Rendezvous with Sir Richard Stagg

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In a wide-ranging interview to TSI’s Pathikrit Payne, the British High Commissioner to India discusses the economy and the role of India in defusing crises and terror.

Is there paranoia in the UK about the economic resurgence of India and it becoming an outsourcing hub, as it leads to job loss in UK?
In the case of India there’s genuine welcome from almost every political group. We think that the Indian outsourcing business is positive for the world economy. We are very comfortable with UK companies using outsourcing as one of the ways to make their business more successful. From our perspective, it makes no sense to constrain the competitiveness of our companies by limiting their ability to outsource that would weaken the company. We will succeed as an economy just by competing for relatively low skilled jobs, which can be done at a lower cost elsewhere. We have to accept that the only way we are going to succeed as a country and as an economy, is by moving up the value chain by doing higher value added tasks. So the government’s challenge is to ensure that as the low skilled jobs leave UK, we provide training and upskilling to the people affected so that they can do higher value work in the economy.

In the war against terror, countries like UK seem to be penalising Sri Lanka, while rewarding Pakistan. Was LTTE less of a terror organisation than those in Pakistan?
Terrorism is unacceptable and should be stopped in whatever form it takes and from wherever it comes about. But clearly you need a plan and a strategy which is specific to the sort of terrorism you are dealing with. And what was right in Sri Lanka would almost certainly be different from what was right in Pakistan. In Sri Lanka you have a situation in which there’s a minority population which has been ill at ease with its majority Sinhalese population for decades and that has been affected by a very small group in the LTTE which has tried to use violent terrorist methods for over 20 years to advance it own cause. And we were entirely clear that the LTTE needed to be dealt with. In the case of Pakistan, we have been urging the government of Pakistan to take more vigorous effective action against the Taliban, against the Al-Qaeda and against the threats within its own country. So I think in both cases we want an outcome of stopping the terrorists and civilian causalities to be kept minimum, but the actual environments are very different. And in the case of Pakistan they clearly face a much wider canvas of terrorist threat to their society and one which is much more difficult to deal with. I don’t want to minimise the LTTE challenge but it was a single group, fairly identifiable with a single leader, while in the context of Pakistan there are different terrorist groups – Pakistan Taliban, Afghan Taliban, Al -Qaeda, the LeT and the JuD and a whole range of different organisations and therefore it is a much bigger challenge for Pakistan; one they must, in our eyes, handle successfully for the sake of the rest of the world. It’s a global threat in which Pakistan has to take a lead in addressing.


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Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
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