The 3 Es

From last few days, every day when I pick up ET, I get to read all good things. The zooming SENSEX, high GDP growth, huge FII inflows, big M&A’s, and add the latest impressive increase in Exports despite strong Rupee. I wonder how liberalization has changed all, and from a third world country we are on a way to become a superpower. Then, just looking out of my window I see a few kutcha huts. May be some daily laboururs stay there. Small kids playing with whatever they get hands on and this looks no different than may be some 10 years ago. I “hope” the growth is benefiting them. If it does not, it is a big problem. Not only social also economical. A social imbalance will definitely put brakes on the growth. How can we ensure that they also have a pie in the growth cake? For sure, taking a communist approach will be a big mistake. We cannot keep subsidizing everything. There has to be a way in the “free hand” policy to allow a wholesome growth. My belief is that it can be achieved using the 3Es given below.

1. Educate. This is the basic ingredient which needs to provided if we want to see any change at BOP. This is a very logical parameter. Without education, a person can never exploit any opportunity, even if it given to him. I don’t say that people should be graduates, and you may start arguing that many businessmen were never very good at academics. I want education to be a tool to remove ignorance. Education should be the enabler to make people come out of this darkness. At least people should be able to think correctly. Without a proper education a person is blind even to see the growth itself, forget anything else.

2. Empower. This parameter makes sure that no one is handicap. After showing the light by removing the darkness of ignorance and hence enabling them to see, we need to provide them tools to use their vision, empower them to believe in themselves and allow them to explore the growth. Without Empowerment a person is handicapped who only looks at the growth but cannot do anything about it.

3. Encourage Entrepreneurship. This is the next logical parameter we need to add. Let people be free. Allow them to chose their ways. Tell people that they can create and build. Big and small does not matter. Encourage the spirits of Entrepreneurship. This will naturally lead to innovative ideas booming. Competition will driver innovation, which will drive efficiency, and this will make each one give and get its best. And when each one gives and gets its best in a country, you can only think and feel it. At least I can write it. Without this ingredient, we will not be utilizing full potential of many capable Entrepreneurs.

We may have huge FIIs to increase our GDP and big MNCs paying us big amounts. But until and unless we look at the larger section of the country, enable them to see, empower them to use their vision and encourage them to use their full potential, whatever way they want, I believe we are in danger of social imbalance which leads to economic imbalance, ultimately hitting back TOP (Top of the Pyramid).

Take an example. Big software giant invests big amount here. If people know this, know what they need and are encouraged to use this opportunity the way they like we may see a new catering service, a small supplier of tissue papers, a new opportunity for a stationery supply rising. If we do not Encourage Entrepreneurship, we will have only new “wage earners” and no new competition. If we have not Empowered, people may be reluctant even to join a big MNC (at clerical levels), or even take any kind advantage out of it. And without education there lies no point of any discussion.

This looks common sense to me. The 3Es comes just because I am perusing my Management Studies ;-).