Enron
Introduction
In 1990, Enron, a Houston-based independent power
company, established a subsidiary, Enron International,
and gave it the mission of building and running power
generation projects in the developing world. Enron’s
chairman appointed one of his protégés, Rebecca Mark,
then only 36 years old, as CEO of the new unit. By 1997,
the outspoken and photogenic Mark, who was fast gaining
a reputation as one of the most dynamic businesswomen
in America, had built Enron International into a
global operation with sales of $1.1 billion, annual profits
of $220 million, and a backlog of international energy
projects worth over $20 billion. The potential jewel in
Enron International’s crown was a growing presence in
India. By the end of 1997, Enron International had plans
to invest $20 billion in India. Getting to this point, however,
had severely tested Mark’s diplomatic skills and political
acumen.
Enron’s India Strategy
Enron’s interests in India date back to 1991, when the
country’s former prime minister, Narasimha Rao, visited
the United States to seek help with India’s economic development.
Rao asked Enron if it was interested in independent
power projects in the country. This request
signaled a shift of policy in India. Since independence
from Britain in 1947, political opinion in India had
largely opposed significant foreign direct investment on
anything other than highly favorable terms to the host
country. For almost half a century, Indian politics had
been strongly influenced by Gandhi’s doctrine of
swadeshi, or self reliance from foreign influence. This had
been translated into a presumption against foreign investment
and a desire to see India build its own domestic
industries under the protection of restrictions...
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