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- India controlled a small percentage of global trade in the past due to stagnation in the agriculture sector. Nehru and other planners attempted to industrialize through state-led development but ignored economic freedom.
- Indian society had traditional contempt for manual labor and entrepreneurship. As a result, India failed to produce innovation or experience an industrial revolution and had an inefficient public sector that stifled private enterprise.
- Reforms in the 1990s increased competition but caste loyalties still influence business and society. Further reforms are needed to accelerate growth, including improving education, governance, and continuing market liberalization.
- India controlled a small percentage of global trade in the past due to stagnation in the agriculture sector. Nehru and other planners attempted to industrialize through state-led development but ignored economic freedom.
- Indian society had traditional contempt for manual labor and entrepreneurship. As a result, India failed to produce innovation or experience an industrial revolution and had an inefficient public sector that stifled private enterprise.
- Reforms in the 1990s increased competition but caste loyalties still influence business and society. Further reforms are needed to accelerate growth, including improving education, governance, and continuing market liberalization.
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- India controlled a small percentage of global trade in the past due to stagnation in the agriculture sector. Nehru and other planners attempted to industrialize through state-led development but ignored economic freedom.
- Indian society had traditional contempt for manual labor and entrepreneurship. As a result, India failed to produce innovation or experience an industrial revolution and had an inefficient public sector that stifled private enterprise.
- Reforms in the 1990s increased competition but caste loyalties still influence business and society. Further reforms are needed to accelerate growth, including improving education, governance, and continuing market liberalization.
Droits d'auteur :
Attribution Non-Commercial (BY-NC)
Formats disponibles
Téléchargez comme PPTX, PDF, TXT ou lisez en ligne sur Scribd
m Problem was agriculture, which remained stagnant m Jawaharlal Nehru & his planners attempted to industrialize the country through the state m India also put political freedom before economic freedom m Indians traditionally had a Brahminical contempt for manual labor m Indian entrepreneurs, who come mainly from the higher merchant caste have shied away from manual labor and technology m As a result, India did not produce innovation and failed to create an industrial revolution. m India will be well placed to compete in the knowledge society. m it adopted an inward-looking, import-substituting path, rather than an outward-looking, export promoting route. m it set up a massive, inefficient, public sector to which it denied operational autonomy, resulting in heavy unproductive investments. m it over regulated private enterprise with the worst controls in the world, leading to diminished competition. m it discouraged foreign capital, denying itself the benefits of technology and world-class competition. m it pampered organized labor to the point where the country had extremely low productivity. m perhaps most important, it ignored the education of children. m two competing visions at the time of independence:
m Mahatma Gandhi opposed modern urban industry
m Nehru had a modern scientific mind, was much impressed by the economic gains of the Soviet revolution m Nehru taught Indians to be liberal and tolerant. m He inculcated in Indians a respect for democracy and a distaste for feudal behavior. m He infected us with his idealism. m But he also reinforced our prejudice against businessmen and profit. m India primarily focused on how to raise savings and thereby increase investment m Their innocent faith in state companies turned out to be altogether misplaced m lack of training, autonomy, and accountability of the senior managers in the public enterprises m The British Raj was the most important event in the making of modern India m They gave India modern values and institutions, but did not interfere with the country¶s ancient traditions and religion m Britain also divided India into two nations-the 10 percent elite who learned English and shut out the 90 percent who did not m Äas argues that the Indian colony was not terribly profitable to Britain m Äas argues that there was no British conspiracy to deliberately under invest in India, or to sabotage Indian business interests m Äas admits that in the eighteenth century, the British plundered and looted India's wealth m India also had an experienced merchant class to take full advantage of the circumstances. m it is more important to consider economic factors that motivate an entrepreneur to invest in a business m The key lies in reducing regulation and providing incentives. m Americans are positive and optimistic. m India pursued faulty policies guided by a misguided sense of socialism m The key is to try to ensure that everyone has an equal start in life and can hope to rise to the top. m Alleviating poverty is more important than achieving equality m the much aligned cast system tends to promote trust. m Traditionally, Indian merchants engaged in trade, cover vast distances m it was important to have members of one¶s caste and kin in sensitive positions. m With liberalization in the 1990s, competition has become fierce and survival is at stake. m Caste loyalties seem now to be diminishing m Äas argues that there has never been a significant ³caste barrier´ to entry in modern jobs m He believes that being endowed with commercial castes is a source of advantage in the global economy m the caste system is also responsible for at least some of our industrial failings m worlds of knowledge and labor remained separate and inhibited technological innovations m In other countries, the entrepreneur¶s battle is with competitors but in India, the main enemy is the government bureaucracy m Indira Gandhi¶s government became even more rigid m In the past ten years, the government has been trying to undo the mistakes of the past m The new middle class is confident, full of energy and drive and is making things happen. m It has had to fight to rise from the bottom, and it has learnt to maneuver the system m The chief difference is that there is less hypocrisy and more self-confidence. m the most powerful and immediate reform for the poor is more and better primary schools and primary health centers m Indian companies are still small in size by global standards m managerial capitalism depends partly on the Indian society¶s ability to build ³social capital.´ m Trust and cooperation are necessary for a well functioning market m High trust can dramatically lower transaction costs, corruption and bureaucracy. m The bigger failing of Indian companies, is that they venture into unrelated business in an opportunistic fashion m To be globally competitive, Indian companies must focus on a single area of competence m They must not ignore quality even when they are pursuing a low-cost strategy m the country needs are good economic policies m The Far East countries emphasized labor- intensive manufacturing for export m It made scarce capital cheap, labor expensive, overvalued our exchange rates, and reduced competitive pressures. m India has not yet begun a serious reform of the educational system m capitalism's success in India is threatened not so much by the leftists or protectionists as by the timidity of its defenders m The new India is increasingly one of competition and decentralization m the country must seize the moment and improve governance and accelerate the reforms m The reform process will evolve through a daily dialogue between the conservative forces of caste, religion, and the village °