Gujarat- a land of entrepreneurs

Ever since I started studying Economics, I have always wondered why some societies/communities are more developed than others even while existing within similar constitutional and legal boundaries. The conventional factors of 'poverty' or 'development' given by text books and professors are like 'endowment', 'opportunities', 'saving/ investment', 'skills', 'infrastructure', etc. But none satisfied me. 

My understanding changed completely when I started living in Gujarat. It was in late 2005 I came to Gujarat for the first time. I saw relative development everywhere, even in villages in tribal areas. The tribal villages of my state Odisha and those in Gujarat are completely different- income levels, livelihood options, roads, electricity, water....everything. Why? I wondered.

Then I saw the law and order situation. On the very first morning, I saw motor cycles and cars parked outside houses all night, a thing that is unthinkable in Odisha and many other states. 'Theft' and 'murders' are rare events; in my 8 years in Gujarat I have hardly come across a street fight or fight in the public. Girls and women can roam around in the cities late in the evening all alone without fear. 

So, why are people prosperous and peaceful in Gujarat?

I think I have got the answer- 'entrepreneurship'; it is in their genes, in their culture, in their tradition; entrepreneurship is a way of life in Gujarat. A common farmer, a carpenter irrespective of the occupation, the Gujarati knows how to start a business and flourish. It is this spirit that makes the Gujaratis apart from others. They neither have the need nor time for criminal activities. When one can create wealth, one would hardly be interested in illegal ways of income. 

In Odisha, parents would marry their daughter to a low-earning government servant rather than a high-earning business man (exacly opposite in Gujarat). I have seen pretty salary earners in Gujarat come home in the evening and open a petty shop in the evening (a phenomenon unthinkable in Odisha). There is virtually no Gujarati family with only one source of earning. Once I met an auto-rickshaw driver who told me that he had just retired as a class-I officer in the Government!!! (huh....!) Another important thing is that they are aware of their wealth and invest their money very intelligently. One would be surprised to see the large number of housewives investing in the stock market. The people hardly think any work is small as long as the returns are positive and their time is productively utilized. 

As a development professional, I do not have to push people into any business; I just have to show them that it is a positive-worth business and he/she has the skill to do the same. Then the rest is taken care of by him/her. This explains why government projects are relatively more successful in Gujarat rather than in other states.

Gujaratis understand the value of money like no one else. I had read 'Reach dad poor dad', but I learnt the value of money more by living in Gujarat. Once I was travelling with a Gujarati friend; I paid one rupee for him to the auto-rickshaw driver as he did not have the change. I was amazed to see him return the rupee to me the next day. Though I resisted accepting it, I had to take it back in the end as he insisted on the same.

Though the factors of development mentioned in the first paragraph are important, the most important factor is the 'entrepreneur'. In the absence of this, all other factors are useless; on the other hand, 'entrepreneurship' can develop all other factors. The biggest positive in Gujarat is that the whole society is entrepreneur. The politicians and leaders are just an extension of this society; so most of them have always been progressive and development oriented. 

Since pre-independence time Gujarat has been developed- both economically and politically. Two of the most important leaders of the freedom struggle- Gandhi and Sardar were Gujaratis. Ahmedabad and Surat were known all over the world as a major industrial destinations. So, it is but natural that in the post-independence period the same continued, both under the Congress and BJP Governments. One of the few successful industrialists of the pre-1991 era, Dhirubhai Ambani was a Gujarati. Most of Mumbai's (and India's) business is controlled by Gujaratis. They are everywhere on the earth; a prosperous and peaceful community. I am lucky to have come here to study,work, live and marry! 

The AAP phenomenon

Two years back,when the Anna movement against corruption started, I was a little sceptical about the whole thing. Though as everyone else, I wanted to see some concrete action against corruption, I thought there was enough institutional mechanism in place and the need was to make them work. However, Anna and Arvind thought differently. Even after two years, when the act has come to life, I think the idea of of Lokpal will succeed only if there is enough political will and for that the political leadership needed to change. 

This is why when Arvind and co. formed this new entity (Aam Admi Party), I thought it was a good idea. The system can be changed and made to work from within; the scope of doing so from outside is very limited (though the pressure groups can work to some extent, there role is very limited by their nature). However, a political entity in power has tremendous power and authority to make the system work. Forming a party is one thing and winning elections is another. The first challenge before AAP was the Delhi elections; the passed the examination in flying colours. A wind of hope is blowing in India like never before. A political party within its first year of formation would form a government, is unprecedented. 

 What does the AAP symbolize?
- AAP represents the aspirations of the common man
- They have shown that elections can be won without muscle and money power
- They have changed the VIP culture in the country
- They have shown good intentions can stop corruption in this country Their success has led to a huge churning in the political system in India already.

These are all good news.
- The traditional national parties
- Congress and BJP have started to look inwards and change themselves.
- The vast numbers who wanted a good alternative to Congress and BJP have got one; Congress is corrupt and arrogant; BJP is majoritarian and authoritarian (not in the rigid sense). India deserves better
- The youth of the country who wanted to join politics but had big entry barrier to cross (money and power), now see a good opportunity
- Democracy is all about options; for the first time, people will not be voting for a 'lesser evil', they can vote for a 'better one'

However, AAP's success is not guaranteed. Their inexperience at governance is already showing. Subsidies and freebies have never solved any problem. Saying no to decent accommodation and offices, etc is not required; you can live decently and govern well. So, AAP needs to focus on governance rather than silly changes here and there. Facilities have to be institutionalized; populist measures are not going to help. If AAP can not deliver, the good revolution will fail. people will lose faith in revolutions. 

The challenges in front of them are very big; but with good intention and efficient people in their ranks, they can succeed in course of time. We can give time to this new and novel phenomenon; it is worth an experiment.

Renewing the interest in blogging...

The last time I posted a blog article was in may, 2010. I don't know why I discontinued the practice...but some of the possible reasons may lie in a few questions in my mind: - Is blogging really useful? - Can a not-so-famous person reach out to the public at large through blogs? - Is the time and energy put into writing a blog worth it? (in my initial times of blogging, I had very limited success) I do not have the concrete answers even now. However, I do realize that it may help in the long run; there is a strong possibility; let me explore. Thus, this year I have renewed the interest and have decided to write regularly.