Newsweek Magazine

A Tale of Two Numbers

India's New Budget Reveals A Party Still in Love with Bureaucracy.  

On Febuary 28, India's ruling congress party-led coalition introduced its latest budget, aiming, according to Finance Minister P. Chidambaram, "to lift the poor" and close the income gap. The new plan, however, is no more likely to succeed than past efforts. The problem is best understood by focusing on two numbers hidden in the document. One represents a promise to hire 200,000 new schoolteachers; the other, to grant 100,000 scholarships. These two figures underscore both what is right and what is wrong with India today and why its leaders are failing to help the poor.

A LEARNING CURVE - What's behind India's success in the global knowledge economy? One key is the boom in private schools for all

Two weeks ago I got a call from the board member of one of the world's largest consulting companies, who invited me to come and speak to them about why so many Indians were making it in the global knowledge economy. My distinguished caller spoke about innovations emerging from General Electric and Microsoft's R&D centers in Bangalore; advanced avionics installed by India's Air Force on Russian fighter aircraft that had caught the U.S. defense establishment's attention; sophisticated research on global capital markets outsourced by Wall Street to India; finally, he rattled off a dozen Indian leaders' names in global multinational corporations.