Over the past number of years India and China have entered on to the world stage as major economic powers. Proponents of globalization and the free market economy hold up these two countries as examples of great success. Indeed, both India and China have seen unprecedented economic growth. In June, economic figures showed that “India is now a $1 trillion economy, valued at market exchange rates.”[i] This was big news for India.
However, the realities for millions of people in India paint a different picture. Trickle down economics was a failure for the poor. The economic boom while benefiting a few was a disaster for millions. Jayati Ghosh a leading Indian economist puts it this way, “The economic boom drew rapaciously and fecklessly on natural resources. It was also deeply unequal. Contrary to general perception, most people in the developing world did not gain from that boom.”[ii]
In her most recent column for BBC News Ms. Ghosh wrote:
India is seen as a big success story of globalisation, but only a minority of Indians benefitted materially from the high growth.
Formal sector employment stagnated, real wages for most workers actually fell, nearly 200,000 farmers committed suicide in the period of 1995-2006 alone, and there was an increase in the millions of hungry people and malnourished children.
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