Page 56 - EW November 2023

Cover Story

Narasimha Rao. Rao emerged as post-
independence India’s first non-social-
ist prime minister and abolished the
industrial licensing system, monopo-
lies legislation and reservation of a
large number of consumer products
by MSME (medium, small and micro
enterprises) companies.
As a result, the Indian economy
leapt out of the 3.5 percent per year
GDP growth mire and into the 5 per-
cent plus orbit and later to 7 percent
under the first BJP government (1999-
2004) and prime minister Atal Bihari
Vajpayee. However in 2004 the Con-
gress party was unexpectedly returned
to power at the Centre in the general
elections of 2004 and 2009 and al-
though the 6-7 percent annual rate of
GDP growth was maintained, an in-
evitable and dreadful consequence of Demanding government servants: notorious corruption reputation
imposing inorganic socialism on the
citizenry for over half a century be- erhood has acquired a vested interest tion initiative of 1991 has transformed
came painfully apparent — pernicious in the licence-permit-quota regimen, into a two-steps forward, one step
corruption, a major cause of secession the economic reforms of 1991 have back tango. On the World Bank’s
of the educated middle class from 21st not been carried forward to their Ease of Doing Business global index,
century India. natural conclusion. Even after the re- India ranked #63 in 2022, way below
forms, the Indian economy has failed China (#31). Although the 2022 EODB
CORRUPTION & LAW AND ORDER to attain the 10 percent annual GDP ranking (since discontinued) is an im-
provement over #142 in 2014, it isn’t
T outcome of the imposition the lost decades between 1947-1991. good enough.
growth rate required to make up for
HE MOST DEBILITATING
A damaging outcome of endemic
Under the BJP which routed Con-
of state-led development
has been widespread cor- gress in the general election of 2014 corruption — on the Berlin-based
Transparency International global
and again in 2019, and projected itself
ruption which has struck deep roots as a pro-business and private enter- public sector corruption index India
within the Indian economy. With prise party, the annual rate of GDP is ranked #85 (cf. China’s #65) — is
Parliament and legislative assem- growth — which slowed to below zero the near-collapse of the law and order
blies passing thousands of mostly during the harsh pandemic lockdown and justice systems, a major but un-
discretionary laws, rules and regula- — has averaged 5-6 percent per year. identified cause of the brain and talent
tions prohibiting and/or regulating But like the old man who clambered drain from India. The ratio of civilian
business in a nation of natural entre- aboard the shoulders of Sinbad the police to population at 144:100,000
preneurs, by the early 1970s, India, sailor and refused to get off, the neta- pales in comparison with 864 in Gre-
governed by a 20 million-strong neta- babu brotherhood is reluctant to get nada, 343 in Mexico, 320 in Thailand,
babu brotherhood, acquired a notori- off the back of the Indian economy 229 in South Korea and 174 in the
ous global reputation for public sec- and the liberalisation and deregula- Philippines, and is way below the UN
tor corruption with amoral politicians recommended norm of 222. In this
and bureaucrats routinely demanding Even after the 1991 reforms connection it should be noted that
bribes for every licence, permit and 144: 100,000 is the national average.
paper. the Indian economy has In some states such as Uttar Pradesh,
This stifled enterprise — perhaps failed to attain the 10 percent Bihar and West Bengal, the ratio is less
the most important (after land, la- than 100. It’s also noteworthy that the
bour and capital) factor of production annual GDP growth rate majority of India’s police is perceived
— and inflow of foreign investment required to make up for the to be corrupt with only 25 percent of
into the Indian economy. Unfortu- lost socialism decades the population reposing trust in the
nately, because the neta-babu broth- law and order maintenance personnel

56 EDUCATIONWORLD NOVEMBER 2023