Friday, August 21, 2015

Can India become wealthy without a strong foundation?

The Prime Minister has announced a special package for Bihar, of Rs 1.25 trillion. Elections to the Bihar assembly must be completed before 29 November, so this is an obvious political move. Naturally, present Chief Minister of Bihar, Nitish Kumar poured scorn on the package, having been pleading for one for months. Maybe the reason for his anger is that all the money is tied to development projects, so he cannot use any of it as handouts to bribe specific sections of society, to win seats. Perhaps, if he had carried out his duties as chief minister with due diligence there would have been no need for special packages for Bihar. Nitish Kumar has a personal hatred for the Prime Minister, forgetting the old principle that there are no friends or enemies in politics, only strategic alliances. He has embraced his old foe Lalu Prasad Yadav, who is out on bail for the fodder scam. A clear case of cutting his nose to spite his face. Bihar desperately needs very good infrastructure because states with good infrastructure index are the ones with high per capita incomes. UP is an exception. It is fairly high on the infrastructure index but its per capita income is only Rs 20,939, compared to Tripura at Rs 41,994, Karnataka at Rs 46,285 and Andhra at Rs 48,614, states which are much lower on the infrastructure index. Bihar is one rank below Bengal in the infrastructure index but the per capita income in Bengal is 35,432, over 2.5 times that of Bihar at a paltry Rs 13,790. Perhaps, it is no coincidence that both Bihar and UP have the highest fertility rates with the lowest literacy rates. Both governments blame the central government for not giving them special packages consisting of vast amounts of money but never explain why they should get special treatment over other states, which have as much need. Both these states are extremely lawless which means giving them money is like pouring it down a drain, unless governance improves. There seems very little evidence of that in Bihar where rates of rapes and kidnappings have been rising. School education was destroyed by the Congress with the Right to Education Act which forces private schools to reserve 25% of seats for children from poor families. This was a mean tax on the middle class as fees tripled for their children. However, most of these children would fail exams as they would get little help at home, which would bring the Act into disrepute. To hide that the Congress abolished all exams, including Class X Boards. With no exams to show if the children were learning anything teachers stopped teaching, resulting in a fall in standards. Now states are asking the center to revoke the policy of no exams and bring back Class X Boards. Politics is only about winning election and service is just something to be taxes. What about politics for service?

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