Tuesday, December 18, 2012

DISAGREE !! Democracy doesn't come in the way of India's economic growth as compared to China !!

Democracy can never come in the way of economic growth if the growth is perceived by the majority to be beneficial to it. In cases where it is not perceived as beneficial by the majority then the notion of economic growth itself is questionable as it won’t benefit the majority of the country's population. 

India's Democracy vs Socialist China
What we need to understand here is how we perceive economic growth. Building Roads, retails malls, office spaces, power plants and other infrastructure by acquiring land from individuals and then relocating them to places further far away from the development or where they won’t receive power from the plant they gave their lands for, would contribute a percentage or two to the GDP numbers. However in absolute terms this was detrimental to the individuals who sacrificed their land. They did not realize any economic growth in the process. 

Democracy provides for representation of these individuals and they insisting on better returns for their land should not be viewed against economic growth but for it, as a better compensation will make them participants in the economic process. Economic growth needs to be perceived in terms of growth of the individuals against GDP numbers. In India over the last five years, GDP growth has certainly declined but the number of tier III towns, semi urban markets and rural commerce has increased many folds. Sadly this doesn't add much percentage to the GDP figure but is very essential in terms of economic growth and self sufficiency of the Nation. 

On the contrary, China has adopted Build first Occupy Later strategy.

Related Posts Plugin for WordPress, Blogger...