Wednesday, October 23, 2013

GOOD ECONOMICS AND GOOD GOVERNANCE MUST FOR POVERTY BANISHMENT IN INDIA

A country like India which is striving hard to address the basic needs and necessities of its impoverished billion plus cannot draw solace from an economy growing at 5 % but needs to have an economic growth galloping at 12-15% for a few decades so that the present generation which was born poor does not grow old with the tag of poverty hung around its neck. Let it be clear to one and all that it is growth and growth alone which can bring prosperity to a nation. Any amount of gimmicks of redistribution of national wealth and measures leading to eternal consumption of national wealth will not yield favorable results.
India and its planners must not overlook the magic of compounding as shown below:

Growth Rate %                      Period in years                   Projected GDP
         5                                      20                                       2.65 times
        10                                     20                                       6.73 times
        12                                     20                                       9.65 times
        15                                     20                                     16.34 times

This only demonstrates what the country, its polity and policy makers can achieve for its impoverished billion plus.Such achievements have been made by Germany and Japan during the period 1960-80 and more recently by China 1990-2010 and there is no reason why India cannot do it. The only requirement is that these guys have to say good bye to their baser instincts and dwell whole heartedly on good economics and good governance. Ideally they should never forget the following lines which are passed down the line generation after generation in the text books of wisdom.
Good Economics and Good Governance is Ideal;
Bad Economics and Good Governance is A Compromise;
Bad Economics and Bad Governance is A Disaster;

Good politics, bad economics and bad governance is a catastrophe.