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Is economic reform the answer? .....

Over the years, the government tried to control every facet of citizen's life, and entered every business. Not surprisingly, the government failed to discharge its primary duties, and has become a stumbling block in citizen's quest for progress and happiness.

Certainly economic reform- involving redefinition of state's role, emphasis on government's primary functions, greater liberty to citizens, encouragement of individual initiative, and prudent and rational management of resources and assets- is both necessary and long overdue.

However economic reform in itself cannot resolve crisis without accompanying governance reform.

  • The basic conditions of economic growth should still be created by the government public order, rule of law , justice, basic infrastructure, school education, primary healthcare and natural resources development.
  • The Political process feeds on corruption and breeds lawlessness and arbitrariness. Unless corruption is controlled effectively through reforms and institutional oval checks, economic growth will suffer.
  • If government is not made accountable, there is a danger of focus of corruption shifting from license- Permit issues to sovereign functions of policing and justice. Already in many pockets of India the predatory behavior of government machinery created conditions of lawlessness breeding violence and goondaraj.
  • If economic disparities among regions persist for long, there is a danger of much greater inequalities in time. Such regional disparities may threaten the unity of India. Governance reforms is critical to integrate all regions, and promote economic growth everywhere.

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