PDF Summary:India Is Broken, by Ashoka Mody

In India Is Broken, Ashoka Mody details how India's post-independence development strategies and the subsequent policies implemented sowed the seeds for many of the country's economic and societal issues. He argues that Nehru's vision for rapid industrial growth neglected crucial sectors like agriculture and human capital investment, leading to widespread inequality and a lack of opportunities for the masses.

Mody also examines how an erosion of democratic norms during Indira Gandhi's tenure allowed corruption to permeate all levels of society. He contends India's economic growth in recent decades has been uneven, masking a growing rich-poor divide and a deterioration of the social contract—factors hindering the country's progress as a unified nation.

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Nepotism and favoritism distort economic incentives, resulting in the financial gain of individuals who have ties to the political elite.

Mody depicts how Mrs. Gandhi utilized government mechanisms to reward her supporters and penalize her opponents. Firms received favorable treatment due to their monetary contributions to the Congress Party. Criminal syndicates have established a strong presence within the political sphere. Industrial magnates manipulated the expansion approval process to create a monopolistic environment that benefitted their preferred enterprises. Mody also discusses how her political agenda shaped policies. The author highlights that the nationalization of fourteen banks in 1969, which appeared to be aimed at assisting the poor, in reality, was a strategic maneuver designed to strengthen her power by creating a constituency dependent on these banks, thereby increasing their loyalty to her.

Other Perspectives

• In some cases, individuals with ties to the political elite may be well-qualified and their financial gain could be a result of their competence rather than their connections.
• The actions attributed to Mrs. Gandhi could have been exaggerated or misinterpreted by political opponents or by those with a vested interest in undermining her leadership.
• Favorable treatment could be a result of transparent and legal lobbying efforts rather than illicit monetary contributions.
• Some political systems have robust checks and balances that effectively limit the power and influence of criminal organizations within the political sphere.
• Industrial magnates may argue that the expansion approval process is based on merit and the viability of business plans rather than manipulation.
• Nationalization could also be defended as a measure to protect the interests of depositors and to prevent the concentration of wealth, which is a legitimate concern for any government.
• Creating a dependent constituency through bank nationalization could be an unintended consequence rather than a deliberate strategy, with the primary intent being to serve the public interest.

The fusion of political activities with organized crime has resulted in their criminalization.

Mody contends that the unintended consequence of the 1969 prohibition on corporate donations to political entities was the increased involvement of individuals with criminal backgrounds in politics. The author ascribes the heightened infiltration of criminal elements into India's political spheres to this ban. After being prohibited from officially supporting political parties, corporations started to channel their support through unregulated financial conduits. Political entities gravitate towards the robustness and monetary backing that criminal factions offer. The domain of governance became compromised due to the infiltration of individuals who broke the law.

Practical Tips

• Encourage transparency in political funding by supporting local initiatives that require candidates to disclose their financial backers. This can be as simple as signing petitions or voting for measures that aim to make political funding more transparent. If such an initiative doesn't exist in your area, consider starting a conversation with your community members or local representatives about the importance of financial transparency in politics.
• Engage in shareholder activism if you own stocks in a corporation by attending shareholder meetings or using your voting rights to influence corporate policies on political contributions. You can propose or support resolutions that call for greater transparency or restrictions on how the corporation engages in political financing. This empowers you to directly affect the company's political engagement strategies.
• You can analyze local political campaigns to identify potential influences by tracking campaign financing sources. Look into the financial disclosures of candidates in your area to see who their donors are. If you notice large contributions from organizations with unclear affiliations, this could be a sign of the influence you read about. This helps you become a more informed voter and community member.
• Start a habit of writing to your local representatives about your concerns regarding governance and criminal infiltration. By expressing your views and asking for transparency and accountability, you contribute to a culture of civic engagement and pressure for higher standards in governance.

Employment of Polarizing Language

The author scrutinizes how the ex-Prime Minister utilized language tactics to emphasize societal splits along religious and caste lines, which in turn fortified her political stance and her party's, leading to the weakening of the secular bedrock of India's governance while diverting attention from the economic deficiencies of her leadership.

The manipulation of religious and caste differences has intensified as society becomes more divided, with attention increasingly diverted from economic issues.

Mody depicts how the previous head of government deliberately exacerbated religious tensions, which escalated the conflict surrounding demands for Sikh sovereignty in 1966, and then capitalized on Hindu-Muslim conflicts to fortify her image as a protector amid hostilities from the adjacent country. She also capitalized on the concerns of lower caste groups, yet her attempts to improve their opportunities for fair treatment had little impact.

Other Perspectives

• There could be instances where religious and caste identities are strengthened as a form of cultural or community affirmation, rather than being manipulated for divisive purposes.
• International organizations and trade agreements often necessitate a focus on economic issues, as they require countries to adhere to certain economic policies and standards.
• The previous head of government's actions may have been a response to existing tensions rather than a deliberate attempt to exacerbate them.
• Some historians might suggest that the conflict was inevitable due to the deep-rooted issues within the region, and the government's role was marginal in the escalation.
• Leaders may not always have direct control over religious conflicts, as these can be the result of long-standing societal tensions that are not easily manipulated for personal gain.
• The emphasis on the leader's role as a protector could have overshadowed her other contributions to the country, such as economic reforms or social welfare initiatives.
• The impact of initiatives aimed at improving opportunities for lower caste groups may not be immediately visible and could take a longer time to manifest in society.
• The perception of little impact might be due to the criteria used to measure success; other indicators might show more positive changes.

The decline in secular values has resulted in reduced harmony and lessened peace between different communities throughout the country.

Mody argues that the deliberate maneuvers by Mrs. Gandhi, which took advantage of differences in caste and religion, accelerated the erosion of India's shared national identity. Her actions impeded the establishment of widespread harmony after the nation gained its sovereignty. Her advancement of crony capitalism, while ostensibly adhering to socialist principles, intensified divisions within society.

Practical Tips

• Encourage your workplace to implement a 'Cultural Exchange Mentorship' program. Pair employees from different backgrounds and encourage them to share their personal and professional experiences. This initiative can help reduce unconscious bias and foster a more inclusive environment, countering the kind of divisions mentioned.
• You can foster harmony in your community by starting a 'Share Your Story' initiative where neighbors are encouraged to tell their personal histories and experiences post-independence. This can be done through a simple newsletter, social media group, or community board. By sharing diverse perspectives, you help build empathy and understanding, which are key to establishing harmony.
• Develop a habit of questioning the motives behind political and business leaders' actions by starting a "critical thinking" discussion group with friends or colleagues. Use current events as a starting point, and discuss whether the actions of these leaders are consistent with their stated principles. This will help you become more discerning and less likely to accept statements at face value.

India has faced challenges in developing human skills and generating employment opportunities that enhance productivity.

India's journey toward achieving growth that simultaneously creates ample job opportunities and improves the skills of its workforce has been fraught with difficulties, despite the country's efforts to reform its economic and policy sectors since the early 1990s. India's neglect of educational progress, along with an excessive emphasis on technological solutions, led to a slow growth in manufacturing jobs, compelling many entering the job market to accept roles in the informal sector, characterized by widespread underemployment.

The sector of manufacturing has not experienced considerable growth.

Despite several efforts, India has not matched the progress of its Asian peers in establishing a manufacturing sector that can produce globally competitive and high-quality products. The author highlights that the failure to keep pace with the expansion of international competitors has resulted in a standstill in manufacturing jobs, forcing many people to accept positions in the informal sector that offer low wages and lack productivity.

Inadequate productivity and quality concerns hinder the ability to compete effectively on a global scale.

Mody argues that in the 1990s, India's proponents of liberal reform failed to address the significant decline in worker productivity, which canceled out the advantages of having low-cost labor. Despite implementing incentives to stimulate investment in its manufacturing industries, India saw its once-dominant market positions usurped by competitors from East Asia. The author emphasizes that the roots of this ineffectiveness can be traced back to the early 20th century, emphasizing the rapidity with which mills in Japan surpassed those in India within the global textile market. Ashoka Mody posits that in the arena of labor-intensive goods, China has become India's principal competitor.

Other Perspectives

• Worker productivity is a complex issue that may require more than just economic reforms to improve, including education, skill development, and health care improvements.
• Low-cost labor can still be a significant advantage if coupled with other competitive factors such as innovation, quality control, and access to global markets.
• The effectiveness of incentives can be diluted if they are not well-targeted or if they inadvertently create market distortions.
• The narrative of East Asian countries usurping India's market positions does not account for the possibility that India's internal market growth and consumption have compensated for the loss of certain export markets.
• It could be argued that the liberal reforms of the 1990s and subsequent policy decisions had a more immediate impact on India's productivity and competitiveness than historical factors.
• The success of Japanese mills also stemmed from significant government support and industrial policy, which may not have been as robust in India during the same period.
• The dynamics of global trade are constantly evolving, and recent geopolitical shifts and trade policies could alter the competitive balance, potentially reducing the emphasis on China as the principal competitor.

India's inability to concentrate on sectors that heavily rely on labor and its unsuccessful attempts to emulate the export-oriented growth strategies of East Asian nations.

Mody argues that India's economic liberalization failed to generate job-rich growth because it did not use devaluation to encourage the export of labour-intensive products. East Asian nations, starting with Japan after World War II followed by Taiwan, Korea, and most spectacularly by China, had achieved high rates of growth and created plentiful jobs by producing for global markets. Concerned about the potential national humiliation that could result from currency devaluation, Indian policymakers continued to impose trade restrictions, leading to domestic inefficiency and obstructing the creation of job opportunities for a vast number of people.

Other Perspectives

• Over-reliance on exports can make an economy vulnerable to global market fluctuations, and a more balanced approach that also fosters domestic demand might be more resilient.
• The export-led growth model of East Asian nations has often been accompanied by labor practices that have raised concerns about workers' rights and working conditions.
• Other nations have devaluated their currencies without experiencing national humiliation, suggesting that the stigma associated with devaluation might be overstated.
• The inefficiency in the domestic market could also be due to the lack of adequate policy support for small and medium enterprises, which are often the backbone of labor-intensive sectors.
• Some trade restrictions are aimed at preserving national security, which includes maintaining a workforce skilled in strategic industries.

Continuing Agricultural Distress

The author underscores that despite the boost in grain production in irrigated regions due to the Green Revolution, Indian agriculture was in a deep crisis by the early 2000s. Farmers grappled with increasing debts and erratic rainfall, and they also had to deal with the rising expenses associated with vital inputs for production. Individuals transitioning away from farming had no choice but to pursue the scarce job prospects in construction and casual employment, given that their income was stagnant and there were no alternative career paths available, especially in the lucrative manufacturing sector.

The subdivision of agricultural land reduces its suitability for cultivation and intensifies the burden of indebtedness.

Mody explores the way in which the continual division of land through successive generations has rendered agriculture increasingly unsustainable, particularly for small-scale farmers who are compelled to incur debt in order to adopt technologies like improved crop strains. Diminished agricultural production resulted in mounting debts for numerous farming households, tragically culminating in a higher incidence of suicides among farmers.

Context

• Subdivision can lead to increased land disputes among heirs or neighboring farmers, which can further disrupt agricultural activities and reduce productivity.
• The pressure of debt can have severe social consequences, including stress and mental health issues, which have been linked to the tragic phenomenon of farmer suicides in India.
• Small-scale farmers may have limited access to formal credit sources, forcing them to rely on high-interest loans from informal lenders.
• Unpredictable weather patterns, such as droughts or floods, can devastate crops, leaving farmers unable to repay loans and increasing financial stress.

The situation in the countryside worsens with the depletion of groundwater and the rising costs of vital supplies.

Mody emphasizes that the surge in electric well usage has resulted in lower groundwater levels, which in turn has compounded the challenges for Indian farmers by increasing the expenses related to cultivating crops. The increase in spending was further intensified by the soaring costs of specially engineered seeds for high-yielding crops. The shift towards modern farming techniques has plunged many small farmers into deep debt because of high costs and low returns, driving some to view suicide as their sole escape from economic distress.

Practical Tips

• You can reduce your personal water usage by installing a rainwater harvesting system at home. This system collects rainwater from your roof, which can then be used for gardening, flushing toilets, or washing cars, thereby reducing the reliance on groundwater. For example, using a simple barrel connected to your gutter downspout can start you on rainwater collection.
• Start a community initiative to plant drought-resistant gardens and landscapes. These plants require less water, which can help conserve groundwater. By encouraging neighbors and local businesses to participate, you create a collective effort that multiplies the impact on groundwater conservation.
• Consider joining or starting a community seed exchange to access a variety of seeds without the high costs. In such exchanges, members share seeds from their own gardens, offering you the opportunity to try different crops without purchasing new seeds each season. This fosters a sense of community and encourages sustainable gardening practices.
• You can support small farmers by purchasing directly from them or through local farmers' markets, which helps to bypass the high costs associated with modern farming techniques. By doing this, you're investing your money into the local economy and helping small farmers get a better return on their produce. For example, instead of buying fruits and vegetables from a supermarket, find a local market or farm stand where you can buy fresh produce.
• Consider volunteering with organizations that offer financial counseling and mental health support to farmers. Even if you're not a trained counselor, these organizations often need help with outreach, fundraising, or administrative tasks. Your involvement could help expand the resources available to farmers in economic distress.

Farm laborers and rural residents are driven to search for inconsistent work in urban areas due to a lack of alternative opportunities.

Employment, many agricultural workers and their families, already struggling with financial burdens, felt the necessity to migrate to urban areas due to the scarcity of job prospects beyond the agricultural domain, especially in manufacturing, finding themselves in sectors like construction, trade, and other areas typically marked by informal jobs that offer limited productivity and little opportunity for significant income. Mody observes that the nature of these positions involved extended periods of inactivity, leading to a situation where city newcomers, unsure of when they would next earn, were perpetually vulnerable to unexpected economic difficulties.

Other Perspectives

• There are examples of rural areas that have successfully attracted industries or developed niche markets, providing stable employment opportunities without the need for migration to urban centers.
• The skills of farm laborers might be more transferable than implied, allowing them to secure better positions in manufacturing or other industries with minimal retraining.
• Informal jobs in urban areas can serve as a stepping stone, providing initial employment for rural migrants before they transition into formal sectors with better income prospects.
• Urban employment can also include formal jobs with regular hours, challenging the notion that inactivity is a defining feature.
• The presence of community organizations and charities in cities can help mitigate the impact of economic difficulties for newcomers.

Upon achieving independence, India encountered numerous economic and political challenges, along with shortcomings in its strategic outlook.

India's economic growth in the early 21st century masked the true cost of the widening gap between the wealthy and the poor. The portrayal of India as a haven of wealth for a minority starkly contrasts with the unstable and fragile circumstances that the vast majority endures. Despite India's shift towards a market economy with liberalized policies in 1991, there was a persistent erosion of norms and oversight, which resulted in weakened democratic institutions and governance.

The portrayal of India as a thriving and dynamic nation was unsustainable.

The vigorous growth of the economy in India, despite being ultimately unviable, led to increased social unrest because the majority of individuals were stuck in unstable employment in the informal sector, which provided little opportunity for progress. The official figures suggested a reduction in poverty levels, but this was simply due to establishing a very low threshold for subsistence.

A society characterized by pronounced disparities and an evident stratified system has developed because of the gap between progress in the economy and advancements in societal conditions.

The writer argues that the portrayal of a thriving India masked the actual condition of an economy plagued by growing disparities and fragmentation. Throughout periods of considerable economic growth, a large portion of India's workforce remained in jobs that provided limited opportunities and advantages. During the 2000s, the IT sector saw significant growth in the southern regions, whereas the northern heartland was marked by a stark halt in economic progress, home to a population exceeding one hundred and forty-one million.

Context

• Historical factors, such as colonialism or past economic policies, can influence current disparities by shaping economic structures and social hierarchies that persist over time.
• Disparities in access to quality education and healthcare services further entrench economic inequalities, as these are crucial for improving individual economic prospects.
• Social stratification, including caste-based discrimination, continues to limit access to opportunities for many individuals, affecting their ability to secure jobs that offer advancement and benefits.
• The presence of prestigious engineering and technology institutes in the south provided a steady supply of skilled graduates, fueling the IT boom.
• Educational attainment in the northern states is generally lower, affecting workforce skills and employability, which in turn impacts economic progress.
• The high population density in the northern heartland puts additional pressure on resources and infrastructure, exacerbating issues related to employment and quality of life.

The persistent conditions of impoverishment and instability mask the deep-seated challenges that deceptive statistical figures often hide.

Mody emphasizes that the criteria for measuring poverty alleviation in India are both antiquated and unduly modest, leading to a distorted view of advancements made in reducing poverty. A considerable number of people in India have consistently been at risk of joblessness and financial insecurity as a result of health crises, monetary calamities, or the capricious choices made by employers and those who own land.

Practical Tips

• Create a personal poverty awareness index by tracking local news stories, social media posts, and community discussions about poverty in your area. Use this index to gauge the real-world impact of poverty around you, beyond just the statistics. You might notice, for instance, an increase in food bank usage or stories of housing insecurity that aren't reflected in official figures.
• Create a simple budgeting plan to support products and services from socially responsible companies. Research companies that contribute to poverty reduction and allocate a portion of your monthly budget to purchase their products or services. This consumer choice reinforces the economic cycle that supports poverty reduction.
• Create a personal financial emergency plan by setting aside a small portion of your income each month into an emergency fund. Use automatic transfers to a dedicated savings account to ensure consistency. This fund will act as a buffer against financial insecurity during unexpected health crises or monetary calamities.

The social contract has been progressively eroding.

The author suggests that the beginning of economic reforms marked a slow decline in the social contracts that unite India, resulting in weakened communal trust and social norms, which in turn hampers collective efforts and the efficiency of democratic governance.

The decay of societal norms and a reduced level of confidence hinder the ability to work together and take joint action.

The economic growth of India during the 1990s and 2000s, though notable in GDP terms, did not result in the establishment of impressive standards. The approach to fostering economic expansion fostered an environment where flouting regulations and seeking short-term gains at the expense of others proved to be more advantageous. In this culture dominated by self-interest, there was scant regard among the populace and their representatives for engaging in sustained collective efforts aimed at societal advancement. The decline in standards resulted in widespread misconduct in public services, an increase in hazardous financial activities, and a disregard for environmental safeguards.

Context

• The stark contrast between urban and rural areas in terms of infrastructure and opportunities can create divergent interests, complicating joint initiatives.
• Confidence is essential for fostering an environment where innovation can thrive. When individuals and organizations feel secure and supported, they are more likely to experiment and collaborate on new ideas.
• The period saw significant instances of corruption, which undermined public trust and hindered effective policy implementation.
• The rapid economic changes outpaced the development of regulatory frameworks. This gap allowed businesses to exploit loopholes, prioritize short-term profits, and often ignore ethical considerations.
• The emphasis on individual success and wealth accumulation contributed to a cultural shift away from community-oriented values, affecting social cohesion and trust.
• The rapid adoption of technology and social media has transformed communication but also contributed to the spread of misinformation, which can hinder coordinated societal efforts.
• Delays and backlogs in the judicial system have often resulted in a lack of timely justice, allowing misconduct to go unchecked.
• A significant portion of the population lacks adequate financial literacy, making them vulnerable to fraudulent schemes and risky financial products. This exacerbates the impact of hazardous financial activities.
• Although India has environmental laws and policies in place, the gap between policy formulation and implementation has often led to ineffective environmental protection.

The effectiveness of democratic oversight has diminished, leading to the implementation of stringent actions by the authorities, causing the populace to endure hardships.

Mody contends that the growing dependence on officially sanctioned force stems from a significant erosion of democratic responsibility. The author emphasizes the increasing occurrence of illegitimate confrontations staged by law enforcement, leading to the extrajudicial deaths of demonstrators and activists, especially in the first two decades following the nation's liberation. The author expresses concern over the backing from society and politics for such repressive strategies, along with a lack of mechanisms to improve accountability.

Practical Tips

• Create a 'Vote with Your Wallet' spreadsheet to track how your spending aligns with democratic values. By researching the companies you buy from and noting their political contributions, lobbying activities, and corporate governance, you can make more informed decisions that reflect your commitment to democracy. For instance, if you find out a company supports policies that undermine democratic processes, consider finding an alternative that better aligns with your values and document the change in your spending habits.
• You can educate yourself on your legal rights during police encounters by attending a local workshop or online course. Knowing your rights can empower you to handle confrontations with law enforcement confidently and legally. For example, you might learn the extent of your right to remain silent, the conditions under which you can legally record an encounter, or how to consent to or refuse a search.
• Start a virtual book club focused on non-violent conflict resolution. Invite friends and community members to read and discuss books that offer insights into peaceful protest and effective activism. This encourages a culture of learning and non-violence, and equips participants with knowledge that can be used to advocate for change in a constructive manner.
• Engage with your local community by volunteering for an oral history project that documents personal stories from the first twenty years post-liberation. By interviewing older community members, you can collect firsthand accounts that textbooks may not cover. This can give you a more nuanced understanding of the period's incidents and their long-term effects on individuals and communities.
• Create a 'diversity digest' for your personal reading list, where you intentionally include authors and thinkers from backgrounds and ideologies different from your own. By doing this, you expose yourself to a variety of perspectives, which can help you understand the value of a pluralistic society and the dangers of supporting repressive measures against those who think differently.
• Partner with an accountability buddy for mutual progress checks. Find a friend or colleague who also wants to improve their accountability and agree to weekly check-ins. During these sessions, share your progress on personal goals, provide feedback to each other, and discuss challenges. This mutual support system can help maintain focus and motivation.

The rise of extremism and intolerance is undermining the unity and fabric of society, which are essential for keeping the nation united.

The author highlights that despite India's substantial economic expansion during the 1990s and 2000s, the absence of corresponding progress in economic and social areas resulted in a public sphere that grew increasingly intolerant, a trend distinctly manifested in the escalation of fervent Hindu nationalist feelings. The BJP's electoral triumph in 2014 marked a significant transition towards a more authoritarian ideology that aimed to prioritize Hindu supremacy. The writer contrasts this divisive belief system with the foundational values of India, which emphasize dedication to democratic ideals, embracing a multitude of cultural traditions, and promoting the welfare of all.

Context

• Extremism and intolerance often disproportionately affect minority communities, leading to discrimination, violence, and social exclusion. This can undermine social cohesion and create an environment of fear and mistrust.
• Key social indicators such as literacy rates, health outcomes, and access to clean water and sanitation showed slow improvement, highlighting a gap between economic growth and social development.
• While there is a strong tradition of civil society activism in India, increasing intolerance has sometimes led to a crackdown on dissent and reduced space for dialogue and reconciliation.
• The rise of Hindu nationalism has drawn international attention and concern, with some viewing it as part of a global trend of rising nationalism and populism.
• Critics of the BJP's governance often point to increased centralization of power, suppression of dissent, and curtailment of press freedom as indicators of authoritarian tendencies.
• Under BJP leadership, there have been policy shifts that some perceive as favoring Hindu interests, such as changes in education, religious freedom laws, and citizenship policies.
• The Indian judiciary plays a crucial role in upholding democratic values by interpreting the Constitution and safeguarding the rights of individuals against any abuse of power by the state.
• India is home to major world religions such as Hinduism, Islam, Christianity, Sikhism, Buddhism, and Jainism, each contributing to the country's cultural landscape.
• Programs like Ayushman Bharat aim to provide affordable healthcare to millions, particularly targeting the poor and vulnerable sections of society.