Thursday, November 3, 2011

Punjab - Star of India's rise, Faces steep fall

By Nikita Garia

Once India’s fastest-growing state, Punjab’s economic crisis shows that the country’s rapid growth cannot be taken for granted. Many readers shared insightful comments on the state’s economic decline in the Comments section of The Wall Street Journal’s story “Punjab, Star of India’s Rise, Faces Steep Fall.” Here is a roundup of what readers had to say on the fall of Punjab:

Punjab’s economic crisis shows that the country’s rapid growth cannot be taken for granted.
“That is the story of India. Corruption and negligence by the Government,” said reader “Juhan Singha.”

Many agreed that populist programs such as free electricity to farmers caused more damage than good to Punjab’s economy. Reader “shirish kokatay,” pointed out that giving farmers subsidies for power removed the “incentive to be smart or frugal about using this precious resource…while the rest of the citizens of the state pay for this potentially huge inefficiency and waste in form of higher taxes or reduced state services.”

Others drew attention to the environmental costs of these policies. “Richard Mango,” said that by switching from wheat to more water-intensive crops like rice, Punjab has done “irreparable damage to the aquifer.”

“Ravi Singh,” noted that environmental issues are more pressing than the state’s governance troubles. Noting that “In many respects the 1960s green revolution was a disaster for Punjab,” he said that “Forty years of intensive irrigation, fertilization, and pesticides have not been kind to the loamy gray fields” of the state.

All agreed politicians were to blame. Reader “Daljit Singh,” said that “the responsibility for mismanagement must lie with the leadership of the state regardless of their political affiliation. On a more positive note, the reader added that “There is much potential for growth in Punjab, but, there is a very small pool of enlightened leadership. It must be cultivated. Get over the issues of caste, religion and communal hang ups. The time is running out.”

Readers also argued that the state needed leaders who can provide employment opportunities for its college-educated youth. “The biggest problem in Punjab is that there are thousands of engineering colleges but no industry and so students have to go to other states to find work,” said “Danish Kapur.”

Some lamented the lack of facilities and the state’s poor infrastructure. “Basic services are not always provided and there’s a high degree of inefficiency and inability to make progress because of the politically-supported unions and the incessant corruption,” said “Rohit Vedhara.” He added that Punjab was famous for its food and culture, but “sadly not as a progressive hotbed of broad-based entrepreneurial talent and innovation”.


Another reader, “Sarah McKenzie,” drew a comparison between India’s economy and China’s – the other Asian giant. “Compare and contrast this with China, where all provinces are racing ahead at breathtaking speed into modernity. There is no lack of funding, hard work, innovation or hope in Chinese provinces,” she said, though other commentators didn’t always agree.

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