Elections in India

The surprising result in the recent elections in India is a testament to the strength and the resilience of democracy in India. Over 380 million voters went to the polls, accounting for over 60% of registered voters. Contrast that with the anemic voter turnout in developed nations.

It is also a sad reminder of the true state of the union - a significant part of the population remains mired in poverty!!It is inevitable that the pace of progress starts with the urban areas.

China faces the same dilemma - the coastal areas are prosperous and the pace of development slows as you travel inland. However, China's system of government enables them to suppress dissent and continue down the path of opening up the economy.

In India, democracy is a double edged sword - breaking the shackles of socialism is right in the long term but how do you protect the poor from the ensuing trauma? Is a safety net to help the transition process a solution or are we just coddling incompetence?

In other words what is the true role of the government as we make the transition to free markets? This question and its answer is critical for developing countries and the socialist economies in Europe.