One of the key reasons for industrial stagnation in AP is the general perception of investors and bankers that many promoters and owners of companies in the state are dishonest. This image is truly unfortunate because we do have some outstanding entrepreneurs who adhere to ethical norms and adopt internationally accepted business and accounting standards. But the truth is far more have cheated the investing public, financial agencies, and the government.

A few days ago, the government of AP declared their goal of starting 40 medical colleges in the state. Certainly society does need more and better health personnel. But mere increase in doctors’ strength does not help.

Gandhiji’s birthday celebrations this year led to some serious efforts to examine our economy and society today. I had occasion to participate in two such discussions. A couple of things struck me in these discussions. In one, a politician said that part of the reason for our underdevelopment vis a vis Southeast Asian countries and China is that we are constrained by Democracy! In the other, some participants talked of the evil impact of globalization on our economy and culture! Let us examine the facts and fiction on both these hypotheses.

Indian higher education is in deep crisis.

As the Finance Minister gets ready to present the budget for next year, the sector which causes him the greatest anxiety must be agriculture. The past year has been relatively good in terms of rain fall and the Rabi yields should be encouraging. But in general, for over a decade now agricultural growth has been sluggish, stuck at about 2%. And there are four good reasons to be concerned about low agricultural growth rates.

align="left">In many ways the 2004 Lok Sabha election verdict is an expression of discontent by the poor and dispossessed. But the verdicts are not against economic reform; they are for a more inclusive growth process that meets the aspirations and basic needs of the underprivileged.

Since the 1980’s India emerged out of the relative stagnation of the ‘Hindu’ rate of growth.  In the liberalization phase starting from 1991, these robust growth rates are consolidated.  India is now the second fastest growing nation among large economies. Global comparative studies indicate that our competitive advantage may continue for the next several decades, thanks to the young demographic profile, low cost economy, and large, ambitious, skilled manpower.

One of the challenges facing us today is providing reasonable quality healthcare to all people, irrespective of birth, caste, status and wealth. We are one of the most poorly served countries in terms of health care. And yet we have an impressive infrastructure of medical institutions.

The greatest challenge before India today is combating mass poverty and making lives of ordinary people bearable.  If dignity is denied to an Indian in 2004 AD, and people are forced to be hungry even as foodgrains are rotting in warehouses, then that is unacceptable.  If in 21st century poor Indians suffer in monsoon from torrents of rain for want of shelter over their heads, or shiver in cold, then that is a disgrace to our republic.

The new UPA government has made commitments to enhance allocations for agriculture, employment guarantee, education, health-care and many other sectors. Given the precarious condition of our public finance, a great debate is raging about the wisdom of allocations vs focusing on better delivery of services.