Hugo Dixon & Jeff Glekin: Unravelling India: growth bottlenecks

Published January 31, 2012 by vishalvkale

Hugo Dixon & Jeff Glekin: Unravelling India: growth bottlenecks:


‘via Blog this’


Classic analysis and Development  – 360 degree viewpoint, almost. In summation, the authors are looking at the following points:

  • Corruption
      • High-level corruption
      • Petty corruption
      • Electoral corruption
    • Anti Corruption Movement/s
      • Lokpal / Anna Hazare
      • Media
      • Right to Information and its impact
      • CAG, CJI etc other pro-and re-active offices
      • Stray political responses
    • Corruption Remedies
      • Powerful Independent Lokpal
      • Transparency in Government
      • RTI – 2005 and its impact
      • UID Project and its impact
  • Sustainable Growth
    • Economy
      • Demographic Dividend
      • GDP Per Capita
      • Bottlenecks
        • Private Investment, negative sentiment of the same
        • Politics – Coalition politics and decentralisation
        • Environmental issues and problems
        • Corruption
    • Problems of the day: Decline in investment, fiscal deficit, corruption and environmental roadblocks
The article deserves special mention since it places corruption, negative sentiment and environmental problems at the same level, and examines – or attempts to examine- their impact on growth. 

The Demographic Dividend, first extolled by Nandan Nilekani in his book on India, is worth mentioning: India will have an average age of 34 by 2050, whereas the age of the average Chinese will be 46. This means that both consumption and working-age population will be in abundance in India. But at the same time, our nation will have to struggle to provide land, water and power to satisfy an ever increasing consumption – which is going to be a challenge. And to make sure that we are able to cash in on this dividend, some problems have to be overcome. Interestingly, we dont have any option: unless we overcome these bottlenecks it is our own country and consequently our own population that will have to bear the brunt of our failures. Because we have to produce enough to provide for this burgeoning population!

The proposal of decentralisation is worth examining. Furthermore, the point they have made that given India’s diversity, a plethora of political parties is inevitable seems justified. Decentralisation, or devolution of power to the state would also be in keeping with the spirit of our federal constitution, as well as the panchayati raj bill etc amendments. It is a fact that the well governed states- Gujarat, Chhattisgarh and now Bihar are doing well. 

The 3rd take-away for me from the above is the author’s belief that the anti – corruption movement is here to stay in one form or the other. The increasing levels of awareness and education, media focus have given rise to a broad anti-corruption consensus – which would serve to generate reverse pressure, as also win converts within the system itself – there are many that we can think of today. All in all, a great article that offers a balanced, holistic view and several thought provoking suggestions and observations. For me, these are:
  1. Broad anti-corruption consensus
  2. Coalition politics, its inevitability and decentralisation
  3. Demographic Dividend – pluses and minuses. (We are aware of both sides, but have never linked them together like the 2 sides of the same coin, so to speak)
A must read article, in my opinion

One comment on “Hugo Dixon & Jeff Glekin: Unravelling India: growth bottlenecks

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