Follow Up on Information Sharing and Networking in India

I have received some interesting comments in response to my take on networking and information sharing in India . . . .

 

Nitin Sacheti, a former Uchicago classmate of mine, says:

there’s definitely a smaller circle in India amongst which people more freely share ideas but I think the difference in comfort levels in sharing ideas is solely a function of the number of capital allocators in the financial world of a particular country. I think that if you look at it on a size basis---IE look at the total number of people in india that are in the 2-3 degree base and compare that to the same number of people in the US that are at the top of the financial stratosphere, you’ll see that information is just as easily disseminated, but the difference is in the US, it’s a lot harder to break into that small group of people bc it’s so much wealthier and older. I also think that because of the stricter government regulations and easier monitoring of the financial markets in the US, it makes people more guarded with information. I find that when many people who work for large public cos, find that I work for a hedge fund, they are much more guarded about work stories bc there’s a more concrete risk/consequence to sharing information so openly—ala Sarbanes oxley.

 

I fully agree with Nitin – SarbOx and the culture of litigation makes American business-types more likely to restrict information sharing.  Furthermore, it is much easier to break into the financial / business community in India.  I should say, though, that my aggressive personality does help – i.e. I have no qualms in repeatedly sending people emails until I get a meeting.  At NSR and even with my parents sometimes, I send emails with “PLEASE READ AND RESPOND” tagged on to the end of the subject line. 

 

Ravi Gurnani, a good friend and winetrepreneur, says:

try sharing or getting some information out of the any govt departments.. extracting info from the authorities is like drawing water out of a stone.. thats when you realise its the extreme opposite to this scenario

 

With my minimal amount of experience at dealing with the Indian government, I would have to agree.  If you have a personal relationship (or are able to build a personal relationship) with these officials, though, I would imagine that extracting information would be easier. 

Public Sector Incompetence and Private Sector Vitality

“The confusion and disorganization of the city’s response to an invasion by as few as ten terrorists was a sharp reminder that India’s public sector has little of the entrepreneurial vitality of the newly liberated private sector” – Jonathan Foreman, deputy editor of standpoint from his article “India’s time of reckoning” [Sorry unfortunately I could not find a free copy of the article online]

 

My parent’s generation and their elders used to view the Indian Government as a place where very smart intellectuals and high achievers would go to become powerful and successful.  The Indian Administrative Services attracted the most talented people in the country, as determined by extremely intensive exams.  I don’t know numbers but I’m sure that just like the IIT/IIM system you get a less then 1% ratio of people who take the exams to people who get a spot in the IAS. 

 

Since the “Independence” generation there has been a definite change in the perception of the Public Sector.  In fact, my generation would much rather choose a career in the Private Sector not only due to money but also because the perception of impact that you can make on the sections of the Public that could use help.  In fact, most of my friends who want to do Public Sector work in India would do it through an NGO instead of direct Government service work. 

 

My generation perceives the government as a barrier to growth, as a hindrance to progress.  It is slow, it is annoying and it is ugly.  Politicians are perceived to be sleazy.  Remember, though, that there is a difference between a politician and a bureaucrat – I think that there the perception of politicians spills over to the bureaucratic side of government.  Regardless, bureaucrats are not known for their efficiency, flexibility or forward thought.  This perception is unfortunate for obvious reasons.  In India it is tough to find smart young bureaucrats or politicians – it is just not an appealing enough sector to attract young and dynamic personalities. 

 

The idea of hierarchy and age-based promotion has been vanishing from the private sector.  The focus on merit based earnings and achievement has really helped drive the “entrepreneurial vitality” that Jonathan Foreman mentions above.  What the Indian Government needs to do is revive this spirit and renew the ranks of the bureaucracy with young, smart and motivated individuals.  How?  I have no idea but certainly it can’t be a monetary based motivation – the private sector, for the time being, will pay significant amounts more for talent. 

 

But wait – The Economist says that maybe its because “many young people prefer pleasure-seeking to politics” – well, it does make a good read . . . .

 

On a personal note – I am afraid of dealing with government officials in India because I do not understand how to deal with the bureaucracy in an efficient manner.  As I go through the process of starting a new company I will likely have to hire “agents” and use friends to navigate my way through certain regulatory hurdles, etc.