For A New India

I found the lead editorial in Mint today most inspiring, for it talks about India circa 2010, a nation with a per capita income of over US$3500 – if the right policies are followed.

This is quite obviously a post-Chacha world, for the editors go on to say:

Inclusive growth is right now fallaciously equated with government programmes such as the National Rural Employment Guarantee Scheme. These are at best safety nets for the poorest but may have little relevance in an India that has trebled average incomes. The more relevant form of inclusive growth is job creation to help millions get away from low-productivity farming work.

I would have preferred the term “economic freedom.” Millions are already fleeing “low productivity farming work” for opportunities in cities, but these are invariably closed because of perverse policies. The government that actively engages in job destruction cannot have any role to play in job creation.

I would also have preferred to see some mention of property titles – especially in urban areas. In New Delhi, my guess is that over 50% of the population does not possess clear property titles. Most have no postal address. As one such resident of an “unauthorized” locality recently told me: “I have not clear title, but my property is permanently.” In which case, the local government must issue titles forthwith. This is not a very difficult job at all. Think of Munro in Baramahal way back then, with some horses and a tent, going about “mapping the waves of the great oceans.” The job was so daunting then. Now we have satellite images for free on every computer.

Coupled with this emphasis on economic freedom and urban private property, I would also lay stress on aggressive urbanization, itself enabled by good transport connections, and spurred on by economic opportunities in new urban areas, opportunities that will only flourish with complete economic freedom and a hugely liberalized foreign trade regime. That is, an India with hundreds of cities and thousands of towns.

If we follow such policies consistently for a long time, we will not just be a “middle income country,” I daresay we will become a “developed country.” That should be the goal of India, post-Chacha.