Some things never change

For all the hype surrounding Pakistan becoming a 'major ally' against the global war on terrorism (sic); for all the smooth talk by General Musharaff, it is events like these that reveal Pakistani army's true stance. They are warning the people of Pakistan to stay alert against those "Jews and Hindus." (Cue: roll eyes). Fits in nicely with the 'its all one big conspiracy against the Muslims' refrain though.

Next time you bump into the powers that at be in the Pakistani camp, convey my message, willya? -- "Dude, Get a life!"

Pakistani Pamphlets Link Militants to Hindus, Jews

Is the Next Silicon Valley Taking Root in Bangalore? - New York Times

From NYT:

BANGALORE, India, March 19 — Twenty young engineers, mostly from the Indian Institute of Technology, India's premier technology school, peer into computer monitors in the no-frills office of Read-Ink Technologies, a start-up company housed in a small building in the bustling Indiranagar neighborhood of this city.

Bangalore's flourishing outsourcing companies, including Infosys Technologies and Wipro, have attracted worldwide attention with their global clients and tens of thousands of workers. Less known are the many technology start-ups, like Read-Ink, that have taken root here in recent years.

The new firms are drawn by the region's big pool of engineering graduates, many of whom have expertise in esoteric new technologies. That advantage, coupled with labor costs much lower than those of Silicon Valley, is starting to turn Bangalore, long a center for lower-end outsourcing services, into a center of higher-end innovation.

Some of these firms are self-financed, others have capital from the West. Some are run by foreigners. Others are founded by Indians, including returnees from overseas.

Read-Ink, one of the self-financed operations, is developing an advanced handwriting recognition software that can read scanned forms, claim forms, medical records and even digital tablets.

Its founders, Thomas O. Binford, a retired computer science professor from Stanford University, and his wife, Ione, a former manager at Hewlett-Packard, arrived here four years ago with five suitcases. They say they are now close to signing up their first business customer.

The signs of this shift toward high-value work are becoming more visible. Executives at Silicon Valley Bank, which is based in Santa Clara, Calif., and provides consulting services to technology and venture capital firms, said they were seeing twice as many Indian start-ups looking for capital investment than even a few months ago.

"Our technology and private equity clients are leveraging India at an unprecedented rate," said Kenneth P. Wilcox, chief executive of Silicon Valley Bank and SVB Financial Group.

When the members of the Bangalore chapter of the Indus Entrepreneurs, a nonprofit network for entrepreneurs, collaborated with the venture capital firm Draper Fisher Jurvetson Gotham to sponsor a business plan competition last month, they were stunned to draw 125 entries vying for the $150,000 top prize.

At the same time, Bangalore is becoming a hunting ground for venture capitalists looking for promising investment opportunities, such as Promod Haque, managing partner at the venture capital firm Norwest Venture Partners in Palo Alto, Calif.

About 40 percent of Norwest Venture's portfolio companies, or about 20 companies, have development operations in India, mainly in Bangalore. "More and more people are figuring out that Bangalore is a critical step in making start-ups capital-efficient," Mr. Haque said, explaining that cost savings here can help stretch initial investment funds.

Mr. Haque is taking a hybrid approach to investment. He pairs entrepreneurs of Indian origin who have returned to India (many have spent time working in Silicon Valley and elsewhere) with Western executives who have marketing and management expertise.

One of his investments is Open-Silicon, a two-year-old silicon engineering company. Its chief executive is based here, but its headquarters and marketing chief are based in Sunnyvale, Calif. "Like Open-Silicon, which has most of its customers within a five-mile radius of its headquarters, many technology start-ups are servicing American and European markets," Mr. Haque said.

Indrion Technologies, another new Bangalore start-up, has six engineers working on embedded semiconductor solutions for sensor-control networks. Its co-founder and chief executive, Uma Mahesh, a computer science engineer from the Indian Institute of Technology, is optimistic that he can attract venture capital because innovation among India's new companies is "a very believable story for investors."

Perhaps not surprisingly, this increased start-up activity in Bangalore has caught the eye of influential American lawmakers. Many American political and business leaders have said they are worried about a technological brain drain from the United States to places overseas.

Representative Jerry Lewis, a California Republican who is the chairman of the House Appropriations Committee, said that he was trying to find a government agency to sponsor projects in areas like nanotechnology, semiconductors, energy and pharmaceuticals, and possibly to collaborate with agencies in India.

"We are figuring out what kind of support and funding is needed from the Congress," Mr. Lewis said in a phone interview, adding, "The issue is not so much about losing innovation leadership as it is about how to make innovations happen on a cheaper scale and how to make more of it happen."

That Bangalore can be an incubator city for start-ups is demonstrated in Read-Ink, which the Binfords have financed entirely from their savings and retirement fund. They live and work in the same building, saving on rent. The ground floor contains a kitchen and employee dining room as well as the Binfords' bedroom and employees' guest rooms.

Mrs. Binford also runs an all-night accounting back-office service for American customers. "It is a small service with seven accountants," she said, "but helps cover the costs."

Improving the accuracy of handwriting recognition beyond what currently marketed software products offer is a complicated technical problem. "Current products have an accuracy rate of 80-85 percent; ours will be a 5-7 percent improvement," said Mr. Binford, Read-Ink's chief technology officer.

But in getting there, the Binfords have struggled to recruit and retain the best engineers in a competitive market. They said they had deliberately stayed in stealth mode for fear of talent poachers.

There are other growing pains. Finding venture investors at the early stages of a start-up business can be difficult because the majority of investors prefer to make safer later-stage investments. There is also a lack of homegrown innovators serving as role models.

"The entrepreneurial heroes of the Valley are accessible to many people," said Sabeer Bhatia, who moved from Bangalore to the Silicon Valley and co-founded Hotmail, later acquired by the Microsoft Corporation.

Sridhar Mitta, president of the Bangalore chapter of the Indus Entrepreneurs, said, "We are not going to be another Valley anytime soon," but he added, "The city can match up with Boston or Austin as a competitive place to start up innovative product companies."

Is the Next Silicon Valley Taking Root in Bangalore? - New York Times

Very, very isolated

Smack in the middle of the country, geographically. But so far from the mainstream every other way - economically, socially, politically. Here's half a million people living in the middle of nowhere of China. I was surprised to read that (a) Islam is thriving and (b) in many towns in this area, not a single Chinese or Chinese-speaking people lives!

China, like every other big country, is a study in contrasts. Seems like we are yet to figure out how to take the whole country forward, and not just the big bling-bling cities. In fact, you don't have to go to middle of the mountains in China to see poverty like that. About a mile from Washington, DC, if you head in a south easterly direction, you will be transported to a whole new planet. Or hop on a plane from DC to Bombay; walk out of the airport. You'll see the infamous slums of Bombay.

Deep in China, a Poor and Pious Muslim Enclave - New York Times

Unequal growth in China

The wagging fingers of western we-know-it-all media has started talking about unequal growth in China; about how a large segment of the population is not seeing the benefits of the country's hugely impressive growth rates. Seems like the powers that be in the Chinese government (like who else has power there, I wonder) has decided to do something about this deepening divide.
China's Premier Promises Protections for Farmers

Nuclear separation scenarios

More on the nuclear reactor separation plan. Here's the numbers game in yesterday's Hindu.

The Hindu : Opinion / News Analysis : Nuclear separation scenarios

Good Nukes, Bad Nukes

Ignatius gets it right - almost. The nuclear issue seems to dominate President Bush's visit to India that begins today. The bottom line is that if the negotiator can reach a workable agreement on India's nuclear status, it will mean an end to decades of isolation of the Indian nuclear energy establishment. It opens up much-needed sources of fuel for the Indian civilian reactors. Going by reports in the media, there seems to be intense ongoing diplomacy promising a photo finish by the end of the President's visit.

The latest numbers doing the rounds is a 65:35 split, i.e., 65% of the reactors will come under international safeguards. That will mean NSG (nuclear suppliers group) countries can supply fuel to those reactors and take away spent fuel for reprocessed. The remaining 35% will be military reactors that fall outside the purview of the agreement. India will continue to exercise complete control over those. This number is an improvement over the 70:30 split that the previous BJP-led government had almost agreed to. There seems to be some unanswered questions about the fate of future (yet-to-be built) reactors. And the hyped Fast Breeder Reactors (FBRs) may be kept out for now.

India needed that push to demystify - to some extent - its nuclear energy and weapons programs. It was a logical next step after heralding its status to the world a few years ago. Of course, this won't happen overnight. It is heartening to know that the process has been hastened.

Now, to the Ignatius article in today's Post: he distinguishes between the nuclear ambitions and programs of India and Iran using 'good nukes' and 'bad nukes' - a' la Bush's 'good vs. evil' argument, one wonders.

Incidentally the New York times has come strongly against the proposed deal crying its hypocritical to de facto admit India into the nuclear club while lecturing countries like Iran, Saudi Arabia and South Korea against pursuing nuclear ambitions. It is like saying, if you are sneaky enough, if you are patient enough, we'll let you into this elite club.

Ignatius, without referring to NYT, agrees with the hypocrisy argument. But it is enlightened hyprocrisy. The world, we all know is fueled by pragmatism and not idealism. In that spirit, it makes sense to recognize India's responsible behavior with the proposed agreement.

Why do I say Ignatius gets it almost right?
The Indian foreign policy establishment has long strived to de-hyphenate India and Pakistan in the eyes of the world. It has had much success in that regard. But I can see them wincing at the end of paragraph in Ignatius' piece:

The world is ready to accept India as a nuclear power because its actions have given other nations confidence that it seeks to play a stabilizing role. A world where behavior matters gets the incentives right: It forces Iran to demonstrate its reliability so that, over time, it can be seen in the same league as India and Pakistan.

Good Nukes, Bad Nukes