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Part - III

Trust in a society is the outcome of the effect of its culture on its people. In Japan and Germany, a high level of dedication to work and loyalty to the organization has evolved, through the reciprocal actions of the employees and the management, aided in good strength by the overall social conditions that permit this to happen.

Thus, trust in a society makes economic sense. It promotes the economic growth of a society and the creation of social capital that is important for wealth creation through creating and developing large private organizations.

The Indian Perspective

In China, Korea and India, which are characterized by high family cohesion, trust outside the family does not exist, although this phenomenon is changing with globalization and cultural assimilation. In such situations, the State has always stepped in to fill the void for wealth creation.

The public sector, meant to spur industrial growth in India, has fulfilled another unseen need in the process of its existence. It has promoted large organizations in a country, which could not have produced significant wealth on its own.

The PSU, according to common knowledge, was the tool to spur industrial growth in India that was desperately lacking in infrastructure and financing after Independence. The PSUs have performed another function too. Even with resources at its disposal, India could not have advanced as the land of major industrial giants with only private sector participation. This could be attributed to the social and family values that have prevailed in India. As culture has evolved and as globalization set in, the role of the PSUs has become less important as bigger private sector firms emerged, due to a better work culture and global competition.

In Korea however, the Government actively promoted private sector growth by large scale financing of the chaebols and subsidization. The main focus was on creating large private sector organizations and the growth of ancillaries.

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* Contributed by: -
Vinod Sriramulu,
PGP - 2,
BIM, Trichy.