Rethink India's development - Prof. R Vaidyanathan

Rethink required on imitating the American model of development

"Perhaps we should go for the Scandinavian model of high taxation and larger social security net since our business leaders have moved away from dharmic (the right course, as prescribed by religion) methods to asuric (pertaining to demons) ways"

Caught between the edification of Indian spiritualism and regression of Marxist materialism - the good professor has defaulted to stinking Nehruvian-statism.

I disagree with the professor on this one. The enlargement of the state will not provide safety nets to needy families and communities (I am glad the prof did not say individuals) - it will only lead to black money for the rich and Swiss-bank money for those in charge of the state. Sounds familiar?

In these days of Chandrayaan - the professor confuses the objective (safety net) with the delivery vehicle (the state)

First - the state should exit it's role in all areas - save defense, communications and external affairs.
Second - we need to build up institutions that allow the individual to contribute to community based delivery vehicles (read temples, charities, NGO's) - we need to subject these institutions to independent audit and high standards for disclosure.
Last - the state should also enlarge (in a BIG way) facilities for deducting taxable income for contributions made to community-based delivery vehicles

In India - we need to give up on the market and the state as delivery vehicles in favor of the community. Of course, we already have the propulsion fuel of Dharma to launch these delivery vehicles!!!!