Let there be Million Indias but No Hungry Child in One India

Huston we have a problem! However, this one is not for Huston to resolve.  It is a Himalayan problem, that we, the dweller in the shadows of Himalayas, have to comprehend, come to terms with and fix.

The problem is "Unity in Diversity". I expect a question, why is that a problem, is that not a virtue? Exactly, that is what we have been told and taught all thru' our school, and is now ingrained in our brains. We are a land of diverse cultures, multiple languages, different faiths, blah blah blah and yet we are united. Really? Common, really?

Even at the height of India's dominance of the world (at that time India controlled approximately 33% of World's GDP), India was not the geographical India as we know it today. India was multiple independently ruled states that stretched from Indian Ocean in the south, to Himalayas in the north, and from today's Afghanistan on the west, to today's Bangladesh on the east. That kind of independent states structure did two things to our region (if I were to call India as a region rather than a country)

a) it brought a lot of prosperity to individual states, within this region, and the region as a whole.

b) From time to time it allowed external forces to invade this region and loot the wealth, since individual states were not all very militarily strong, and sometimes played one against the other, ultimately leading to Britishers subjugating the entire region.

So, what is the take away from history?

a) By uniting we have solved the problem of security, we are a much more secure region, that can not be subjugated in bits ad pieces, as was possible earlier, when the region was divided

b) Uniting these diverse parts, means we are living a common minimum program. Which essentially means, we as a united nation, only do those things, run those programs, that are acceptable to all.  In a setup where there are diverse set of cultures and creeds and faiths and different development levels, you know what happens, there is very less that come out as common, and lot of good things of different geographical areas, cultures, faiths are left out, since they are not acceptable to others. So, what has it done to the region? Well, it has left us with sub optimal growth. It has wasted multiple generations in this region. It has spread poverty equally!

It wont be an exaggeration, if I were to say,  we are not united, we are bound together. We have tied our hands and feet to each other so that all of us can sink together!

What we must do. We must overhaul our federal structure. Make each state autonomous. In the new structure, center should have control over only three things - Defense, Foreign Relations and Monetary Policy for the region's currency, everything else should be run by the States. Each State must choose its Prime Minister, these Prime Ministers can then choose a President for the entire nation. With a center that is only responsible for Defence, Foreign Relations and Monetary Policy, the buck will securely be with the respective States so as far as development and growth is concerned. Let there be no ambiguity in who is responsible for children going to bed hungry.

True Federalism

Is India not too big, too complex, too diverse, too varied to be driven by one set of policies and one vision.

Different parts of India are at different development levels, they are grappling with different set of problems, priorities are different. Trying to impose same set of policies whether economic, or for social development,  from a central command and control structure is not working. It is slowing those parts of the country that can grow faster and is compromising those parts of the country where focus has to be on the basic social development.

There is too much control with the center, it is time to restrict that and give states the authority  and responsibility to chart out the course that suits them the best and hold them accountable.

Let the center only handle defense, foreign affairs and ministries related to strategic research and development, for the country as a whole, rest everything including the finance and economic policies should be with the states. There is perennial fight going on between the center and the states with respect to dividing the tax money. Let the center only levy the minimum that is required to maintain the  ministries under its control, rest of the taxes should accrue to the state that is generating the commensurate revenue.

Today, numerous policies and programs are stuck just because not all the states agree to them. Even if the programs and policies are good, they get stuck because they seems to be pushed from outside (center) and because of partisan politics.  We can change that. The states should be able to decide what they want implemented and what they want to block. FDI in retail, insurance, policy on natural resources, reforms in banking, in agriculture, list goes on, all of these should get decided at state level. A mechanism must be created where even if only one state wants to implement a policy it should be allowed/enabled to do so, without waiting for the rest of the union to agree to it. It should be possible to create companies / business entities /legal entities that operate in a state, as if they are operating in an independent country.

This will make state governments answerable to their electorate. Today, bucks gets passed around, state governments blames center and center blames states, development and hence the people suffer. No one knows if the poor development in the state is because of faulty union policies or faulty state policies.

State elections should become more important than the union government elections. The political parties should focus more on putting their best candidates at state levels, they should focus on governing the states better, making them competitive, and improving the lot of people in the states that they govern. This will only happen if the states become more powerful and manage more of their affairs themselves.

I know the present state of the state governments and their governance record is pathetic. In fact, that is precisely the reason why I am suggesting, that we change the structure such that we take away their ailbi of always blaming the center for all the ills. The first principal of good governance and good management is to hold someone unambiguously responsible and accountable for it

It is clear and has been clear for a long time that our current system - both political and administrative - is broken,  what is required is overhauling of the engine and not just change of oil.