Friday, January 17, 2014

Begin at the bottom

Thought for the day
“Even if you are a minority of one, the truth is the truth.”
-          Mahatma Gandhi (Indian, 1869-1948)
Word for the day
Hornswoggle (v)
To swindle, cheat, hoodwink, or hoax.
(Source: Dictionary.com)
Teaser for the day
Given the Binny – Kejriwal mudslinging on TV channels, should  AAP ask people of Laxmi Nagar (East Delhi) as to whether they would like to recall their MLA Vinod Kumar Binny?

Begin at the bottom

In my “Discover India” tour last summer (see here) I found that even after more than 6 decades of becoming an independent political union, India is still far away from becoming a socio-economic union. The failure of national economic policy in recognizing this regional diversity is perhaps one of the primary reasons for sub-optimal outcome.
Most of the states, regions within states and communities within regions have diverse socio-economic behavior. A blanket policy for all is least likely to succeed in meeting its objectives.
This perhaps why the center driven Nehruvian model of large industry led growth with active state participation has mostly failed in evolving a strong structural base for the Indian economy. Consequently, we still continue to be an economy largely dependent on labor & resource arbitrage and trading. We have failed in making significant progress in the areas such as technological advancement, productivity gains, innovation and localization.
In my assessment, electoral considerations have overwhelmed India’s economic policy. The inevitable consequences are:
1.     Overemphasis on weaknesses and ignoring strengths.
2.     Overemphasis on “provision” rather than enablement.
3.     Failure to develop a truly federal structure of governance as mandated by the Constitution.
4.     Failure to develop an environment of mutual trust and faith between the political establishment and people in general.
In my emphasis of economic policy should be on:
a)    Developing an environment of mutual trust through decentralization of power to the primary unit of administration, i.e., village council.
(b)   Building on the locale strengths while adequately taking care of weaknesses.
(c)   Enable the population rather than just keeping to provide for them
Mahatma envisioned that “Independence begins at the bottom... A society must be built in which every village has to be self sustained and capable of managing its own affairs. It will be trained and prepared to perish in the attempt to defend itself against any onslaught from without. This does not exclude dependence on and willing help from neighbours or from the world. It will be a free and voluntary play of mutual forces. In this structure composed of innumerable villages, there will be ever widening, never ascending circles. Growth will not be a pyramid with the apex sustained by the bottom. But it will be an oceanic circle whose center will be the individual. Therefore the outermost circumference will not wield power to crush the inner circle but will give strength to all within and derive its own strength from it.” More on this in next post.

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