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India's Promise Travelog - DAY ELEVEN

posted by Dana Greenspon, Field Producer at 3:53 PM on 04/19/07

Photo of Dana GreenspnWhen talking about India’s booming economy, people often compare India and China. Given that both developing economies are growing at 8 or 9 percent a year, I think the inclination to make that comparison is understandable. But comparing the two countries is complex and, as I’ve learned, an area of extreme sensitivity here. On several occasions, without us mentioning the word “China” or drawing a comparison between the two countries, an interview would voluntarily say, “If you are going to compare India and China, you must remember we are two very different countries. We are a democracy and cannot do the things China does.”

Whether we were speaking with Finance Minister P. Chidambaram, Microsoft India Chairman Ravi Venkatesan or real estate developer Surendra Hiranandani, the China comparison elicited defensive overtones. Indians pride themselves on being the largest democracy in the world, but I think they also see that a democracy with a population of 1.1 billion people – and a coalition government to boot – faces hurdles that the Chinese government does not.

Construction on Hiranandani Gardens, a development in Powai, India.When Mr. Hiranandani wants to break ground on a project, he goes through a specific process for acquiring the land and financial backing to make it happen. And, as he joked when we spoke to him today, “If someone feels I’ve wrongfully kicked him off his property, he can take me to court!” But in China, he said, if the government wants to build a road through a village, they build it. No questions asked. No redress.

I do not think anyone here questions the democratic approach. But I do sense an urge to explain why certain aspects of the economy, such as infrastructure, are lagging behind China’s progress. However, as Microsoft’s Venkatesan said when we spoke to him yesterday, democracy here acts as an important relief valve. If there is unrest or discontent with the path the country is taking, the people can exercise their right to vote out those in power every five years. Democracy relieves the pressure.

Interestingly, though, a movement seems to be on the rise here that expresses discontent differently. Several of our interviews have mentioned that there is a growing extremist Maoist movement here gaining steam. One interview said about 150 districts around the country are threatened by these Maoist groups. They recruit young, dissatisfied Indians, usually in rural and farm areas, and provide them with education and money. I am too new to Indian politics to know what this means for India long term. But it strikes me that if a segment of the rural population is campaigning for an agrarian revolution, then the potential for a backlash to growth here is bigger than I previously thought. I cannot say how meaningful the backlash could or would be, but the fact that an extremist Maoist movement is afoot – and worrying some people here – surprised me.

Dana Greenspon is part of the NBR team traveling India to report for the upcoming NBR series and special, "India's Promise." For more info, check out the India's Promise Travelog.

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Thank you for your comments. As I tried to explain in my Day Ten post, the material in this blog is entirely separate from the "India's Promise" series and special, which I assure you will encompass modern economic principles and be both thorough and wide-ranging. If there is bias in my blogs, that is because it is a subjective travelog, written through the eyes of a first-time traveler to Asia. This is not meant to delve into the meaty issues; it is meant to give you a feel for what it has been like for a US news crew to travel around the country.

And thanks for the tip on Ed Luce's book. I made my way through much of it before leaving for India -- it's a great read!

I agree with previous commentators about the view that these blogs sound too routine! It seems fashionable to criticize the progress, or lack of it in certain areas, in India and to compare it to one in China. I guess being involved with PBS you have already seen the compelling and moving documentary "China Blue". Need I say more about the cost of China's progress and on whose back it is riding. Besides, the article is a business report and should reflect a more mature economic view encompassing modern principles. Examples of not only the rise of industrial/services sector but also of new micro economic models and self sustaining communities can be covered. I find Edward Luce's book "Inspite of the Gods, the strange rise of modern India" a good commentary on role of government in modern India. It seems to me that the blogs are just not only through Westerners eyes but are due to preconceived bias on part of the blogger about what India and China stand for. One thing for sure, India cannot be understood in crash courses. It needs sustained attention over a long period. In Asia, everything has a shade of gray. I hope the bias will be toned down in the actual report.

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