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YK
ND-ND
EDITORIAL
MONDAY, JUNE 3, 2013
10 THE HINDU MONDAY, JUNE 3, 2013
NOIDA/DELHI
W
hen a company dusts off a long-retired
founder chairman and brings him back
into an active management position, it
can mean only one of two things. Either
that the situation is desperate and the company badly
needs the experience, equity and goodwill of the foun-
der to steady the ship, or that it is unable to attract
equivalent talent from outside. In the case of Infosys,
where iconic co-founder, N.R. Narayana Murthy, is
returning as Executive Chairman with immediate ef-
fect, it probably means both. Infosys has been under-
performing in the information technology industry
over the last couple of years and if its guidance for the
current scal is to be believed, it will grow at just about
half the pace of that of the entire industry. This is
indeed a lamentable position for a company that was
once the acknowledged bellwether for the IT sector; an
industry leader not just in business but also in corpo-
rate governance. Today, the company seems to have
abdicated both thrones. If the return of Mr. Murthy
was a surprise, even more so was the induction of his
son, Rohan Murthy, as his executive assistant. Though
dynastic succession is accepted in Indian businesses as
much as in politics, the fact is that by inducting the son,
even if it is as a mere assistant to the father, Infosys
appears to have fallen short of the high standards of
global corporate governance which it professes to
practise.
That said, Mr. Murthy has set himself up for a stiff
challenge in his second innings. For one, there has been
a sea change in the environment, and indeed in the
company, in the two years since he stepped down. He
has anyway not been in an executive position since
August 2006, when he became non-executive chair-
man and remained so until 2011. The world has moved
on since then and the challenges for the IT industry
have multiplied. Second, the circumstances under
which Mr. Murthy is returning are bound to throw up
their own challenges. It will but be natural for share-
holders and employees, including those in the middle-
management of Infosys, to raise questions such as if the
move is a vote of no-condence in the present exec-
utive set-up, including the CEO, S.D. Shibulal, and the
present executive co-chairman, Kris Gopalakrishnan.
Will Mr. Murthy reshuffle the executive team and bring
in his own managers eventually? Will there be a change
in the much talked about Infosys 3.0 strategy that is
Mr. Shibulals baby? The fact is that, in returning to the
crease, Mr. Murthy has staked all his equity, reputation
and goodwill and is hoping that he can pull Infosys out
of the rut it nds itself in now. Wishing him good luck
and desperately hoping that he succeeds will be the
market, which is seeing his return as a positive move
already.
Narayana Murthy
2.0
T
he return to office of an elected
Prime Minister a decade-and-a-
half after he was deposed by the
military is an important develop-
ment for India as well as the international
community, which have stakes in the pro-
gress of democracy in Pakistan.
The elections, which Nawaz Sharif won,
have taken place at a time when Pakistan, a
major Islamic country with nuclear weap-
ons, is seen as sliding towards state failure.
Extremist forces are gaining strength in the
country, staging terrorist attacks with im-
punity. Pakistani soil is being used for ter-
rorist activity against its immediate
neighbours, with suspected complicity of
state agencies. The Islamist resurgence in
Pakistan threatens not only the secular po-
litical structures of Central Asian states but
is causing concern even to Pakistans all-
weather friend China, which is worried
about links between extremist activity in
Sinkiang and Pakistani safe havens.
Moreover, given the geo-political factors
operating in the region, internal political de-
velopments in Pakistan bear directly on the
future of Afghanistan, particularly after NA-
TO forces withdraw from the country in
2014. A stronger democratic polity can bet-
ter control the Pakistani extremist religious
forces and security agencies seeking political
and religious strategic depth in
Afghanistan.
Consolidation of democracy
In this wide-ranging context, the consoli-
dation of democracy in Pakistan offers hope
of arresting its decline towards extremism
and state failure, controlling the menace of
terrorism, strengthening pluralism, chang-
ing the equation between the armed forces
and the civilian authority and stabilising the
polity, with positive consequences for the
region as a whole.
The prospects, however, are quite
uncertain.
Simply put, the structural and societal
problems in the country need more than the
mechanics of elections for a solution. The
basic complexion of the country would have
to change; new, genuinely modernising
forces with a wide popular base have to take
control, armed with a national agenda of
introducing the needed reforms, backed by
strong institutional support.
The public mood of disenchantment with
the mainstream parties had given an early
head wind to Imran Khans Pakistan Teh-
reek-e Insaf (PTI). The desire for change in
Pakistan seemed strong among the youth,
spurred in part by the so-called Arab Spring.
But Imran Khan lost momentum towards
the end.
Political assessments about the depth of
this desire for change in Pakistan have even-
tually proved wrong. Like in the Arab world,
social media-urban youth driven calls for
political change capture attention more eas-
ily than capturing power.
The positives in these elections were the
highturnout despite threats of violence, and,
given the difficult conditions, their relative
fairness. The many perturbing negatives
were the Islamic criteria which Pakistans
ElectionCommissionused for vetting candi-
dacies and the violence unleashed by the
Tehrik-i-Taliban Pakistan (TTP) against
secular parties such as the Pakistan Peo-
ples Party (PPP) and the Awami National
Party (ANP), obstructing even normal elec-
tioneering by a national party like the PPP.
The implication of this is more members
of an Islamist hue in the new National As-
sembly, even if they do not overtly belong to
religious parties. The argument that reli-
gious parties have a limited hold over the
Pakistani electorate as shown by their poor
electoral performance becomes increasingly
more academic giventhe lurchof society as a
whole towards Islamism.
The fact that India was not a factor in
these elections and that improvement of re-
lations with India gured in the election
manifestos of various parties with the Pakis-
tan Muslim League (N) the most forward-
looking in this regard, is no guarantee that
faced with the prospect of serious steps to
bury the hatchet with India, religious forces
will not become a major obstacle.
The disquieting aspect about the PML (N)
is its long-standing links with radical India
and Shia-baiting groups suchas the Lashkar-
e-Taiba, the Lashkar-e-Jhangvi and the Si-
pah-e-Sihaba. The TTPdid not, tellingly, tar-
get electioneering by Nawaz Sharifs party
and that of Imran Khan.
These linkages will limit how far Mr. Na-
waz would be able to go with India, notwith-
standing his declared desire to improve
all-round ties. He promises to put curbs on
Haz Saeed, even though political person-
alities in his own party are closely linked to
him. The Punjab government, under the
leadership of his brother, has been soft on
himall these years, as has the local judiciary.
Mr. Sharif is hardly in a position to deliver
on his promise to end terrorism against In-
dia when Pakistan is nding it difficult to
control widespread domestic terrorism, of
which the armed forces are a target too.
Similarly, it is not clear how he will expedite
the trial of those involved in the Mumbai
terrorist attack. The promised exposure of
the realities behind Pakistans Kargil aggres-
sion may help Mr. Sharif settle scores with
Pervez Musharraf, but already Pakistani
military sources have spilled the beans about
the generals lies and obfuscations about the
failed adventure he initiated.
Practising politician
The PML(N) leader may well be sincere in
wanting to normalise ties with India, but he
is Pakistans leader, a practising politician,
and it would be normal for himto bargainhis
goodwill. He could well leverage it to seek
upfront concessions so that his hands get
strengthened and the prospects of delivery
on his part become more promising.
He should be able to nalise the decision
to accord the Most Favoured Nation trading
status to India. He will encourage increased
economic ties, consistent with his policy
when he was last Prime Minister. But the
issue of non-tariff barriers, fears of the Pa-
kistani market being inundated by Indian
goods and concerns about the large trade
imbalance that already exists and is likely to
expand, will be dissuasive factors.
His grand vision of according India transit
rights through Pakistan to Afghanistan is
unlikely to materialise as this would be seen
by many in Pakistan as a crucial strategic
stepwithimplications for India-Afghanistan
relations and Pakistans role in Afghanistan
and Central Asia. Opening Central Asia to
Indias political and economic inuence
would mean a huge reversal of Pakistans
strategic thinking, even if such a step will
bring Pakistan additional revenue, bolster
its economy and bring benets to the entire
region in terms of trade and energy
connectivity.
Nawaz Sharif has already announced a
dialogue with India on Kashmir. He wants to
signal domestically that the issue will not
recede in importance amidst the general
rhetoric of improved relations with India,
besides, of course, exploring once again the
possibility of resuming a serious dialogue on
the subject.
India can pick up the threads of the back-
channel dialogue conducted with some posi-
tive results during General Musharrafs
presidency. But can Mr. Sharif take own-
ership of the Generals initiative? Even the
well-meaning Asif Zardari disowned it. Be-
sides that, the UPA government may not
want to get embroiled in any controversy
over the Kashmir issue close to elections in
2014.
India is hardly likely to budge on the Sia-
chen issue, particularly after the recent Chi-
nese incursion into Ladakh, whereas
Pakistan considers it a low-hanging fruit.
Our Prime Ministers message to Mr. Sha-
rif on his victory has been unusually warm.
His invitation to the latter to visit India
when he has kept his own visit there on hold
was a little surprising. Mr. Sharifs return
invitationtoManmohanSinghtowitness his
oathtaking ceremony received a politely dis-
couraging response from the Indian side. A
visit when the new Pakistani Prime Minister
would not have found his feet yet would have
been a waste diplomatically. It is also perti-
nent to note that Dr. Singhdid not attend the
oath taking ceremony of Sheikh Hasina of
Bangladesh.
Relations with the military
All said and done, Mr. Sharifs mutually
suspicious relations with the military will
limit his capacity to do what he wants in the
security and foreign policy domains. The
military will not give up its ultimate control
over these domains. The election results
have not given Mr. Sharif the kind of over-
whelming mandate as would enable him to
radically change the equation between his
civilian government and the armed forces.
The economic challenge facing Mr. Sharif
is enormous. The countrys economic sit-
uation, with an abysmal tax to GDP ratio,
poor growth rate, high ination, energy
shortages, high population growth and the
like, cannot be easily remedied. Mr. Sharif
will be put on test immediately. Even his
opening towards India to ease the situation
will take considerable time to get translated
into meaningful results on the ground.
The just-concluded visit of the new Chi-
nese Premier hasnt promised any economic
bonanza to Iron Pakistan that Mr. Sharif
could capitalise on.
Pakistan will have to go the International
Monetary Fund for economic relief and ac-
cept its onerous conditionalities, which is
not a recipe for public popularity. He will
have to mend relations with the U.S., but the
degree of exibility he will have oncooperat-
ing in Afghanistan and handling the vexed
drones issue all in the background of the
increasing radicalisation of Pakistan and an-
ti-U.S. feelings in the country is
questionable.
There are many reasons to be sceptical
about Mr. Sharifs capacity to deliver on his
promises to the Pakistani public and to In-
dia. The future of liberal democracy inPakis-
tan is not assured as yet, though the recent
election is a cause for hope. As hope is a
sentiment that requires no reasons to justify
it, one can be generous with ones hopes
about the success of Mr. Sharifs third tenure
as Prime Minister.
(Kanwal Sibal is a former Foreign
Secretary)
Nawaz and the Islamist gauntlet
Kanwal Sibal
There are many reasons to be sceptical
about the Prime Ministers capacity to
deliver on his promises to Pakistanis and
India, but his victory offers hope
Murthys return
The decision of IT major Infosys
board to reappoint founder N.R.
Narayana Murthy chairman, and
his readily accepting the challenge
come as good news. Although
bringing the company back to its
lost glory may not be aneasy taskin
the present scenario, Mr. Murthys
willingness to don the mantle in
trying times is commendable. The
maxim that an organisation is
greater than an individual can be
wrong at times.
Kshirasagara Balaji Rao,
Hyderabad
The iconic business leaders
second innings points to the gloom
and despair enveloping the
economy. But the larger issue is of
leadership vacuum hovering over
the economy. The economy and
business grow on the strength of
leaders whose integrity,
inventiveness and foresightedness
enthuse the workforce and inspire
hope, aspiration and innovation.
Deepak Kumar,
Begusarai
The task ahead for NRN is not
simple with giants CTS, HCL and,
recently, Mahindra Satyamstaging
a comeback. The competitionlooks
tough with IT also witnessing big
changes inWeb2.0applications (as
seen in the success of FB, Twitter,
Cloudera, etc.). With the advent of
cloud computing, the IT landscape
is changing fast. The question
today is how well IT is aligned with
business.
K. Vinaya Kumar,
Secunderabad
Mr. Murthys return should boost
the fortunes of Infosys, which has
seen a decline in overall revenue
growth for the last nine quarters.
Although everything appeared
cosy when Mr. Murthy retired two
years ago, it was apparent that a
large, complex company would
miss his much-needed guidance.
Just as Steve Jobs returned to
boost Apple, one hopes Mr.
Murthys return will help Infosys.
Ganapathi Bhat,
Bangalore
State of cricket
P. Sainath has echoed the
sentiments of millions of cricket
lovers (Burn the orchard, re-grow
cricket, June 2). The BCCI-IPL
association has done incalculable
damage to the game. Something
needs to be done to break the nexus
among corporates, politicians and
lm stars in the IPL. Genuine
cricket lovers will not forgive the
manner in which the sport was
systematically destroyed by the
BCCI to make way for the freak
show. The way N. Srinivasan is
clinging to his post as BCCI chief
despite the betting and spot-xing
scandal in the IPL is ample
evidence of the huge stakes
involved in running the sports
body.
J. Anantha Padmanabhan,
Srirangam
The article expresses the
sentiments of many cricket lovers
who are agonised by
commercialisation of the game in
the name of IPL. Gullible people
have been blinded by the zing
created around the event. Perhaps
it is also necessary to analyse why a
player who performs very well in
IPLdoes not show similar mettle in
matches that are not commercial.
Renduchintala Murali
Krishna,
Secunderabad
The running commentary in the
media over the reluctance of the
BCCI chief to quit is rather
sickening. His exit alone will not
bring about a remarkable
improvement unless drastic
measures are taken to revamp the
entire structure of the Board and
root out betting and spot-xing,
aided and abetted by sponsors and
some players. Realignment at the
helm to tide over the situation is
akin to changing pillows to get rid
of a headache. That said, we have to
admit that the human tendency to
bet can only be controlled, not
eliminated.
B. Gurumurthy,
Madurai
India is beset with many problems
like unemployment, poverty and
corruption. It is surprising that
politicians and the media are
focussing only on cricket. I amalso
a cricket lover but I feel the undue
focus is unjustied.
D. Kishan Prasad Rao,
Karimnagar
The third sex
By terminating the services of a
police constable because she is a
transgender, the Tamil Nadu
police have acted with insensitivity
and caused immense damage toher
dignity and self-worth
(Qualication matters, not
gender, May 29). Reinstating her
and compensating her adequately
are the needed correctives if the
government is to set an example to
the private sector in treatment of
the third sex.
Rameeza A. Rasheed,
Chennai
Discrimination against the
transgender community points to
the narrow mentality of the state
and society, and their refusal to
accept reality. Transgenders have
contributed a lot tosociety over the
ages. Nasirud-din Mahmud, ruler
of Delhi from 1246 to 1266,
appointed Immaduddin Raihan, a
transgender, as his wakil-i-dar
(deputy to the king in judicial
matters). Allahud-din Khiljis
military general Malik Kafur was
also a transgender and he
conquered for his master almost all
kingdoms of south India.
Aijaz Hussain Malik,
Baramulla
The action of the police is a
violation of human rights.
Transgenders have a right to live
with dignity.
The police department, a
government agency vested withthe
responsibility to protect citizens,
cannot work against the
Constitution of India, which says
the state shall not discriminate
against any citizen on the basis of
sex in employment.
S. Irudaya Selvaraj,
Chennai
LETTERS TO THE EDITOR
Letters emailed to letters@thehindu.co.in must carry the full
postal address and the full name or the name with initials.
T
here ought to have been no surprise much
less the kind of disappointment demonstrat-
ed by tanking stock markets over the re-
lease on Friday of GDP growth data for the
last quarter of 2012-13 (January-March 2013). Accord-
ing to the Central Statistics Office, the economy grew
by 4.8 per cent in the last quarter and by just 5 per cent
last year. Both gures were widely anticipated. In fact,
as far back as February, the CSO had pegged the growth
rate for 2012-13 at 5 per cent based on an advance
estimate of national income. What has obviously ran-
kled the markets is the formal, statistical conrmation
of the 5 per cent GDP growth rate, the lowest in a
decade and well below the previous years 6.2 per cent.
The economy had grown at an average rate of 5.1 per
cent during the rst three quarters, with the rst quar-
ter recording the highest rate of 5.4 per cent and the
third quarter the lowest of 4.7 per cent. There was
absolutely no reason to suppose that in the remaining
part of the year, the economy would somehow break
out of the sub-ve per cent growth trend that had set in
by the middle of last year to lift the annual growth rate
to a level of respectability, of say above 5.5 per cent.
Even the more optimistic government spokespersons,
who have placed so much faith on recent policy changes
to revive the economy, expect results to ow only in the
rst part of the current year (2013-14) at the earliest.
Lead indicators, notably the index of industrial pro-
duction (IIP) data, have provided no reasons to believe
a rebound was under way. Manufacturing, which ac-
counts for a signicant portion of the IIP, grew by 1 per
cent over the whole year, compared to 2.1 per cent in
2011-12. Motor car sales, now emerging as an important
indicator on the demand side, have slumped. Agricul-
ture has fared badly, growing by 1.9 per cent compared
to 3.6 per cent in 2011-12. Mining and quarrying have
posted negative growth for the second year in a row.
This reects the continuing policy logjam in the face of
environmental and legal activism. Government spend-
ing has been on the low side and there has been a
signicant drop in private consumption expenditure in
the last quarter. These and other corroborative data
such as the sticky and lacklustre export performance
cast doubts on the belief that the economy has bot-
tomed out and that a recovery is under way. Practically
all official growth forecasts for last year are now seen to
have been highly exaggerated. Consequently, their ini-
tial projections for the current year (2013-14) have
been much more realistic, ranging from between 6 to
6.7 per cent. Even those are subject to caveats.
Disappointing, yes
surprising, no
CARTOONSCAPE