India’s Development – Not the Tata Nano

Many of you have been ranting on my previous Tata Nano post about equal opportunity. I will go on record and synthesize my point of view here:

I have no problem if people own cars and don’t drive them. Rich or poor. If the car is a status symbol that they need to show off to their friends and neighbors, then there is no problem. There is also no problem with the Tata Nano’s usage in low-congestion areas, especially rural areas.

The “ban” will come in the shape of taxes and surcharges, tolls, etc. which will naturally weigh much more heavily on the middle class wallet than on the rich. The rich will just pay the tolls and continue to live their lives. The middle class, if they buy nanos, will have to keep their cars at home.

If you call that equal opportunity, well, be my guest.

I don’t call it equal opportunity.

That infrastructure needs to be built is absolutely true. However, the problem is extreme and concentrated urbanization, which I believe is a humongous problem.

Read these articles from this blog and elsewhere if you are truly interested in Equal Opportunity and Economic Development for India.

They discuss models like Microfinance and Microfranchise as mechanisms for development, not the Tata Nano. To me, Harish Hande is a much greater hero, SELCO an infinitely more important enterprise. Yes, rural development that is facilitated AWAY from the urban centers is of extreme importance.

If the Tatas can put together Microfranchise Taxi services that operate in remote areas using the Nano, I would embrace such programs with great enthusiasm.

Also read about the RISC model proposed by Atanu Dey, which spreads out urbanization, and prevents putting all the pressure on a handful of mega cities. Another piece on the same topic is Beyond Bangalore.

Here is a comparison of India’s development and that of China. Highlights issues such as Education, Water, Raw Materials, Electricity.

Finally, here is the story of a social entrepreneur, Tim Grandage, who is really making a difference where the rubber meets the road.