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Resource centre on India's rural distress
 
 

Prof. Amartya Sen, Nobel laureate in Economics, interviewed by Chandra Ranganathan

India must not obsess with how fast its economy is growing and instead pay more attention to its human development indicators which are worse than even that of Bangladesh, Nobel prize-winning economist Amartya Sen said. Sen, known among his peers as the Conscience of Economics, said slower growth is not a good enough reason for national gloom. If India really must feel upset, it should be because the country is unable to provide proper nourishment to millions of its children or adequate healthcare to the poor, he said in an interview after chairing a jury meeting to select the winners of the Infosys Foundation's awards in the social sciences category. If the government is really serious reviving national sentiment, it must forthwith implement the proposed food security law, despite its flaws, he told ET NOW's Chandra Ranganathan . Edited excerpts: 

Prime Minister Manmohan Singh has said that GDP growth in the current fiscal will be only 7%. Are we starting 2012 on a gloomy note? 

It's a bit of Indian eccentricity that we have got 7% as a very gloomy note. I think in Europe or the United States they would be happy with this. I think it is important not to look at just GDP. You have to see how our lives are improving. India may have the second-fastest growth rate but we have largest number of under-nourished children in world. We have lower literacy. 

In all the human development categories, (girls' education, basic medical care), Bangladesh has overtaken India while we have established the lead on GDP. We are the worst performer among South Asian countries. GDP is important but it is very wrong to focus on 8% and 7%. We have to take a bigger view of economics. 

You mentioned under-nourishment. Can the proposed food security law address the issue? What is your view the cost of implementing the law? 

There are two aspects--is it well thought out in terms of delivery and food choice? These questions remain. But the attack and scepticism has come from those saying this adds another Rs 27,000 crore and isn't it fiscally irresponsible? 

But I don't think it is. Because there are so many ways we are losing revenue. The foregone customs duty in imported gold and diamond would have generated Rs 50,000 crore. I'm very keen on fiscal responsibility but I'm not keen on the idea that you don't question things such as subsidy on diesel for rich people or fertiliser subsidy. Whenever something is thought of to help poor, hungry people, some bring out the fiscal hat and say, 'My God, this is irresponsible.' 

The government's commitment is right, but technology and delivery should be improved. I think government shouldn't shy away from helping people in the bottom of the layer, which can make a dent on India's unenviable reputation as being the country with the highest number of under-nourished children. 

Some economists say the Kerala model of private investment in healthcare and education is better
 
Kerala was fantastic in providing healthcare to all through public channels. That was something to learn. But its handling of encouraging industry and business was not good. So, it's not a model. 

The lesson to learn is the history lesson from the US, Japan, South Korea and Taiwan. You have to provide healthcare to all that they don't have to buy. It's the public sector that came first and only because of that private sector could come into the story in Kerala. 

What reforms do you think the government needs to bring in to lift the sentiment of the country? 

My worry is the sentiment of country gets upset when it (GDP growth rate) goes from 8% to 7%. The sentiment of India doesn't get affected by the higher number of under-nourished children than anywhere else; higher percentage of people who have no medical care except quackery. That is a subject of gloom. 

I think it is important to recognise what the government needs to do and I think the Food Security Bill, despite its faulty design, is a good move in this direction that we care about the lives of Indians. That's the way to lift the sentiment of people. Are we focused on the right question? That's what I would like as an Indian and Indian citizen the government and political system to address.