This visionary and thought-provoking study is a must read for political leaders, policymakers, business executives, and leaders of civic society interested in India's long-term development. It presents a much needed longer term vision of Indian society and economy within which today's policy debates and actions must be anchored. The volume presents a persuasive case that if India succeeds in sustaining its recent economic success over the longer term (as many East Asian economies have done in the past), India can realistically aspire to become an affluent society within one generation. The study is being released just as the new Indian government is taking office in a political environment that presents a truly unique opportunity to put India into a longer term sustained growth trajectory with financial stability.
Chapter 11: Role of the State and Governance
Role of the State and Governance
[Page 204][Page 205]Cutting across all aspects of the Indian economy and society, there are two issues which deserve major attention. These are: the role of the State and governance. Admittedly, both of these issues are highly intertwined and difficult to tackle. But, without doing so India cannot hope to become an affluent and cohesive society and a leading economic power in the world.
It is a striking fact that economic renewal and positive growth impulses are now occurring largely outside the public sector—at the level of private corporations (e.g. software companies), autonomous institutions (e.g. IIMs or IITs), or individuals at the top of their professions in India and abroad. In the governmental or public sector, ...