Second Largest Nation in the World Scraps Socialism
India is the world’s second largest country, and by some measures, its third largest economy (having recently passed Japan in GDP adjusted for purchasing power). Its new Prime Minister, sworn in last week, is promising revolutionary roll-backs in the size of government. India was famous for being a pioneer in the socialism of the non-aligned world during the cold war, but the model was a failure. And they didn’t really invent it anyway; it was a holdover from the British Imperial Raj system.
The English-speaking world (UK, Ireland, Canada, Australia, New Zealand, Israel) is moving towards free markets. But not South Africa and the United States, at least not yet. But if we think it was tough to compete with India when they were socialist, just think what it will be like to try to compete with them as they move closer to capitalism.
“Mr Modi, who had pledged to deliver “minimum government, maximum governance” if elected, has also signaled his intention to attempt serious reform of India’s bloated and inefficient bureaucracy, with the de facto merger of many ministries.
“In a statement issued less than 24 hours before the swearing in, the office of the prime minister-elect announced what it called a “rationalisation” of government ministries to improve co-ordination, efficiency and speed of decision-making.
“While the statement gave no precise details, it said ministers will be appointed to head “clusters of ministries” that have long had complementary areas of responsibility.
“The statement said Mr Modi eventually hopes to institute a system of “smart governance where the top layers of government will be downsized and there would be expansion at the grass roots level”.”