AP
What If...
What If We Had Embraced America?
Try as I might, I can't think how India would have lost on any dimension if it had taken the right turn in the early '60s. India's destiny is to be a world power, alongside China and America.
In 1947, India gained independence from the colonisers who had ruled us for over a hundred years. While Jawaharlal Nehru's love affair with the British was touching—and psychologists can help explain this obsession—it is still a mystery as to why he did not take to the economic policies of the master. Instead, he somersaulted to the exact opposite of what the masters believed in and embraced the economic framework of Russia. Why, if we bought the political freedom (democracy) line from the British, and loved them for imparting this freedom to us, did we also not buy the notion of economic freedom from them? Instead, almost literally, we bought the Russian/Stalinist model of deep and mindless control over economic freedom.

Not being a psychologist, but observing what happened from Nehru onwards, this ignoble act was undertaken in order to satisfy the urge to control. In that important sense, Nehru was not at all the great liberal he is mythologised to be by the cadre of so-called Nehruvian liberals, and India has paid a heavy price for it.

The liberals claim that if the British economic freedom model had been followed, we would have been "lackeys" of the leader of the free world, the US, and hence that path was not worth undertaking. I have never understood how being a Russian lackey, supporting the complete suppression of political and economic freedom, and supporting the invasion of Czechoslovakia and Afghanistan somehow made us "independent" of Russia. Nor did the world understand this hypocrisy, especially when it was accompanied by the non-proverbial begging bowl. In diplomatic circles, even today, India is reminded of its rather dubious role as a "non-aligned" leader. It is certain (as the recent Iraq experience has shown) that America would have graciously accepted our criticism of their role in Vietnam, and certainly accepted it more than the complete non-acceptance of any criticism by Russia.

But a far heavier price was paid by India in terms of its most important obligation—the removal of absolute poverty or the shirt on every back that Nehru so poetically talked about. While admittedly a counter-factual forecast, it's likely India's per capita growth between 1960-'80 would have been at least 4.5 per cent per annum, rather than the stingy 1 per cent annual Hindu rate that was delivered to us by the Nehru-Stalin economic policies of control. Now one can quibble about the exact magnitude, but recall that India itself, between 1950 and 1960, registered an annual per capita growth rate of 2.6 per cent; Pakistan (a US ally) growth rate during this period was almost 3 per cent; Korea was 5.4 per cent; Taiwan close to 6 per cent. China has followed the US model since 1978 and its per capita growth rate has averaged close to 8 per cent. Today, our per capita growth rate is close to 4.5 per cent.

By the early '80s, we would have eliminated absolute poverty and our present population growth rate of 1.6 per cent per annum would have been observed that much earlier. And we would have easily grown at 6.5 per cent, per capita, for the last 20 years—our target for the next twenty. Which means India's per capita income today would have been $10,000, about 20 times higher than what we observe, and about 10 times higher than China's today. That is the price unsuspecting Indians have paid because of its leaders' indulgence for the Soviet, rather than the US, model of economic development.

There are several additional reasons why the "liberal" path to hell was so wrong. Most importantly, the Russians were least like us; the one society that closely resembles ours is America. We are just as aggressive, arrogant, ugly, confident, entrepreneurial, greedy and capitalistic as any American. And we speak better English than the natives. Ask any of our Sikhs and our Patels and our Jains and our Reddys and our Chettiyars on this planet and you will know what I mean. We pride ourselves in being secular and heterogeneous; the Americans, like us, believe that religion is a private affair and heterogeneity is the spice of life, and a good economy and an even better polity. We strongly believe in democracy; the Americans showed to the world that democracy could work. We strongly believe in fairness as the Americans do; because of the Russian-scarcity model, we are all corrupt and even the judiciary needs a code of governance.

Would adoption of the American model have been without its attendant problems of "cultural imperialism"? What about India being flooded by beef-eating McDonald's, junk food, pizzas, Coca-Cola, Hollywood, rock and roll, jazz, MTV, blue jeans, American beer, computers and windows? Indian, especially tandoori chicken and dosas, and Chinese food is more universal than McDonald's. The latest food-fad-rage in the world is another Indian export: vegetarianism. India loves blue jeans so much that it soon will be its biggest maker. India soon will have the largest collection of software firms in the world. Every Indian loves a pizza, and loves it even more when guzzling it down with Kingfishers and blaming the Americans for their imperialism. And with all our Russian alignment, we still prefer our Scotch to their vodka.

But wouldn't baseball have replaced cricket? Ahh, spare a thought for the detractors. Did adoption of the Russian no-freedom model mean we got converted into expert pole-vaulting gymnasts? Is ice-hockey a sport even known to the sports-loving editors of this magazine, let alone a billion other people in India? The more likely scenario is that America would have adopted cricket sooner, and made our cricket board even richer. And our cricketers would have won more games, perhaps even some finals, because the money would have been more merit-oriented!

Try as I might, I can't think how India would have lost on any dimension if it had taken the right turn in the early '60s. India's destiny is to be a world power, alongside China and America. Perhaps us going the wayward Russian way was a cia strategy which actually succeeded!


Surjit Bhalla is the author of Imagine There's no Country.


New York 1751: What if America had embraced cricket, a game first played there in 1709?

 
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HAVE YOUR SAY
Aug 21, 2004 12:00 AM
8
I am already subcriber of your magazine,spl. this "collector' issue is excellant.I salute Mehta,Deb & his team for providing good reading.
My friends & relatives to whome I forwarded by Email,also appreciated this issue.We again thanks all your contributers to give us a nice struff with full information.I preserve this copy.
S.K.Sharma
New Delhi, India
Aug 20, 2004 12:00 AM
7
Commonsense suggests that in order to be rich, one has to associate oneself with the rich ... and do business. But our new congress govt is hoping that India gets rich by associating ourselves with assorted beggars ...

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Asia, Africa need to define new multilateralism: India

PTI[ FRIDAY, AUGUST 20, 2004 07:23:48 PM ]

DURBAN: Advocating a new strategic partnership between Africa and Asia, India on Friday highlighted the importance for the two continents to shape a multilateral order and jointly resolve to eliminate poverty, hunger, illiteracy and disease.
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Dharmayudh Singh
Philadelphia, USA
Aug 17, 2004 12:00 AM
6
i would disagree with mr. bhalla when he tends to say 'the american way was the way where everything is right'. but that is all my difference of opinion is with him.

i have no doubts that having gone the way of of the soviet-communist style indira and congress did us great harm two whole post independence generations were denied an atmosphere where entrepreneurial and competency ratings wouldhave lead to innovation and progress.

as an example: how long did it take for the tatas to blaze a historic trail with theier indica model once the license permit raj was watered down? they snared Tetley of UK to emerge one of the largest tea market players in the world.

aditya birla, kumarmangalam birla's father, in short life of 52 years set uo 70 factories across six continents. his legacy is such that the AV birla group today is largely insulated from the indian economy's ups and donw, because their prime assets lie outside india. and to think that once when aditya birla was offered directorship of a foriegn firm, the indian government took seven months to give him 'PERMISSION' and threatened prosecution, if he rushed the matter.
i believe the only silver lining here is the birlas did not leave india for ever. they had faith in and respect for their motherland. which the 'india is indira' congress did not have. and the goldden line is that their faith and love for their mother land today comes back to them, as they grow in stature globally and slowly return their operational hubs to india.

i guess when we see that reliance prospered through the license permit raj and tata-birla-godrej's stagnated, we would know what was the entrepreneurial atmosphere in india.

how many entrepreneurs who were not to be?

how many entrepreneurs who were stifled?

how many who would have left behind the line of poverty a generation ago but will now will have to wait for another generation to do so?

the what and how many list is too long and traumatizing to go on. but let us hope that the bunch of baboons who created the license permit raj shortage economy who are today disoriented pretentious high preists of free market due to their inability to get out of 'state controlled everything' mindset can do less and less harm to the nation and its people as time passes.

all in closing, i would mention that it is not globalization which would let us donw. but the immoral corrupt disoriented baboonic polity which would do so.

because anything is as good as the people managing it. remember some of the poorest countries of africa and the world are amongst the most free trade orineted countries of the world.
Kiran
Bangalore, India
Aug 17, 2004 12:00 AM
5
Surjit Bhalla as usual has an opinion of a contrarian, challenge everything that is known as conventional wisdom, even if you do not have a clue of the how the concept came to being in the first place, and then become a media-induced opinion maker. Isn't he the guy who rubbished the World Bank model of poverty estimation and said that far more is spent in India for poverty alleviation than is necessary. And then he will have his own flawed argument.
Instead of blaming Nehru ( as is the fashion among the progressive thinkers) why he had adopted the Russian model, he should have made the habit of reading the economic history of the world in the post-World War II era (he does not need anyreading anyway to shoot out his opinion.)
Around the world the free markets were losing their appeal in since the great depression and accentuated further after the WWII when the war ravaged Europe was going through a phase of reconstruction. Keynesian economics was appealing to the economists, state control was finding favor among the economists globally and the Welfare Economics was becoming very popular. The World Bank was set up ( it was for reconstruction of Europe as well ) to give assistance to the development of newly liberated colonies. The contemporary thinking was that the growth and development would happen at an accelerating pace by government spending through public enterprises and not by the private sector enterprises. In fact the concept of development banking popularized by the World Bank stuck to this mode of thinking for many years.
It will be idiotic to believe that Nehru shunned the British economic model, in fact around the same time Great Britain itself embraced the public sctor and state enterprises that dominated the British economy until Margaret Thatcher came to dismantle it. Mahalanobis model was not Nehru's way of imitating Soviet Union, but the outcome of the contemporary economic thinking across the world. Even United States itself was not as freely reliant on markets as Mr. Bhalla would want us to believe. In fact Nixon went so far as to implement a wage fixing arrangement. The University of Chicago School of economists were not as influential in 1950s or early 1960s in the policy level.
Mr. Bhalla surely will not change his way of stating his opinions with minimum background search, but the readers should note that the free market started becoming popular as an economic theory only after the world was realizing the limitations of state controlled economies from 1970s.
D Chakraborty
New York
Dipto Chakraborty
New York, USA
Aug 17, 2004 12:00 AM
4
I have just read an article about how Jyoti Basu has visited China many times and seen the fantastic development there. His comment-India will never be like China. Laloo Prasad has also
decreed. Dont thinks that India will ever be like Singapore or the USA.

I would be surprised also if other Indian commies had not visited China, for free medical treatment or just for fun. However they have also returned having learnt nothing.

They are so scared of some Indians getting richer,that they have chosen the alternative. Mao's doctrine. All shall eat rice from the same iron bowl.

People who expect something from this congress, commie and laloo raj can keep waiting till hell freezes over. There will be no goodies.
lalit bagai
kalundborg, danmark
Aug 16, 2004 12:00 AM
3
Bhall saab,

Yes ... totally agree that Inda should have danced the Bhangra with the US instead of the USSR ... maybe then we would have been richer ... and Pakistan would have welcomed the Russians in Afghanistan. Heck they would have killed Afghans to please their Soviet Masters just like the Pakis kill Ugyurs to please their Chinese masters ... Afghan society became secular when the Soviets were around until the stupid Americans started funding the jihadis ... perhaps Pakistan would also have been more secular under the Soviets ... we would have someone like Tito rahther than someone like Zia ...
Dharmayudh Singh
Philadelphia, USA
Aug 15, 2004 12:00 AM
2
If wishes were horses... Sadly authors opinion is only shared by those who are reaping the benefits of globalization. there has to be a way to involve rural and not so educated population in the race of globalization. We are late starters, we need to run faster to recover for the time we lost in Nehruvian fantasies of socialism.
Parminder
Noida, India
Aug 15, 2004 12:00 AM
1
Jesus H Christ. For the first time ever Outlook has published an article with lots of plain, sound commonsense.Whats up Chamcha, getting weak in the knees.

I am enjoying the moment, because I have been
sending a similar message for years.

Now I am waiting for the leftists to be seized
by rage,pound the floor , froth at the mouth,tear their hair,against the dreadful
fascist author, and America the evil empire.

However I intend to celebrate. Hey come up with the pizza a large kingfisher, and a starbucks coffee .
lalit bagai
kalundborg, danmark
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