Capitalism can solve poverty: Narayana Murthy

Infosys Technologies chief mentor NR Narayana Murthy says capitalism is the only resort for India to solve its problem of poverty, even as he finds “serious crisis of moral dimension” in most Indian leaders.The non-executive chairman of one of India’s largest and most admired software companies also advocates some radical economic reforms such as hire and fire policy, privatisation and foreign investment in retail trade industry. “If India has to solve its problems of poverty, we have to embrace capitalism. I believe that is the only hope we have,” Murthy said to a private news channel. “Capitalism is about providing equal opportunity for everybody and to make sure that people have incentives to perform better and better. It also thrives in an environment of competition,” he said. “Let’s remember that all countries which embraced communism have failed. Even in Cuba the only person that Fidel Castro could trust was his brother,” he said and suggested that capitalism responded to human nature better. and more…. ( from TNN)

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Exclusive Chat: Narayana Murthy

CNN-IBN

Karan Thapar: Hello and welcome to Devil’s Advocate. As we enter 2007, is India pursuing the right policy to eradicate poverty and encourage development? That’s the key issue that I shall raise today with one of the country’s top industrialists, the founding Chairman of Infosys, N R Narayana Murthy.

Mr Narayana Murthy, just over two years ago you said: “I believe that if India has to solve its problem of poverty, we have to embrace capitalism. Ensure that jobs are created and make sure that market-driven policies are accepted. I believe that is the only hope we have.” Do you still stand by that?

Narayana Murthy: Oh, absolutely. I entirely agree with that, because after all at the end of the day, the responsibility of the government is to ensure that people are happy and prosperous. And if people want to be prosperous, you have to have economic growth. And for that, you have to encourage entrepreneurship and that means creation of new jobs. And second, of course, is access to healthcare, education, nutrition and shelter.

Karan Thapar: You also said, “A socialist system will not succeed because people need opportunities, incentives and competition to better themselves.” And that, you added, “is the essence of capitalism.” Is it your belief that capitalism better understands and, therefore, better responds to human nature?

Narayana Murthy: Capitalism is about providing equal opportunity for everybody and to make sure that people have incentives to perform better and better. Capitalism also thrives in an environment of competition. So, it is very, very important for us to create an environment where there is intense competition among people and where there is opportunity for everybody to succeed and the results are shared by every body.

Karan Thapar: It sounds as if you are saying that human beings perform best when they get rewards and when they know that they will make a profit and earn an income. Give them that income and they will perform miraculously.

Narayana Murthy: Oh, yes. Let’s remember that all countries, which embraced Communism, have failed. Even in Cuba, the only person that Fidel Castro could trust was his brother. There was nobody else in the whole country that he could trust to hand over the government when he was not well. That clearly says that Communism as a system has failed miserably.

Please read full interview at:

http://www.ibnlive.com/news/exclusive-chat-narayana-murthy/30575-3-single.html

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