky derivative instruments that have caused such problems in the West – hardly any subprime loans and credit-default swaps and so on – and so our banks aren’t affected in the same way as Western banks. India has the basic systems it needs to operate a 21st century economy in an open and globalizing world.

20. Obviously, the terrorist attacks of late November complicate this story. The terrorists knew exactly what they were doing. Theirs was an attack on India’s financial nerve-centre and commercial capital, a city emblematic of the country’s energetic thrust into the 21st century. They struck deliberately at symbols of the prosperity that was making the Indian model so attractive to the globalizing world. They dented for a while the worldwide image of India as an emerging economic giant, a success story of the era of globalization and an increasing magnet for investors and tourists. Instead the world was made to see an insecure and vulnerable India, a seemingly “soft state” bedevilled by enemies who could wound it with impunity. And by striking hotels favoured by foreign businessmen and investors, they undermined the confidence of those whom India needs to sustain its success story. Indeed, the flurry of cancellations initially reported by every Indian hotel in the wake of the Mumbai horrors suggest that some who were contemplating investing in our country were, for a while, frightened away. Terror has added to the time India has needed to recover from the economic crisis.

21. Equally, our own response to the terror will have an impact on our economy. That is one more reason why our government paid no heed to the hotheads on television channels who were clamouring for military action, since as our neighbours well know, the world will not invest in a war zone. Most observers have applauded the government’s calm and measured reaction, which has been careful not to play into the hands of the terrorists while sustaining international pressure on Pakistan to act against those who have unleashed terror on our country from their soil. A policy that remains calm, measured, focused and persistent but strong will obtain results.

22. All this, I hope, provides some context for the world in which the Indian Oil Corporation will function in its sixth decade. We can say with some confidence that in the intermediate and long term, India will continue to prosper and pull more millions out of poverty than we have ever done; that we will compete effectively with Western corporations for business, purchase foreign companies and assets, expand our trade and overseas investments, invent and develop new technologies, and displace more economic weight around the world. In other words, there’s a lot to look forward to.

23. But to play a major role in the 21st century – to fulfill our undoubted potential — India also needs to solve its internal problems. We must ensure that we do enough to keep our people healthy, well-fed, and secure — secure not just from jihadi terrorism, a real threat, but from the daily terror of poverty, hunger and ill-health. Progress is being made: we can take satisfaction from India’s success in carrying out three kinds of revolutions in feeding our people as our President has mentioned – the “green revolution” in food grains, the “white revolution” in milk production and, at now there’s a new one, a “blue revolution” in the development of our fisheries. But the benefits of these revolutions have not yet reached the third of our population still living below the poverty line.

24. Now I have written in my books of the many problems the country faces, the poor quality of much of its political leadership, and other parties hasten to add, the rampant corruption, the criminalization of politics. And yet — corruption is being tackled by an activist judiciary and by energetic investigative agencies that have not hesitated to indict the most powerful politicians. (If only the rate of convictions matched the rate of indictments, it might be even better…) The rule of law remains a vital Indian strength. Nongovernmental organizations actively defend human rights, promoting environmentalism, fighting injustice. The press, the media is free, lively, irreverent, disdainful of sacred cows.

25. I believe that the India of tomorrow is one open to the contention of ideas and interests within it, unafraid of the prowess or the products of the outside world, wedded to the democratic pluralism that is India’s greatest strength, and determined to liberate and fulfill the creative energies of our people. That is the transformed India of the early 21st century, and its place in today’s world is well worth looking forward to.

26. Congratulations once again to the Indian Oil Corporation for its vital and continuing role in this transformation, and thank you very much. Jai Hind!

Admiral R.H. Tahilani, Chairman, Transparency International India
Ms. Christina Albertin, South Asia Regional Representative, UNODC
Mr. Uddesh Kohli
Distinguished Guests
Ladies & Gentlemen
Friends:

It’s a privilege for me to join you at the Annual General Meeting of the Global Compact Society. As Mr. Sharma has told you, in my previous hat at the United Nations, I was privileged to be “present at the creation” when Secretary General Kofi Annan made his historic call at Davos for a Global Compact that would bring business in line with the labour, environmental and human rights standards already agreed by Governments. It is therefore with particular pleasure that I accepted this invitation to address you today. But George Kell’s words that you read aloud this evening are far too generous for what was truly a collective effort – and please tell him I said so.

2. The theme of today’s workshop – “Making a Business Case for Ethical and Transparent Corporate Conduct” is not only topical but a reflection of the scale of the challenge that governments, corporates and civil society are confronted with. The idea that business should be conducted ethically is not a new one. Neither is the idea that business should be conducted in a socially responsible manner. For most of the last century, the responsibility for setting standards for the conduct of business and ensuring that economic wealth was shared across all segments of society was assumed by governments either acting individually or collectively. International organizations such as the United Nations of course, and the ILO and governments around the world have set international human and labour rights standards, which were proclaimed as having universal applicability. By assuming primary responsibility for social concerns and environmental standards, governments left businesses free to focus attention on the production of goods and services and the maximization of profits.

3. Now this division of responsibilities has had significant implications for the perceived role of business ethics and corporate social responsibility. It has tended to encourage corporations to define their social and ethical responsibilities narrowly. In most countries the belief that the primary purpose of business was to enrich owners and shareholders has provided companies and their managers with a justification for not getting involved in broader social issues touching on human rights or working conditions, or the quality of life of the people in the communities in which they generated their profits. In an effort to retain shareholder interest, managements in many places have become slaves to the stock market. Misplaced faith in efficient markets that are self-regulating have left some corporates unabashedly pursuing profits, giving short-shrift to good corporate governance practices. The practice of quarterly and half-yearly reporting has worsened matters as corporates feel obliged to report stellar growth during every reporting period. This obligation has thrown open the doors to the wizardry of financial engineering and the result is what has led to some of the world’s worst corporate frauds.

4. The collapse of Satyam, India’s fourth largest IT firm, raised questions about corporate governance in India, the scope and scale of corporate corruption, the causes, and underlying trends. With globalization and the sudden surge of India on the world stage, several domestic companies which wanted to list on bourses overseas, to attract foreign capital and to establish a global footprint found it prudent to adopt sound corporate global governance practices. The Securities Exchange Board of India, taking a cue from the Sarbanes-Oxley Act of 2002 in the US introduced Clause 49 in 2005 which required listed companies to seat more independent directors on boards and audit committees; a code of conduct for board members; a larger role for the audit committee; and mandatory risk assessments and certification by the CEO and CFO of the effectiveness of internal accounting controls. The Satyam catastrophe happened not due to lack of corporate governance laws in India, but despite India instituting corporate governance reforms, consisting of some of the best practices in leading equity markets around the world. In fact, just last year, Satyam won the “Golden Peacock” Award for Corporate Governance from the London-based World Council for Corporate Governance. In other words, the appearance of good corporate governance is one thing, and adherence to ethical norms at the decision-making level is another. One can sign a global compact in public and make a compact with the devil in private.

5. The fall of many leading corporates such as Enron, WorldCom, and Parmalat in recent years has brought one clear message to the fore: ethics matter in business. In early 2004 the first ever European Conference for ethics and compliance practitioners called “Sharing Ideas and Best Practices in Business Ethics,” was held in Paris, and around 100 corporate ethics practitioners from nine countries attended it. The main takeaway from the conference was that the sooner companies begin discussing and enacting processes for managing integrity standards within their organizations, the better. In India senior business leaders have to start giving more thought to this area of organizational behavior, start framing their beliefs on integrity standards, circulate these among their employees and get their views and affirmation on adherence to these standards. More important, senior leaders must create communication platforms that encourage employees (and other associates of the company) to raise concerns related to possible or actual deviations from integrity standards especially those that could damage the reputation of the organization. All such platforms and processes must become institutionalized in due course.

6. Kenneth Goodpaster, professor of business ethics at the University of St. Thomas, Minneapolis in the US emphasizes that “business leaders are the principal architects of corporate conscience. They are the ones who must manage the challenges associated with pursuing profit while maintaining integrity. They are the ones most responsible for delivering on the moral agenda of the corporation. That agenda includes three broad imperatives: orienting, institutionalizing and sustaining ethical values within the corporate culture.” Given the high competitive pressures, it is easy for business leaders to say that enforcing ethical conduct is difficult, but this is not an excuse they can use. As my friend, Jeffrey Garten, the former Dean of the Yale School of Management, wrote in his book – The Politics of Fortune: A New Agenda for Business Leaders, “the more complex the markets become, the more the integrity of its leaders matters”.

7. Our own country’s timeless epic the Bhagavad Gita, which, as you know, is a record of the conversation between the Supreme Deity Krishna and prince Arjuna, struggling with a moral crisis before a crucial battle, prescribes that enlightened leaders should master all impulses or emotions that cloud sound judgment. Good leaders are selfless, they take initiative, and they focus on their duty rather than obsessing over outcomes or financial gains. The Gita espouses the doctrine of nishkamya karma or pure action untainted by hankering after the fruits resulting from that action. The seemingly transcendant world view that’s reflected in Indian philosophy is surprisingly well attuned to the needs of companies trying to survive in an increasingly interconnected and more and more ethically conscious business world.

8. The late Sumantra Ghoshal, founding Dean of the Indian School of Business, Hyderabad was of the view that executives should be motivated by a broader purpose than mere profit making. Companies should take a more holistic approach to business – one that takes into account the needs of the shareholders, the employees, customers, society and the environment. There is an urgent need today for the development of a management theory that replaces the shareholder-driven agenda with a more stakeholder-focused approach. Management Guru C.K. Prahalad, another good friend, describes such a theory as “inclusive capitalism” – the idea that corporations can simultaneously create value and promote social justice.

9. The best practices in corporate governance can emerge when informed by an established set of business principles and a defined approach towards organizational behavior. Without such business ethics, governance stands bereft of a well-reasoned rationale. Left to itself, corporate governance runs the real risk of becoming a mere form-filling exercise, dedicated to observing the appearance of social responsibility. The roadmap, therefore, has to be based on substance, which means adhering to a dedicated code of behavioural norms in its spirit.

10. The American Management Association in its study entitled “The Ethical Enterprise, A Global Study of Business Ethics” reported that the number one factor likely to cause people to compromise ethical standards was pressure to meet unrealistic business objectives and deadlines. Managements must therefore strive to balance business objectives with the reality of their resources and must continually remind employees that ethics are sacrosanct. Corporates also need to cultivate a transparent business culture and institute a corporate code of ethics, the value of which would be significantly enhanced if consistently enforced.

11. Since 1991, economic liberalization in India has reduced red tape and bureaucracy and has supported our nation’s transition towards a market economy achieving record growth rates in excess of 8% in each of the last five years – well last year was slightly less but you know why. Though in PPP terms India ranks among the top five economies in the world, the fruits of economic growth have been unevenly distributed across the social spectrum. Corruption to an extent has contributed to this uneven distribution of wealth and has undermined government efforts to reduce poverty and to promote economic growth. Though there have been a number of reports and studies that emphasize that corruption and bribery are endemic in the country and pose a grave challenge to the government, and given the rousing call given by Mr. Tahiliani a few minutes ago, India’s performance on the 2008 Global Integrity Index has been relatively positive. India is ranked 11th among 55 countries for governance and anti-corruption standards. The report confirmed the good quality of the legal framework against corruption in India, with existing legislation in line with most of the requirements of the UN Convention against Corruption. The challenge before the government is to ensure the successful implementation of existing legislation.

12. Now, the fight against corruption has been declared a high priority by Prime Minister Manmohan Singh. The Right to Information Act – the RTI Act – passed in 2005 represents one of the country’s most critical achievements in the fight against corruption in recent years. The law aims to ingrain accountability and transparency in public functioning, as it specifically provides for hefty fines and disciplinary action against erring officials. In terms of international norms, India has signed the UN Convention against Corruption and the UN Convention against Transnational Organized Crime. There are various bodies in place for implementing anti-corruption policies and raising awareness on corruption issues such as, of course, the Supreme Court itself, the Central Vigilance Commission (CVC), the Central Bureau of Investigation (CBI), the Office of the Controller and Auditor General of India (CAG), and the Chief Information Commissioner (CIC). Moreover, government initiative in the area of e-governance has considerably increased the speed of government services in a number of areas and reduced opportunities for bribery. A wide range of public services have been digitized such as obtaining licenses, paying taxes, and clearing goods. The National Portal of India, a single window access to information on digitized services provided by various Indian Government entities, has also been created.

13. India, and you are all evidence of it, enjoys a vigorous and vibrant civil society and enjoys arguably the freest media in Asia. Both have played an important role in placing corruption on the national agenda. Freedom of Association is fully guaranteed and the formation of interested groups is both permitted and encouraged, contributing to a proliferation of civil society organizations such as the Indian chapter of Transparency International India, the Centre for Media Studies, Parivartan, and other examples. The Centre for Media Studies is a non-profit multi-disciplinary research agency which has undertaken corruption tracking surveys since 2000. Parivartan was established around that time at the turn of the millennium as an attempt to expose irregularities within the Income Tax Department in New Delhi. The movement now focuses on using the RTI Act to promote transparency and accountability in public services. The RTI Act has opened up critical opportunities for civil society involvement in the fight against corruption. It has allowed civil society organizations to participate in debates on public spending and helped them to uncover corrupt practices in many states and projects.

14. Today many corporations are revising quite dramatically their conception of their social responsibilities. Though India has one of the world’s richest traditions of corporate social responsibility (CSR), there is a need, I believe, to raise awareness across the country that CSR is a business imperative, not just a window-dressing. A number of Indian companies have realized that there is a strong business case for pursuing CSR strategies. The idea behind the Global Compact – that what is good for the environment, workers, and for the community is also good for the financial performance of business – is gaining ground. With the retreat of the state in economic activity in India, the imperative for business to take up wider social responsibilities is growing. While business cannot be expected to take on the role of the government, in a country like India where a considerable proportion of the population lives below the poverty line and the government is faced with a multitude of challenges, CSR itself has a potential for becoming an instrument of change.

15. For many companies in India, being a good corporate citizen is a vital aspect of their identity, their values and their vision. For Industrial houses such as the Tatas and Birlas concepts of nation-building and trusteeship have been an intrinsic part of their business model long before the CSR term came into vogue and became a popular cause. At public sector enterprises such as BHEL, HDFC, NTPC and ONGC (our public sector is alas, beset by acronyms) but anyway, social obligations remain an integral part of their business. Over 200 Indian companies have already joined the UN Global Compact Initiative, which provides an extremely relevant vehicle for Indian business, academic institutions and civil society organizations to join hands towards strengthening responsible business initiatives in India and abroad. More and more corporations in India are coming up with “ethics codes”, which encompass guidelines on human rights, child labor, working conditions, and obligations to a wide variety of stakeholders. Equally striking is the appearance of ethics officers in the private sector whose primary responsibility is ensuring that ethical responsibilities are respected throughout their company’s operations. I shall try to conclude quickly. For we are all like Egyptian mummies, strapped for time.

16. I believe that there is a strong business case for ethical and transparent corporate conduct. In today’s global marketplace, companies will no longer be able to get away with treating corruption and bribery as “business as usual” or brush it away as a cultural phenomenon. The public outcry against corrupt and bribe paying corporates has become as loud as it has for environmental issues. Increasingly consumers are punishing unethical corporates by either avoiding the company’s products or speaking, writing or campaigning against such companies.

17. There are several factors that are driving the anti-corruption sentiment in both the public and the business community. The phenomenon of globalization has itself become a driving force for corporate social responsibility. The borderless global marketplace is bringing national economies and corporations into greater interdependence and businesses are increasingly realizing that corruption in one region can affect the entire global market. Publication of statistics such as the Bribe Payers Index (BPI) by Transparency International (covering 22 countries which account for over 75% of the global trade) has been a powerful tool for change. Globalization has called for replacing the traditional top-down supervision style with a more flattened system, where there is greater emphasis on shared understanding of responsibilities and rights. Many companies have concluded that if they are to be successful in very competitive environments, they must decentralize responsibility.

18. Another factor that has played a crucial role in changing business perceptions is the growth of technology that has transformed the global business environment. The activities of corporations are subject to greater global scrutiny and criticism wherever they are engaged in business. Unethical behavior no longer waits for investigation. We live in a world of citizen journalists armed with the new age WMD or Weapons of Mass Democracy such as the Youtube, or Twitter, the Blogs and even the mobile phone, where every voice irrespective of race, age, color or gender is heard, is welcome and is influential.

19. The global financial crisis has adequately demonstrated the negative effects of unbridled capitalism. This is not to say- not even to imply- that free markets are bad and that one has to rein the free spirit. Far from it. The answer is to arrive at a healthy balance between promulgating corporate governance regulations and promoting entrepreneurial initiatives. The need of the hour is to wed “capitalism” with “compassion” and set the stage for a new era where business respects transparency and accountability, and society takes precedence over profit making.
I wish you a fruitful discussion and a successful workshop.