India has much more to learn from the economic progress made by Japan, South Korea and Taiwan who have achieved spectacular growth of more than nine per cent annually for over the last four decades each, an Indian- origin economist has said.
Prasenjit Kumar Basu, a Singapore-based writer and an economist, in his book ‘Asia Reborn’ writes that agrarian reform combined with heavy investments in education, skills- development and infrastructure provided the underpinning for the success of the institutions of an elaborate developmental state.
“Japan, Taiwan and South Korea have achieved spectacular economic growth of more than nine per cent annually over four decades each,” he writes in his book ahead of its release.
A “hard state” enabled credit to be directed only to the most competitive companies who achieved export targets, and the intense competition domestically helped prepare their companies for global export leadership, he writes.
Basu argues that India’s civil service and constitution, based on the 1935 Government of India Act, impeded the effective pursuit of development not only because India had a soft state, but also because the civil service was aimed at colonial control rather than economic development.
He said the book’s detailed history of India and Asia highlights how the economic development models of East Asian countries can serve as a manual in India’s quest to convince global businesses to ‘Make in India’.