India has the best and the worst

WASHINGTON: India is one of the world’s fastest growing economies at 8.5 per cent. But a typical doctor in New Delhi is less competent than his counterpart in Tanzania and much less so than a similar professional in Indonesia.

While Indian management graduates command an annual salary of up to Rs1 crore, two-thirds of India’s children cannot read a story, and more than 50 per cent cannot solve simple numerical problems.

These findings are part of the World Bank India Development Policy Review report published on Wednesday. The report was co-authored by three economists, including Lant Pritchett, the bank’s lead socio-economist for South Asia.

Pritchett said, “For India to improve the delivery of core public services such as water and power supply, health care, education, and transportation, systems of accountability have to be strengthened.” That is possible only through institutional reforms.

The report compares India’s growth with China’s, and says India has much to achieve.

For instance, India’s share of the world market in manufacturing exports is only 1.1 per cent while China’s is 6.3 per cent. India also trails in power generation, roads, and telecommunications.

The bank has come down heavily on India’s social sector reforms. Some states, it says, have rates of poverty that are worse than Malawi’s, an African nation with a GDP of just $7 billion compared with India’s $3.6 trillion. Even Bangladesh has a better record in reducing infant mortality rates, it says.

The report warns: “India in 2006 is not yet at, but is nearing a point where paths diverge. One branch of the path leads to a downward spiral into a vicious circle while on the other there is a positive reinforcing virtuous circle.”

It recommends immediate implementation of key infrastructure projects and social reform initiatives. It also recommends greater accountability to improve delivery of services in core areas.