In today’s Business Standard, Pranab Bardhan in his article “India — A case of bad governance“, makes a number of very important points.

In a recent piece in the Wall Street Journal titled “India’ Greatest Failure,” Paul Beckett writes about T.S.R. Subramanian who retired as India’s most senior civil servant in 1998. Beckett quotes from TSR’s book, “GovernMint in India” — “Since no part of the Establishment has an interest in punishing corruption, trying for a more sweeping solution quickly leads into the realm of blind hope.”

In an article in the Business Line titled “Kalam’s PURA will not work,” Lee Kuan Yew makes the case for urbanization of the population for India to develop.

A few days ago the Supreme Court of India admitted a petition challenging the subsidy for haj. (Link). The Rs 280 crore (~ US$ 60 million) a year subsidy for Muslims to visit Saudi Arabia, the petitioners claim, is not just unconstitutional but discriminatory.

Markets Work, Incentives Matter
The two broadest generalizations one arrives at from a study of economics are that markets work and that incentives matter. People respond to incentives because that is at the core of what it means to be rational. To the extent that humans are rational, their behavior is predictably in the direction that existing incentives point to. Trade between humans is rational because both parties in any voluntary trade benefit. The abstract mechanism which enables trade is called the market. Markets work in the sense that they maximize …

Happy 60th Independence Day!
My analysis is one of hope, potential and possibilities. Although political freedom was achieved 60 years ago, economic freedom is still a distant dream for the majority of the population. It is understandable why political freedom is easier to achieve relative to economic freedom. The entire population of the nation has an interest in political freedom — with very rare exceptions. But there are factions within the country that oppose economic freedom because they have a vested interest in the perpetuation of a command and control economy. …

We find ourselves in the midst of a transition, from the industrial-value-added analog world to the information-value-added digital world of the future. The relatively static world of the past is giving way to a dynamic world that defies comprehension and easy descriptions. The institutions that worked in the past are losing their relevance in an accelerating and rapidly changing world economy – one that is getting more interdependent and interrelated. This change is more radical than that which accompanied the transition from a primarily agricultural to an industrial economy.

The depth of the Indic civilization is awe inspiring when you consider that it has been around for many thousands of years. The Vedas were composed long before the start of the Common Era. The people of India can claim direct lineage to those who composed the Vedas and the Upanishads. The Rig Veda epitomizes in one of its invocations what I am concerned about: adoption of ideas.
Let noble thoughts come to us from all universe.
The puzzle therefore is why has modern day India …