Friday, August 31, 2007
India's Middle Class Failure
India's 200m-strong middle class is the most economically dynamic group on the planet, but is largely uninterested in politics or social reform. Until it begins to engage politically, India will suffer from a lop-sided modernisation.
Chakravarthi Ram-Prasad in Prospect:
As the actual Mother India celebrates the 60th anniversary of her independence, there is....both surging optimism and crushing despair about her future. As the saying goes, everything and its opposite is true in India. The seven Indian Institutes of Technology rank near the top of global surveys, and job offers to graduates from the Indian Institutes of Management rival those to graduates of the famous US business schools; yet a third of the country is still illiterate. Three hundred million Indians live on less than $1 a day—a quarter of the world's utterly poor—yet since 1985, more than 400m (out of a total population of 1bn) have risen out of relative poverty—to $5 a day—and another 300m will follow over the next two decades if the economy continues to grow at over 7 per cent a year. Population growth, even at a slower pace, will mean that there will still be millions below the poverty line, but the fall in number will be steady. At the other end of the scale, India has the largest number of dollar billionaires outside the US and Russia.
Posted by S. Abbas Raza at 01:41 AM | Permalink