The imperative for growth cannot be overemphasised in a country where over 450 million people can’t afford two square meals and where every year nearly 12 million youngsters line up for jobs. The magnitude of the twin problems of rising expenditure and falling growth obliges the government to act on both fronts and display some sense of urgency. The bad news is that despite the persistent fall in investment, output, consumption and growth for 21 months, there seems to be no sign of a plan.
- - - - The practice of jugaad economics is sponsored by voodoo politics. The circumstance of poverty and imperative for growth require governments to invest in the social sector and facilitate investments to create employment, income and growth. The idea of an inclusive society rests squarely on the creation of enabling conditions for Indians to get a shot at the opportunities of growth. That seems tough, so the UPA instead created a grid of many sops and doles. Yes, the state must intervene with help but more importantly it must foster growth to make subventions redundant.
Good governance demands promotion of empowering affirmative action, not crippling patronage. The UPA, it would seem, would much rather promote the magic of voodoo!
To read the full essay by Shankkar Aiyar in the New Indian Express, click here.
I thought this was a very good essay on the present plight of the country, from which I could extract arguments to counter pseudo-Socialists, as and when needed.
Muralidhar Rao
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