by Sukrit Sabhlok

Created on: May 11, 2010   Last Updated: May 12, 2010

The lifting of millions of Indians out of poverty after the country’s economic reforms in 1991 should have delivered a decisive blow to those who argue that capitalism exploits the poor. Thanks to deregulation, there has been a rise in India’s standard of living during the past 15 years. Unfortunately, the same arguments against the free-market persist. Yet the problem is government, not the market.

If governments faced the same discipline that private corporations face, the next election would result in all of India’s politicians being voted out. In spite of grandiose promises, hardly anyone doubts that India continues to remain near the top of the world in corruption and inefficiency.

The sad reality is that India has fallen behind the East Asian nations. The subcontinent holds the dubious distinction of having the world’s largest number of poor people, despite the crores of rupees spent to “stimulate” development.

The reforms of 1991 allowed many a chance at life in the middle-class. For the average person, the relaxation of investment laws has meant access to a wider variety of goods and services at cheaper prices.

In the past Indians faced restrictions on the importation of foreign cars, and were forced to buy inferior local models such as the Ambassador. Now they have the freedom to choose a Toyota, a Honda or even a BMW, if they so desire. The influx of new brands has meant more productive jobs, as foreign companies have set up factories locally.

Many people shrug their shoulders at the dismal living standards in India and resign themselves to thinking that’s “just the way things are”. This attitude, although understandable, is something to be discouraged.

Especially now when the government-caused financial crisis has made Indians a great deal poorer, the urgent need is to examine why it is that – 60 years after independence – Bharat still remains a Third World nation.

The answer boils down to this: petty bureaucrats and gangster politicians have ruined India. They are the reason why this diverse nation of 1 billion isn’t yet an “Asian tiger”. Only if we honestly confront the problems India faces can we devise the proper solutions.

For sure, India’s economy is galloping along at about 8% per year. This is a significant improvement from the so-called “Hindu” rate of 3.5% before 1991. However, there is also much that the growth figures conceal.

Consider,

• 1
• 2
• Next Page >>