Why the poor stay poor in India

There's no denying India is a desperately poor country. There's no arguing that steps must be taken to alleviate poverty.

But if you think the usual trio of politician, bureaucrat, and the socialist-jholawala-activist are going to do something about it, you're turning a nelson's eye to this trio's colossal failure for the past sixty years!

If for a moment you can't understand why they've failed, all you have to do is focus on the funds the trio mismanages in the name of alleviating poverty. Again, its easy to see why they mismanage.

Note. Every paise this famed trio manages in the name of alleviating poverty isn't earned by them. Plus there's zero accountability to the money they manage. Why in god's name would they give a whit to managing funds well? The fact is, hare brained social schemes will do nothing to dent poverty. All they'll do is either fill the coffers of those are put in charge of the kitty, or make slothful citizens out of those who are granted the money.

What India needs is neither government or the jholawalah-activists to do something about poverty. If fact they can't, and won't. What India needs is entrepreneurs and wealth creators who through the act of value creation (read, making products and services) put money into the hands of all those who participate in the process. Such money in the hands of people is what then allows them to buy food and other stuff for themselves.

That's the only way out of poverty!

Comments

Anirudh said…
Sir I think even Entrepreneurs would halt their ventures/ give in to corruption diluting wealth creation process. How could they be helping the nation ?
Prof.Ray Titus said…
If by corruption you mean businesses paying regulators for licenses, then I'd say the source of the problem is the existence of reglation and regulators.

If you then say regulation earns government money, I'd say that's at the cost of the consumer who now has to pay higher prices, because costs to producers go up.
Ranjit said…
Hear, hear, prof.! That's exactly what seems to have been happening over the last 7-8 (or fewer) years. Whatever growth this country has seen has been thanks to 'crass' commerce, and no thanks to the politician at all!

However, that breed always wins in the end, and seems to have pulled the "India Shining" story down to their level - sucked dry till it just can't go on any more. So, starting from the beginning-to-flourish middle class, the reverse of this growth story will begin to take place...and not long from today, these day's of glory will feel like an unreal memory, a blip in the sorry lives of most of the nation's citizens.
Did I hear some say "Mera Bharat mahan!"??
Prof, a question on a slightly related topic. Why do people vote for the allegedly corrupt and proven corrupt leaders? What could be the psychology.

Does the thinking goes like - "Let the corrupt leader loot, at least he dishes out freebies to me. And all leaders are corrupt"

This is in the context of YSRCP winning hands down (15/18 seats) in AP bypolls.
Prof, a question on a slightly related topic. Why do people vote for the allegedly corrupt and proven corrupt leaders? What could be the psychology.

Does the thinking goes like - "Let the corrupt leader loot, at least he dishes out freebies to me. And all leaders are corrupt"

This is in the context of YSRCP winning hands down (15/18 seats) in AP bypolls.

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