Draconian
measures related to currency value, current account surplus
and government budget surplus were all sought to be imposed
by the IMF at the same time. Serious contraction of imports,
austere measures in government and substantial increase
in unemployment were the unhappy consequences, leading to
social unrest and delayed recovery. But most of the Asian
tigers did recover rapidly because of the Asian virtues.
South Korea is a prime example of this resilience, growth
and modernity. China, of course, was largely unaffected
by the Asian crisis, and for nearly a quarter century continues
to be the fulcrum of economic growth in Asia. In fact, the
rapid growth in China is one of the important factors stabilizing
global economy in the face of deep economic crisis in the
US since 2000, relative stagnation in Europe, and prolonged
slump in Japan, the original Asian tiger.
In
the midst of all these breathtaking changes and rollercoster
rides, India remains largely untouched. The phenomenal growth
rates of Japan, China and Asian tigers bypassed us. As we
never reached great heights, great lows were not possible.
And our politicians and bureaucrats indulged in self-congratulation
for past non-performance and modest growth rates. At the
height of Asian crisis people in the Indian establishment
talked disparagingly of the Tigers, and gloated over our
economic stability. However, even a cursory visit to South
Korea during the 'crisis' period would have helped us realize
that their crisis situation was far better than our 'success'.
If
we set our sights low, there can never be failure! This
ostrich-like philosophy has been the single biggest reason
for India to become a champion underachiever in the post-war
world. We are forever described as a nation whose vast potential
remains unfulfilled, and a caged tiger which refuses to
break out of the chains of poverty and mass misery. Is there
a way out? Should India forever be contented with the modified
'Hindu' rate of modest growth and perpetual poverty, illiteracy,
illhealth, misery and corruption? Despite significant and
at times spectacular individual successes, should we be
resigned to the fate of collective underachievement?
A
few vital breakthroughs in recent decades impacting lives
of tens of millions of people give us a glimpse of what
we are capable of. Tamil Nadu is yet another state mired
in surreal politics, corruption, polarization, and politics
of fiefdoms. And yet over the past two decades birth rates
plummeted, bringing population to stable level, on par with
Kerala. Emphasis on school education and primary health
care, and one well-conceived and well-implemented programme
of mid-day meals in schools transformed the state despite
the usual political and bureaucratic vagaries. Literacy
rates went up significantly, population reached stable levels,
skills were improved, investment flowed and economy is growing
impressively. If every major state can become a Tamil Nadu,
we will have another Asian miracle in India!
Andhra
Pradesh is the state with appallingly low levels of literacy,
next only to Bihar and Orissa among major states. Despite
poor social indicators, sustained campaign mode of family
planning programme implementation over two decades brought
the state close to stable population. Amazingly, low literacy
proved to be no obstacle, and crude coercion was unnecessary
to reduce birth rates, generating hope that most of India
can indeed contain population growth rapidly. Karnataka
too is close to achieving stable population level.
Perhaps
the greatest miracle is in Rajasthan. This traditionally
backward state, lumped with Bihar, Madhya Pradesh and Uttar
Pradesh as a Bimaru state known for extreme poverty, social
backwardness and appalling ignorance has been quietly transformed
over the past quarter century. Rajasthan is no longer a
Bimaru state, and by Indian standards it is now a middle-income
state. If Rajasthan, through political will and purposive
administration could accomplish this, there is no reason
to despair of the plight of the other great, Hindi-speaking
north Indian states.
Maharashtra
has achieved another great miracle. Corruption has been
almost totally eliminated in the subordinate judiciary in
that state. A proactive High Court ensured removal of a
tenth of all trial court judges, and judicial probity has
been restored. The Supreme Court supported these strong
initiatives. Rajasthan High Court has followed suit, and
strong steps are initiated to remove judges tainted with
corruption. If two major states could eliminate corruption
in one whole branch of government in a short span, is it
impossible to dream of corruption-free India?
And
finally, the Aroles achieved the ultimate miracle of low-cost,
high-quality, accessible health care through a replicable
model over two decades ago, and transformed the lives of
100,000 people in Jamkhed area in Ahmednagar district of
Maharashtra. There is nothing which prevents the replication
of that model in all the 600,000 villages of India,except
our lack of ambition and imagination.
Clearly,
there is tremendous scope for achieving high literacy, stable
population, accessible health care, and removal of poverty
and elimination of corruption. There are only two great
obstacles to this great national resurgence - crisis of
confidence, and appalling governance. We need to shed many
of our delusions, and address these two monumental problems.
Even now it is not too late. Fundamental political and governance
reforms and sound economic policies, backed by a surge of
national will can, and will, transform India into the next
Asian miracle. We can catch up with China, and be the engine
of growth in South and Central Asia. The people of India
are ahead of our politicians and are ready for change. Do
the elites have the courage to dream big, and the will to
build institutions which can replicate our successes?
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