Let’s say we are both girls born on farms in remote villages at the foothills of mountains, but you were born at the foothills of the Himalayas and I, somewhere at the foothills of the Swiss Alps. You are the first of five children and I have only one younger sister. What do you suppose our lives growing up would be like?
I have access to a road that leads me to school every day and to hospitals when I need it. I have electricity so that I can do my homework in the evenings and my mother can cook using a clean stove. We have heat. I even have telecommunication services for when I want to talk to my uncle who lives in Nova Friburgo, Brazil. And my bathroom is indoors because it separates us from our waste.
India today is the fourth largest economy in the world. But for the country to sustain a growth rate of close to 6%, it remains vulnerable to the vicissitudes of global investors. It’s time to ponder: why it is not the other way round? How can India reach a position where we not only follow the rise and fall of global economic forces but also lead the way in sustaining the global economy? This is my dream.
Improving Ongoing Flagship Programs:
-The monitoring of all flagship projects should be improved right from the Gram Panchayat level to the state and central level.
-Models need to be developed for every flagship program, success factors studied, and implementation aligned with the specific needs of each state.
-All program implementation officers should be trained by those who have worked in successful programs. Pay should be linked with performance.
-Resource reallocation should depend on progress and work load.
-All unsuccessful programs should be analyzed to understand the main causes for failure and alternatives planned.
-Benchmark studies should be conducted to identify critical indicators for development in education, health and infrastructure and year on year progress checked.
As a Chinese working on public sector governance and living in India, I'm often asked to compare the two governing systems, the largest democracy in the world and the largest non-democracy in the world. The gap in political and civil participation between the two countries is well known.
India's civil society and media are much more dynamic and vocal. I particularly admire the impact of the Center for Science and Environment on environmental policy, Pratham on education, the Naz Foundation on gay and lesbian rights, and MKSS on Rights to Information. I’m not aware of equally impactful counterparts in China but would be happy to hear about those you have come across. Certainly China can benefit from moving towards a more open society, where minority voices are heard and rights protected, and where abuse of official power and natural resource is restrained.
But when it comes to building infrastructure and reducing poverty, China is doing much better. Why? We often hear "Yes, but China is an authoritarian regime." -- as if authoritarian regimes automatically are more capable of development. Yes an authoritarian regime can be more efficient in making policies -- good or bad -- because the process of consultation and public deliberation can be truncated. But which theory predicts that democracies are less capable of building good infrastructure quickly or taking care of the poor?
“There was no secret, we had no choice but to take chance and sail into rough waters”- Lee Kuan Yew
Singapore is an inspiration to Sri Lanka and other developing countries in terms of economic development, political stability, and good governance. Since 1967, it has increased its per-capita purchasing power (PPP) 10-fold to $44,600 in 2007, surpassing countries such as Switzerland’s PPP ($37,300) in 2007. Singapore also has high demographic development compared to Sri Lanka even though both countries were about even in 1960s. The President, Lee Kuan Yew, navigated the Singaporean economy after gaining independence in 1965. With a population of over 5 million, Singapore maintains a market driven guided economy with diversity in cabinet and government.
What was their secret to success?
At independence in 1965, the economy was met with unemployment problems, an unskilled workforce, few entrepreneurs, no domestic savings, wretched housing conditions, militant labour unions and racial riots. They devised a strategic economic plan; developing entrepot (commercial) trading, export driven manufacturing, and then creating a service based knowledge economy.
It is a paradox that India which is among the most densely populated countries in the world, is also among the least urbanized. The figure below compares urbanization rates with income for more than 100 countries. It shows that an increase in urbanization rate is positively associated with real per capita income. This is the iron law of development—i.e., growth is associated with the reallocation of labor and capital away from traditional (rural) sectors to modern (urban) sectors. Spatial transformations that give rise to urbanization accelerate growth because households and firms benefit from scale economies, mobility, and specialization. Increased urbanization contributes to growth, job creation and poverty reduction. This can indeed become a virtuous circle.
Last week, I discussed the two very different South Asias and the need for regional cooperation to bring the lagging regions up to the standards of thriving regions. However, increased market integration by itself will not be sufficient to accelerate growth and benefit the lagging regions. South Asia suffers from a massive infrastructure deficit. Infrastructure is like second-nature geography, which can reduce the time and monetary costs to reach markets and thus overcome the limitations of physical geography.
Improved infrastructure that enhances connectivity and contributes to market integration is the best solution to promoting growth as well addressing rising inequality between regions. The Ganga Bridge in Bihar in India is a good example of second-nature geography. The bridge has reduced the time and monetary costs of farmers in the rural areas in north Bihar to reach markets in Patna, the largest city in Bihar. The Jamuna Bridge in Bangladesh is another good example of spatially connective infrastructure. The bridge has opened market access for producers in the lagging Northwest areas around the Rajshahi division. Better market access has helped farmers diversify into high value crops and reduced input prices.
South Asia suffers from three infrastructure deficits. First, there is a service deficit, as the region’s infrastructure has not been able to keep pace with a growing economy and population.
The World Bank approved four loans worth $4.345 billion dollars yesterday, which is the second largest volume of lending to a single country in a year.
The goal of the four projects is to contribute to improving India's infrastructure and help bolster the country's response to the global economic and financial crisis and lay the foundations for stronger growth in the future.
The financial package consists of:
-Banking Sector Support: $2 billion
-Support for India Infrastructure Finance Company Limited: $1.195 billion
-The Fifth Power Sector Support Project: $1 billion
-The Andhra Pradesh Rural Water Supply and Sanitation Project: $150 million
For more information and to watch an interview with India's Country Director Roberto Zagha, please check out the feature story.
The National Solidarity Program (NSP) is a community-led reconstruction and rural infrastructure initiative. The program has made significant achievements in empowering communities, improving community relations, and increasing public faith in the system of government.
- South Asia
- Labor and Social Protection
- Social Development
- Law and Regulation
- Agriculture and Rural Development
- National Solidarity Program
- Irrigation and Rural Livelihoods
- International Development Association (IDA)
- Community Development Councils (CDCs)