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Kolkata , Nov. 15

A "FIELD TRIP" by Mr Rajat Gupta of McKinsey to Sonagachi, Kolkata's red light district, may lead to the opening of a new chapter in the history of HIV/AIDS prevention in India, courtesy a $200-million commitment by the Bill Gates Foundation.

The foundation has earmarked the sum for addressing healthcare issues in India, a country that is likely to have an enormous number of diseased people in the not-too-distant future. In fact, the economy may be impacted by it in a major way, it is felt.

The idea behind the trip, Mr Gupta said, is to ascertain the realities faced by commercial sex workers in Kolkata. "The Bill Gates Foundation is committed to do its bit to control the pandemic", he said while speaking to presspersons after meeting the members of Bengal Chamber of Commerce on Saturday.

On another front, the McKinsey representative underlined the significance of private enterprise in overall economic development. "Development models dependent on Government support or overseas aid have met with limited success. In the long run, it is private entrepreneurship that will help create wealth and improve the quality of life", he said, adding that friendly policies are also important in areas such as labour and finance. All this must be backed by effective regulation and enforcement.

Despite significant efforts, a large part of the economy remains in the informal sector, outside the purview of labour and tax laws. Small, informal enterprises, however, have limitations of their own and cannot reach critical scale. The result is not satisfactory.

Mr Gupta advocated the creation of large `anchor industries' around which entire business eco-systems will sustain themselves. Such industries will be particularly relevant for India, which has a teeming population.

"These will also perk up the growth rates... merely achieving six to seven per cent is not enough. We need to meet a higher target of about 10 per cent", he pointed out.

Two areas should be taken care of immediately — education and public health. Both throw up issues that are difficult to address, but must be tackled efficiently by the policy makers. "It will be the responsibility of the private sector to contribute to efforts that are already going on in these areas", he said.

It is also believed that an emphasis on software alone will not help the cause of a developing nation like India. Excellence in software, in fact, may well give Indians a false sense of security and complacency. A large, diversified manufacturing base is very important, it is felt.

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