India's Gilded Age: Corruption coexisting with rapid growth, we are where the US was a century ago
Comment of the Day

July 11 2011

Commentary by David Fuller

India's Gilded Age: Corruption coexisting with rapid growth, we are where the US was a century ago

My thanks to a subscriber for this interesting article by Baijayant 'Jay' Panda for The Time of India Hyderabad. Here is the conclusion:
In all this, the role of the middle class will remain important. Long ignored by politicians for their electoral apathy and lack of numbers, something is now clearly changing. Their purchasing power attracts the national media to focus on the same things as them. And now perhaps their surging numbers through two decades of economic liberalisation, combined with their newfound activism, is reaching a tipping point. If that turns out to be true, Indian politics will be forever changed.

There are startling parallels between today's India and the experience of the other large democracy, the US, over a century ago. The latter part of the 19th century, known as America's Gilded Age, saw the rapid growth of its economy as well as unprecedented levels of corruption, exactly like present day India. Enormous fortunes were made by new billionaires, the so-called robber barons, and massive corruption among elected officials became commonplace.

Nevertheless, sustained economic growth transformed a nation of farmers into an industrial superpower where the size of the middle class kept growing rapidly. Their sensibilities, and outrage, led to what is called the Progressive Era in American history, in the early 20th century. The progressive activists pushed through many political reforms that tackled corruption and underlined good governance, and even motivated the robber barons into turning great philanthropists.

The similarities with today's India are unmistakable, but the story doesn't end there. Besides the activism of the middle class, equally important was the emergence of a new breed of political leaders who made the cause their own. Many of them, both Democratic and Republican, went on to become presidents. What India needs now are political leaders who eschew point scoring on corruption in favour of non-partisan advocacy for reform.

David Fuller's view India's democracy has entered a very interesting and promising phase, led by an educated, entrepreneurial and rapidly growing middleclass, whose views are increasingly reflected by a free press.


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