Poor but rich

Usually in any comparative argument between India and China, India scores quite badly — especially when it comes to infrastructure development and “getting things done”. 

That’s largely because China can build dams and highways at full speed; the perception is that the country is largely unencumbered by “human rights”, or even taking the opinion of the people, while in India’s noisy democracy is full of obstacles. China’s visible successes —  super-efficient SEZs, the glittering Beijing Olympics — are seen as examples of its superiority. This pro-China argument usually leaves out social unrest, Tibetans, Uighars, media gags and allegations of human rights abuses.

Now a survey by the Legatum Institute has judged the world on different parameters — a Prosperity Index — and has found that India scores substantially better than China. Suddenly, India has the advantages — democratic institutions, personal freedom and social capital, for which it comes in at number 45 out of 104 countries. China is at 75.

The Index was inspired by recommendations made by a committee set up by French president Nicolas Sarkozy, whose members included Amartya Sen and Joseph Stiglitz. It looks at variables beyond GDP to track prosperity. So while China beats India on economic indicators, it cannot compete when it comes to categories which look at how citizens benefit from freedom and democracy.

Of course, all informed debates about India vs China will always look at democracy versus communism and regardless of how fast China can build a dam — although these are not without controversy — the fact is China is still a communist nation. Freedom — that vital breath of life — is missing.

While India’s democracy and its institutions are to be cherished, we in India can hardly afford to either take our freedom for granted or rest on our thin laurels. Apart from the parameters mentioned above, we also need to look at social indicators like education and healthcare in which communist China has done exceedingly well, far better than India.

These represent the biggest failures of Indian state. The Legatum Institute’s Prosperity Index gives us a good opportunity to review what is right with our society and why we are so lucky in India to be part of a vibrant democracy. But it also gives us pause to take stock of what’s wrong too and to correct those anomalies.