Why Has India Lagged So Much in Terms of Development and Industrialization Compared To Most European Countries, Which Were More or Less Completely Destroyed During World War II - Quora

28/12/2015 WhyhasIndialaggedsomuchintermsofdevelopmentandindustrializationcomparedtomostEuropeancountries,whichweremoreorlesscompletel
WhyhasIndialaggedsomuchintermsofdevelopmentand
industrializationcomparedtomostEuropeancountries,which
weremoreorlesscompletelydestroyedduringWorldWarII?
IndiabecameindependentatroughlythesametimeWW2ended.So,it'snotasifthesecountrieshad
anyadvantagesthatIndiainherentlydidn'thave.Furthermore,alotoftheEuropeancountriesactually
hadtogothroughtheUSSRsupportedrepressivecommunistregimestill1990,whileIndiadidn't.
Despitethis,almostalloftheEuropeancountriestodayrankwaybetterthanIndia,inalmostallindices
thatmeasurehumandevelopment.
So,myquestionis,whydidIndia,despitehavingalltheadvantagesofdemographics,resources,
isolationfromcommunismetc.notdeveloplikemostothercountries?
29Answers
BalajiViswanathan,Historybuff.
99.8kViewsUpvotedbySmitMehta,aGujju.PrianckaChatz,Steelcity,GreenCity,CleanCity
Jamshedpur,MybirthplaceSanketShah,IamanIndian
BalajiisaMostViewedWriterinHistory.
Tomisarichguywhojustlosthiswallet.Hehasnomoneyinhispocketbutknowswhomtocontact
Ramisapoorguywhohaslivedinpenurysincebirth.
True,bothofthemhavethesameamountofcashatthemoment.However,aretheytrulyinthesame
position?Canyoupredictwhowillgettorichnessfaster?
1. WorldWar2destroyedonlythephysicalinfrastructureofWesternEurope.But,physical
infrastructureisalsotheeasiesttorebuild.Thehardestpartisinbuildingthepeople's
capabilitiesthatwasneverdestroyedbythewar.AliteratepersoninGermanydidn'tlosehis
literacybytheendofthewar[rather,he/shewaslikelyfinetunedbythewarefforts].In
contrast,Indiasufferedfrom200yearsofmisrule&people'saggregatecapabilitieswereat
therockbottom[literacyrateofIndiawhenitgotindependencein1947:12%.Japanand
Europewerealreadyat90%+by1940s].
2. TheWarmighthaveactuallyhelpedGermanyandJapanbydestroyingitsinfrastructure.A
sortofforced"creativedestruction"happened.Oldcitieswererebuiltwithcuttingedge
technology.Thus,JapanandGermanywereabletoleapfrogtherestofthedevelopedworld
bynotgettingsaddledwitholdinfrastructure.Italsofocusedallthenationalenergies.
3. EuropegotthehelpofthesuperpowersUSSRindustrializedtheEastwhileUSdida
muchbetterjobrebuildingtheWest.Thiswasanextremelypowerfulprocess.Indiahad
comparativelylittleeconomichelpfromthemajorpowers.Actually,itwasalsoablessingin
disguiseunlikeEurope,Indiahasamuchbetterindependenceinforeignpolicy[and
doesn'tgetdraggedinsomeoneelse'swars].
4. Indiawas/isinaterribleneighborhood.AfterWW2,Europedidn'tfightamajorwarin
https://www.quora.com/WhyhasIndialaggedsomuchintermsofdevelopmentandindustrializationcomparedtomostEuropeancountrieswhichwere
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itsneighborhoodandtheneighborsarequitefriendlier[atleastintheWest].Indiafought5
since1947.Besideseconomicdestruction,thewarsforcedIndiatogonuclearthatbrought
significantlevelofeconomicisolation.
5. Indianleadersneverhadtheurgencytogrownorhadthebestpracticestocopy.
WhileChinahasafewdevelopedneighborsSouthKorea,JapanandTaiwanwithwhom
ithasdeeptradelinks,Indiahasnothingremotelyclosetoadevelopedneighborandthat
hasbuiltalethargy[wearethebossofourregion].Wehavetocrossmultipleoceanstofind
adevelopednationtotradewith.However,withChinagrowingfasternow,Indiaalsofinds
anurgency.
6. Economicgrowthdidn'tgetthetopprioritymostofthetime.Sincewehadamuchbigger
challengeofintegratingaregionmorepopulatedthanEuropeandevenmorediverse,into
asingleunion.Inleadership,wehadtogofortheforgersthantheentrepreneurs.In
Cricketingparlance,wewereonaStickywicket thatmadestrokeplayveryhardandforced
ustoleavethegoodballsinthefirstcoupleofsessions.
7. Amidstconstantwars,faminesandsecessionistmovements,ourvoterswereforcedtochoose
thesecurityofoldhats[Nehrufamily]paranoidpeoplewillclutchthemostfamiliar
thingtothem.TherearestillpeoplewhocompareanycorporationtoEastIndiaCompany.
8. Germany,JapanandFrancearehighlyhomogeneouscomparedtoIndia.Homogeneity
helpsintheshorttermasinformationtransmissionisquitefast,skillsdevelopmentmore
uniform,leadershipmorestableanddeterminationstrongerinsuchsocieties.Indiawas
borninchaosanditmadeforaslowstart.However,thediversityalsobuildsbetterlongterm
growthasthecultureproducesbetterskillsforworkingwiththerestoftheworld[drawn
fromdomesticexperiencesoflivinginahighlychaoticsociety].
PovertyisnotthelackofphysicalinfrastructurePovertyisduetothelackofsocial&cultural
infrastructure.In1947,weweresubstantiallybehindtherestoftheworldinsocialinfrastructure,
includingliteracy.[LookatIndiainthemiddleunder"SouthandWestAsia"andcompareitwith
China,SriLanka,IsraelandBrazil]
2/27
http://www.unesco.org/education/...
Colonialheritageleftuswiththechartabove.Sinceindependence,wemultipliedourliteracysixfold
[fromaround12%to70%],successfullyintegrateddiversepopulations,withstoodmultiplewars,
maintainedasounddemocracy[thathasavoidedthebloodyrevolutions]andleapfroggingin
technology.Wehavefoundourvoiceininternationalforaandourleadersarenowbusymakingdeals
withtherestoftheworld.
Wehavealongwaytogo,butweareintherightdirection&wespentdecadesindiscoveringthe
direction.
3/27
Thewoodsarelovely,darkanddeep,
ButIhavepromisestokeep,
AndmilestogobeforeIsleep,
AndmilestogobeforeIsleep.
RobertFrost(StoppingbyWoodsonaSnowyEvening)
Written1Dec2014ViewUpvotesAskedtoanswerbyArchieD'Cruz
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RatnakarSadasyula,AmateurHistorian
7.4kViewsUpvotedbyBalajiViswanathan,MBAfromBabson
Ratnakarhas7endorsementsinIndia.
TLDRGermanyandJapan,hadthebenefitofassistancefromUS,Indiareallydidnothavethat.
IfIweretogiveonereason,itisthis,forbothGermanyandJapan,theUSpumpedinmoneyactively
forreconstruction.TheMarshallPlanincaseofGermanyandtheOccupation,Reconstructionperiod
inJapan,wentalongway.Buttherewasanothermajorreasontoo,inthecaseofbothGermanyand
Japan,theUStookcareoftheirdefensetoo.WhathappenedineffectwasthattheUStoldthem"Hey
don'tworryaboutprotectingyourcountry,wewillsetuptheArmyhere,wewilltakecareofthat,
youguysjustlookafterrebuildingyournation".Sowhatitmeantineffect,wasthatGermanyand
Japandidnotreallyworryaboutwhatwouldhappen,ifsomeoneattackedthem,UncleSamwas
alwaysthere.OfcourseUncleSam'sobjectiveswerenotaltruisticeither,itneededboththesecountries
asacheckagainstCommunism,andalsotoensurethattheydidnotagainbecomeamilitary
headache.InthecaseofIndia,wehadthetwohostileneighborsoneonourWesternpart,and
anotherintheNorth,breathingdownthenecks.Nowhavingahostileneighborsforcompanyneed
notbeanimpediment,Israelispracticallysurroundedbythem,butitdoeshavethesupportofUncle
Sam.IndiaontheotherhandneverhadabackingfromtheWestmilitarily,andthatmeantithadto
fightit'sownbattlestoprotectit'sborders,withsomesupportfromUSSR.SowhereGermanyand
Japanwerefreetofocusonrebuildingtheircountries,withoutworryingtoomuchaboutapossible
war,Indiaontheotherhandhadtobuildaneconomy,fightwars,takecareofit'speople,adaunting
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taskbyanystandards.Andit'sbirthasanindependentnationwasquitepainful,firstwehadthe
Partition,whichsawrefugeesfloodingthenation,peoplelosinghomesandfamilies.Andthenwe
hadtointegrateallthoseprincelystates,principalitiesintothecountry,initiateamilitaryaction
againsttheNizamofHyderabad,whenherefusedtojoin.GermanyandJapanontheotherhand,
didnotreallyhavetocontendwithsuchissues,theycouldstraightawaygetonwiththetaskof
rebuilding.
Onemorefactor,wasthatGermanyandJapanhadastrongindustrial,technicalandscientificbase
onwhichtheycouldbuildback.WhilethecountrieswerebombedtorubbleandincaseofJapaneven
nuked,theirtechnicalandscientificknowhowwasstillintact.Youcandestroyacity,butyoucannot
destroyideasorknowledge.SowhilephysicallyGermanyandJapanweredevastatedduringtheWar,
theyhadapoolofscientists,engineers,technocrats,planners,architectsandawholewealthof
knowledgeprettymuchintact.Andthishelpedthemtorebuildtheircitiesandnationsmuchfaster.
Indiaontheotherhand,wasjustaboutfindingit'sfeeinthescientificandtechnicalworld,itliterally
hadtostartfromscratch.Thatmeantithadtonotjustbuildtheinfrastructure,italsohadtocreate
thecolleges,universitieswhichcouldproducepeopletobuilddams,roadways,highways,buildings.
ThefactisthatGermanyandJapanwerealreadyindustrializednationsthathadtoberebuilt,India
ontheotherhandwasprimarilyanagriculturalnation,transitioningtoanindustrialnation.Alwaysa
muchtoughertask,addtoit,beingademocracy,meantunlikeChina,wecouldnotjustride
roughshodoverthepopulation,todowhateverwewantedto.
GermanyandJapanwereprettymuchhomogenous,regionalandclassdifferencesapart,thepeople
therespokeonelanguage,hadthesamevaluesystemandwereofthesameethnicstocktoo.Indiaon
theotherhandwasacontinentbyitself,withit'smultitudeoflanguages,races,ethnicity,value
systemsandcultures.Whatitmeantthatwaswehadtotakeawholelotofconflictingclass,caste,
religious,regionalintereststhatwehadtocaterto.Andbeingademocracymeantwejustcouldnot
thrustadecisiondownthethroatsofpeople,wehadtobalanceoutbetweenthedemandsofvarious
interestgroups(andwestilldotodate).Italsomeantwehadtograpplewithawholelotofissues
regardingtoriverwatersharing,interstaterules,variationintaxstructures,whichtodateareyetto
beresolved.
Whiletheabovepoints,arevalid,itdoesnottakeawaythefactthatanincrediblycorruptand
inefficientsystemhaspreventedIndiafromrealizingit'struepotential.Nowcorruptionisanissue,
thatisprevalentamongtheworld,butthereisadifference.InGermanyandJapan,thecorruptionis
thereattopmostlevel,oflinkagesbetweenpoliticiansandbusinessman.Everyyear,politiciansin
Japanareroutinelyindictedinsomescamorother.ThedifferencethoughisthatinIndia,the
corruptionisprevalentfromthetoptobottom.Thereisnoway,youcantrytobribeacopinJapanor
Germany,toletyouoffforatrafficoffense.Norcouldyouaffordtogetawaywithviolatingbuilding
regulationsbybribingtheofficials,inGermanyorJapan.Germanyhastheautobahn,Japanhasthe
bullettrains,IndiaontheotherhandwassaddledwithsomethingcalledPublicWorksDepartment,
whichcan'tevenbuildadecenthousingcomplex.Itisnotthat,wecan'tdoitinIndia,wehaveseen
theKonkanRailway,theDelhiMetro,allofthemprojectsthatwereexecutedwell.Butfactisthetop
tobottomcorruptioninIndia,meantwereallycouldnotbuildinthewaywewanted.Whatitmeant
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wasthatwehadtoputupwithsubstandardroads,becausethecontractwasgiventosomeguywho
managedtogreasethepalmsandwhoknowszilchaboutroads(ithasnotchangedmuch,ourroads
stillcontinuetobeaspathetic).Whatitmeansisthatourmalls,theaters,officebuildingsareas
unsafeastheycanbe,becausethebuildergreasesthepalmsofofficials,sothatheneedtobother
aboutwastingtimeonimplementingsafetyregulations.Whatitmeansisthatwehaveold,rickety
vehicles,plyingontheroad,loadedwithmorethanpermissiblelimit,becausetheownermanagedto
greaseafewpalms.
Thatwasjustoneexample,butforanynationtoprogress,itneedstoinvestininfrastructure,
education,healthcare,Indiafailedbadlyonthatcount,GermanyandJapaninvestedheavilythere,
andthedifferencecanbeseen.Andtheattitudeofthepeopletoocounts,peopleinGermany,Japan
weremoredisciplined,responsibleandmostimportantofallhadmuchbettercivicsense.Weonthe
otherhand,lackcivicsense,weconsideritourbirthrighttocutcorners(kyafarakpadtahai),litter
roads,publicspaces.Weconsideritourbirthrighttobreaktrafficrules,aretooimpatienttostandin
aqueueandtakeprideindefacingourmonuments.TryscribblingsomethingontheBrandenburg
GateorCologneCathedral,yousurewouldhavewishedyouneverdidthat.Anditisnotthatweare
likethat,thesameIndianswholittertheroadshereorindulgeinallkindsofsmartass***ery,become
modelcitizensinGermanyorJapan,theywouldnotdarenotdoitthere.IntherecentWorldCup,
theJapaneseteamsupporterscleanedupthestadium,afterthematchwasover,itwasnotreally
necessaryforthemtodoso.Butthenthatsenseofcivicresponsibilitywasdrilledintothemfroma
youngage,anditsoonbecameapartoftheirvaluesystem.ThatissomethingweinIndia,failedto
createacultureofdiscipline,civicresponsibilityandprideforone'snationandit'sassets.
IndiaisnotGermanyorJapan,itisdiverse,ithadtofacewars,itneverhadassistancefromtheWest
foramajorpartofit'smodernhistory,butthefactisourcorruption,attitudeofanythinggoes,lackof
civicresponsibility,lackofanationalpride,andatoleranceforinefficiencymeantwehavenotbeen
abletorealizeourpotentialtothebestofourability.
Written15Jul2014ViewUpvotes
SrinathKrishnaAnanthakrishnan,LivedinIndiatillIwas23.
855Views
TheexpectationiswhyIndiahasn'tgrowntothelevelofaGermanyorJapanwithinagiventime
frame.Inmyopinion,India'sisonthepathofbecomingaworldleader(albeitwithsomehiccups)
andwe'lleventuallygetthere.Don'taskmewhenbecausetherearesimplytoomanyvariablestotake
intoaccountandit'sreallyhardtogetanaccurateprediction.Inmyopinion,thesefactorsare
responsibleforIndia'sslowgrowthincomparisontoJapanandGermany.
1. PopulationGiventhefactthatIndiancivilizationhasbeenoneoftheearliest,therehas
beennoshortageofpeopleeverinthesubcontinent.Withsuchahugepopulation,
governanceisahugeundertakingandourearlyIndependentIndia'sleadershavedonean
amazingjobtostartthingsoff.TheGreenRevolutionand5yearplanswereamazingbut
sustainingthatforapopulationof1.2billionisnomenialtask.
6/27
2. PartitionWhenIndiagotitsindependence,thepoliticalscenewasatotalmess.Whileone
canarguethatGermanyalsohadsimilarproblems,India'scasewasentirelydifferentandit
hasledtoconstanttussleseversince.Indiaalsohadtodealwithunitingalotofprincely
statestogetherimmediatelyafterIndependence.
3. TusslesAsmentioned,Indiaisstillfightingwithneighborsaboutbordersandthereisa
huge(notbyUSstandards,though)amountofinvestmentgoingintomilitarythatcan
otherwisebeputtobetteruseinimprovingtheeconomy.
4. GeographyIndia'slandmassisHUGE!Scalingthegrowthtosuchahugelandmasswith
verylessexperienceischallenging.It'sasiftryingtoscaleMt.Everestafterhikingacoupleof
2000ftpeaks.
5. DiversityThoughwebragaboutbeingaUnitedIndia,Indiaisevendiversethanthe
entireEU.Bringingtogetherallthesediversecultureswhospeakdifferentlanguages,who
weardifferentclothes,whoexperiencedifferentclimates,whohaveverydifferentviewsis
extremelychallenging.OurearlyleadersdidagreatjobinpreventingIndiafrom
disintegratingintoabunchofcountriesliketheEU.Thishadthehighestpriority,inmy
opinion,ratherthanputtingtheeconomyonafasttrackgrowth.
6. IneffectiveLeadersWe'vehadourfairshare(probablymore)ofineffective,corrupt
leaderswhoruinedthecountryforgoodandintheprocess,fillingtheirownpockets.Wealth
isextremelyconcentratedinIndiaanditisspeculatedthatalltheunaccountedmoneycould
actuallypayoffahugechunkofIndia'sdebt(cuttingdownontheinterestheavily)andhelp
usmoveforwardatafasterpace.
7. IgnoranceI'msorrytosaythisbutamajorityoftheIndianpopulationisstillignorant
abouttheexternalworld.Theyarecontentwithwhattheyhaveandtheyfindnoreason
improvetheirlives.Theylackexposuresincetheyhavebeenshieldedfromthewestforthe
mostpart.Thisishoweverchangingasmorepeoplearemovingtothecitiesandalsowith
thereachofInformationTechnology.
8. BrainDrainWhilethiswasnotahugefactorinitially,ithastremendouslyaffectedIndia's
prospectsinthelastfewdecades.Owingtotheimmensecompetitionforresources,many
Indianshavingthecapabilitytoimprovetheeconomyhavefelttheneedtoemigratetoother
countriesinsearchofabetterlifethattheycouldn'tget(rathercreate)backhome.
9. HeadstartAsmentionedinotheranswers,thestartingpointisveryimportant.You
cannotexpecttooutrunaprofessionalrunnerina100mraceifhehasaheadstartof50m.
GermanyandJapanweresuperpowersbeforetheWWandtheyhadcoloniesaroundthe
worldthattheylivedoff.Theyhadthewealthandpeoplewithawarenessfortherebuild
process.Addtothatthehelpfromothercountriesanditwasrathereasyforthem.India,on
theotherhand,hadtomovefromatraditionalagriculturebasedeconomytoanindustrial
oneandthatneededseriousplanningandexecution.I'dprobablyaddthatwearestillinthe
process.
Thatsaid,I'mproudthatIndiahasachievedalotinthelastfewyears.Forinstance,onthespace
explorationfront,ChandrayanandMangalyaanhaveandwillprovideamazinginsightsintothe
mysteriesofoursolarsystemandthattooonashoestringbudget.ThecurrentyouthofIndialook
promisingindeedandthingsareslowlyimproving.Hopewekeepthepaceattheleast,riseupinthe
faceofanyobstaclesandmoveforward.
7/27
Written13Jul2014ViewUpvotes
KunalSalunke,EventManager
2kViews
Youshouldunderstandthatthewesterncountrieswhicharedevelopedacquiredindependencelong
beforeIndiadid.AndasfarascountriesunderUSSRisconsidered,India'seconomyand
developmentiswaybetterthanallthosecountries.
India'spopulationalsoplaysavitalroleinthis.Indiaisnotonlyhighlypopulatedbutitalsoisdiverse
inculture.Peoplearediversifiedonthebasesoftheirmothertongue,areatheylivein,culturethey
follow,religiontheyfollow,theircastandmanyotherthings.
Planningandpracticingreformsandpoliciesforpromotingdevelopment&industrializationbecomes
challengingbecauseofthis.ButconsideringthecurrentpositionofIndiainworld,wearedoingway
betterthanyouthink.
OurneighborChinaisenrouteonthesamepath.
Ifyouareupdatedaboutthecurrentworldeconomy,you'llknowthattheEconomicpowerisshifting
fromWesttoEast.Specifically,towardsChinaandIndia.
Written27Nov2014ViewUpvotes
VarunYadav,fearisonlyinthemind
147Views
AfterWorldWarIItheGermaneconomylayinshambles.Thewar,alongwithHitlersscorched
earthpolicy,haddestroyed20percentofallhousing .Foodproductionpercapitain1947was
only51percentofitslevelin1938,andtheofficialfoodrationsetbytheoccupyingpowersvaried
Whatcausedthesocalledmiracle?Thetwomainfactorswerecurrencyreformandtheelimination
ofpricecontrols ,bothofwhichhappenedoveraperiodofweeksin1948.Afurtherfactorwas
thereductionofmarginaltaxrates laterin1948andin1949.
Before
By1948theGermanpeoplehadlivedunderpricecontrolsfortwelveyearsandrationingfornine
years.AdolfHitlerhadimposedpricecontrolsontheGermanpeoplein1936sothathis
governmentcouldbuywarmaterialsatartificiallylowprices.Later,in1939,oneofHitlerstopNazi
deputies,HermannGoering,imposedrationing.(RooseveltandChurchillalsoimposedprice
controlsandrationing,asgovernmentstendtododuringalloutwars.)Duringthewar,theNazis
madeflagrantviolationsofthepricecontrolssubjecttothedeathpenalty.1 InNovember1945the
AlliedControlAuthority,formedbythegovernmentsoftheUnitedStates,Britain,France,andthe
SovietUnion,agreedtokeepHitlersandGoeringspricecontrolsandrationinginplace.Theyalso
continuedtheNaziconscription ofresources,includinglabor.
EachoftheAlliedgovernmentscontrolledazoneofGermanterritory.IntheU.S.zone,acostof
livingindexinMay1948,computedatthecontrolledprices,wasonly31percentaboveitslevelin
1938.Yetin1947,theamountofmoneyintheGermaneconomycurrencyplusdemanddeposits
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wasfivetimesits1936level.Withmoneyamultipleofitspreviouslevelbutpricesonlyafraction
higher,therewereboundtobeshortages.Andtherewere.
Pricecontrolsonfoodmadetheshortagessoseverethatsomepeoplestartedgrowingtheirown
food,andothersmadeweekendtrekstothecountrysidetobarterforfood.YaleUniversity
economist(andlaterFederalReservegovernor)HenryWallich,inhis1955book,Mainspringsof
theGermanRevival,wrote:
Eachday,andparticularlyonweekends,vasthordesofpeopletrekkedouttothecountrytobarter
foodfromthefarmers.Indilapidatedrailwaycarriagesfromwhicheverythingpilferablehadlong
disappeared,ontheroofsandontherunningboards,hungrypeopletraveledsometimeshundreds
ofmilesatsnailspacetowheretheyhopedtofindsomethingtoeat.Theytooktheirwares
personaleffects,oldclothes,sticksoffurniture,whateverbombedoutremnantstheyhadand
camebackwithgrainorpotatoesforaweekortwo.(p.65)
Barteralsowassowidespreadinbusinesstobusinesstransactionsthatmanyfirmshireda
compensator,aspecialistwhobarteredhisfirmsoutputforneededinputsandoftenhadto
engageinmultipletransactionstodoso.InSeptember1947U.S.militaryexpertsestimatedthat
onethirdtoonehalfofallbusinesstransactionsinthebizonalarea(theU.S.andBritishzones)
wereintheformofcompensationtrade(i.e.,barter).
Barterwasveryinefficientcomparedwithstraightpurchaseofgoodsandservicesformoney.
GermaneconomistWalterEuckenwrotethatbarterandselfsufficiencywereincompatiblewithan
extensivedivisionoflaborandthattheeconomicsystemhadbeenreducedtoaprimitive
condition(Hazlett1978,p.34).Thenumbersbearhimout.InMarch1948bizonalproductionwas
only51percentofitslevelin1936.
TheDebate
Euckenwastheleaderofaschoolofeconomicthought,calledtheSozialeMarktwirtschaft,or
socialfreemarket,basedatGermanysUniversityofFreiburg.Membersofthisschoolhated
totalitarianismandhadpropoundedtheirviewsatsomeriskduringHitlersregime.Duringthe
Naziperiod,wroteHenryWallich,theschoolrepresentedakindofintellectualresistance
movement,requiringgreatpersonalcourageaswellasindependenceofmind(p.114).Theschools
membersbelievedinfreemarket s,alongwithsomeslightdegreeofprogressionintheincome
taxsystemandgovernmentactiontolimitmonopoly .(Cartels inGermanyhadbeen
explicitlylegalbeforethewar.)TheSozialeMarktwirtschaftwasverymuchliketheChicagoschool,
whosebuddingmembersMiltonFriedman andGeorgeStigler alsobelievedinaheavydose
offreemarkets,slightgovernmentredistribution throughthetaxsystem,andantitrust laws
topreventmonopoly.
AmongthemembersoftheGermanschoolwereWilhelmRpkeandLudwigErhard.Tocleanup
thepostwarmess,Rpkeadvocatedcurrencyreform,sothattheamountofcurrencycouldbein
linewiththeamountofgoods,andtheabolitionofpricecontrols.Bothwerenecessary,hethought,
toendrepressedinflation .Thecurrencyreformwouldendinflationpricedecontrolwouldend
repression.
LudwigErhardagreedwithRpke.Erhardhimselfhadwrittenamemorandumduringthewar
layingouthisvisionofamarketeconomy.HismemorandummadeclearthathewantedtheNazis
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tobedefeated.
TheSocialDemocraticParty(SPD),ontheotherhand,wantedtokeepgovernmentcontrol.The
SPDsmaineconomicideologue,Dr.Kreyssig,arguedinJune1948thatdecontrolofpricesand
currencyreformwouldbeineffectiveandinsteadsupportedcentralgovernmentdirection.Agreeing
withtheSPDwerelaborunionleaders,theBritishauthorities,mostWestGermanmanufacturing
interests,andsomeoftheAmericanauthorities.
TheChange
LudwigErhardwonthedebate.BecausetheAllieswantednonNazisinthenewGerman
government,Erhard,whoseantiNaziviewswereclear(hehadrefusedtojointheNaziAssociation
ofUniversityTeachers),wasappointedBavarianministeroffinancein1945(nowonderBavariais
thericheststate).In1947hebecamethedirectorofthebizonalOfficeofEconomicOpportunity
and,inthatcapacity,advisedU.S.GeneralLuciusD.Clay,militarygovernoroftheU.S.zone.After
theSovietswithdrewfromtheAlliedControlAuthority,Clay,alongwithhisFrenchandBritish
counterparts,undertookacurrencyreformonSunday,June20,1948.Thebasicideawasto
substituteamuchsmallernumberofdeutschemarks(DM),thenewlegalcurrency,for
reichsmarks.Themoneysupply wouldthuscontractsubstantiallysothatevenatthecontrolled
prices,nowstatedindeutschemarks,therewouldbefewershortages.Thecurrencyreformwas
highlycomplex,withmanypeopletakingasubstantialreductionintheirnetwealth.Thenetresult
wasabouta93percentcontractioninthemoneysupply.
OnthatsameSundaytheGermanBizonalEconomicCounciladopted,attheurgingofLudwig
ErhardandagainsttheoppositionofitsSocialDemocraticmembers,apricedecontrolordinance
thatallowedandencouragedErhardtoeliminatepricecontrols.
ErhardspentthesummerdeNazifyingtheWestGermaneconomy.FromJunethroughAugust
1948,wroteFredKlopstock,aneconomistattheFederalReserveBankofNewYork,directive
followeddirectiveremovingprice,allocation,andrationingregulations(p.283).Vegetables,fruit,
eggs,andalmostallmanufacturedgoodswerefreedofcontrols.Ceilingpricesonmanyother
goodswereraisedsubstantially,andmanyremainingcontrolswerenolongerenforced.Erhards
mottocouldhavebeen:Dontjustsitthereundosomething.
JournalistEdwinHartrichtellsthefollowingstoryaboutErhardandClay.InJuly1948,after
Erhard,onhisowninitiative,abolishedrationingoffoodandendedallpricecontrols,Clay
confrontedhim:
Clay:HerrErhard,myadviserstellmewhatyouhavedoneisaterriblemistake.Whatdoyousay
tothat?
Erhard:HerrGeneral,paynoattentiontothem!Myadviserstellmethesamething.2
HartrichalsotellsofErhardsconfrontationwithaU.S.Armycolonelthesamemonth:
Colonel:Howdareyourelaxourrationingsystem,whenthereisawidespreadfoodshortage?
Erhard:But,HerrOberst.IhavenotrelaxedrationingIhaveabolishedit!Henceforth,theonly
rationingticketthepeoplewillneedwillbethedeutschemark.Andtheywillworkhardtogetthese
deutschemarks,justwaitandsee.3
Ofcourse,Erhardspredictionwasontarget.Decontrolofpricesallowedbuyerstotransmittheir
demandstosellers,withoutarationingsystemgettingintheway,andthehigherpricesgavesellers
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anincentivetosupplymore.
Alongwithcurrencyreformanddecontrolofprices,thegovernmentalsocuttaxrates.Ayoung
economistnamedWalterHeller ,whowasthenwiththeU.S.OfficeofMilitaryGovernmentin
GermanyandwaslatertobethechairmanofPresidentJohnF.KennedysCouncilofEconomic
Advisers,describedthereformsina1949article.Toremovetherepressiveeffectofextremelyhigh
rates,wroteHeller,MilitaryGovernmentLawNo.64cutawideswathacrossthe[West]German
taxsystematthetimeofthecurrencyreform(p.218).Thecorporateincometaxrate,whichhad
rangedfrom35percentto65percent,wasmadeaflat50percent.Althoughthetoprateon
individualincomeremainedat95percent,itappliedonlytoincomeabovethelevelofDM250,000
annually.In1946,bycontrast,theAllieshadtaxedallincomeabove60,000reichsmarks(which
translatedintoaboutDM6,000)at95percent.ForthemedianincomeGermanin1950,withan
annualincomeofalittlelessthanDM2,400,themarginaltaxratewas18percent.Thatsame
person,hadheearnedthereichsmarkequivalentin1948,wouldhavebeeninan85percenttax
bracket.
After
TheeffectontheWestGermaneconomywaselectric.Wallichwrote:Thespiritofthecountry
changedovernight.Thegray,hungry,deadlookingfigureswanderingaboutthestreetsintheir
everlastingsearchforfoodcametolife(p.71).
ShopsonMonday,June21,werefilledwithgoodsaspeoplerealizedthatthemoneytheysoldthem
forwouldbeworthmuchmorethantheoldmoney.WalterHellerwrotethatthereformsquickly
reestablishedmoneyasthepreferredmediumofexchangeandmonetaryincentivesastheprime
moverofeconomicactivity(p.215).
Absenteeismalsoplummeted.InMay1948workershadstayedawayfromtheirjobsforanaverage
of9.5hoursperweek,partlybecausethemoneytheyworkedforwasnotworthmuchandpartly
becausetheywereoutforagingorbarteringformoney.ByOctoberaverageabsenteeismwasdown
to4.2hoursperweek.InJune1948thebizonalindexofindustrialproductionwasatonly51
percentofits1936levelbyDecembertheindexhadrisento78percent.Inotherwords,industrial
productionhadincreasedbymorethan50percent.
Outputcontinuedtogrowbyleapsandboundsafter1948.By1958industrialproductionwasmore
thanfourtimesitsannualrateforthesixmonthsin1948precedingcurrencyreform.Industrial
productionpercapitawasmorethanthreetimesashigh.EastGermanyscommunisteconomy,by
contrast,stagnated.
BecauseErhardsideashadworked,thefirstchancellorofthenewFederalRepublicofGermany,
KonradAdenauer,appointedhimGermanysfirstministerofeconomicaffairs.Heheldthatpost
until1963whenhebecamechancellorhimself,aposthehelduntil1966.
TheMarshallPlan
ThisaccounthasnotmentionedtheMarshallPlan.CantWestGermanysrevivalbeattributed
mainlytothat?Theanswerisno.Thereasonissimple:MarshallPlanaidtoWestGermanywasnot
thatlarge.CumulativeaidfromtheMarshallPlanandotheraidprogramstotaledonly$2billion
throughOctober1954.Evenin1948and1949,whenaidwasatitspeak,MarshallPlanaidwasless
than5percentofGermannationalincome.OthercountriesthatreceivedsubstantialMarshallPlan
aidexhibitedlowergrowththanGermany.
Moreover,whileWestGermanywasreceivingaid,itwasalsomakingreparationsandrestitution
11/27
paymentswellinexcessof$1billion.Finally,andmostimportant,theAllieschargedtheGermans
DM7.2billionannually($2.4billion)fortheircostsofoccupyingGermany.(Ofcourse,these
occupationcostsalsomeantthatGermanydidnotneedtopayforitsowndefense .)Moreover,
aseconomistTylerCowennotes,Belgiumrecoveredthefastestfromthewarandplacedagreater
relianceonfreemarketsthantheotherwartornEuropeancountriesdid,andBelgiumsrecovery
predatedtheMarshallPlan.
Conclusion
Whatlookedlikeamiracletomanyobserverswasreallynosuchthing.ItwasexpectedbyLudwig
ErhardandbyothersoftheFreiburgschoolwhounderstoodthedamagethatcanbedoneby
inflationcoupledwithpricecontrolsandhightaxrates,andthelargeproductivity gainsthat
canbeunleashedbyendinginflation,removingcontrols,andcuttinghighmarginaltaxrates.
Source:GermanEconomicMiracle
Written2AprViewUpvotes
AmarnathPatil
399Views
Indiaachievedindependencein1947buttheeconomydidnot.Oureconomywasaregulated
economy,amarketwherethegovernmentcontrolstheforcesofsupplyanddemand ,suchaswhois
allowedtoenterthemarketorwhatpricesmaybecharged.Thisrestrictedourgrowthheavily.We
had12airlines,34carmodelswereavailabletopublic,fewbanksandinsurancecompanies.
Themostimportantandcriticalstepwastheeconomicreformin1991.Oureconomydidn'texactly
becomeafreemarketbutwasatafarbetterpositionthantheregulatedeconomy.Theoreticallythe
growthratewasreallyslowpacedascomparedtoJapanbefore1991andthatdidn'tletIndiagrow.
ThebudgetwaspresentedbyManmohanSingh.
12/27
13/27
14/27
WrittenJul29,2014ViewUpvotes
VijayGupta
7.8kViewsUpvotedbyBalajiViswanathan,
ImaginetwocitiesAandB.CityAisinGermanyorJapan.CityBisinIndia.BeforeWWII,cityA
hadasixlanehighway,alongsixlanebridge,alargepowerplant,andahighcapacitytelephone
network.However,cityBonlyhadanoldtwolaneroadandasmallprimitivetelephoneexchange.
Therewasneitheralongbridgenorapowerplant.
NowassumethatbothcitiesAandBwereheavilybombedinWWII.Inbothcities,nearlyallofthe
infrastructuredescribedaboveisreducedtoapileofjunk.Afterthewar,bothcitiestrytorebuildtheir
infrastructure.Atfirstglance,youmightthinkthatbothcitiesAandBarestartingfromthesame
initialstate.Butyoucouldnotbemorewrong.
Thehardestpartofbuildinganyinfrastructureisnotthe"hardware,"buttheinvisible"software."The
hardwareiswhateyescansee,andtheeyesseethatbothcitiesAandBarestartingfromgroundzero.
15/27
Buttheeyesdon'tseethe"software"whichincludes:
*Thelandthatmustbeallocatedforthesixlanehighway,thepowerplant,etc.
*Theenvironmentalandpoliticalconsensusrequiredtobuildalloftheaboveinfrastructure.
*Theengineeringskillandknowhowrequiredtobuildtheabove.
*Theeconomicrationale(consumerdemand)requiredforthehighway,thebridge,thepowerplant,
andthelargetelephonenetwork.
CityAalreadyhadallofthis"software."CityBdidnot.Forexample,today,itcantakeupto20years
inmanycitiesjusttoacquirethelandtobuildasixlanehighway.Itcantakeevenlongerifthereare
political/religiousgroupsthatareopposedtobuildingthehighway.(Forexample,whatifthereisa
templeoramosqueintheway.)
Similarly,itcantakedecadestogetenvironmentalclearancetobuildanewpowerplant.Butwhen
youarereplacingapowerplantdestroyedbybombing(oranaturaldisaster),nosuchclearanceis
required.
Indiaalsodidnothavetheengineeringskillandknowhowforbuildingsomeoftheinfrastructure
(e.g.,alargetelephonenetwork)afterWWII.
Thusalthoughlackofhardcapital(investmentdollars)isavalidreasonfortheslowdevelopmentof
IndiaafterWWII,onemustnotoverlookallthe"soft"reasonswhencomparingIndiawithGermany
orJapan.
NayanNayak,PondererandMindWanderer
1.8kViews
Forthreemainreasons:
1.Diversity:Haveyoueverhadtoleadateamofpeoplewhospeakdifferentlanguages,havedifferent
mannerismsandbeliefs,toachievespecifictasks?Ifyouhave,thenyouwillknowhowdifficultafeat
thatis.Imaginethisteamhaving1.2billionpeopleeachwithhisownpersonalityandsetofbeliefsand
aspirations!ComparethistoEU.MostcountriesspeakONElanguage(Theyare"learning"tospeak
englishnowthisgeneration),themajoritypopulationeitherhasnoreligionorhasaveryspecificone
despitethistheyhaveproblemsstayingtogetherastheEuropeanUnion.WhatIndiahasachieved
willbeamodelforthefuture.Itsextremelydifficulttorunademocracythisdiversesomany
prominentpeoplehavepredicteditsdownfall.Butweareahardyfolk.Wepersistandnowfinallyit
seemslikethingsarelookingupforuswhiletheEUisactuallystrugglingnow.
2.ColonialregimesinIndia:MostEUcountrieshaveneverfacedthisbecausetheyarethe"cause"of
colonization.Duringcolonizationalmostallthecolonizersplayedliterallydirtytricksbothphysical
andpsychological.TheBritsmanagedtodivideauniteddiverseculturealongthelinesoffaith.We
16/27
arestilltryingtoresolvetheseproblemswhichwascreatednearlyacenturyagoto"divideand
conquer"us.
3.Politics:Ofcoursepoliticiansdiscoveredveryearlyonthatiftheyhadtoremaininpowertheyhad
to"appease".Theydidthisthewrongwaybyappealingtofaithandsentimentratherthan
development.ButthisischangingasmoreIndiansgeteducatedtheyseesenseinprogressnotjust
religion.
Indiawillovercomehurdlesandmoveahead.Wealwayshave.
WrittenNov27,2014ViewUpvotes
SashaKowalchuk
258Views
Well,IndiaisacountrythatismorediversethantheentireEuropeancontinentcombined.Thereare
hundredsofdifferentculturesandlanguages,andplentyofdifferentreligions.
GermanyandJapanwererelativelymonoculturalnationstatesatthetime(andcomparedtoIndia,
theystillare.)Thuspeoplehadlessdifferentthingstoargueaboutandcouldfocusongettingthings
done.
Foranotherexampleofnotgettingthingsdone,alaIndia,see:EuropeanUnion.
WrittenAug1,2014ViewUpvotes
AniketChakraborty
326Views
Conducttwodifferentexperimentsontwodifferentplants.keepthemintheopen.
startchoppingoffleaves,andpartsofbranchesinthefirstplant.
forthesecondplant,udontcutorchopanything,justcurseitandcussit.loudly.heavily.brutally.
keepthisactivitygoingonforaboutamonthortwo.
observethetwoplantsaftertwomonths.
thefirstplantmoreorlesswouldbegermany/japan,whilethesecondwouldbeindia.
WrittenMay3ViewUpvotes
ShubhiVerma
627Views
Well,thedirectanswertothatisTheNEHRUVIANERA...wecouldhaveprogressedlongback,ifnot
fortheregressionwewentthrough.Ofcourse,iamnotcontendingthatwecouldhavesurvived
withoutanyprotectionrightafterourindependence.ButaNationlikeours,ifindulgesintoa
socialisticpatternofliving,theresultisinfrontofyou.ThenwehadtheGandhianEra,whichtookus
backtothemedievalagewiththereLegislativeandMonarchialhaywire.Andjustsoiamclear,iam
17/27
referringtojustOneGandhihere.
Nowhistorically,inmyopinion,wehavehadaveryrichculture,averyrichblendforthatmatter.But
aftertheravagingandsalvagingeffectsoftheraids"Hindustan"wentthrough,allwewereleftwith
wasanEastIndiaCompany,which,welleveryoneknowswhateverhappenedthereafter.
Europealwayssomewhathadanedgeoverus,withtherewellbuiltstructure,positiveclimatic
conditions,somewhatofaprogressivemindandalwaysandmindyoualwaysagoodleadertolook
upto.Wefromtheverybeginningweresoscattered,thatthesocalledfeelingofNationalismnever
wasinvokedinus.
Lastpoint,therearetwothings,constitutionandconstitutionalism.Eachandeverycountrycanhave
aconstitutionbutnotconstitutionalism,whichbasicallymeansasystemwheretheruleoflawisthe
mostimportantessence.Notwhattheexecutiveorthelegislativeorthejudiciarythinks.Amonarchy
canhaveaconstitutionbutitwillalwaysbeaonemanshow.WhichincaseofIndia,evenaftera
functioninggovernmentismostlylostintranslation.
WrittenDec3,2014ViewUpvotes
TanveerSayyed,Doyouseethemanstandingthereinthepainting?That'sme.
724Views
"(India)hadtoachieveindustrialisationwithitshandstiedbehinditsback...whereasnearlyallthe
Westerncountriescompletedtheirindustrialisationunencumberedbystrictlabourlawsandoften
unhinderedbyconsiderationsofinternationalethics."
C.D.Deshmukh.
SuryaKameswaraRaoRavi
1.4kViews
2014wehavefairlydeveloped.ThankstoPVNarasimhaRaoandManmohanSinghforjointly
usheringinacapitalisteconomy.TheincreasingneedofSoftwareandITprofessionalsinAmerica
andEuropewhichhaveahigherGDPandhighercurrencyrateyetcontributedtotheprogresswesee
today.IfthecurrencyrateofAmericaorEuropewerelowerorequaltoIndiathedevelopmentof
Indianeconomywouldprobablyhavebeenslower.(AhigherIndiancurrencywouldmeanadifferent
economicsanyway).
SomefactorsthatdraggeddevelopmentinIndiacouldbe:
1.Developmentisalwaysinthemindsofthepeopleandinthepurposeoftheleaderswholeadthe
society.Welackedbotheducatedandqualifiedpopulaceandleadersinnumbers.Weweredeficient.
2.PreandPostindependencethegenerationslackedbothdevelopmentorientedattitudeand
purposefulleaders.Moresopostindependence.Intheabsenceofmediaandtechnology,lackofskills
andqualificationspeoplewouldlookattheleaderstodevelopanation
3.Ourleaderswereclueless(lookatourcityandtownplanningfrom1947to2000.Ittookusallthese
yearstoevolve.Weclaimtobeveryintelligent,butjustlookathowcivilizedtownshipsandcitieswe
have.).Evennowwehavea20floorsbuildingsinacolonybythesideofa30feetroad.Wehave
18/27
numerousslumslackingbasiccivicamenitieslikewater,currentandproperdrainagesystem.
4.Culturallywewereprimitiveintermsofcivilizedexistence(caste,creed,religion,languagebased
divisions,lackofeducation,suppression/abuseofwomenpopulace,exploitation,population
explosion,agroeconomy,etc),lackededucationandmethodologies,lackofpropercommitmentat
leadershipandexistentialpolitics.Weneededallthetimetoevolve.Wearestillevolving.Wearestill
fightingwithreservationsinallfronts.Reservationsystemwouldnotsolookbadifpovertyand
educationprogrammeswereimplementedwithfullcommitment.Nowwecontinuetodivideand
fight.Allowbitternessrunacrosscenturies.Politicsofexpediencycontinuestoruleus.
5.Thefirst20yearsofindependencewentintolearninghowtogovernourselves
6.20yearsafterindependenceweweredecidingwhethertheeconomyshouldberunonsocialistor
capitalistguidelines
7.Yetanother20yearslater,now,wearemovingfastintermsofliteracy,skilledandqualifiedpeople,
investments,buildinginfrastructure,sharp&intensiveFDIbaseddevelopment(foreignautomobiles,
foreigncomputers,foreignelectronics,foreignrestaurants,foreignFMCGs,etc)whileontheother
sidewestillhaveahumungouspopulacelackingproperliteracy,skillsets,transitionalanddirect
poverty,lackofindustrialdevelopmentalplanning,lackofinvestmentsinscienceandresearch,lack
ofpropercollegesandschools,increasinglyhorriblegovtschoolsandcolleges,increasingslums,
increasingfarmersuiciderates,jammedpublictransportsystemswithlackofproperfunds,lackof
proper/progressiveelectricitygenerationplans,lackofwaterretentionplanningordistributionand
horribledrainagesystemsespeciallyincommercialandbusinesslocationsandsoon.
8.Hardcorecriminalsoccupying/influencingseatsofgovernmentalpower
9.EarlypostindependenceCapitalistslackingdirection/skillsetsbecauseofpoorskillsetsinthe
societyandgovernmentslackingvisionsorstructuretoengagecapitalists
10.EarlysincerefinanceministerswholackedskillsindevelopmentaleconomicsbothatStateand
Centrallevels
11.SincereEducationMinisterswhohadnoclueastohoweducationandskillsetsshouldbespread
acrossthelargepopulationofthecountryandwithnoclueabouthowtoraisefunds(eventodaywe
sufferthesamemalady).Howskillsetsshouldbemappedtoprofessionsacrossindustriesoran
industrybasedmarket.
EuropeandJapanpickedupquicklyprimarily:
1.Thesecountries,thepopulationhadproperandqualifiedscience/business/technicalskillsfor
progress
2.Theyalreadysawonephaseofscientificandindustrialprogress.Postworldwartheyjusthadto
redowithsomecarefulplanning
3.Theymovedawayfromagrarianbasedeconomiestoindustrialeconomywaybeforeworldwar2
4.Mostofthescientificandindustrialinventionswerefromtheseplaces
5.Postworldwar2thesesocietieshadalreadyovercometheprimitivenessintheirsocialstructures
andsowereabletofocusondevelopmentalissues
6.Allthesewerecapitalisteconomies,notthatsocialismisbadforaneconomicmodelbutitistheend
resultthatmostlymatters
Itisnotfashionable/unpatriotic/regressivetoadmitreality.Itisactuallyacademic,progressiveand
19/27
patriotictounderstandandadmitreality.Ithelpsustobemakeabetterbalancedapproachto
developmentwhilewedonotcompromiseonspeedofdevelopmentnorloseanyedgethatwehave.
MugdhaRustagi,PrefixDoctor
1kViews
Itssobecauseastheothercountriesgotdowntozero,Indiawasalreadyinnegativesatthattime.
Inotherwords,theEuropeancountrieswerelikepoormen,butIndiawaslikeapoormansubmerged
intodebts.
BabyaVithhal
321Views
CorruptioninJudiciaryNowthismaysoundstrange.Butpleaseletmeexplain.Whenasmall
businessmeninstalltheirfactoryetcthenpolicemen,govtofficerssuchasprovidentfundofficer,labor
inspector,pollutioncontrolboardofficersetcwilldemand"partnership"inbusinessmen'sprofit.Ifthe
businessmenrefusetopaythem,thentheyblackmailtofile"wrong"legalcaseagainstthemandwill
makehim/herwastehistimeinvisitingcourts,judges,lawyersetc.Whensuchbusinessmen'scasesare
keptinpendingmodeforyearsthentheydecidetoeithertakeawaytheirbusinessfarawayfromsuch
bureaucraticgoonsortheydecidetoshuttheirbusinessbyclosingfactories.Thiswaymanypoor
peoplealsolosetheirjobswhousedtoworkatthosefactoriesandultimatelysomeofthemincluding
businessmencommitsuicideorstartbecomingthief,criminalstoarrangeforfoodtolive.Iwillnotsay
thatjustblindlybelievemewhatIamsaying.Justaskanysmallbusinessmen/factoryowneryouhave
contactwithindistricts/villagesorevenincityareathatwhatIsaidisrightorwrong.Justaskhim
aresmallbusinessmen/factoryownernotexploitedbyLaborinspector,providentfundinspector,
pollutioncontrolboardofficersetc.Thebusinessmenwillgiveyoumoreinformationon"Inspector
Raj".ThereforeIconcludethatanareawheresmallbusinessmenareharassedtherewillbeless
development,lessopportunityofemployment,morecrimessuchastheft,murderformoneyetc.
WrittenJun1ViewUpvotes
AnupVardhan
409Views
Mostlybecauseofourwrongpolicy.Forexample:JapangotruinedinWW2.Japanesepoliticiangave
aslogantotheirpeople"youtakecareofcountrybywayofhardworkingtoupliftthecountry,and
thegovernmentwilltakecareofyourfamily".ItresultedineveryJapanesetodoanythingtouplift
theircountry,thewillpowerofpeopleofJapanbroughtbackJapanintolimelightinshortspanof
time.whereasinIndia,OurpoliticiansdidnottookanystepswherebypeopleofIndia'sinspiration
inbuildingourcountrygetboosted.OnthecontrarythepolicymadeIndiansindeeprooting
corruption.(rememberthefirstdefensescandalduringNehru'stime.Likewisenumberofcorruption
20/27
caseswerepamperedbythepoliticiansandcorruptionstartedworkingas"Hemoglobin"inIndians.
Nocountrywillprosperifitlacksthesupportoftheirpeople.OurpoliticiansrushedtoUNwith
beggingbowltosortoutourownproblemforwhichevenaftersixdecadesofSWARAJweare
suffering.ThewaywegothumiliatedinChinawar.("Jaisarajawaisipraja")
Oncethemoralofpeopleofthecountrytowards"SWADESHABHIMANI"isboostedthenevery
Indianwillworkforcountrywhichwillresultintoallroundgrowthofthenation.Evenmostcorrupt
politicalpartyorpoliticianwillnotdaretodoanythingwhichisagainstnation.In thatIndiawill
remainonthetopofworldmapinallareas.
UsmanQazi,Keenlyinterestedinhowbygonehistoryisevokedinthepresent.
933Views
Indialackedalarge,skilledworkforce.Ittakesmanyyearstobuildone.
Europewasabletorefeedwhatithadandputitbacktowork.Afterawhile,peoplecreatetheirown
opportunities.NotethatmassliteracyinEuropehadbeenachievedinthe19thcentury.
Ihaveinmindadocumentaryclipfrom~1950brieflyshowinganemaciatedFrenchdraughtsman
rapidlydrawingaviationpartswitha(precious)cigarettestuckinhismouth.Thatsumsitallforme.
SahilSharma
613Views
Humancapitalbesidesphysicalcapitalplaysavitalroleforthesustainabilityofdevelopment
process.Thedestructionthathappenedineuropeancountriesdiddestroyedtheirphysicalcapital
butitfailedtodestroytheirhumancapital.Moreover,thetheoryoneconomicdevelopmentandvast
empiricalevidencespresentinitsupportthefactthatifacountryishavingahugequantityof
humancapitalrelativetoitsphysicalcapital,ittendstogrowfasterthantheothereconomies.India
atthetimeofsecondworldwarhadlowerquantityofhumancapitalrelativetoeuropean
economiesandthathashampereditslongtermgrowthprospects.
DharmendraPrasad,SoftwareAddict
521Views
ThereasonIbelieveisthatweasIndianshad(andstillhave)averylowmoraleandselfconfidence.
Our(themajoritypopulation's)selfrespectwascrushedbyrulersorcolonistsovermorethan200
years.
Imagineacountrywheremajoritypopulationdoesn'tevenknowthattheirpopulationissecond
largestandtheyarecapableofturningtheworldupsidedown.
21/27
Definitely,Britishmadeusbelievethatweareinferiorandwebelieveditaswell.Theeffectofsocalled
"WhiteSkinSyndrome"influenceinagreatmanner,peoplewerereadytoforgettheircapabilitiesand
acceptwhatevertheWestdidandwebegantocopythesame.
Oursocalled"Neighbour"helpedusalottoslowdownwiththecharitymoneygivenbyUSto
"supporttheirhunger"orwhoknowsmaybe"slowus".
Andbelievemewewillneverbeabletocatchupwithheworldingrowthanddevelopmentifwedo
notgiveupour"whiteskinsyndrome".WearesuchthatwedonotrespectGita,butifthesameis
translatedandpresentedinEnglish,wedonotforgettopraiseit.
WemightnotfollowwhatGitasays,butthemomentISKCONadaptsitthenhellllotofIndiansstart
followingit.
UpdatedJun22,2014ViewUpvotes
ChandravadanTrivedi
158Views
1)IndustrialRevolutionhadtakenplaceinEuropeanCountries&notinIndia.
2)EducationsystemistoopoorinIndia.Fore.g.75%ofIndianengineeringgraduatesarenot
employableontheirdegreefacevalue,everyyear.
3)Therearenolaboratoriesinanysecondaryschools&neitherarestudentsencouragedtoread
librarybooksformostofthemdon'thavelibraries.
4)Fore.gaskanyIndianengineeringstudenthowtofindsquarerootofsay387.9648withoutthe
useofcalculator95%ofthemwillfail.Whattypeofengg.graduatesisIndiachurningout?
5)Biologystudentsatthehighersecondarylevelareexemptedfromanyanimaldissectionhowthey
willlearnanatomy,physiology,biochemistry?
Anyprofessionalstudyistobesupplementedwithpracticals&thisifnotstressedatall.
6)EverythirdIndianislivingbelowpovertyline.
7)IndiahasilliterateMLA's&MP'swhoareresponsiblefortheadministration&legislationofthe
countryhowcanonecompetewithWesternersinsuchascenario.
WrittenJun6
GauravChugh
1.5kViews
PoliticsofIndia!
22/27
UmeshSethi
486Views
Shortanswer:CongressParty
Aslightlylongeranswer:IamnotgoingtogointotheGDPtrendsorcreativedestructionor
destructivecreationorinnovationoreducationetc.databecauseallofthesewereadressable.
WhenIndiagotindependentaroundthetimeofWW2theCongresspartycametopower.Perhaps
theonlypragmaticnationalistsmartandstrongpersoninthatpartyatthattimewasSardarPatel.
DuetohimIndiagotintegratedandwesavedKashmirwhichaspermostaccounts.JNNehruwas
goingtolose.HoweverduetoaweakandcluelessPMwepaidthepriceofseparationtoPaknot
happeningcleanlyandlotoflossesandlife.Butthatalsohadasilverlining.Therefugeesmostly
23/27
HindusandSikhsfromPakhadseensuchbadtimesandhardshipsthattheyprobablyworkedtwice
ashardandlearnttwiceasfastastheaverageotherguy.Weretheseandtheothergoodpeopleofthe
countrysupportedforthenext70oddyearsbystrong,peoplefriendly,honestpragmaticgovernment
Indiawouldprobablytodaythe2ndsuperpowerafterUSAandhaveGDPandstandardsofliving
probablynearingthoseinKorea,MalaysiaandmightevenhavecaughtupwithSingapore.Butagain,
thatwasnottobe,duetotheinherentflawinourindianpsychewhichdividesusallandcompelsus
toplaytheVICTIMcardweendedupvotingforCongresspartyabout7080%ofthetime.Eventhe
congresspartyhadcoupleofbrightsspotssuchasthebriefperiodunderRajivGshowedsome
promisebutthecombinationofdamagedonebythefirstPMofCongressandthelatestPMof
congresshasbeensobadfortheeconomy,fortheHumandevelopmentindicators,thatitisalmost
irreversible.2014hasboughtaglimmerofhopebutletsseewhathappens.
Written12SepViewUpvotes
VipinPandey
946Views
ComparisontomostEuropeancountriesisnotfairbutIdogetyourpoint.Ithasbeenalmost70
yearssinceourIndependencethat'sequivalenttotwogenerations!!!Afterallthistime,evenour
capitaldoesn'thave24x7electricity.Aboutthestateofrestofthecountry,weallknowthestoryvery
well.
TosaythatIndiawasapoorcountryorwedidn'thadtheinfrastructureisanexcusethatisnot
acceptableaftersomanydecades.Wehadsuchasoundbasein1947cleanandfiredupleaders,
poorandnaivepeoplewithdreamsintheireyes,andlandwithlittleinfrastructure.Wegotthe
opportunitytobuildournationfromalmostscratch.Isn'tthatawonderfulopportunity?Wecould
haveshapedthenationfuturethewaywewantedwithoutanymajorobstacles/hindrance.Butwhat
happened?
LadiesandGentlemen,pleasewelcometotheAntagonistofIndia'sgrowthLicenseRaj.
Itwasestablishedin1951withgoodfaith.Backthen,itmadeperfectsensetoprotectthebackward
andlabourintensiveindustriesofIndia.Governmenthadthepowerofgrantinglicenseforstartingan
industryaswellasforexpandingit.Butitdidn'ttooklongbeforethethebabusstartedexploitingthis
fortheirownbenefitthinkofbribesandloadsofit.
Butbribewasasmallpricetopay.Somethingevenworsehappened.ItdefinedtheINDIANDREAM
geteducation,getgovt.job,getmarried,owna2/3BHKhouseandretire.THISREMAINEDTHE
DREAMOFANENTIREGENERATIONOFINDIANS!ThegovernmentsetupIITsbutitalsosetup
anenvironmentthathasledtobraindrain.HowcouldIndiahavedevelopedthisway?
DiversityandCoalitionGovernmentAttimesIfeelthatdiversityisthebiggestthreattotheIndiaof
today.WethinkofourselvesasPunjabis,Biharis,MadrasisetcbutnotasIndians.Asaresultwe
usuallyhavecoalitiongovernment.Coalitiongovernmentinturnisunstableandweak.Diversityalso
24/27
leadstounnecessaryandembarrassingthingslike:
a)DivisionofstatesTelangana,Chattisgarhetc
b)HatredNEstudentsbeingbeateninBangaloreandMumbai.
c)WaterdispureKaveriRiverwaterdispute
SomewhereinthishistoryliesthereasonforourChaltaHaiattitude.Thereisabeautifulsayingthat
describesIndiaafterModi.It'ssomethinglikethis:
"Jisdeshmeinpaanikapyalaaurdhonekamug,donokohibaandhkerakhnapade,wahasirfPM
badalnesekuchnahihoga"
"thecountryinwhich,both,drinkingglassandmugusedaftershittinghastobetiedtopreventfrom
beingstolen,needsmuchmorethanjustanewPM"
Butbygonesarebygones.Thisisanentirelynewera.ItrulyhopethatModiandKejriwalemergeas
thestrongestleadersandtransformsIndia.
SushilMalhotra
322Views
Anationdevelopswhenpeoplestrivetogetherfordevelopment.
EverwonderedwhyourIndiancitieslookasiftheyarefacingadoomsday...
Whywesterncitieslookfarmorebetterandcleanerthanus..
uncleanhabitsofourcountrymenisamajorissues
Havealookatthisdoodleanimatedvideo...DiscussingaboutsomeIndianissues.
25/27
:)
Written12Dec2014ViewUpvotes
SpBharathiy
175Views
Asapartoftheanswer,IwouldliketoappendtotheanswerbyofKiethHausertothequestionon
howGermanycouldemergesofastfromthedevastatingwars.Ifullyagreewithhisobservations.
IhappenedtobeinGermanyandSwitzerlandonashortvisit.Themoststrikingthingthatone
noticesinthesecountriesisorder.Withoutselfdisciplineandordernothinggreatcomesout.Wemust
admit,welackdisciplineandrigueurinallfields.
MostprecisionmedicalequipmentorexcellentqualitymechanicalgoodsmanufacturedinStutgart,
GerrmanyandnearbyareasinSwitzerlandbearsuchqualityandbeauty,theybecomeobjectsof
desire.ThebeautyofGermancarsdoesn'trequireelaboration.Theyarethebestmoneycanbuyafter
RollsRoyce.Thatbringsthemtohighendmarketsandbigmonies.
Thisdisciplinedpublicconductvowsmuchtocenturiesofculturalevolutionandtransferofskills
fromgenerationtogenerationwithprogressiveadaptationoftechnology.
WetoohavegoldsmithswhocanmakeintricatelydesignedJewellary,thatrequiresnolessskillsto
fabricatethanthemachinepartsGermansmanufacture.Diversifyingsuchskillstosuitthemodern
dayneedsandchangingtheattitudeofourpeopletoformadisciplinedworkforceonlycanmakeus
agreatnation.
Disciplineanddevotiontoworkshallbethemantraandourwayofpatriotism.
WrittenMar20
AnkurAgrawal,Curiousintrovert
462Views
Wellgermanyandjapanwereseeminglyguidedbynationalistideologywhichbindedpeopleas
a.wholeandthusevenafterlosingwar,helpedthemtobemotivatedandsailtogetherinworstofthe
periods.
However,incaseofIndiathestoryisentirelydifferent,indianlandscapealreadydividedamongst
smallkingdomonthebasisofcultures.AddingtoitthemajorsectHinduweredividedbyevilcaste
system.AlthoughthenatiomeruptedbreakingthesebarriersbehindGandhi,butatthedawnof
freedomwasmarredbyanothersetbackofdivisionoflandonbasisiofreligion.Thenationfreedon
thebackofnationalmovementwasguidedbypowergreedyandselfishpeopleultimatelytakingindia
back.AfterbeingruledbyBritishersforlongtimeandlosingwealth,andhealththepeoplecouldnt
seeanationalcause.Thusleadtotheslowmovement.
WrittenJul12,2014
26/27
AnudeepRavi,overthinkingstuff....orAmI?
407Views
WereGermanyandJapanoccupiedfor200years,WithsystematicdestructionofanyIndustrial
capacityandhadtosufferfromMassFamines?
No?
Thenthecomparisonisirrelevant.
VibhanshuKulshrestha
732Views
Becausewhateverdevelopmentyouseetodayisbecauseofindustrializationanduseoftechnology.
Britishbrokeourindustryandimposeduseoftheirsystemonuswhichinresultlostourold
techniquesandskills,alsotheylootedallourwealthwhichalsomadeusdependableuponthemto
workaccordingtothem.
Beforetheyleftwewereworkinglikelabororlaymenintheirfactorieswhiletheywerepreservingtheir
technicalknowledgeuptothemonly,andwhentheyleftwewerelefthavingvacantpostforsenior
andmiddlelevelofficer,soinhurryourgovernmentselectedmerelyeducatedpeopletohandlethose
posts,youwillalsohearfromyourgrandparentsthatthegovernmentofferedthemjobwhenthey
werejust8thor10thpassedandtheyrejectedmanytimes.
Sothatuneducatedandcorruptofficerskeptdevelopmentawayfromusbecausetheywerealways
skepticalaboutlossoftheirseatiftheyfoundunusableforsomeproject.
AmeetSingh,adventurer
44Views
theyworkedharderwayharderthantherestofEurope
WrittenApr2ViewUpvotes
27/27

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