Now, this is the kind of news I like to read – that India is trading with the USSA: Harley-Davidson is entering the Indian market finally. Now, that’s a bike I am going to buy – as soon as these manuscripts get sold.
Note that Chacha Manmohan went overboard on the State-to-State nuclear deal. Harley is different: it is a people-to-people deal, one that benefits people both here and there. These are the kinds of deals that will dominate the scene if we announce unilateral free trade. As I have recently blogged, a better deal than the nuclear deal would be a “clunker deal”: we buy up all the old cars Obama is shelling out taxpayer money to destroy. Every Indian home gets a car.
But what about the roads? Mint has an editorial on this today. It paints a dismal picture. Our The State has taken a World Bank loan of 1 billion USD when they need $500 billion. And they are going to loan these cheap World Bank funds to private players for toll projects and so on. This is sheer nonsense. We already have a Central Road Fund in place for many years. Specific tax streams have been dedicated to this fund. What is Chacha doing?
There is another way.
We could publicly admit that Nehru got it all wrong. The State is not required to make steel; The State is required to make roads.
This simple admission would allow us to change track. We then sell off the steel plants, the hotels, the airlines, and all the rest and invest the entire proceeds on a brand new toll free roads and highways network of top quality.
The automobile scene in India is exciting. This is one area where there has been genuine liberalization. The sector is growing at more than 9 per cent on average. There is keen competition. The streets are awash with great cars – but the roads of Nehruvian socialism are letting us all down.
In the meantime, Chacha rides his white Ambassador from Race Course Road to North Block and back, four times a day.
And his The State is making steel.
Flying planes.
Running hotels.
Yeah. The System Sucks.
PS: Among the columnists of today, I particularly liked Jerry Rao’s demolition of Amartya Sen and his good friends – the Left. Well worth a read.
why should the state make roads?.doesnt sound like a free market idea to me. the state should set the land records right and ensure property rights are restored. the rest will be taken care of by the invisible hand.
ReplyDeleteIf we began with a tabula rasa, then you would be right, Dyslexic. But we have a State, and this State has our money - all locked up in these assets. This is the Public Treasure. What should be done with all this money? Hence, my suggestion that we use it to build roads as a public asset, a public good.
ReplyDeleteMy suggestion is that all those petty sarkari naukars who sit pretty in office all day, actually doing NO work, and getting paid with the tax paid by hardworking citizens should be forced to do some hard labour - building roads.
ReplyDeleteIt makes sense to sack all these "misproductive" baboos and get the roads built by experts from Germany or Switzerland. Sack the Indian PWD too. Whaddya think abt that?
ReplyDeleteBoss, while I agree with your big picture arguments, I have to argue a few technicalities:
ReplyDelete1) The PM of India rides in a bulletproof BMW 7 Series, not an Ambassador
2)While I am completely 101% behind Free Trade, I have to argue with your idea of selling the cars to India. What the hell do Indians want with 10+ year old cars which are left-hand drive and give horrendous fuel efficiency? Though I agree, there should be no rule barring that import, if that is what foolish people want to do. We can always use those cars as spare parts, I suppose.
I feel sorry for Chacha's BMW.
ReplyDeleteIt must be thirsting for German roads, poor thing.
ummm foolish people? if you take a peek at some residences in south Mumbai. you'll see Left hand drive cars parked . I've seen wealthy doctors drive LH mercedes. the LHD is often a status symbol,arguably of the arriviste,but nevertheless it has takers in amchi mumbai
ReplyDeleteindeed, my first car, bought in calcutta in 1979-80, was a 1952 Austin A-40 LHD. if imports had been open then, i would have obtained a newer and better car. this one was a lemon.
ReplyDeleteWhy not private roads.. Roads need not only laying, but also maintenance .. Do you think the Sarkari Babus will maintain the roads better than a private business ?
ReplyDelete