Friday, August 21, 2009

What Inclusive Growth Really Is?

In this article I am going to write a story which is 100% original and non-fictional. This story has its origin in the 21st century and to the surprise of many, in the globalised and liberalized India. Before I begin to disclose the protagonists of my story let me throw some facts to reiterate my perceptions on display in the story.

India or Bharat became a democratic republic on 15th august 1947 after much deliberations and confrontations with the British Raj. From 1947 till 1991 our ‘ Great India’ registered an average growth rate of 3.5%. And to the surprise of our policy makers and politicians the socialist structure which they thought would bring more inclusive growth failed miserably. The reason, yes you guessed it right, was the ‘red tape’ or the bureaucratic hassles that one had to confront before one wanted to start an enterprise. It is no surprise then that India is ranked 122 among 180 nations in the “Ease of Doing Business” parameter by the world bank. The great visionaries of 1991 political regime realized that the socialist structure wasn’t yielding the intended benefits and in order to compete with the fast changing world one needs to bring in much needed reforms and thus came the policies of globalization and liberalization. Divestment also came in this period thereby bringing in some transparency and accountability in some public sector undertakings. The chief purpose of the policies was to cut the red tape thereby streamlining and smoothening the bureaucratic process. Although a lot of changes followed the policies and it became relatively easier to start a business but still the underlying principles of the policies that was to bring great transparency, accountability and credibility to the administrative and bureaucratic processes remained elusive…………….to be continued