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'Outsourcing is a second-tier issue'

February 10, 2006 22:38 IST
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Maryland's significant Indian American professional elite, from the scores of physicians to several dozen entrepreneurs-- particularly those who own and operate some of the leading cutting-edge information and bio-technologies companies that line the Gaitherburg area and the Rockville corridor in Montgomery Country, dubbed the Silicon Valley of this state -- is not lost on its Republican Governor Robert L Ehrlich, Jr.

Ehrlich – who on November 5, 2002, was elected Maryland's 60th Governor -- is the first Republican to win in 36 years and is strongly tipped to be re-elected

In an exclusive interview with rediff-India Abroad Managing Editor Aziz Haniffa, he acknowledges that the catalytic contributions of the Indian American community were a major boon to the burgeoning economy of the state. 

Ehrlich, who has never visited India but plans to do so soon, said he was elated over the transformed US-India relationship. "As India becomes and assumes more of a world power status, it's incumbent upon both countries to not just re-establish, but increase levels of cooperation," he said.

How integral is the Indian American community to Maryland?

It's a growing community. It's a vibrant community. It's a community made up of many professional and business entrepreneurs, generally focused but not solely focused in the Washington suburbs, but as I said, comprising a very high concentration of professionals.

In which areas have you found the Indian American community's contributions in Maryland to be most manifest, and in a sense a boost to the growth of the state's economy?

That stands to reason given the nature of what I just described --a very high concentration on the professional end and a very high concentration of the entrepreneurial end. So it stands to reason that the Indian American community is part of the fabric -- every ethnic community is part of the fabric-- but this community is particularly successful and as a result it's part of the great success that the state of Maryland is now enjoying generally on the economic end of things.

One of your most senior aides, Dilip Paliath, has announced his candidacy to run for the legislative assembly from District 42 and you have, I believe, endorsed him. My question is, will you be on the stump for him at some of his campaign stops?

Of course. Dilip is part of what used to be a really small group but it's growing and that's what I call the bench — a sports analogy. When you have a political party you want to encourage young people to enter politics, to secure a high position as Dilip has done and then you want them to run. That's how you make US Congressman, US Attorney, County Executive, Governors, US Senators for the future. Without a bench, without up and coming talent, you can't do that. And when you lose for almost 40 years in a row, it's very difficult to generate a bench. I was not terribly encouraged as a young person to do this because the Republican Party in Maryland was almost non-existent. It was very difficult to find mentors. Dilip was able to secure a high level job with our Administration, (but) these jobs didn't exist, Republicans didn't hold power till a few years ago. So it's incumbent upon me, as the titular leader of the party at this point to generate a talented group of younger people who can win elections.

And you believe Dilip is a winning candidate?

I have all good wishes for him obviously and I hold him in very high regard -- but I want him to win because winning lays the foundation for later success. I know a lot of people who've been talented and smart but run the wrong races.

What would you say to the Indian American community in supporting Dilip and any other young candidates who may come along? The so-called leaders of the community have this insatiable propensity for photo-ops, contribute handsomely to their campaigns, but when it comes to someone running for public office, it's almost impossible to convince them to put their money where their mouth is.

I believe we can maybe disabuse them of that notion. I would like to encourage them to rethink that. I mean, I talk a lot about ethnic diversity. We have an American culture, but there is a rich diversity concerning the ethnic population in Maryland and there's nothing wrong with having a lot of pride in that ethnic diversity. For example, I was German American of the Year a few years ago and in the German American society — and I go to the German Festival every year — they take great pride in my last name. No different with Dilip, and that's appropriate and that's fine and that's good and that's healthy. Dilip is one of the young talented leaders in Maryland. He is also Republican, and that's a good investment for someone to make because he has a very great future but he needs to win a race to have a future.

Dilip serves in a senior position in your administration but there aren't any other Indian Americans in cabinet-level positions in your administration. Several governors I've interviewed always say they would love to have some of the qualified Indian Americans in their administration but many of them make so much money in the private sector that it's hard to coax them to serve in the public sector. Have you faced the same problem?

The answer generally is that that is very true, particularly among the first generation. People come here, they've been wildly successful – the Indian American community here is relatively very wealthy – they are professionals, they are doing their thing, they are doing what they were trained to do and you know what, even if you have that inclination for public service – I mean, many volunteer, but it's one thing to volunteer, it's another to give up your lifestyle and particularly with kids and particularly with kids in college and mortgages and given the cost of living in Maryland, that's significant. So the answer is yes, that is a problem, but as the community continues to develop and grow and the Dilips of the world get elected, that's the thing. It's also a little bit of symbolism involved here. When young people see a young person like Dilip get elected for instance, that may in fact turn these young people on and so, therein lies another aspect of the importance of Dilip's candidacy.

If there are qualified and credible Indian Americans willing to take a sort of sabbatical and serve in your administration, will you look upon that favorably and appoint them to senior positions?

Of course. But you know what, you don't take sabbaticals to serve. What you do is you give up your careers. As I said, we have a lot of Indian Americans who serve on boards and commissions and that's giving back and that's important. But you don't become a senior member of the administration – cabinet, sub-cabinet secretary, what we call senior staff here, without giving up your career. You approach doctors, you approach lawyers, you approach accountants, you approach other professionals, and they give up a lot of income to serve in the public sector, depending on where you are in life, one, in other words what obligations you have and the bills you have, and two, what your personal goals are. These are all relevant factors here that could lead someone, who otherwise wants to do it, not to do it.

Have you been to India, and if not, do you intend to visit India soon?

I have not, but you know Chris Foster, my deputy trade secretary was there in 2004. I am not going to be traveling this year with the election on the horizon, but certainly in the second term, it's on the horizon.

And when you do go, will you in lead an essentially trade delegation comprising Indian American entrepreneurs too?

That's what it would be. As Governor, unlike Congressmen, my foreign trips are almost solely devoted to trade. Eighty-five to 90 percent of the discussions, and really the purpose of such trips are trade -- bilateral relationships and trade between the state of Maryland and a particular country.

Outsourcing has been a controversial issue and it had a very high decibel level during the general election in 2004, but the decibel level seems to have now dissipated. How do you stand on this whole outsourcing controversy because there are a lot of companies in Maryland – including several owned and operated by Indian American entrepreneurs particularly in the IT sector – which have remained competitive by outsourcing to India?

We are very familiar with the numbers of such companies in fact. Obviously this is an issue that I became very familiar with as a member of the United States Congress. I'll say this: it's still an issue, although it may not be as emotional as for instance illegal immigration, as the war in Iraq and issues on the front-burner in our country today. I will say it's a second-tier issue that tends to have a specific attraction to specific folks in particularly Democratic primaries. I'll say that it's less of an issue now given the state of the American economy and particularly in Maryland. Our economy, as you know, is booming right now. In Maryland, we are at very, very high levels of economic activity – our unemployment rate is under four percent. We have nine counties under three percent. We have a surplus generated by additional tax revenue. We have welfare caseloads that are at historic lows. When you have unemployment between 3.5 and 4 percent, outsourcing becomes less of an issue because jobs are less of an issue.

But where do you stand on this issue, if it once again becomes a major contentious political issue?

Obviously, businesses, particularly public-held companies have a fiduciary duty to their stockholders. So companies are going to tend to maximize their profits and they are going to continue to do it. So I think it's a mix – not every company can or should do it (outsourcing). It may work for one business model for one company and not for another. I believe that the legislatures and the Congress are going to be resistant generally to interfering with the marketplace.

In terms of foreign policy, I am sure you are well are of the transformed US-India relationship in recent years. What is your take about this burgeoning relationship that is moving toward a strategic partnership?

I believe it is just wonderful, particularly given the concomitant relationship between the US and Pakistan. I think the model has changed. It's not viewed as a sort of zero-sum proposition. As India becomes and assumes more world power status, it's incumbent upon both countries to not just re-establish but increase levels of cooperation.

Are you for much more professionals and students to come to the US to work and study, and perhaps stay on as legal immigrants and become part of the American workforce? Would you support an influx of such workers and students from countries like India?

As cliché-ish as you can be – and clichés often have a degree of truth – the United States is a nation of immigrants. And to the extent that anybody wants to come here, study, learn American culture, comes to appreciate and want to be part of it, I obviously want to encourage it. I believe it's a good thing. America is strong because as I said, it represents diversity. But – and we've had this kind of debate here as well – once folks come here and decide to become part of the society, it's equally important that you keep your ethnic heritage and you respect it, but you also become part of the rich fabric of America and that includes language and that includes obviously our version of democracy and the Bill of Rights and freedom of religion and everything that makes up this country. So I would encourage it. Anybody who has obviously the will and brains can be very successful in this country as is clearly evident from the large number of success stories among Indian American professionals and entrepreneurs in Maryland and of course, all across the country.

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