Indian Technological Entrepreneurship – At Street Level in Mumbai

5 August 2010. By David Caploe PhD. Chief Political Economist, EconomyWatch.com

We’ve often talked about our hopes for both China and India as leaders of the emerging world economy.

While China has been very much in the lead, it has done so following the general post-WWII East Asian strategy –

5 August 2010. By David Caploe PhD. Chief Political Economist, EconomyWatch.com

We’ve often talked about our hopes for both China and India as leaders of the emerging world economy.

While China has been very much in the lead, it has done so following the general post-WWII East Asian strategy –

pioneered by Japan, and then quickly followed by Taiwan and South Korea, and, in slightly different ways, Hong Kong and Singapore – of “export-oriented” growth.

As we’ve pointed out, though, China is making a concerted effort to move from the bottom of the value-added chain by manufacturing at low wages and competing on price margins –

an approach now under threat from both even LOWER-WAGE countries like Vietnam and Bangladesh AND the growing militance of its own “one child policy” working class –

to the opposite end of the value-added spectrum by focusing on high-end sectors like high-speed rail and clean / green technology.

India, conversely, has taken a different approach, that also depends on relatively low wages,

but also takes advantage of both its excellent higher education system and a widespread English-language culture,

focusing mainly on the importation of relatively high-end jobs from the West,

from call centers all the way to a large and growing IT sector.

It’s for this reason that we have often expressed the hope that India can become a “buy” economy, as the US has been since the end of World War II,

and in that way, develop into a center of both the Asian and global economies.

There are, to be sure, many problems to be overcome, above all terrible corruption,

and a level of income IN-equality that is astounding and disturbing.

But the dynamism of the new Indian society means such a vision is, in fact, achievable, if by no means yet certain.

In this context, here’s a story about Indian entrepreneurialism at the street level,

sent to us by our friend and constant reader Deepak Moorjani,

which he got from the blog of Indian / British film director Shekhar Kapur.

It’s not just funny and endearing in itself, but illustrates why we think – despite the significant obstacles –

India could indeed join China as one of the titans of the emerging world economy.

Enjoy.

A greater ‘hole in the wall’ you cannot imagine.  

A small fading sign on the top saying “Cellphoon reapars” barely visible through the street vendors crowding the Juhu Market in Mumbai.

On my way to buy a new Blackberry, my innate sense of adventure (foolishness) made me stop my car and investigate.

A shop not more than 6 feet by 6 feet. Grimy and uncleaned.

‘Can you fix a blackberry ?”

‘Of course , show me”

“How old are you”

‘Sixteen’

Bullshit. He was no more than 10.

Not handing my precious blackberry to a 10 year old in unwashed and torn T shirt and pyjamas !

At least if I buy a new one, they would extract the data for me.

Something I have been meaning to do for a year now.

‘What’s wrong with it ?”

‘Well, the roller track ball does not respond. It’s kind of stuck and I cannot operate it”

He grabs it from my hand and looks at it

“You should wash your hands. Many customers have same problem. Roller ball get greasy and dirty, then no working’

Look who was telling me to wash my hands.

He probably has not bathed for 10 days, I leaned out to snatch my useless blackberry back.

“You come back in one hour and I fix it’

I am not leaving all my precious data in this unwashed kid’s hands for an hour.

No way.

“Who will fix it ?”

‘Big brother’

‘ How big is ‘big brother?’

‘Big …. umm … thirty’

Then suddenly big brother walks in.

30 ??? He is no more than 19.

‘What problem ?’ he says, grabbing the phone from my greasy hand into his greasier hand.

Obviously not trained in etiquette by an upmarket retail store manager.

‘Normal blackberry problem. I replace with original part now. You must wash your hand before you use this’

What is this about me washing my hands suddenly ??  

19 year old big brother rummages through a dubious drawer full of junk and fishes out a spare roller ball packed in cheap cellophane wrapper.  

Original part ? I doubt it.

But by now I am in the lap of the real India

and there is no escape as he fishes out a couple of screwdrivers and sets about opening my Blackberry.

“How long will this take ?”

“Six minutes ”

This I have to see.

After spending the whole morning trying to find a Blackberry service centre

and getting vague answers about sending the phone in for an assessment that might take a week,

I settle down next to his grubby cramped work space.

At least I am going to be able to watch all my stored data vanish into virtual space.

People crowd around to see what’s happening. I am not breathing easy anyway.

I tell myself this is an adventure and literally have to stop myself grabbing my precious blackberry back and making a quick escape.

But in exactly six minutes this kid handed my blackberry back.

He had changed the part and cleaned and serviced the whole phone.  

Taken it apart, and put it together.

As I turned the phone on there was a horrific 2 minutes where the phone would not come on. I looked at him with such hostility that he stepped back.

‘You have more than thousand phone numbers ?”

‘Yes’.

‘Backed up ?’

‘No’

‘Must back up. I do it for you. Never open phone before backing up’

‘You tell me that now ?’

But then the phone came on and my data was still there.

Everyone watching laughed and clapped.

This was becoming a show.

A six minute show.

I asked him how much.

‘ 500 rupees’, he ventured, uncertainly .

People around watched in glee expecting a negotiation.

Thats $ 10 dollars as against the Rs 30,000 ($ 600)  I was a about to spend on a new blackberry or a couple of weeks without my phone.

I looked suitably shocked at his ‘high price’ but calmly paid him.

Much to the disapointment of the expectant crowd.

‘Do you have an Iphone ? Even the new ‘4′ one ?

‘No, why”

‘I break the code for you and load any ‘app’ or film you want. I give you 10 film on your memory stick on this one, and change every week for small fee’

I went home having discovered the true entreprenuership that lies at what we call the ‘bottom of the pyramid’.

Some may call it piracy, which of course it is,

but what can you say about a two uneducated and untrained brothers aged 10 and 19

that set up a ‘hole in the wall’ shop and can fix any technology that the greatest technologists in the world can throw at them.

I smiled at the future of our country.

If only we could learn to harness this potential.

‘Please wash your hands before use’ were his last words to me.

Now I am feeling seriously unclean.

Don’t worry, Shekhar – you’re fine.

And, let’s hope, so will be India.

 

David Caploe PhD

Editor-in-Chief

EconomyWatch.com

President / acalaha.com