Now it is time for us to briefly review the specific changes on the ground that brought about the Indian Miracle. The first thing you must note is that this was not a very large set. Let’s keep in mind that the apparent problems that India faced were myriad. I say “apparent” because as I mentioned before, they were really symptoms of a small set of deeper causes.As it always is, a small set of causes can lead to a variety of unhealthy symptoms.
The diagram on the next page illustrates some of the linkages among the various sectors of the economy. Since the linkages are dynamic, representing them in a static diagram has its challenges. Compounding that is the problem that everything is connected to everything else. Therefore the diagram is a gross simplification of what actually happens in a modern complex economy.
All processes in our universe, from the sub-atomic to the super-galactic, involve the use of energy. The fundamental laws of thermodynamics attest to that. So it should come as no surprise that energy rests at the core of all human advancement and economic growth. The story of human civilization is principally that of an increasing ability to find and exploit energy sources. Until relatively recently in human history, animals and humans were the principle sources of energy.
The bidirectional link between industrialization and economic development is urbanization. Like conjoined twins, urbanization and development are never observed alone. The story of economic growth and human development is the story of civilization, the growth of cities. All human achievements are the result of ideas, and the city as an idea must rank among the greatest and the most ancient of ideas.
Why is India so poor?
Is India a free country really or is it under “British Raj 2.0” post 1947?
How can it become a rich nation?
What will it take to fix India’s dysfunctional education system?
Where should the focus of rural development be – rural people or rural areas?
Why does the “license permit quota control raj” inevitably lead to rampant public corruption?
Should government run businesses at massive public losses?
What can you do to make a difference and bring about positive change?
If you have, then this book is for you.
It is about India’s possible transformation from a very poor, impoverished, “Third-world” nation to a rich, developed, dynamic country by 2040. For us to make that happen, we must intelligently ask and honestly answer questions such as those. This book is an attempt at addressing them and outlining a course of action. We must act but awareness and understanding have to precede action. We have to understand precisely what has impeded India’s progress to avoid repeating the mistakes of the past. We have to rescue and transform India – we owe it to ourselves, our children, and our children’s children.
Atanu Dey received his PhD in economics from University of California at Berkeley. He is an alumnus of IIT Kanpur and Rutgers University (computer science), and of Nagpur University (mechanical engineering.) As a Reuters Fellow at Stanford University, he developed a model for catalyzing rural economic development called RISC. On his blog “On India’s Development” at www.deeshaa.org, he writes on a wide range of topics such as education, technology, economics and politics. Atanu lives in the San Francisco Bay area and works as the chief economist at NetCore Solutions in Mumbai.