Goldman Sachs, the investment bank that did not collapse in the rout of 2008, has once again produced a report on India which says India could grow 40 times bigger than it is today by 2050. It is indeed hard to imagine this, but perhaps the suave new Human Resource Development Minister, Mr Kapil Sibal, might not find it so.
There are 10 challenges outlined in the new Goldman Sachs report — things that need reforming to make this potential become a reality. The key points are all weighty, and include one on education reform.
In 2009, the surprising thing is that India’s secondary education Budget is the lowest among all emerging market countries, let alone among BRIC nations. This, even as the National Knowledge Commission wants to increase the percentage of 18 to 24-year-olds educated up to university level from the present pathetic seven per cent to a modest 15 per cent. Of course, this means huge absolute numbers in a population of at least 1.1 billion.
To strengthen higher education, the National Knowledge Commission has proposed an increase in the number of universities from 350 today to 1,500 by 2016. The target, we can be sure, is unlikely to be met.
Even if this target were to be met, the corrupt practice of charging ‘capitation fees’ in private medical and engineering colleges, the confusion over AICTE recognition, and the bottleneck of hardly any new universities set up by the Government since independence, tell a sad story about the state of higher education in our country.
This is compounded by dismal quality issues across the educational spectrum and then there is the hot potato of land, which needs to be acquired at market rate if the setting up of a new university campus is not to become a source of controversy and strife.
But assuming these hurdles can be overcome with enlightened handling, we don’t seem to know very much about quality in secondary or higher education. The IITs and IIMs are collaborations, but they are ridiculously short on seats and no amount of hiding behind the merit argument can actually justify the shocking shortage.
So, in the main, all we can provide is education that resembles the processing of herds through the rickety gates of higher learning, and that, too, for those who score in the nineties in their school board examination. Or those who get degrees by never going to college.
In this global age, what we have is clearly a much-degraded form of higher education that turns out graduates who cannot think or innovate. So, as we stand, more of the same will not meet the needs of our future.
And education reform is, after all, just one of the 10 issues that Goldman Sachs has outlined. But judging from our track record, it may be necessary, and practical, to import quality in the form of good foreign universities encouraged to open branches in this country on a FDI basis.
This may also help us meet a part of the National Knowledge Commission’s target by 2016 in a qualitative manner. At present, not even one Indian university features even in the ‘Global 300’! China has six universities that feature in the list of top 300, and all of them are collaborations with Western universities.
Indeed, despite our shortcomings, we have much to thank Goldman Sachs for. It is because it was a Goldman Sachs economist of Irish extraction, Mr Jim O’Neill, who coined the term ‘BRIC’ in 2001. Suddenly India was included alongside Brazil, Russia and China as the shape of the future power structure. This has, over the last eight years, changed the perception of India’s potential.
Gradually the term has gained traction and though very different in themselves, the BRIC countries have decided to pull together of late. There is even a new hotline being put in place between India and China at the highest levels of Government.
Earlier this month, BRIC was referred to, half in jest, as “The Gang of Four” by a commentator on the BBC as its leaders were photographed executing a four-way handshake at Yekaterinburg in Russia. The BBC commentator may have inadvertently upped the ante because BRIC discussed some weighty matters at the Yekaterinburg Summit on June 15-16 without waiting for permission from, or participation by, the West.
Matters such as BRIC ambitions on developing an alternative global reserve currency beyond the US dollar came up for discussion. After all, China has lent the US over $1 trillion and is very concerned about the declining value of the US currency. India, Russia and Brazil have also parked some of their dollar holdings in US treasuries, and are also worried, if not to the same extent.
BRIC also wants a greater say in the disbursement of global development funds via the IMF and the World Bank, to reflect the shifting balance of power.
And perhaps, there was some unintended symbolism at work beyond the ‘gang’ remark, because these deliberations took place at Yekaterinburg. And it was Yekaterinburg too that saw the end of one era and the consolidation of another. For it was there that Tsar Nicholas II and his entire family were executed by the Bolsheviks on the night of July 16, 1918.
Contemporary symbolism was equally evident not just because of BRIC piggybacking on the Shanghai Cooperation Organisation Summit at Yekaterinburg. The SCO even gave President Mahmoud Ahmadinejad of Iran, fresh from a controversial election victory, a forum to fire a vituperous, if predictable, broadside against the US and ‘Western imperialism’.
These are still early days for big ticket Indian reform, even though it has been nearly 20 years since 1991. But even at our slow pace, the world has seen us implement a large part of the Golden Quadrilateral roads project, and surge on to an impressive telecom revolution. They, on their part, don’t think we will fail to reform our education systems as well. What we probably need is a booster dose of self confidence and policy dynamism of our own, to get it going.
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