The Concept of Horizontal development:
Highly industrialised and urbanised states like Maharashtra and Gujarat do not get sufficient funds from the centre because of the stupid (at least I think so) ideology of the UPA --that of horizontal development (If some region or some set of demographics are somehow benefitting more, from the existing policies or by virtue of their skill or profession, or availability of resources, then no more resources need be allocated for their further development, and the money meant for these affluent regions be diverted to the unprivileged regions, whose standard of living has been stagnant, be it due to lack of skills among the workforce, poor policies or poor implemetation, non-availability of resources, etc. Mostly, such a policy is backed by stating the chances of social unrest in the poor sections due to lack of resources).
So they siphon off the money from higher GDP and well developed states like Gujarat and Maharashtra, and fund the inefficient states like U.P., orissa, etc. In essence, we are being punished both for the inefficiency of the bimaru states and being a well developed state. Such problems do not arise in a capitalist society, where the development of the developed is not sacrificed for the needs of the under-developed. As Capitalism provides equal development opportunities to all, it comes down to the regional governments of the undeveloped states to be more efficient, and the industry in that region to be more competitive. Instead, the government should find ways to better frame and implement its policies. It will be better to plug the holes before pumping huge amounts of cash down the drain.
Highly industrialised and urbanised states like Maharashtra and Gujarat do not get sufficient funds from the centre because of the stupid (at least I think so) ideology of the UPA --that of horizontal development (If some region or some set of demographics are somehow benefitting more, from the existing policies or by virtue of their skill or profession, or availability of resources, then no more resources need be allocated for their further development, and the money meant for these affluent regions be diverted to the unprivileged regions, whose standard of living has been stagnant, be it due to lack of skills among the workforce, poor policies or poor implemetation, non-availability of resources, etc. Mostly, such a policy is backed by stating the chances of social unrest in the poor sections due to lack of resources).
So they siphon off the money from higher GDP and well developed states like Gujarat and Maharashtra, and fund the inefficient states like U.P., orissa, etc. In essence, we are being punished both for the inefficiency of the bimaru states and being a well developed state. Such problems do not arise in a capitalist society, where the development of the developed is not sacrificed for the needs of the under-developed. As Capitalism provides equal development opportunities to all, it comes down to the regional governments of the undeveloped states to be more efficient, and the industry in that region to be more competitive. Instead, the government should find ways to better frame and implement its policies. It will be better to plug the holes before pumping huge amounts of cash down the drain.
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