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What was India?From an adversarys mouth
I have travelled across the length and breadth of India and I have notseen one person who is a beggar, who is a thief. Such wealth I haveseen in this country, such high moral values, people of such calibre,that I do not think we would ever conquer this country, unless we breakthe very backbone of this nation, which is her spiritual and culturalheritage, and, therefore, I propose that we replace her old and ancienteducation system, her culture, for if the Indians think that all that isforeign and English is good and greater than their own, they will losetheir self-esteem, their native self culture and they will become what
we
want them, a truly dominated nation.
-Thomas McCaulay in his speech of Feb. 2 1835, British Parliament.
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The Real India
Families and communities play avital role in the economicdevelopment of India
Family is the core of Indias
economy,society,culture,religionand spirituality .
The West has destroyed Family
system at the altar ofIndividualism. 99.0% of the economy controlled
and driven by families.
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Role of education in performing India-Findings of theTask Force on Employment Generation headed by Dr.Ahluwalia
Unemployment rate:
0.2% among illiterates
1.2% among those studied uptoPrimary school
3.3% upto Middle school
7.8% upto Higher secondaryschool
8.8% among graduates
11.2% among post-graduates
Higher the education one has,more he becomesunemployed andunempolyable
Higher literacy rate meanshigher unemployment forthe state
In High-literacy states,theunemployment rate:
Kerala 20.77%,TN -12.05%,West Bengal 14.95
In low-literacy states,theunemployment rate: Rajasthan
3.06%,Himachal 2.96%,UP-4.27%
Macaulay mechanismreally works,still
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Risk Rises with Education
Jayaprakash Narayan says in hisForeword to Dharampal's book onCivil disobedience "EducatedIndians since independence in thename of modernization ran down mostthings Indian. Such self-flagellation is
not conducive to development ofpsychological drives that are essentialfor nation building.
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Time proves many things wrong
Max Weber ridiculed the religious and social foundations ofIndia for its under-development in his work The protestant ethicand spirit of capitalism. Said Hindu values and caste systemare impediments to growth.
Karl Marx had in his essay on India that was published in the
New York Harold Tribune on June 25, 1853, this to say about
Hindu-Indian religions: So, the Western, Anglo-Saxonconclusions about Indian socio-economic model seemswrong; the Indian socio-economic model promotes
spontaneous sociability or social capital.But the Indianchildren of Marx (Communists) would not accept as it glorifiesIndian traditional system.
W M
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ow Western Mo e wor s S.Gurumurthy
Atomise the individual[ decouple man andwoman by individualism]
Dismember families [ and orphan the children] Nationalise families and their functions [ law
and social security]
Privatise the state and its functions And finally, globalise the corporates Entire process of social evolution put on
reverse gear and the harmony between the
individual, family and community and the largersociety inter se and between the society andthe state on the other is disturbed
West works in Creative Destruction mode all
the time.
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Cause and Effect in Economics The larger objects and goals of life are conditioned and set
by Religious values.
The objects or goals of life [which partly lie in the culture,traditions, and belief systems of the people] decide the wayof living and model
The chosen way of living decides the life style and comforts
The life-style largely determines inter-relationships, habits,
tastes; The inter-relationships, habits and tastes influence
consumption and savings; sustainable consumption withinincome and leveraged consumption beyond income;savings in safe modes and savings in risky modes;
The result is this micro economics impacts on macroeconomy.
While a mix of social, religious, cultural and civilizationelements influence the economic behaviour of the individual,the collectivised individual behaviour converges the microeconomics with the macro.
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Economic Activity Western Model Indian/Asian Model
Micro-economic behaviour Individualistic Family-community integral
Personal Savings Low High
Safe savings
Banks etc Low High
Risk Savings -- equity High Low
Consumption High Balanced
Leveraged consumption High Low/very low/Nil
Consumption drive Consumer confidence Purchasing power
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Macro-Economic
BehaviourWestern Model Indian/Asian Model
Household Savings Low High/adequate
Corporate Savings High Comparatively Low
Risk capital formation High Low
Stock market role/habits High Low/Moderate
Main economic drive Consumption Balance betweenconsumption, savings and
investment
Social security Largely funded/state run Large Private/family
Interest rates Generally Low Generally High
External Debts High Low/moderate
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Social consequences Western Model Indian Model
Family Eroded Stable
Community relations undermined valued
Relations with State
Level of Trust
High dependence on state
Low level of trust amidst
the society members and
hence dependence of
legal and contractual
bondage is high.
Moderate dependence on
state
High level of trust
amongst the society and
hence formal institutions
and mechanisms are not
much required.
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Indian View of Individualism
Religion was never and will never be an
individual choice in India.
Samaja (Society) dharma, and Kuladharma. It is only in the residuary area
of Vyakti dharma or the individuals
domain that he can have his choices.This is what he calls as parakramavad.
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Fundamental differences The concept in Hinduism is that man and woman
complement each other to become full. Conceptof Ardha Nari-Nareswar. Woman is thefulcrum of the Indian Society, Community andFamily.
Women are treated as secular objects andcreated for enjoyment of men like othermaterial objects.
Indian System works on Duty-based society,West works on right based approach. e.g.Fatheris duty bound raise the Child in the best wayand it is the duty of the Son to obey and take
of parents.