Strife Between India And Pakistan example essay topic

Introduction India is located in southern Asia, bordering the Arabian Sea and the Bay of Bengal, between Burma and Pakistan. It is the world's seventh largest country and second only to China in terms of population. India has long been a country plagued with poverty, but is now building itself and its economy. It is accomplishing this with new entries into the world market and a different outlook on economics. The future of India is uncertain for the moment, but the opportunity for growth and prosperity is most assuredly present. It will take time for India to emerge as a nation free from its problems, but is plausible with international trade.

India's Culture and Its Economic Implications India is certainly a country that is rich in history and culture. India acquired its independence from Britain on August 15th in 1947. Unlike the American and French revolutions, the Indian revolution was one of peace and temperament. The diversity that now exists within the borders of India is evident in the colorful mix of languages, ethnicity, and religious beliefs. As a throwback to the era of British rule, English is most important language for national, political, and commercial communication. However, Hindi is the national language and primary tongue of 30% of people.

There is also a blend of several other languages that are spoken throughout India such as Bengali, Telugu, Marathi, Tamil, Urdu, Gujarati, Malayalam, Kannada, Oriya, Punjabi, Assamese, Kashmiri, Sindhi, Sanskrit, and Hindustani. India has benefited from the rule of the British before the 1950's. English has become the most widely spoken language in the world. It is quickly becoming the central language in the world of global business.

This gives India an opportunity that many non-English speaking countries do not currently have. The primary ethnic group that exists in India is Indo-Aryan, which account for almost three-quarters of the population. The second largest group is Dravidian, followed by Mongoloid. Ethnic strife between these groups as well as Muslims has created several problems and internal conflict within India.

Foreign investors and management will need to be sensitive to these issues and not make rash decisions when it comes to location of proposed plants and companies. The population of India is overwhelmingly Hindu. Hindu is a religion that began in India more than 4,000 years ago, making it the world's oldest major religion. Hindus believe that there is a moral force in society that requires the acceptance of certain responsibilities, called dharma. Followers of this religion work towards reaching nirvana, a state in which reincarnation is no longer necessary because the soul has finally reached perfection. Max Weber, a German sociologist, believed that business ventures in India would be difficult because ascetic principles embedded in Hinduism.

In contrast to Protestantism, Hinduism does not support entrepreneurial activity in pursuit of wealth. Many Hindus lead an ascetic lifestyle that denies them material wealth. Their religion is devoted to living a spiritual life. Mahatma Gandhi, an Indian nationalist and spiritual leader during the revolution of India, is perhaps the prime model of this type of living. Many economists believe that his advocation of this lifestyle hindered economic development in India after it gained its independence. Despite such arguments, India does indeed have a large section of its population that is dedicated to entrepreneurship, indicating that perhaps the majority of Hindus are not as eccentric as their leaders are.

The religion of Islam also plays a role in India as well. It is the second largest religion practiced in the country. Many of the principles of this religion are pro-free enterprise. The religion approves of profit through trade and commerce, as well as the protection of private property. There are difficulties in business ventures dealing with this religion however. Islam prohibits the payment or receipt of interest.

When dealing with Western countries that rely upon such principles, this creates a conflict that is not easily resolved. Western companies wishing to do successful business in India must take the time to research these religions and understand how they relate to the work ethic of its people. Indian Politics and Government After Britain left the subcontinent in 1947, two nations were formed of the land previously under its rule. India became a Federal Republic and Pakistan became an Islamic state. India's form of government is rare in its sector of the world. It is much closer to Western government, especially Eastern Europe, than it is to its neighboring countries.

Like the United States of America, India is made up of a number of states. Each state has its own laws and customs but in important national matters, like national security and foreign affairs, each state must obey the Central government based in New Delhi. The people of the state elect a ruler who is called the chief minister. This makes India a more ideal playing field for Western-based companies because of its relative ideology, but also creates strife with closer nations such as the Muslim controlled Pakistan and China. India's Five-Year Plans for Economic Growth The new Indian government proposed a series of five-year plans to jump-start their economy.

The First Five Year Plan was formulated against the backdrop of the World War II and internal division of the country. It placed its highest priority on agriculture, irrigation and power projects, in order to reduce dependence on food grain imports, to solve the food crisis, and ease the raw material problem particularly in jute and cotton. It was highly successful, as far as attainment of objectives go. In the second plan, which was formulated in an atmosphere of economic stability, agriculture was given a complementary role and emphasis was on industrial sector, especially within the heavy goods industry. The industrial sector was perceived to be able to help the economy grow the most rapidly.

Compared to the first plan the second plan was only a moderate success. At the time of formulating the third plan, it was found that the limiting factor in economic growth was growth in agricultural production. This prompted India to place agriculture in top position once again. It also began to place emphasis in the power sector.

India was working towards self-sufficiency in these sectors. When India moved to the fourth plan it was realized that GDP growth and high rate of capital accumulation alone might not help improve standard of living or help attain economic self-sufficiency. Therefore, India shifted towards providing necessary benefits to the poor through increased employment and higher education. During the fourth plan period, India encountered inflationary pressures. The fifth plan, therefore, concentrated on inflation and achieving stability in the economic situation. It also aimed at improving the quality of life.

Several new economic and non-economic variables such as nutritional requirements, health, and family planning were incorporated in the planning process. Only the targets relating to food grains and cotton cloth were achieved in this plan due to the induction of the Janata Government. This government did not have the political power to last long however, and the Congress Government on assuming power in 1980, formulated a new sixth plan, with a strategy to move simultaneously to strengthen the infrastructure for both agriculture and industry in order to achieve rapid economic growth. It worked hard to decrease the unemployment in India and to meet the basic needs of its people. The seventh plan continued with previous goals and added social sectors like welfare, education, health, family planning, and employment into higher priority. This plan also focused on rural electrification and brought rural India into modern times.

After the Gulf War in 1990, the eighth plan was formed. A higher growth path was envisioned to offset the balance of payments problem the India found itself in. These included a substantial devaluation in the value of rupee, dismantling of licensing requirements, reducing trade barriers, and reforms in the financial sector and tax systems. The eighth plan worked well, but it did not help the poor of society nor did it bolster failing sectors. The ninth and current plan was designed to do just that. The Technology Sector in India The current economy includes a strong international payments position with adequate foreign exchange reserves, reasonably stable exchange rates, and booming exports of software services.

There is a very high demand for India's high technology exports. It is possible that this could be the sector that pushes India into being a major player in the world market as well as increase its overall economic situation. In the last decade, India has risen to be a major competitor in the software industry. Growth in this sector has risen at a phenomenal rate and employment in the field has generated the third largest concentration in the world. Most of this growth comes from exports to countries such as the U.S., Britain, and China. Foreign companies such as Microsoft and IBM are investing heavily in India's software development operations.

There are several reasons why a country such as India has succeeded in this sector. The five-year plans have had a significant impact on India's success. Despite an uneducated lower class, the middle class in India has been highly educated because of the recent plans in improving education. India's higher education institutions are among some of the finest in the world and have placed a high emphasis on engineering, specifically software engineering. India also enjoys the benefit of having English well established as a language as mentioned before. This opens the global market to them and gives them an edge over other countries.

The wage rate in India is also pushing them into a leading position. The situation in India is not unlike the NAFTA agreement, in which the United States takes advantage of lower wages in Mexico regarding the production of textiles. The wage of the average software programmer in India is $5,000 annually, in contrast to the $70,000 that an American programmer earns. This creates for much higher productivity per programmer in India than the rest of the world. The rise of communications throughout India has also played a major role in the emergence of the software industry. Satellite and other high-speed communications have removed distance as an obstacle for the country.

In the new world of telecommunications, India has a time-zone advantage that cannot be matched by its competitors. Time is critical in today's business world, and companies throughout the Western world can hire Indian firms to upgrade existing systems, process data, and eliminate bugs and viruses while they are closed overnight. India has furthered its strength in the technology sector by adhering to international quality standards. Western companies, and particularly U.S. companies in this industry are finding that it is well worth their time to invest in this portion of India's economy.

The only obstacle that Westerners face when dealing with India is apathy regarding intellectual property rights laws. In the world of software, these rights are of highest priority. India has realized this, and is working towards providing stricter and broader laws concerning the protection of intellectual property. The way of the future for India lies with foreign investment and global trade in this market. Current Problems Facing India Fundamental concerns in India include the ongoing dispute with Pakistan over Kashmir, water-sharing problems with Pakistan over the Indus River, an output boundary with China in dispute, disputes over borders with Bangladesh, massive overpopulation, environmental degradation, extensive poverty, and ethnic strife. Perhaps the most relevant and current problem in India with regards to its global presence and trade with Western countries are its disputes with Pakistan.

In the weeks following the terrorist attacks against the United States on September 11th 2001, Pakistan has opened itself to the superpower as the U.S. leads strikes against neighboring Afghanistan. This has caused much concern over Indian-Pakistani relations and how the United States will act with regard to India. Pakistan has requested that the United States discuss these relations in addition to the Afghanistan situation. The Indian government believes that in light of its recent cooperation, Pakistan may be given an upper hand with U.S. support regarding the disputes. The dispute over Kashmir is a dangerous source of conflict within the region between the two South Asian nuclear rivals. There has been cross-border terrorism between these two countries for years, and India has recently stepped up strikes against terrorist camps inside of Pakistan controlled Kashmir.

The battle over Kashmir has been presented as a religious battle, specifically an Islamic fundamentalist struggle. However, the political and national implications are just as relevant if not more. Kashmir was seized by Islamic Pakistan after 1947 when the British left. India attempted to intercede and to bring Kashmir back under its control, but ended the war rather quickly because it did not want the war to drag on. India felt that other influential countries like the US and Britain would ask Pakistan to stop fighting and withdraw its soldiers from a State that had legally become part of India. India asked the United Nations to interject because Pakistan had attacked a neutral state.

The U.N. agreed with India and requested that Pakistan vacate Kashmir. Pakistan refused to do so however, and countries like the U.S. and Britain did not want to take sides and force Pakistan to withdraw its troops. Instead, the entire state of Kashmir was labeled a "disputed territory" and has been left to fighting between India and Pakistan, mostly in the form of terrorism. There is much violence and destruction as a result of the lack of interference from Western countries. The economic state of both countries has suffered because of this dispute. India has developed a distrust of such countries in regard to such matters as a result.

If the United States makes the wrong decision again concerning Kashmir, it will lose much face with India. India believes itself to be culturally and politically similar to the West, and opposite from the state of Pakistan. It believes that countries such as the United States should help it, but is worried about the current situation in Afghanistan and the psuedo-alliance between the U.S. and Pakistan. This has the potential to disrupt business relations between India and the Western world.

If India perceives itself to be cast aside once again, then it may segregate itself from the global trade market. This is a backwards step for the nation, and would perhaps force the economy to crumble. At the moment, the United States is shying away from involving itself with the Kashmir situation. The U.S. is leading a coalition against terrorism, but appears to be sidestepping the issue of Pakistan as an offshoot of its alliance with the Islamic nation. Indian Prime Minister A.B. Vajpayee has written to the U.S. asking that the Pakistani terrorist groups J aish and the Lashkar-e-To iba be banned and their financial accounts frozen by the international coalition led by the US.

Until the United States acknowledges Pakistani involvement with terrorism and attempts to rectify the situation in India, the problem will continue and strife between India and Pakistan will be imminent. Conclusion India is a distinctive and diverse young country that is fraught with political strife and poverty. In the midst of these problems, India has found ways to bolster its economy and fuel progress, especially in the technology sector. If India is aided with regard to its political disputes and border problems by stronger countries, it will surely begin to prosper. Western companies looking for new investment options should look to India.

The benefits to both would likely be beneficial. India will likely be a major player in the world market in years to come, and perhaps a strong competitor in many markets. INDIA: Annotated Bibliography Prepared for Dr. William Brad berry Missouri Southern State College Submitted by Robert Boudreau International Business Class Fall Semester 2001 INDIA: Annotated Bibliography ANNOTATED

Bibliography

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Global Business Today (Second Edition). New York, NY: The McGraw-Hill Companies. This is an undergraduate textbook designed for International Business related courses. Jagdish Bhagwati (1993).
India in Transition: Freeing the Economy, (June 1993).
New York: Oxford University Press. This book is written by renowned economist Jagdish Bhagwati and provides an overview of Indian development after it gained its independence from Britain. It centers around the many political complications that restrict the economic progress of India. web: Washington D.C. : Central Intelligence Agency, 2000 New York: Bartleby.
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Each country profile tracks such demographics as population, ethnicity, as well as political, geographical, and economic data. web: India Infoline Ltd. (2000) This website contains monthly economic reports, database of the industries, analysis of government policies, data and statistics.