Agree to some extent - India’s under-performance can be traced to a failure to learn from the examples of so-called Asian economic development, in which rapid expansion of human capability is both a goal in itself and an integral element in achieving rapid growth. Japan pioneered that approach, starting after the Meiji Restoration in 1868, when it resolved to achieve a fully literate society within a few decades. As Kido Takayoshi, a leader of that reform, explained: “Our people are no different from the Americans or Europeans of today; it is all a matter of education or lack of education.” Through investments in education and health care, Japan simultaneously enhanced living standards and labor productivity — the government collaborating with the market.
Despite the catastrophe of Japan’s war years, the lessons of its development experience remained and were followed, in the postwar period, by South Korea, Taiwan, Singapore and other economies in East Asia. China, which during the Mao era made advances in land reform and basic education and health care, embarked on market reforms in the early 1980s; its huge success changed the shape of the world economy. India has paid inadequate attention to these lessons.
But on the other hand it is noteworthy that Sen advocates the "Kerela Model" of economic development and often criticizes the Gujarat one - He wants the Kerela model to be implemented in India as a whole with proper modifications varying from state to state - Kerela model is a model based on improving health, education and quality of life for people - It fares extremely well in Human Development Index and is classified as a "High HDI" one - Gujarat doesn't even comes close.
BUT the fact that the Kerala model has not brought economic prosperity is in contrast with Gujarat, which has been corporatised in a dazzling manner but has abysmal development indicators.
Education has not brought with it the social enlightenment it should have - such leads were never built upon and converted into opportunities by Kerela. These gains through the Kerela model are increasingly becoming meaningless because they have not been built on. There has been no value addition.
Gujarat might rank low in social indicators but when it comes to Industries and employment - It has much more to offer than Kerela which is well ahead of it in those very same social indicators.
So we have two models to choose from. One, where the investor is wooed and social indices are given short shrift. The other where the investor is frightened off and social indices are commendable. Not much to choose from really, unless the two models are merged to make one glorious blueprint for India.
@scorpionx @Bussard Ramjet @LeveragedBuyout - your views.
Skill development is the key to manufacturing productivity - out of unregistered (or informal) manufacturing and registered manufacturing - the productivity and dynamism of the former is considerably less. Thus, only skills led manufacturing is capable of being transformative.
