Tuesday, November 13, 2012

India: A Breakout Nation or a Broken Nation?

In his bestselling book "Breakout Nations", Ruchir Sharma of Morgan Stanley Investment Management makes a thoughtful analysis of economic potential of various nations.

His observation on India is not encouraging. He says,"Under the current regime of drift, crony capitalism has become a real worry. Widespread corruption is an old problem, but the situation has now reached a stage where the decisive factor in any business deal is the right government connection. When I made this observation in a September 2010 Newsweek International cover story titled 'India's fatal flaw', I was greeted as a party spoiler. Top government officials told me that such cronyism is just a normal step in development, citing the example of the robber barons of nineteenth-century America. Prime Minister Singh, asked privately about the corruption problem, supposedly told people not to spoil India's image by going on and on about this."

In other words, don't keep telling the truth.

What happened in other countries ought to be a warning to us so that we will not replicate their mistake. Instead to consider such experience to be inevitable betrays our intellectual bankruptcy and moral waywardness.

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