Singapore and India. Here are some numbers. In 1965, the exchange rate between Singaporean dollar and US$ was 3 (that is 3 S$ = 1 US$). By 2009, S$ had appreciate to 1.45 — more than doubling in value relative to the US$. How did India do? Against the US$ it went from 4 Rs to the US$ to 48 Rs per US$. In other words, relative to the US$, the Indian rupee dropped to one-twelfth its value during the same period that the S$ appreciated against the US$. What a contrast.
India not only could not keep its position, it actually fell even further behind in the race. You could buy 1 S$ for Rs 1.55. In 2009, you needed Rs 33 to buy one S$. The strength of a country’s currency is an indication of how robust the economy is, and it appreciates if the growth trend is positive. India decelerated relative to pretty much all major economies.
Within one lifetime, Singapore transitioned from third world to first world status. India, during the same time, moved from being a state with great promise to . . . a state with great promise. Lee Kuan Yew said not too long ago, speaking for Singapore’s leaders (himself being the most important), “We did not become rich, but Singapore became rich.” Flip the statement around, substitute India in there, and you will have the equivalent statement which any Congress leader can make, “India did not become rich, but we became rich.” Exhibit #6397 the CWG loot. (Subramanium Swamy alleges that someone called Raul Vinci got a rather large chunk of it.)
Let’s recall that economic policies matter. They determine to a very large extent whether an economy prospers or not. For nearly all its existence as an independent state, the Congress party (nearly always with a Nehru-Gandhi clan member at its helm) has made economic policies. And the outcome? Well, we just did the numbers. They speak volumes if only we are willing to listen.
Mrs Gandhi introduced the word “socialism” in the Indian Constitution. She presided over the nationalization of banks. She intensified the disastrous policies that her fabian-socialist father, Mr Nehru, had initiated. The license-quota-permit-control raj that the Congress instituted resulted in India’s descent into ever deepening poverty. India’s poverty beats the poverty of sub-Saharan Africa hands down.
The unfortunate fact is that if the Congress continues to rule India, and if the Congress continues to be controlled by the Nehru-Gandhi dynasty (they put the “nasty” in the word “dynasty”), as far as economic policies go, it will be more of the same disastrous socialistic insanity. They cannot change course because to do so will be tantamount to repudiating the failed policies of their ancestors. Their creed appears to be “The FAMILY before the COUNTRY” — they would sacrifice the country for enriching themselves.
India must have some terribly bad karma, and is paying for it by being ruled by the Congress. How many more hundreds of millions of Indians have to live lives of utter destitution before that karma is wiped clean?
It’s all karma, neh?
PS: One of the main reasons why I chose Singapore to compare with India is that invariably someone is going to say, “Yaabutt, Singapore is a small country of 4 million and India is 1,200 million. You cannot compare the two.” Only then will I explain why that objection is a pile of hooey. Thank you.
PPS: Major thanks go out to Nitin Pai for providing the numbers on which I did arithmetic to get the exchange rates. This post is also made possible by contributions from viewers like you.