We no longer discuss the future of India. We say the future is India" said the Indian Commerce and Industry Minister at the conference organized by the US-India Business Council in 2004. He predicted that India would certainly have achieved 100 % literacy, become a developed country, enjoy the same fundamentals as the United States by 2030. Clearly, many politicians and journalists have some problems with the stats! Let's go to the specifics!
The population of India was 1,100 million in 2004. It will grow to 1,450 million in 2030. The global GNI accounted for 675 $Billion in 2004. According to an optimistic hypothesis, the India GNI would attain 4,760 $Billion in 2030 (Compared to 18,000 in China). Sure, India will be a great power but certainly not a super power.
In fact, India is afflicted by over population, great poverty , and a constant risk of religious violence. We think that the influence of religion is the main cause of these problems.
According to our diagnosis, a massive investment in education is the key medicine that we must propose. Firstly, Education is the only way to favor family planning acceptance. Secondly, only mass education can alleviate poverty in getting a higher growth rate. Thirdly, education is the only way to appease religious conflicts which are increasing in the region.
The region is not peaceful. With the growing muslim population in India, religious conflicts can occur. We cannot consider this fact with benign neglect: India and Pakistan have built up a military nuclear power: In this context, the Western countries must support the friendly democracy of India. It should be the best demonstration that the world war against Islamism is not a clash of civilizations or a clash between the riches and the poor's. It will prove that it is the war of the united civilization against a single and hopelessly isolated barbarism.
DIAGNOSIS
Let's us examine the region: Geography, History, population, economy, and political situation. Our examination will take notice of three bad symptoms: over population, great poverty , and a constant risk of religious violence.
The sub continent has an area of 4.8 Million square kilometers ( USA: 9,269,000; Europe- 25 Countries: 4,150,000; India: 3 million+, Pakistan :797,000; Afghanistan: 653,000) and includes 8 countries: Afghanistan, Pakistan, Bhutan, India, Nepal, Bangladesh, Sri lanka and Maldives.
Afghanistan, Bhutan and Nepal are landlocked countries. Maldives and Sri lanka are Islands.
The region is divided into three main geological areas: the Himalayas, the Indo-Gangetic Plain, and the Peninsula. Arising in the northern mountains, several major rivers ( the Ganges, Brahmaputra, and the Indus), flow to the coast and have supported civilizations for thousands of years.
Over population.
All the quiet areas have disappeared. By 2005, the population accounts for 1478 million (453 in Europe-25; 298 in the US). Three nations exceed 100 million ( India : 1100, Pakistan: 157, Bangladesh: 141 ). The region is expected to attain 2050 million by 2030.
The growth is quite fantastic: The population has already increased three fold in 60 years! It is expected to increase five fold in one century. All these countries ( except Sri Lanka) have still high growth rates ( Afghanistan: 2.7, Pakistan: 2.4, Bangladesh: 1.7, India: 1.6 ). The fertility rates remain very high in Afghanistan ( 7.48 ) and Pakistan ( 4.27 ): It means that the growth is expected to continue until 2100 ( 409 in Pakistan in 2100 ).
Clearly the subcontinent is over populated: The density per square kilometer could attain 500 in 2050. Considering the Himalayan and the highlands, you can easily imagine the huge concentrations in the deltas and their consequences ( Pollution, traffic, rubbish, drinking water and so on ).
Economy
The big pictures
Firstly, we shall focus on India. Its GNI attains 674 $Billion in 2004.
The growth rate increased in 2003 and 2004. The 9% reached in 2003 fuelled the optimistic visions about the future. However, since 1999, the average growth rate is about 6%. It could seem a good result but it is not sufficient compared with the increase of population. As result, the GNI per capita remains low ( $620-Rank: 159 out of 208 countries. Taking in account the purchasing power parity method, the GNI per Capita reaches $3,100. Rank: 145 out of 208 in 2004).
The gross capital formation is medium compared to other Asian standards (45% in China).
The high technology exports only attain 5% of the manufactured exports. Just compare with South and North East Asia and you will realize the difference.
India has made amazing success in auto, motorcycles and apparels ( color televisions and refrigerators). At another level, the medical school in New Delhi is one of the best in the world and India could become the drug factory of the world for generics. Right now, India is also a major exporter of software services ( Unfortunately, they produce just 3 % of GDP and employ less than 0.5% of the non farm labor force!).
Great poverty
Even the business & affluent residential districts in Bombay or New Delhi are not immune to grime and filth any more. Traffic and pollution are awful. The inhabitants walk on poor pavements with dirty water, eat junk food sold by hawkers & street merchants and you meet large crowds of aggressive beggars. Today, you cannot adventure yourself in the little streets of Mumbai or Old Delhi.
It is said that the size of Indian middle class exceeds the population of the USA or the European Union. Once again, it is a hype: In fact, the "middle class" is merged into an ocean of dirtiness and poverty.
Of course, IMF and World Bank experts argue that the poverty rate dropped from just under 41 % of the population in 1992-93 to less than 29 % at the turn of the century. Sorry, I do not agree with that. I think that the negative externalities (pollution, insecurity, lack of open space ) mainly due to overpopulation have certainly outpaced the small increase of income. In fact, about 300 million Indians continue to survive on less than $1.25 a day and a majority of the population lives in utter poverty without access to health care, housing, drinking water and education. Just consider another indicator: There are an estimated 100 million child laborers in India. Many work in the informal sector in hazardous conditions, and several million are bonded laborers.
Other surveys report that the situation is quite the same in all the subcontinent. Much of the population continues to suffer from shortages of housing, clean water, electricity, medical care, and jobs. Due to poverty, the cases of suicide and Islamic madness are increasing.
India would need a growth rate of 10 % a year ,sustained over a long period for rising living standards. Unfortunately, the growth rate does not depend on wishful thinking'. A 10% growth rate ( Like in China ) is not presently feasible because India suffers of low education and bad infrastructure.
On the other hand, some experts think that a 7% growth rate could be expected for the next five years. As a result the reform lobby would become stronger and would be able to surpass leftist opposition and to reform education and the static caste system. Having more confidence, the country could reach a 8% growth rate until 2030. According to this hypothesis, the India GNI would attain 4,760 $Billion in 2030.
Regarding Pakistan and Bangladesh, the extend of Islamism will downgrade the economic prospects and we cannot extrapolate the former growth rate. We think that the future rate (2.5%) will be quite aligned on the growth rate of the population (2.4% in Pakistan)
Politics
Considering the size of the population, India is the greatest democracy in the world. New Delhi is lobbying for a permanent seat on the United Nations Security Council. However, democratic rule is undermined by:
-Grand and petty corruption: Regarding corruption India is ranked in 71st place out of 102 countries and Bangladesh is the world’s most corrupt country!
-Civil disturbances: In Nepal, a maoist insurgency, launched in 1996, is threatening the regime. In Sri lanka, tensions between the Singhalese majority and Tamil separatists erupted into war without end. In Pakistan, the army is ostensibly helping the U.S coalition & chasing Bin Laden in the tribal zones. In Afghanistan, the situation remains unsafe.
-Religious violence: They occurred on a large scale with the partition of India. In our opinion religious conflicts are the main threat in the entire region . In fact, stability and progress toward democracy only rely on the western educated upper class in all these countries including India.
-Conclusion
We can take notice of three bad symptoms: Firstly, over population, secondly, great mass poverty , thirdly, a constant risk of religious violence. What are the causes of these symptoms?
-RELIGIOUS INFLUENCES
It is well known that People are addicted to religion in Muslim countries such as Afghanistan, Pakistan and and Bangladesh. In India, too, religion plays a leading role. The vast majority of Indian are religious . Cows are still free to wander at will in villages, towns and even large metropolitan areas. People frequent the temples, pray and bring offerings
-Islam
India is surrounded by Muslim states such as Afghanistan, Pakistan, and Bangladesh, Muslim Mullahs and the masses suffer from schizophrenia. They continue to nurtures a world vision of an Islamic Caliphate streteching from the Phillipines to Spain, that does not correspond to reality. They have been somehow been convinced by the muslim clergy to believe that Non-Muslims such as Jews, Hindus and Christians are responsible for their failure and are secretly plotting against the Muslim Ummah. or They respond with anger and violence to any problem or issue that is dear to them instead on engaging in civilized and democratic dissent or debate
-Hinduism
The caste system and gender inequality continues to be the bane of Hindu Society. Unless those issues are addressed urgently, any possibility of real socio-economic progress remains difficult to quantify in the future.
Islam favors high fertility rates
In the three Muslim countries ( Afghanistan, Pakistan and Bangladesh ) religion bears a major responsibility in the high fertility rates. Firstly, the muslim countries led by Algeria have constantly been reluctant toward family planning and contraceptives (Conference of Bucharest). They stated that family planning was a Western conspiracy for reducing the power of the developing countries. This situation explains that the fall of the fertility rates happened later and less rapidly in Muslim countries than in no Muslim ( With similar level of income ). Secondly, many muslim religious leaders are opposed to contraceptives and this situation is not likely to improve with the surge of radical Islamism.
In the 1980, faced with the problems resulting from overpopulation, Bangladesh, and Pakistan have officially promoted Family planning. However, due to gender problem, many people tend to favor large families.
In India, the government family planning program was launched in 1950. Its results seem quite poor. Hindus complain that muslims & christians do not follow the official family planning line because of their religious beliefs. Truly, stats show that the Muslim share of population has risen from 10 % in 1951 to 15 % in 2001. As a result, some Indian leaders are calling on Hindus to abstain from birth control for preventing India to be islamized. Finally there is a race for numbers which is threatening the already fragile Indian family planning program.
The growing muslim population is not the only cause of the family planning failure. In rural areas, people still believe that a family with no sons, has no heir. In this context, families may have a lot of "unwanted" daughters before to get a son and this situation tends to favor large families: Surveys show that the couple had to have at least six children in order to have a 95 % probability of raising a son to adulthood!
It is interesting to note that the best success of family planning have been registered in the state of Kerala which had been for long a communist and atheist government. It means that poverty does not explains the high fertility rate. The success of family planning in the poor classes of Kerala shows the role played by an adequate education counterbalancing religious superstitions and outdated social practices.
-Religion favors benign neglect for great poverty.
In India, the fact to be born in a lower caste just means that you have accumulated many sins in a previous life. The fact to be poor is not an injustice. On the contrary, it is the result of the divine justice. Since people are very religious, everybody implicitly accept the caste system.
This religious belief results in a a social rigidity and a benign neglect for poor people. Firstly, you may observe that most people in power belong to the indian upper caste: The brahmin (Top rank army officers, great families, scientists and professors educated in England and so on ). In India, the upper class is a nobility (and in Pakistan too) who largely dominates parliament and the bureaucracy ( By comparison, there is no nobility in China: The upper class is moving and changing). Secondly, due to the religious background, the Indian upper class is very disdainful of poor people. They do not have any compassion and, in our opinion, this fact also explains the prevalence of great poverty in indifference.
The Indian constitution officially forbids discriminations based on caste. People say that caste rigidity is more flexible than in the past. However, the lower caste (And notably the 160 million "untouchables") continue to face discrimination.
-Religious conflicts
In Muslim countries, minorities face societal discrimination. With the fundamentalist surge, atrocities, including murder, rape, destruction of property, and kidnapping are more and more frequent.
In India, as we have said above, the majority religion favors peaceful co-existence. There are no reports of problems with the Christian minorities ( For example, in Madras and Pondichery, former french colonies). However, in spite of their peaceful feelings, Hindus are obliged to challenge the growing aggressiveness of the large muslim minority in India aively small missionary activity of Western & Vatican sponsored Christianity.
This story began with the independence. India was founded as a secular state, but the partition of British India in 1947 into India and Pakistan led to the largest migration ( or in my opinion ethnic cleansing in history. Hundreds of thousands of persons were killed and about 10 million people changed sides ( Some Muslims in India made their way to Pakistan and Hindus in the new Pakistan moved to India). However, a large muslim minority decided to remain in India .
The Congress party governed India for 50+ years. In the early 1990s, tensions between India's Hindu and Muslim communities escalated. in early 2002, a train car carrying a group of Hindu pilgrims back from the city of Ayodhya, was attacked and set on fire by a Muslim mob. At least 56 people were killed. Hindus rioted and carried out revenge attacks on Muslims. More than 1,000 people were killed.
It means that India is threatened by the huge flow of fanaticism & polarisation notably since september 2001.
WAR OR PEACE
As long as Islam refuses to reform itself, we cannot expect any solution to poverty or illiteracy. Moreover, since september 2001, the muslim populations are massively rallying behind hardline Islamism everywhere in the world. As a result, it is absolutely fruitless to make any proposals regarding the democratic future of Pakistan and its rapid descent into becoming a failed state.
Let us limit our current focus on India. Considering the diagnosis, a massive investment in education is the key to India's progress and rise as a great power in the 21st century.
Education is the only way to promote family planning acceptance. Only education can diminish religious obscurantism, superstition, and negative social behaviors which are the causes of over population. Secondly, only mass education can alleviate poverty in achieving a higher growth rate. Thirdly, education is the only way to appease religious conflicts which are increasing in the region.
Lack of education is the primary obstacle to the nation's development. The task of bringing education and infrastructures into the twenty-first century is immense. India is justly proud of its universities, pool of scientists and skilled professionals. Unfortunately, this top level framework only targets the elite. India has to educate the masses: This country needs more vocational schools and long life learning centers for adults in order to get short term results.
Once again, compared to China, the Indian results are poor.These bad figures do not only result from a shortage of public funds. Recent research shows that across India, 25 % of teachers are absent from school on any given day. That figure can jump to 40 % in remote schools. It means that more private schools ( But not religious schools ) should be implemented in order to compensate the weakness of the public sector.
Clearly, the government must free up more money for education. Since India has limited public resources, It means also a fiscal reform in order to make the upper class contributing to the education burden. Some experts (Notably IMF) use to say that the best way is to increase the current growth rate because the growth will free up the money for improving education. India needs a new educational framework based on new content and channels for delivering knowledge. This new framework based on internet and online education is already described on this site:
-Improve infrastructures
Once again, there is a huge infrastructure gap with China.
It would be necessary to launch a large investment program in roads, like the Q4, The rehabilitation of towns and so on. Such a program could bring jobs to the unskilled people who form the largest segment of the labor force. The liberalisation & success of the booming telecom industry is living proof that the government should privatize other infrastructure projects. A large part of the fiscal reform would involve making the public sector more efficient, bringing direct benefits to the poor. Of course it would imply a direct attack on of the scourge of the Indian "Babu" economy: Bureaucracy and corruption.
Bureaucracy and corruption
Let's imagine that you have fixed an appointment with an Indian civil servant. Firstly, when you arrive he is not in office. You have to wait before he or she meets with you. When you enter his office, you cannot but help noticing the fantastic pile of reviews, books, papers and rubbish.
The bureaucrats are amazingly adept at misguiding you through the bureaucratic jungle. Finally, he makes you understand that some money (Not for him but for other anonymous persons!) could ease everything!
With the legacy of the socialism, License Permit Raj, red tape, mismanagement and corruption are quite synonymous of public services. By comparison, European or American bureaucracy looks like a utopia.
Corruption has to be controlled and eliminated. The obvious remedy is to remove government from many areas of business & industrial activity and to extend the economic liberalization.
-Extend economic liberalization
For long, India has been a statist economy with import substitution just like in other undeveloped countries. Thanks to the green revolution in agriculture, it succeeded in reducing shortage of food. It benefited also during this period of a massive food aid from the US. However the economy only got poor results until the early 1980. By this time, Rajiv Gandhi introduced reforms with import liberalization and the removal of some licensing. As a result, India saw a more rapid growth than before. On the other hand, the country increased its fiscal deficit and debt.
In 1991, a more extensive reform program began with a wide liberalization notably regarding trade, finance an the private sector. As a result, India achived a better rate of growth. The software industry in Bangalore and India's success in call-centers has attracted world attention. It was the begin of the story describing India as the "next knowledge super power"!
In fact, the liberalization has just begun: Most sectors of India's economy remain shielded from global competition by high tariffs (Averaging 20% and restrictions on foreign direct investments. Moreover, labor regulations and red tape inherited from the past socialist planned economy impede the private sector. Just like the "old europe", India needs a radical deregulation of Economy ( For example, software industry and call-centers are successful because they are exempt from labor regulations).
The government is facing a political debate just like in Europe. There is no consensus on liberalization. Many indian economists believe that cutting central bureaucracy will simply add new unemployment. The electoral defeat of the last BJP government in 2004 has been interpreted as a referendum against the increasing openness of the Indian economy. It has been said that the vote revealed the popular disapproval of the privatization or the emphasis on computer science and information technology.
It means that all Indians, like in many other countries, want the broader benefit of the economic reforms. Instead of trying to become a world global trader (Like China), India would have better to focus on its huge internal market. It needs to raise the purchasing power of the poor people and the only way is to create more jobs, notably for the unskilled. The infrastructure program could bring an opportunity. It does not imply a public deficit. It just calls for a State and fiscal reform and measures against tax evasion.
You can meet many Indian policymakers (Politicians, professors, economists, scientist) in all the conference rooms of the global five stars hotels all around the world (And notably in the UN meetings). They talk at large about the sustainable development, the international cooperation, the defense of peace. They look politically correct and the audience applauds! I think that these policymakers would do better to care about their poor population. They need a more pragmatic and down to earth approach. They have to convince their population and to engage the reforms (and firstly education) that the Indian people have been waiting for so long.
WAR OR PEACE
The region is not peaceful. Afghanistan & Pakistan was and remains the cradle of the Jihad. As a result, religious violence between Hindu and Muslim could escalate on the sub-continent
The cradle of jihad
Following the 11 September 2001 terrorist attacks, the US toppled the Taliban for sheltering Bin Laden. As long as Bin laden is alive, the North Western region will remain a threat for the world security. It is difficult to understand why Bin Laden has still evaded arrest or has not been eliminated. There are two possibilities: Firstly, he benefits of many complicities among people who are in charge of the chase. Secondly, he is not any more in the tribal zone and just rests is some remote palaces of the Arabic peninsula
The biggest uncertainty is in Pakistan. Considering that 70% Pakistanis are illiterate, just imagine this nuclear country ruled by the Talibans. If they could blow up the Bamiyan Buddhas they could just as easily press the nuclear button. The present situation is fluid and extremly dangerous. The right question is : How long, can the present Pakistan government resist the fundamentalist surge ?
The Indian -Pakistan litigation on Kashmir
The separation in 1947 of British India into the Muslim state of Pakistan (with two sections West and East) and India was never satisfactorily resolved. The main litigation regards the dispute over the state of Kashmir. Despite the fact that people of both countries lived together for about thousands of years, it seems impossible to create good relations without solving the Kashmir Dispute. India and Pakistan have fought three wars - in 1947-48 and 1965 - over the disputed Kashmir territory. A fourth war in 1971 resulted in East Pakistan becoming the separate nation of Bangladesh. India and Pakistan came to the brink of war again after an attack in December 2001 on India's parliament killed 12 people. New Delhi blamed the attack on Pakistani-backed Kashmir separatist militants.
Neither India nor the Global international community can consider this Kashmir dispute with benign neglect because the two nations have built up a military & nuclear arsenal: In response to Indian nuclear weapons testing, Pakistan conducted its own tests in 1998. However, The recent discussions between Pakistan and India may be a start toward lessened tensions (New Delhi and Islamabad have restored full diplomatic ties, reopened air links and resumed a bus service between Delhi and the Pakistani city of Lahore). Future relations between India & pakistan remain frosty in the immediate future
-Islamism in India
The thorny problem of Kashmir is not the only worry. With the growing muslim population in India, large scale religious violences can occur. Moreover, a growing muslim minority could campaign to secede ( With new muslim states). It represents a risk for India to disintegrate. In such a context, Pakistan and other islamic countries would support the muslim separatists. Due to fanaticism, a global war, including nuclear exchange could occur. The sub continent is the only region in the world where the nightmare of a nuclear confrontation could become a reality before 2030.
In this context, the Western countries, particularly America must support & strenghten its startegic ties with a friendly democracy like India. We cannot over emphasize the importance of forming a great international Alliance with India ( And China ) against international islamic jihad because it is the best demonstration tof the resolve that the global war against Islamism is not a clash of civilization or a clash between the rich and the poor's. But a clash of ideologies. One which h It will prove that it is the war of the united civilizations agaias buried its head in the sands and wannst a single barbarism.ts to drag its people back to the Middle Ages and the other that wants to spread the message of Freedom, religious tolerance and gender equality throughout our world.
India must work together with Japan and the Western Powers to be a force for good in South Asia and the world at large.