Connect to share and comment

Have India's reforms been turned upside down?

Economist Bharat Jhunjhunwala argues that reforms have become a tax to support the bureaucracy

Economist Bharat Jhunjhunwala makes a damning case against India's economic reforms in this week's Tehelka:

[The] purpose of the reforms was to reduce the role of the government, whittle the bureaucracy, put the economy on a high growth trajectory and create enough jobs to secure people’s welfare. The logic of reforms has been twisted, however, that role of the government is being increased and people are being taxed to support the bureaucracy. 

More

Indian PM's plans for 2012: Raise funds, control spending

Singh pins hopes on goods and services tax

Indian Prime Minister Manmohan Singh is pinning his hopes on money-generating reforms like a Goods and Services Tax, as well as controlling government spending, to get the country's economy back on track in 2012, the Indian Express reports.

 

More

The Shiva Rules: Is growth enough?

NEW DELHI — As debate rages over government programs designed to provide more equal opportunities to the poor, the bald facts beg the question: Is growth enough?

India: The end of Manmohanomics?

NEW DELHI, India — Earlier this month, India's prime minister drew a line in the sand. This weekend, he erased it. What happens next could determined his legacy.

Shiva's Rules: Union strikes threaten India Inc.

NEW DELHI — This year's spate of strikes gives an ominous glimpse into one possible future for Indian manufacturing.

India: burgeoning fast-food paradise

NEW DELHI — Global chains seek to woo a broader cross-section of customers by incorporating traditional spices and ingredients into their menus.

India plays the middleman

SURAT — The world's diamond-polishing hub is a weak link in the fight to stop overlords from financing their armies with precious stones.

Indian children given free laptops

In a program that is the first of its kind in India – all children at government schools and colleges in the southern Indian state of Tamil Nadu will be given a free laptop.

A middle-class revolution in Asia?

Unlike the Arab Spring, protests in India and China have focused on government reform rather than takeover.
China beijing skyline middle class 2011 09 01Enlarge
A new day breaks in Beijing on June 25, 2011 behind the central business district skyline with the city's tallest building, the China World Trade Tower 3. (Frederic J. Brown/AFP/Getty Images)

With mass graves in Lybia and tanks rolling through Syria, it's easy to underestimate the unrest we're reading about in India and China.

Afterall, activist Anna Hazare succeeded this week in getting the government in India to agree to an independent, anti-corruption body.

And in a rare and recent victory for protesters in China, the northeastern city of Dalian said they would shut down a chemical plant residents feared had been damaged in a storm.

People had had enough, but authorities appeared to take notice, listen and even take some action.

Unlike the Arab Spring, which is more focused on bringing governments down, India and China want the governments they already have to be better — or rather, to be free of corruption.

In another example, just weeks before the Dalian protests, a high-speed rail crash in eastern China that killed 40 people was blamed on the negligence of officials in charge. Seems a logical enough thing to protest.

But government corruption isn't new and disaster has struck before. So, why are people in India and China ready to take to the streets now?

The latest issue of the Economist lays out a clear, if not groundbreaking, assessment: It's all because of the middle class.

Which is growing.

A lot.

The most plausible [explanation] is that India and China — and possibly other emerging markets, too — are experiencing the early stirrings of political demands by the growing ranks of their middle classes.

According to Martin Ravallion of the World Bank, the middle classes (defined as people earning between $2 and $13 a day) trebled in number between 1990 and 2005 in developing Asia to 1.5 billion ...

Newer estimates from the Asian and African Development Banks, using a definition of $2-20 a day, confirm the picture (see below). They show that the middle classes (which, on their definitions, include many only just out of poverty) accounted for ... almost 90% of China’s.

Now, the world over, it's the middle class who has the luxury of caring about things like free speech and fair elections. The poor have more pressing concerns.

While this is hardly breaking news on a conceptual level, it is worth noting that what we are seeing on the ground in India and China is the phenomenon in real time.

More

India steps up efforts to end Anna Hazare-led anti-corruption protests

Hazare, described as a self-styled Gandhian activist, has lost more than 13 lbs since his fast began eight days ago.
Syndicate content