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Re: Solution to Poverty in India



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At 07:06 AM 12/21/00 -0800, "Raju Agarwal" <krantikari@hotmail.com>
 wrote:

>In short, the central 
>and state governments must put their own fiscal house in order first.

Dear Raju, 

The NIT proposal will help set (among other strategies) the fiscal house in
order by saving considerable money, achieved by properly directing it to
the poor upto the point they cross the poverty line. We will then have
close to zero poverty as well as huge savings in expenditures. Almost all
PDS, rural development, social welfare, housing, etc., departments will be
closed down.

>A better approach is to link wealth re-distribution (poverty alleviation) 
>programs with the engines of wealth creation.  

Wealth creation is never going to eliminate all kinds of poverty. That is
what I told Sauvik some time ago. There is something called 'natural'
poverty arising from the presence of the very sick, handicapped, and
mentally deficient. I have dealt with this point at length in my booklet -
the "Primer" for wealth creation for S.Asia (on IPI's publication page) as
well as in the NIT article (on the same web page). What you say is good,
but to get to the stage where good policies for wealth creation are
available to us, we must kill the ghost of poverty.

Thanks,
Sanjeev

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