Founding Governance on Truth
December 4, 2005

It's official: India's dazzling growth fails to dent poverty
(See below a Times of India news clip dated October 19, 2006)

Dear Honorable Member of Parliament,

The most crucial hallmark of good governance is dissemination of truth, especially latent truth that the public cannot easily fathom.  For example, we have been trumpeting about growth in gross domestic product (GDP) as a measure of national prosperity.  But the GDP growth is not a true measure of prosperity as the following example illustrates. 

Illustration of how bogus the GDP growth is:  Iron ore price rises 71% this year.  India exports 63 million tonnes of iron ore per year.  Inflation is 5%.  The real GDP on account of iron ore exports alone grows by 1.71/1.05 - 1 =  0.63 = 63%.  Public exchequers get $0.075 per tonne as royalty (no growth) and the 63% growth is basically pocketed by a few miners and colluding politicians and bureaucrats.  India has just 2% of global iron ore deposits and is exporting it away recklessly to strengthen other countries.  We may brag about 8% growth in GDP, but it comprises elements like in the example here.  This is why rural India is revolting and the nation is enervating.  

Central banks around the world broadcast GDP growth figures as measures of prosperity.  But an independent India – being the land of the world’s first economist Vashistha* – must have no compulsion to follow the same governing principles that kept us shackled for centuries.  India should rather be the lodestar for founding governance on truth.  India must now lead the world by introducing the true measure of prosperity: net assets of households.  Don’t you think so? Here is a pertinent letter to U.S. Senators:

With profound regards,

Sankarshan Acharya     

Chairman, Citizens for Development

Founder, Pro-Prosperity.Com,

rated by Yahoo! as number one for information on: optimal governance for prosperity.

Welcome to India:

*Prophet Mohammed and philosophers like Aristotle and Pluto have subscribed to the same fundamental principle of macroeconomics that was advocated originally by Vashistha.  Even Bible has advocated similar views, though much later.  A recently released book, “Prosperity” uses modern principles of economics to address in plain language this principle and many current issues on optimal governance for stability and prosperity of individuals and society.

Cc: President and Chief Ministers

It's official: India's dazzling growth fails to dent povertyAdd to Clippings
Mahendra Kumar Singh

[ 19 Oct, 2006 0040hrs ISTTIMES NEWS NETWORK ]

NEW DELHI: Economic growth may have been spectacular since 1993 — that is, post-economic reforms — but it seems to be trickling down rather slowly.

A soon-to-be-released official report has estimated that poverty declined by a mere 0.74% during the 11-year period ended 2004-05. Although there are signs of things moving a little faster, at 0.79%, between 1999-2000 and 2004-05, going by another measure, the number of people below poverty line may have remained unchanged.

National Sample Survey Organisation’s (NSSO) findings show the number of people living below poverty line (BPL) at 22.15% in 2004-05, compared with 26.09% in 1999-2000. In the same period, the country’s GDP grew at around 6%.

This mismatch between growth and its distribution is politically worrying as it indicates a rise in economic disparities. Economists say uneven growth often leads to social unrest which, in turn, can cause problems for politicians.

Anyone consuming less than 2,100 calories in urban areas, and 2,400 calories in rural areas, is classifed in the BPL category.

The NSSO study also shows that poverty declined the sharpest in the poorer states.