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I talked about Mallu junction on Friday making an economic impact on the sidelines of a national highway. But not always, does the phenomenon of people from the similar background sticking out together be so explicit. Completely heterogeneous business communities have never existed especially more so in India. Palanpuri Jains dominate the diamond industry, Shettys run the South Indian cafes, Marwaris and Parsis run the corporate business houses and you will always see a Mallu tirewalla or a Bhaiya milkman in the remotest part of the country.
These business communities have always remained close knit and have rarely trusted any outsider. The family business tradition, carried from the days of the joint Hindu family have still managed to hold its own even in the days of rapid globalizations. Labor has become increasingly mobile but the bonds that bind the family businesses have become stronger.
I studied in an undergraduate college run by a South Indian trust and at one point of time, had Pillais’ right from the principal to the peon. With the exception of faculty, I noticed the entire lower management was inundated with South Indians. Nepotism was obvious and did not raise any eyebrows, as one “macchi” was expected to help the other. Few of my dad’s Muslim clients blatantly insisted on hiring Muslim contractors in spite of the open tender process. Equal opportunity is rendered almost redundant. This behavior is observed across all religions and cultures in India. I am not trying to say that other western countries are above such nepotism but the effects are definitely less pronounced.
Primarily, the reason for employing people of your own background is traced back to trust and reliability. Businesses in India still do not trust the acumen of an outsider, no matter how highly qualifies or competent he might prove himself to be. An outsider might have to prove himself over and over again to gain the trust of his employers and is viewed with scorn at the slightest blunder. The other sentiment mostly expressed by employers is that by hiring one of their own kind is the least they can do to help their community.
Although these behaviors are observed mostly in small businesses, it indeed is a hindrance to progress. When the ethnic and cultural background is the deciding factor and relegates merit to the sidelines, we definitely cannot expect efficiency. Can globalization truly achieve its lofty goals if we continue to be restricted by our ethnic bonds?
by Patrix | on Sunday, August 15th, 2004 at 11:05 pm | 
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August 16th, 2004 at 11:50 am reply
True this.
Whenever I’m explaining India to the ppl here .. I compare it with the EU .. with different countries in the EU being different states in India .. complete with different language, food, culture .. the whole thing. Thats how we are .. totally diverse .. and its logical that ppl from one ’state’ distrust those from another (think country) .. thats the inherent mentality .. (which needs to be overcome .. much like the EU is doing)
August 16th, 2004 at 3:50 pm reply
Anya - But somewhere such homogenity is not possible. Even though we live in an increasingly globalized world, people still want to stick to their groups.
August 16th, 2004 at 6:26 pm reply
er..as much as you have a fond liking for Aar, its not very nice to be so public about it.
August 16th, 2004 at 8:06 pm reply
Alpha - I stand corrected. Why do i always set myself up for you?
August 17th, 2004 at 11:32 am reply
Huh?
August 17th, 2004 at 11:56 am reply
Aar - Don’t worry..one of Alpha’s jhatkas..hell bent upon hooking me up with a guy..one of her fantasies :)
August 17th, 2004 at 4:30 pm reply
yeah whatevah! It’ll be called fantasies if I am imagining things. But heck no, you keep giving me the feelers… or rather them the feelers. aar..what huh?