Physical vs social infrastructure
A few weeks ago, I attended a talk hosted by TiE featuring Ed Luce, the author of In Spite of the Gods. While I havent read the book, my impression is that it describes how India got to where it is today through a mix of research and interviews and travel around the country. Ed has lived in India for several years as the former New Delhi bureau chief for the Financial Times and is married to an Indian. He is in a position to have a good perspective - not too close yet not too far. He spoke very eloquently and he is clearly a believer in the long-term growth prospects for India.
What struck me was his contrast of the physical infrastructure in China versus the social infrastructure of India. China clearly has superior roads, airports, power, manufacturing facilities and the like that we expect as a pre-condition for an economy to progress into the first world. In contrast, India is lacking in those areas but does have a thriving democracy, property rights and an independent judiciary which Ed Luce calls social infrastructure. And he contends that in the long run, the benefits of the social outweigh the advantages of the physical.
If you've ever been to India, I doubt you would describe the country as anything but chaotic. Investments in infrastructure would go a long way in accelerating the country's growth. At the same time, it is fairly obvious that people do not want to trade away the freedoms of democracy. But I wonder if some planning and investment needs to be imposed to provide more order? Or is that a slippery slope to tread?
