Interviewer: Alizey Najaf
The name of Frank F. Islam needs no introduction to anyone. He is a successful entrepreneur, philanthropist, civic and thought leader. Being a successful businessman and a very good person, he also has a prominent identity for promoting education and culture among the people of the nation. He also serves on various boards and councils at more than half-dozen universities including Johns Hopkins, University, American University, and George Mason University.
He has constructed a magnificen building in his alma mater Aligarh Muslim University named Frank and Debbie Islam Management Complex. In his native village Kaunra Gahni, a project named Frank and Debbie Islam Health Clinic is also running.
He currently heads FI Invest Group which he founded in 2007 after selling his information technology firm, QSS Group. Frank Islam has a close eye on the economic activities of the world, especially on the United States and India, he is deeply involved in the politics and economy of the United States, he has close relations with former American President Barack Obama and current President Joe Biden, he is a writer. Two of his books have been published.
The economic condition of any country determines its future. Frank F. Islam sir is closely related to economics, so all my questions will be in this context.
Alizey Najaf: US-India relationship is growing in strength, and the two countries are coming close. Does America want to diminish the influence of China in the region through this strategy?
Frank F Islam: There is no denying the fact that China has been a significant factor in the meteoric growth of U.S.-India relations in the past two decades. Within influential circles in Washington, DC, including some within the U.S. national security establishment, there are many strategists who believe that a strong and democratic India can serve as a counterbalance to China. This viewpoint was emphasized by several advocates of the historic U.S.-India Civil Nuclear Agreement, which was signed in 2008. However, I believe that China is not the sole driving force behind the convergence of India and the United States. In fact, numerous Indian leaders have emphasized that India does not want to be utilized as a pawn against China by the United States. In my opinion, geopolitics is just one of several factors contributing to the excellent relationship between Washington and New Delhi. As the two largest democracies in the world, they share a wide range of common interests and shared values, spanning from artificial intelligence and climate change to space exploration and technology.
Alizey Najaf: Does agricultural production affect the country’s economy?
Frank F Islam: Any country, regardless of its size, should have the capability to sustain its population without relying on other nations. This was a significant lesson highlighted by the Covid-19 pandemic, during which supply chain disruptions rendered international trade difficult.
One distinction between developed and developing economies is that in developed economies, a small percentage of their population is involved in agriculture, whereas in developing countries, agriculture is a major source of employment. For instance, in the United States, home to more than 330 million people and the largest exporter of agricultural goods, only 10 percent of the population is dependent on agriculture and related industries for employment.
Alizey Najaf: Don’t you think that Dr. Manmohan Singh’s economic reforms are a milestone in the country’s development?
Frank F Islam: There is no doubt that the economic reforms implemented by then Finance Minister Manmohan Singh, under the leadership of Prime Minister Narasimha Rao, altered the trajectory of India’s economic history. If India now stands as the fifth-largest economy and is steadily progressing towards becoming the third-largest, a significant portion of the credit should be attributed to Rao and Singh.
Alizey Najaf: Will India’s economic growth be satisfactory in the next five years?
Frank F Islam: All indications suggest that the Indian economy will experience substantial growth in the upcoming years, assuming no unforeseen events or incidents occur. According to the International Monetary Fund (IMF) , India is expected to contribute 15 percent to global growth this year, while China is projected to account for 35 percent. The IMF further estimates that India’s economy will expand by approximately 6 percent in the current year. Moreover, the multilateral organization predicts that India will surpass Germany in 2025-26 and Japan in 2027-28, on its path to becoming the world’s third-largest economy.
Alizey Najaf: Do imports and exports affect the economic development of the country?
Frank F Islam: It is widely believed among economists that exports bring valuable foreign exchange to countries, while imports require foreign exchange expenditure. In times of economic crisis, multilateral organizations such as the IMF often recommend currency devaluation and increased exports as measures for countries to consider. Since the 1990s, many East Asian nations have successfully developed their economies by adopting such strategies. Notably, China achieved economic dominance by establishing itself as the world’s manufacturing hub and exporting most of its manufactured goods. It is important to note that imports alone do not necessarily weaken an economy. For example, countries in the Arabian Gulf heavily rely on imports for essential items like food, yet their robust oil exports act as a counterbalance.
Alizey Najaf: China is the world’s second-largest economic unit. What is the secret of such growth of China’s economy?
Frank F Islam: After opening its economy in 1978, China transformed itself into a manufacturing powerhouse. By simplifying the process of investing in the country and guaranteeing a return on investments, it attracted substantial foreign investments, primarily from the Chinese diaspora. This initial success paved the way for a subsequent influx of global capital into China. The country implemented several key strategies that contributed to its remarkable and enduring economic growth. These strategies encompassed the development of world-class infrastructure, the establishment of factories and manufacturing facilities, and continuous improvements in productivity. Collectively, these factors have shaped China into what it is today.
Alizey Najaf: India is roughly a three-trillion-dollar economy while China is an 18-trillion-dollar economy. What do you think is the reason for such great difference? Why is India lagging behind China in this development path?
Frank F Islam: China had a head start over India in initiating economic reforms — it opened up its economy a good 13 years before India did. Even after India embraced liberalization, the progress of reforms has been slow and inconsistent. China’s unwavering emphasis on manufacturing played a crucial role in its success. On the other hand, India placed greater focus on the service sector, particularly in information technology, and achieved significant accomplishments in that domain. While China became known as the world’s factory, India established itself as the global back office. Given the implementation of appropriate policies, I firmly believe that India has the potential to not only match but also surpass China.
Alizey Najaf: Which two countries would you like to name as the emerging economies in the world right now?
Frank F Islam: In my opinion, the economies that demand close attention are India and China, the two largest countries in the world. Together, they are expected to contribute to half of the global growth this year. The economic rivalry and competition between these neighboring countries, which have historically held the position of being the world’s largest economies, will be a significant narrative to monitor in the coming decades. Hopefully, this competition will unfold peacefully.
The world is experiencing a recession. The interest-based banking system is the major cause of this situation. Will a non-interest-based banking system not be a good step to save the world from this recession? We are not paying attention to this solution, nor are Muslim countries including Pakistan, Turkey, Saudi Arabia paying attention to it.
I have not studied the non-interest-based banking system to comment on it!
Alizey Najaf: Don’t you think India should consider creating the best employment opportunities in the country to prevent brain drain?
Frank F Islam: I agree with the first part of your question: India should focus on generating more employment opportunities for its educated and uneducated people, including those in the informal sector. The creation of jobs, particularly for the youth, will be crucial as India competes with China, the United States, Japan, and Germany for economic supremacy. However, I do not necessarily subscribe to the theory that brain drain negatively impacts the Indian economy. While it is essential to retain top talents within the country, I believe that India possesses a substantial talent pool. Even if a significant number of individuals choose to leave, it will not severely hamper the economy. In fact, recent Indian history demonstrates that the brain drain experienced during the 1980s and 1990s may have actually benefited the country. Many Indians who migrated to the United States during that period played a significant role in India’s transformation into an information technology powerhouse. They were instrumental in establishing and developing the IT infrastructure within India. Presently, figures such as Sundar Pichai and Satya Nadella, who head Google and Microsoft, respectively, serve as prominent ambassadors for India.
Alizey Najaf: How political policies affect the economy of any country? Do you not think that economic development should be the unanimous vision of every political party, this vision should not be influenced by politics?
Frank F Islam: In democracies, political parties — especially those in power — wield significant influence over the formulation and implementation of policies, which in turn play a crucial role in development. I fully agree that political parties should present a united front when it comes to matters of development. However, India serves as a prime example that this is not always the case. As you may recall, when the Narasimha Rao government introduced economic reforms in 1991, numerous opposition parties vehemently opposed them. Unfortunately, it is often observed that parties not in power tend to reflexively oppose policies proposed by the ruling party. This phenomenon is not limited to India alone but can also be seen in Western Democracies like the United States, where there used to be consensus on certain major policies in the past, but now even they are experiencing a similar trend.
Alizey Najaf: What further strategies should India adopt for economic growth?
Frank F Islam: India should continue on the path of economic reforms, focusing on enhancing infrastructure and generating employment opportunities for its young population. It should allocate increased resources toward primary and secondary education, aiming to improve the overall quality of education. Although India boasts several world-class educational institutions in certain cities, there is a pressing need to elevate the standards of educational institutions in small towns and rural areas. To ensure inclusive development, the government should adopt policies that cater to the needs of disadvantaged communities and minorities, leaving no one behind.
Alizey Najaf: What is the secret to your successful business? What special care should youths take to become a successful businessperson like you?
Frank F Islam: I believe that building a strong and talented team who shared my vision and values is key to my success in business. Business is a team sport; therefore, you need to surround yourself with great people. Another crucial factor that contributed to my success was my unwavering belief in myself and my team. To the next generation, I would advise them to dare to dream big and relentlessly strive to turn those dreams into reality. In the words of the renowned director and writer Woody Allen, “90% of life is just showing up.” Personally, I attained success by focusing on the remaining 10%. I encourage today’s youth to adopt the same mindset and concentrate on maximizing their efforts in that crucial 10%.
Alizey Najaf: India is your birth place. Do you have any plans for its progress and development?
Frank F Islam: After selling my company, my wife, Debbie, and I have dedicated ourselves to philanthropy through our family foundation. Both of us strongly believe in the well-known saying popularized by President John F. Kennedy, “To whom much is given, much is expected.” In India, our philanthropic efforts primarily revolve around education and healthcare, with a particular emphasis on Uttar Pradesh, my home state. We chose to focus on UP because we firmly believe in the principle that charity begins at home. In the field of education, we have actively contributed to improving infrastructure at Aligarh Muslim University, my alma mater. Our support included funding the construction of a new building for the management department and an auditorium for the journalism and communication department.