Comments on: The Little Details

By: Karthik

Karthik — Mon, 19 Sep 2005 01:41:39 +0000

Malaysia is a resonable parallel, because they are not perfect. There are still public sector industries operating in a protected environment (Proton, the car manufacturing firm), and overall it is not as free economically as some of the other countries. But even with the limited amount of liberalization they have done, they’ve obtained impressive results, so it is not like India needs to go all the way, and privatise everything and remove restrictions on all types of businesses (that would be nice, but unlikely in the near future) – we just need to take a few small steps in the right direction.

By: Roehl Briones

Roehl Briones — Mon, 19 Sep 2005 01:09:03 +0000

I lived in Penang for two years. Couldn’t agree more. Another important “invisible” thing, which is a big thing actually, is predictability of public decisionmaking. My organization (an international agricultural research center) was earlier renting a place in Manila and was negotiating a permanent relocation to Subic (the former US base, about 200 k from Manila.) However a change in management placed the earlier deal under uncertainty. One of the center’s board members, a Malaysian, decided to help and look for alternatives in Malaysia. In six months, six months, the papers were signed and center was set to relocate to Penang. That’s swift, decisive action for you. That’s why Malaysia’s per capita GDP is four times the Philippines’.

By: Prashant Kothari

Prashant Kothari — Sun, 18 Sep 2005 22:07:19 +0000

Aranya says “But the biggest problem we face in India is the utter indifference on the ordinary populace towards the policies and the decisions of the Government of the day. Only through an attitudinal shift are we ever going to see success and growth trickle down to the lower strata of the society – else we will be another case of crony capitalism?

Not sure if this is the biggest problem per se, given the preponderance we have [grin] That aside, I agree completely with you that we really need to get the common people thinking differently. There’s either complete apathy, cynicism and disinterest in govt policies and decisions (a large majority of the middle and upper middle class) or a huge dependence on the govt, for all things sundry — jobs, electricity, and all sorts of other perks.

By: Ameya Shenoy

Ameya Shenoy — Sun, 18 Sep 2005 14:12:43 +0000

Amit, I agree with your views – inspite of the government, the regulations, the restrictive policies we are growing. We dream about making Mumbai another Shanghai – but when we remove illegal slums there is large scale opposition. When we try to remove the Rent Control Act, government is defeated. When we try to cleanse the system of rent seeking and benami property – by repealing the Urban Land Ceiling Act, the opposition raises a hue and cry.

The Government, the most inefficient of the economics unit in India, is trying to regulate the strategy and policies on the industries on grounds of ineffeciency. What an irony?

But the biggest problem we face in India is the utter indifference on the ordinary populace towards the policies and the decisions of the Government of the day. Only through an attitudinal shift are we ever going to see success and growth trickle down to the lower strata of the society – else we will be another case of crony capitalism?

By: Amit Varma

Amit Varma — Sun, 18 Sep 2005 12:18:02 +0000

Indraneel, having a “a low skilled population” is precisely the reason why labour-intensive manufacturing should have been India’s strength. But that sector was never allowed to bloom because of our labour laws and the license raj.

You also say: “The skills required to turn a region/state/city into a Penang/Shanghai or even Bangalore is not there in the Politicians, administrators and technocrats.” Well, it doesn’t need to be. Central planning can achieve nothing (it never has), and the state needs to get out of the way of the people to allow them to flourish. Again, this can only happen by changing labour laws and removing the license raj.

There are companies that thrive despite the system, but thousands more which are never formed because of the disincentives in place. Those disincentives must be removed.

By: Indraneel Majumdar

Indraneel Majumdar — Sun, 18 Sep 2005 11:23:16 +0000

As much as I agree with you and Karthik on most of the issues, let us reflect on a few issues here:
1. We have a low skilled population in general.
2. The skills required to turn a region/state/city into a Penang/Shanghai or even Bangalore is not there in the Politicians, administrators and technocrats.
3. These skills can only come from very positive result oriented and deadline conscious nation builders. This can happen but has not happened till now.
4. Dr. Manmohan Singh does not cosy upto the left by choice. The PSUs don’t get divested by choice. But why is not productivity increasing rapidly. These are choices that rest with all individuals.
5. Security in ignorance is a bane that many Indians still face. We have to push the envelope far more often than we do.

Here, let me take the case of Reliance Infocomm. They were a colossal failure first up. But have they folded up. I admire this vision, the risk taking ability!!
The whole state of Punjab seems adamant on resettling in USA! But is that a nation speaking. I feel it has got more to do with an individual mindset and we have to be able to correct that. Punjab, not so long ago was the grain bowl of India. What has happened and why is the grain bowl depleted now!!
This is a matter of thinking out of the box and all individuals right across the board are invited to help in India’s resurgence.