Ironies of Globalization
Here is an example of how an attempt to pursue import substitution policies can result in capitalist development. India attempted to develop its own high technology. Wipro stepped into the breach, becoming the poster boy for outsourcing. IBM also contributed to the outcome by following a typical business practice of dumping its obsolete equipment into a foreign economy.
Rai, Saritha. 2006. “Saturday Interview With Azim H. Premji: Outsourcing: It’s Been Good to Him.” New York Times (16 September).
“Azim H. Premji, 61, is chairman of Wipro, India’s third-largest outsourcing firm, with $2.39 billion in revenue last year. Mr. Premji, whose 81.4 percent ownership stake makes him India’s richest man.”
“Q. In 1977, India’s socialist government sent I.B.M. packing. Was that the turning point for Wipro’s technology business?”
“A. Their leaving gave us a chance to build the business from the start and we also learned to have a high degree of sensitivity to the customer. I.B.M. was not really bringing their best technologies to India. They were dumping old machines in the country that had been thrown away in the rest of the world 10 years before. Now they have a vastly changed attitude and they are back with a frenzy.”