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Biographical

Atanu Dey is an economist with Netcore Solutions in Mumbai, India. Prior to receiving his PhD in economics from UC Berkeley, he worked at Hewlett Packard in the Silicon Valley. His interests include rural development and the use of technology in education. He has a blog on India's development.

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Democracy in India

posted by Atanu Dey at 16h15 GMT on Sep 28
india-flag.jpg

As an economist with an interest in economic development, I have always been intrigued by the relationship between democracy and economic growth. That is so because I call two distinct places home: India, where I was born and grew up, and which is the largest democracy in the world; and the US, where I spent much of my adult life, attended universities and worked, and which is the most powerful and successful democracy in the world.

I confess that to whatever extent the idea of democracy is appealing to me, I am not overly impressed with the actual implementation of democracy in India. I am also not sure that granting universal adult franchise was the right thing to do at the time of India’s political independence in 1947. Democracy, it appears to me, is not just about exercising choice but rather it is about informed choice. I think that in India we have what I call a “cargo cult” democracy, as I have argued before on my blog.

In the case of India, we have a cargo cult democracy. It looks like one with electronic voting machines and election speeches and manifestos, with pollsters and pundits, with election commissioners and voting stations. Only the deep backend is missing. There is no understanding of issues of substance among the people who vote. Put up a name which is recognizable, and they would vote for or against that name. Promise enough freebies (free electricity, for instance) and they will vote for you, never mind that it may bankrupt the state and that eventually it will impoverish the same voting public. For democracy to work, you need accountability—both among those who vote and those who are elected. In an area where the government is seen as a source for endless handouts by the people, and the leaders look upon their stint in the driving seat as an excellent opportunity to steal from the public,
democracy is not likely to work.

Democracy in India is different from that in the West because of its distinctly different origin. Prof Bardhan of UC Berkeley, in his book “Scarcity, Conflicts, and Cooperation” (The MIT Press, 2005), lists five distinctions. First, winning democratic rights in India was a fight against colonial masters, a fight that brought together a diverse group to fight a common external enemy.

Second, India was mostly a rural economy (and it still is as 70 percent of Indians still live in rural India) and largely illiterate. This led to excessive economic demands on the state, as Bardhan writes. “The democratic (and redistributive) aspirations of newly mobilized groups outstripped the surplus-generating capacity of the economy, and demand overloads sometimes even short-circuited the surplus-generating process itself.”

Third, in India, groups are based on ethnic and other identities such as language or religion. Consequently, group rights matter more than individual rights.

Fourth, the power of the state in the West has been checked by democracy. “In India, on the other hand, democratic expansion has often meant an increase in the power of the state.”

Fifth, the federal government of India is more powerful than the states. This is an important distinction from the federalism of the US,
where the power of the states restrains the federal government.

To the list above, I would add that universal adult franchise has never been available anywhere to a population as early in the development process as in India. I think it has profound implications but I will not go into it here.

With this introduction, I would like to explore in my next bits Indian democracy and economic development.

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Democracy

USA....the most powerful and successful democracy in the world.

What are the parameters to determine a democracy as successful? You should state those upfront in your post.

Given the dismal and low voter turnout during the past few presidential elections in the US, I would be careful before labeling it as a "successful democracy." Here's the percentage voter turnout during the past five presidential elections:
1988 - 50
1992 - 55
1996 - 49
2000 - 51
2004 - 57 (during an unpopular war, only a 6% increase from the previous election)

http://en.wikipedia.org/wiki/United_States_presidential_election#Voter_t...

As for informed voters, where people are more swayed by "Swift-Boat Veterans for Truth" and the hoo-haa of gay marriage rather than real issues that impact them (taxes, health, education), I would not consider the 50% who turn up to vote as very "informed."

I don't know about you, but given the role money plays, to me it looks more and more like an oligarchy than a democracy, where having huge amounts of money is a pre-requisite to running for an office/contesting an election. As I understand it, that's not the basis of a democracy.

So as I see it, your premise/basis of comparison already has some faults. And I haven't even said anything about voter disenfranchisement (among Africans-Americans) and voter fraud. If you really want to do a comparison of democracies, maybe a European or a South American country would be better suited than the US.

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He's right, you know

The above anonymous's comment contains much wisdom. The success of the US has little to do with the health of its "democracy". BTW, I don't know what aspects of the US you consider successful, so maybe there's more to criticize. :)

US and Indian democracy

I don't know how to compare Indian and US democracy in a short space. Democracy has too many dimensions.

However, you assessment of US democracy seems to be pretty optimistic. There's a project at Harvard, called the "Vanishing Voter project". It monitors the perceptions of the electorate on a wide variety of issues.

Here's only one study from the website on the 2000 election:

The Shorenstein Center poll revealed that an even greater number (87%) of respondents felt that "most politicians are willing to say whatever it takes to get themselves elected." Moreover, half of these respondents believed that none of this year's presidential candidates was an exception to the rule.

I would say, hardly a vision of a successful democracy.

That's not to say that US democracy hasn't had many successes to it's credit (so has Indian democracy in many ways). But your analysis seems to me very simplistic and ignores the many factors.

Frank herbert

Good old democracy ! Frank herbert got it right a long time ago. The only lasting form of government is an aristocracy or industrial feudalism (jerry pournelle). Why ? because that is what the people want ! They democratically ensure an aristocracy. The root of this must be from our tribal origins.

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Democracy

democracy not important but good governance certainly is, at the end of the day the only thing that matters to public all over the world is their well being and future prospects

DemocraZy

Atanu!
Great to see your blog on one another facourite topic of Mine: Democarcy vs Economic systems!!! And thank god, I have access to posting comments, which was blocked earlier in my company! :D

And about the topic, yes India is a "flawed democracy" [even Democracy indices prepared by many organisations say so!!] where the govt still appoints judges, has quotas, kickbacks, has a lot of say on what an individual does [for eg. restrictions on an individuals and licences one has to obtain etc] and even China has a better economic climate vis-a-vis India!

I was of the opinion that, ideally, democracy goes hand-in-hand with free markets and end up making the state a prosperous one. But, with 60 years of our experiments with democracy, and 15 years of (limited) free markets, I am surprised, we still have corrupt netas and babus getting elected and continuing with their corruption!

I think it has got to do with corruption and illiteracy as you have pointed out.

I keep saying this - Illiterate democracy + Corrupt Socialism = Third world country India!!

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Democracy and illiteracy

I think it has got to do with corruption and illiteracy as you have pointed out.

Hmmm...so how does that logic explain the corrupt members of US Congress who take money from lobbyists and then do their bidding once it's time to make laws? They seem to be pretty educated and literate.

About universal franchise

The success of a democracy in economic terms may depend on exercising informed choice, however, you must realize that the right to vote is the only powerful political tool that the poorest of the poor people can have. They cannot take recourse to courts as justice is expensive and often delayed / denied. Moreover, if we keep a minimum education requirement for the right to vote, then the poor backward people will never be able to prosper as they will be caught in an endless vicious circle where they will be kept outside of power and the state will treat them as low priority second class citizens (in a system akin to the centuries old caste system).

Therefore, every human must enjoy his right to vote. It is a matter of human rights.

Democracy is for Educated Societies

Democracy is for Educated Societies(As Atanu says - informed choices!).

For illiterate societies like India perhaps - Democracy is Chaos in the garb of Order.

And 'group' interests are greater than 'individual' interests - well democracy guarantees that - its a numbers game anyway.

Indian Democracy

India, despite its "tremendous" diversity has emerged as a successful democracy. India is a "unique" country, "there is no country of India's size, of India's diversity, of India's complexity, trying to seek its economic and social salvation in the framework of rigorously functioning democracy committed to the rule of law and respect for fundamental human freedoms."
"Kuchh Baat Hai Ki Hasti Mitti nahi Hamari, Sadiyon Raha Hai Dushman Daure Jaman Hamara".

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