Investing in Infrastructure
The Govt. has now realised that this dream run that the Indian economy is going through is not going to be sustainable unless we make significant investment in developing physical and social infrastructure in the country.
The ratio of our infrastructure investment to GDP is around 4%, compared to over 20% in China. It has been estimated that we need to invest $100 bn in infrastructure by 2010, while our current investment is below half that figure. Things are definitely headed in the right direction, but whether we are moving fast enough is anybody's guess.
What is really surprising though, is the lack of attention paid to primary education. We aim to create a 'knowledge economy' and aspire to become the IT and Research hub for the world. We have an advantage in terms of human capital because 50% of our population is below the age of 25. However, only 50% of that youth has access to proper education. Illiteracy is perhaps the root of most evils that exist in our society. Dowry deaths, gender inequality and female infanticide are only a few of the evils that could be reduced, if not eradicated, by ensuring a higher level of literacy in the country. We claim to have over 65% literacy, but what is more important is being 'educated' rather than being 'literate'. Education changes ones mindset and liberates one from the shackles of superstition and impractical customs. Not to mention the fact that it also creates the means to a better quality of life and better job prospects. At a macro level, it also creates a knowledgeable society which would be better aware of its own rights and responsibilities. This would also lead to better governance.
The Govt. is taking a lot of steps in making higher education more accessible to the lower strata of society. Allowing foreign universities to set up shop here is a step in the right direction. Not only will it force local universities to up their standards, but it would also mean more seats which means more doctors, engineers, researchers, professors, accountants and architects. What beats me though is the lack of any major initiative in primary school education. After all, people need to reach the graduation level to be able to make use of opportunities to study further, isn't it? A vast majority of Govt. run schools in semi urban and rural areas are terribly understaffed. Teachers don't even show up a lot of the time and the end result is very obvious - education is not seeping into the hinterland, which is the real India, which is where 70% of India's population lives.
Thomas Friedman, in his seminal work 'The World is Flat' points out the cause for social unrest in several underdeveloped societies. He says that people in underdeveloped economies do not bear grudges against nations that are prosperous. What irks them is the lack of opportunity to empower themselves, to be on a level footing with the more developed nations, to be part of what Friedman calls 'The Flattened World'. It is exactly this issue that is going to crop up in India sooner rather than later. As the urban areas get more and more entrenched with the global economy and enjoy the benefits of globalization, the disparity of income between the rich and the poor and the disparity in opportunities between the 'industrialized India' and the 'agricultural India' are going to lead towards a social unrest. Social unrest can manifest in several ways, almost always malevolent in nature.
In any case, no nation can become a Superpower based on the achievements of one generation of Narayana Murthy, Azim Premji, Ratan Tata et al. This has to be a regenerative process that ensures sustained growth, a continuous upward spiral towards better governance, transparent corporate practices and Corporate social responsibility. As we get more and more integrated with the world economy, we also need to realize that we compete not just with our peers in the country, but also millions of similar people across the world. In such a scenario, education is the most potent weapon that we can arm ourselves with. If the next 4-5 generations continue to achieve the kind of laurels that India is winning in the world today, only then can we truly think of approaching a Superpower status in the world. Like Management Consultant Tom Peters suggests, 'Be a Clock Builder and not a Time Teller'. It would certainly be a slow process, but certainly a more robust driver of economic growth and equitable distribution of wealth.
The ratio of our infrastructure investment to GDP is around 4%, compared to over 20% in China. It has been estimated that we need to invest $100 bn in infrastructure by 2010, while our current investment is below half that figure. Things are definitely headed in the right direction, but whether we are moving fast enough is anybody's guess.
What is really surprising though, is the lack of attention paid to primary education. We aim to create a 'knowledge economy' and aspire to become the IT and Research hub for the world. We have an advantage in terms of human capital because 50% of our population is below the age of 25. However, only 50% of that youth has access to proper education. Illiteracy is perhaps the root of most evils that exist in our society. Dowry deaths, gender inequality and female infanticide are only a few of the evils that could be reduced, if not eradicated, by ensuring a higher level of literacy in the country. We claim to have over 65% literacy, but what is more important is being 'educated' rather than being 'literate'. Education changes ones mindset and liberates one from the shackles of superstition and impractical customs. Not to mention the fact that it also creates the means to a better quality of life and better job prospects. At a macro level, it also creates a knowledgeable society which would be better aware of its own rights and responsibilities. This would also lead to better governance.
The Govt. is taking a lot of steps in making higher education more accessible to the lower strata of society. Allowing foreign universities to set up shop here is a step in the right direction. Not only will it force local universities to up their standards, but it would also mean more seats which means more doctors, engineers, researchers, professors, accountants and architects. What beats me though is the lack of any major initiative in primary school education. After all, people need to reach the graduation level to be able to make use of opportunities to study further, isn't it? A vast majority of Govt. run schools in semi urban and rural areas are terribly understaffed. Teachers don't even show up a lot of the time and the end result is very obvious - education is not seeping into the hinterland, which is the real India, which is where 70% of India's population lives.
Thomas Friedman, in his seminal work 'The World is Flat' points out the cause for social unrest in several underdeveloped societies. He says that people in underdeveloped economies do not bear grudges against nations that are prosperous. What irks them is the lack of opportunity to empower themselves, to be on a level footing with the more developed nations, to be part of what Friedman calls 'The Flattened World'. It is exactly this issue that is going to crop up in India sooner rather than later. As the urban areas get more and more entrenched with the global economy and enjoy the benefits of globalization, the disparity of income between the rich and the poor and the disparity in opportunities between the 'industrialized India' and the 'agricultural India' are going to lead towards a social unrest. Social unrest can manifest in several ways, almost always malevolent in nature.
In any case, no nation can become a Superpower based on the achievements of one generation of Narayana Murthy, Azim Premji, Ratan Tata et al. This has to be a regenerative process that ensures sustained growth, a continuous upward spiral towards better governance, transparent corporate practices and Corporate social responsibility. As we get more and more integrated with the world economy, we also need to realize that we compete not just with our peers in the country, but also millions of similar people across the world. In such a scenario, education is the most potent weapon that we can arm ourselves with. If the next 4-5 generations continue to achieve the kind of laurels that India is winning in the world today, only then can we truly think of approaching a Superpower status in the world. Like Management Consultant Tom Peters suggests, 'Be a Clock Builder and not a Time Teller'. It would certainly be a slow process, but certainly a more robust driver of economic growth and equitable distribution of wealth.
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