http://www.expressindia.com/fullstory.php?newsid=88387
Where are the know-it-all "Socialists" forever telling us that India's growth is not inclusive while China's is? This is not surprising - as high manufacturing creates more jobs for robotic machines than for ordinary people.
India still has a long way to go - sure enough - but please stop looking eastwards for models on "inclusive growth". Inclusive for party apparatchiks that!
The trick is to link Indian agriculture with manufacturing. Dr R.C Majumdar's history of India gives us a picture of light Indian manufacturing integrated with Indian agriculture (e.g. cotton and weaving, or Jute and packaging) in towns like Dhaka and Chittagong. I recognize that the 'economies of scale' argument militates against light manufacturing; but we can and should focus on agriculture and infrastructure.
3 comments:
Rediff seems to be taking some heat in their effort to give publicity fo Martha Nussbaum.
http://specials.rediff.com/news/2007/jun/15sld1.htm
Unrelated: Horse-back rider paintings dating to "2000 BC - 1500 BC" found in Nilgiris.
A very secular source:
http://www.flonnet.com/stories/20070629000206400.htm
So, the horse was already in the south by this time. What will Witzel now say?
The type of growth must be market driven. Government should not interfere in trying to tilt it towards labor intensive or other wise.
The finest example is that of the match box industry in Sivakasi in the 80s and 90s. The government (ably supported by the socialists- gandhians) favored the small scale sector against WIMCO the mechanized match box maker. They taxed WIMCO's machinery and made then uncompetitive.
The result was a small scaled manual match box industry employing thousands of children. Many were afflicted with worse deceases handling dangerous chemicals and also frequent deaths due to fire accidents.
The single most important factor that is inhibiting employment growth in India is the reservation policy for small scale sector. This coupled with the rigid labour laws is has been the biggest impediment to generating employment in India.
And the biggest culprit in this is the Communist Parties in India. Or our inability to implement an equivalent of McCarthyism in India.
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