Perspectives
India’s Growing Knowledge Economy (Part III)…
WITH SOME prominent exceptions, the developing world is fast losing opportunities where leveraging its Diaspora’s Knowledge Networks could transform the usual ‘same old, same old’ stagnant economies into a vibrant Knowledge Economy (KE); without this transformation to a KE, many such countries will not achieve sustainable growth rates; and poverty, and social and economic disparities will reign over those lands for a long time to come. This line of argument carries greater force for those countries unable to attract the traditional Foreign Direct Investment (FDI).

I started to present the usefulness of leveraging Knowledge Networks a few weeks ago. I spoke about the fact that India needs to consolidate its Knowledge Economy (KE) to maintain its high growth rate, to reduce its social and economic disparities, and refashion a new path to becoming the fastest growing global economic powerhouse.

And India can consolidate its KE through leveraging its Diaspora’s Knowledge Networks. India, for some time now, remains in the business of engaging the Indian Diaspora to secure an increased and sustainable economic growth. Last week, I addressed the ‘What is?’ in the Indian economy, and noted that India would need to rapidly make the World Bank’s four pillars of KE happen, if it is to truly become competitive in the global KE. And I explained that leveraging its Diaspora’s Knowledge Networks would be a flagship for India’s KE.

This was the basis of the paper I presented on a panel with the Chancellor and President of the University of Houston Dr. Renu Khator; Pro-Vice Chancellor of the University of KwaZulu-Natal, Dasarath Chetty; and Dr. Ramesh Patel at the 8th Pravasi Bharatiya Divas in New Delhi, January 7-9, 2010.

It may be useful to re-echo these reasons why the Indian Diaspora would be the critical mover of Knowledge Networks to consolidate India’s KE:

 The Indian Diaspora demonstrates a greater proclivity to engage in risk situations in its home country than non- Diasporans; in this context, Indian Diasporans may have better knowledge and capacity to induce relationship opportunities in both India and the Diaspora’s overseas bases.

 The rate of return to a unit of investment by the Indian Diaspora may be greater than that of the traditional FDI.

 The Indian Diaspora provides social capital vis-à-vis its Knowledge Networks.

For this reason, this week I want to present some ideas about the Diaspora’s provision of social capital. Let us turn now to some definitions of social capital:

 “The aggregate of the actual or potential resources which are linked to possession of a durable network of more or less institutionalized relationships of mutual acquaintance or recognition.” (1985: 248) (Bourdieu, 1985: 243)

 “The number of people who can be expected to provide support and the resources those people have at their disposal.” (Boxman, De Graat, & Flap, 1991: 52)

 “The process by which social actors create and mobilize their network connections within and between organizations to gain access to other social actors’ resources.” (Knoke, 1999: 18)

 “The ability of people to work together for common purposes in groups and organizations.” (1995: 10). (Fukuyama, 1997)

Drawing from these definitions, social capital is a resource available to the Indian Diaspora, a resource emanating from their positions in numerous overseas organizations; nonetheless, the Indian Diaspora also could elicit resources from the non-Indian Diasporas, thereby drawing from other Knowledge Networks; the bottom line is an increase in the repertoire of knowledge and skills; significant social capital that the Indian Diaspora already is infusing in India.

Nonetheless, the fundamental driving force of the Indian Diaspora’s social capital is goodwill, which thrives on trust, sympathy, and forgiveness. And this social capital addresses capacity building; nevertheless, both India and the Indian Diaspora must ensure that inputs to the home country are culturally appropriate; responsive to real demand; and consonant with national priorities.
How to mobilize social capital? We may want to do the following:
 Identify capabilities – personal and interpersonal skills and experience – and confidence; these would require a Knowledge Network base, enabling the Diaspora to contribute its collective effort. The Government of India, through its Overseas Indian Facilitation Centre (OIFC), partnered with Tata Consultancy Services to create the Global-Ink, which would seek out the Indian Diaspora as ‘knowledge’ partners, Indian institutions as ‘stakeholder’ partners, and the Government as a ‘Facilitator’.

 In the case of India, the Indian Diaspora could extend beyond its own capacities and boundaries to reach other Diasporas; that is, tapping additional social capital from heterogeneous networks (non-Indian Diasporas).

 And the Indian Diaspora would need to bridge this non-Indian Diaspora Knowledge Networks with its own Knowledge Networks to secure a continuous flow of expertise from within itself and from other Diasporas; this is an important process of bridging social capital because the bridging helps to achieve sustainability in the flow of knowledge, skills, and other resources to the home country, India. For instance, India’s Diaspora could bridge social capital, that is, resources from outside its own community, from other migrants in these overse
as countries. And the Indian Diaspora, about 25 million strong, would fast become a tremendous stakeholder, by virtue of its leveraging of Knowledge Networks, in securing the consolidation of India’s KE.

But before we can bridge our own Diaspora with these other Diasporas, whether it is India or some other country, we first have to make our own Diaspora strong, transforming it into a collective force – this is the bonding process in action; once the Diaspora is strong and can act collectively, then its bridging function (tapping resources from other Diasporas) becomes fertile and effective.

And then there is bonding the social capital from homogenous networks, that is, from its own Knowledge Networks; in the case of India, these are resources coming form the Indian Diaspora itself and within its own Indian community. Bonding, nonetheless, is critical because the Indian Diaspora Knowledge Networks must ensure the sustainability of its own resources and to make the bridging function effective, for the consolidation of India’s KE.

Bonding social capital by India’s Diaspora promotes solidarity and community identity; and helps the Indian Diaspora to develop a sense of efficacy, psychological empowerment, and enthusiasm to express its identity. The Digital Diaspora and the Indian Diaspora professional associations make both bonding and bridging social capital a happening thing. Nevertheless, both the Indian Diaspora and its allied non-Indian Diaspora Knowledge Networks play a pivotal role in mobilizing social capital and inputting the consolidation of India’s KE.