Invest in human capital - Swraj Paul

By Our Special Correspondent

CHENNAI, JAN. 2. Lord Swraj Paul, officially-designated Ambassador for British Business and Chairman of the Caparo Group of the U.K., today called for ``huge investments in human capital, knowledge and creation of structures'' to meet the needs of the ``new revolution'' in the era of globalisation.

``These are things that any one nation will find it difficult to do alone in the modern age. However, through joint efforts and association with each other, we can pool our strengths and benefit from complementary assets,'' he said.

Addressing a meeting organised by the Madras Chamber of Commerce and Industry (MCCI), Lord Paul, who is also co-Chairman of the U.K.-India Round Table along with Mr. K. C. Pant, Deputy Chairman of India's Planning Commission, said the group of officials and non-officials of both countries had met twice already and submitted over 50 recommendations to the two governments, ``notably in the areas of education, trade and investment, technology and media communications.'' ``We look for early action from the two governments,'' he added.

Lord Paul said, ``We have moved from a world of super-powers to a world of super-markets.'' That was the ``theory of macro- economics in our time'', where globalisation, with all its benefits and drawbacks, had come to stay. Hence ``accommodation, adjustment, restructuring and other responses are now a way of life for all of us for whom business is a way of life.''

A leading member of Britain's Labour Party for more than two decades, Lord Paul said at present there was a ``remarkable consensus'' in British politics that ``an enterprise society is good for Britain and good for Britain's relationship with the world.'' ``Business is at the heart of this (British) government and the government's aim is to sustain an environment which enables business to meet the challenges of the model global economy - in the U.K. and throughout the world,'' he said.

Referring to the low-tax, low-inflation and business-friendly policies of the Tony Blair government, he said Britain's message to the world was that it stood for ``hospitable and responsible internationalism'' and that all segments of its society would cooperate in this endeavour.

Referring to his own preference and that of the Confederation of British Industry for early entry of Britain into the common currency system of the European Union, he said the government had made a public commitment not to join it without going in for a referendum on the issue. ``It will honour this commitment''. Meanwhile, he said, chambers of commerce, banks, retailers and financial houses in the U.K. were organising themselves to do business in the Euro. ``Many offer Euro services and anticipate increasing demand. All this means that we are ready for the Euro, whether the U.K. is in or not'', he remarked.

Replying to questions, Lord Paul said the ``image'' of India in the developed world was that it was headed by a Prime Minister who was a ``great conciliator'' and who had shown ``great courage'' in making a gesture of peace to Pakistan.

He said investment in the infrastructure sector in India would flow only when India learnt to make the most out of its existing capacity, which was grossly underperforming because of bad maintenance or had become obsolete. He felt that the agreement with Enron on its power project in Maharashtra was a ``wrong decision'' as the cost-plus approach was against the very concept of competition and globalisation. ``I had expressed these views as early as 1992,'' Lord Paul said.

Mr. N. Ram, Editor of Frontline, in his ``contextual remarks'', warned businessmen that political stability, which was much needed for economic growth, could not be ensured ``beyond appearances'', unless India's heritage of pluralism in culture, language and religion was protected. Also, improvement in human development in terms of education, public health and quality of life of the mass of the people was a must for growth, he added.

Mr. M. E. J. Herridge, British Deputy High Commissioner, said apart from sturdy growth in bilateral trade and British investment in India, there was also growing Indian investment in Britain. More Indian companies were now listed on the London Stock Exchange than in any exchange in the U.S., he said.

Mr. L. Sabaretnam, President of the chamber, said the U.K. could benefit from Indian expertise in information technology and India's traditional systems of medicine.

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