Microscope on the miracle - livemint

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it is no surprise that China has opted for an exchange rate- dependent, export-led growth model when its size and scale cry out for a domestic demand-led model. South-East Asian nations and China have something in common. They realize that a vibrant domestic economy with a strong and dispersed entrepreneurial class is a threat to established interests. Such an economy would see the fruits of success dispersed among many, not few. Hence, a strong domestically led economy is not encouraged. In these countries dominated by a few players and defined by narrow interests, corruption, cartels and conglomerates belonging to the oligarchs have combined to expropriate wealth from minority shareholders. A paper published in the American Economic Review in 2001 observed that the problems of East Asian corporate governance were more severe and intractable than suggested at the time of the financial crisis. Without credible regulatory reforms, the risk is that South-East Asia will go the way of Latin America, a region that continues to perform well below its potential. Once the recent, uninterrupted, unprecedented global growth becomes history, weak economic and societal foundations would come to the fore here.

Dear Rahul Gandhi - livemint

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the best way to do so would be to remove the barriers to private enterprise that exist in this country. Put an end to the licence and inspection raj, reform our labour laws, abolish the laws that agricultural land can only be used for agricultural purposes, remove the restrictions on many goods being manufactured by anyone other than “small scale units”, and welcome foreign investment. All of these will provide far more employment than the well-intentioned but ill-conceived NREGS.

India’s Insulated Economy | Newsweek International Edition | Newsweek.com

via Newsweek International Edition :
While China's boom was planned from the center and executed by state companies, India's welled up from the private entrepreneurial and business classes, set loose by market reforms in the early '90s. Unlike China, India never forced consumers to funnel their savings to state export industries. The result is more flexibility and more balance, with India's GDP growth running at a 9 percent pace in 2007 for the third year running, sustained mainly by domestic consumption and a burgeoning middle class.

India's domestic market is larger than South Korea's, at about $370 billion. By 2025, concludes a recent study by the McKinsey Global Institute, its consumer class will swell tenfold from today's tally of 50 million, making it the fifth largest market on the planet. This year India's per capita income will break through the $1,000 threshold on its way to tripling by the late 2020s. "India's lower level of investment relative to GDP has meant that consumption has played a bigger role in its growth story," says the McKinsey study. "Consumption in India is closer, proportionally, to developed countries such as Japan and the United States than it is to China."

Congress dynasty matrix

2007 October 05 « INDIA SECULAR: "India thinks in terms of eras (yugas), rather than mere generations (peedhis). As yugas span multiple generations, only those politicians or parties can enjoy long-term success that address issues and aspirations that span multiple generations—that is, they have appeal for all genders and generations in every Indian home."