Opinion

The Great Debate

Why India has less inequality than U.S.

Voters line up to cast their votes outside a polling station at Wadipora in Kupwara district

The outcome of India’s general election may have dramatic consequences for the nation’s economic health.

India now has more equal wealth distribution than the United States. Steven Rattner, a Wall Street financier and former Obama administration economic adviser, recently announced this on MSNBC’s Morning Joe, while discussing Thomas Piketty’s new book, Capital in the 21st Century.

It sounded unlikely, but Rattner’s charts and statistics showed that India is indeed a more equal society. The top 1 percent of Americans earn more income and hold more wealth, compared to the nation’s poorer citizens, than their Indian counterparts.

Economists are puzzling over how this happened. One key reason could be the massive income-redistribution programs that Indian Prime Minister Manmohan Singh and his Congress government have created. Though many programs are inefficiently run, they have achieved some remarkable successes.

Hindu nationalist Modi shows his ink-marked finger to his supporters after casting his vote in AhmedabadSome 815 million Indians have registered to vote in the world’s largest democracy, in an election that runs more than a month, April 7 to May 12. The Congress government now looks likely to lose to the Bharatiya Janata Party (BJP) under Narendra Modi, who has a strong Hindu nationalist background. This new BJP government is expected to focus more on overall economic growth than equality.

from Afghan Journal:

Keeping India out of Afghanistan

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Indian Prime Minister Manmohan Singh is in the United States for the first official state visit by any foreign leader since President Barack Obama took office this year. While the atmospherics are right, and the two leaders probably won't be looking as stilted as Obama and China's President Hu Jintao appeared to be during Obama's trip last week (for the Indians are rarely short on conversation), there is a sense of unease.

And much of it has to do with AFPAK - the war in Afghanistan and Pakistan which is very nearly at the top of Obama's foreign policy agenda and one that some fear may eventually consume the rest of his presidency. America's ally Pakistan worries about India's expanding assistance and links to Afghanistan, seeing it as part of a strategy to encircle it from the rear.  Ordinarily, Pakistani noises wouldn't bother India as much, but for signs that the Obama administration has begun to adopt those concerns as its own in its desperate search for a solution, as Fareed Zakaria writes in Newsweek.

And that is producing a "perverse view" of the region, he says adding it was a bit strange that India was being criticised for its influence in Afghanistan. India is the hegemon in South Asia, with a GDP 100 times that of Afghanistan and it was only natural that as Afghanistan opened itself up following the ouster of the Taliban in 2001, its cuisine, movies and money would flow into the country. The whole criticism about India,  Zakaria says, is a little bit like saying the United States has had growing influence  in Mexico over the last few decades and should be penalised for it.USA/

from Pakistan: Now or Never?:

Assessing U.S. intervention in India-Pakistan: enough for now?

In the immediate aftermath of the Mumbai attacks, India's response has been to look to the United States to lean on Pakistan, which it blames for spawning Islamist militancy across the region, rather than launching any military retaliation of its own. So after U.S. Secretary of State Condoleeza Rice's trip to India and Pakistan last week, have the Americans done enough for now?

According to Pakistan's Dawn newspaper, Rice told Pakistan there was "irrefutable evidence" that elements within the country were involved in the Mumbai attacks. And it quotes unnamed sources as saying that behind-the-scenes she “pushed the Pakistani leaders to take care of the perpetrators, otherwise the U.S. will act”.

India's Business Standard said the Indian government was pleased with the U.S. warning. "This is exactly what India wanted," the newspaper said.

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