Arvind Subramanian

“The first and the most exciting thing for me as someone who has studied growth across countries from a macro perspective was that there is something truly unique about the Indian development model. I call this the ‘precocious development model’, since a precocious child does things far ahead of its time—in both the good and bad sense.
Political scientists have often observed that India is a complete outlier in having sustained democracy at very low levels of income, low levels of literacy, with deep social fissures, and with a highly agrarian economy. Almost no country in the world has managed that under these conditions. I think the only continuous democracies have all been small countries (Costa Rica, Barbados, Jamaica, Mauritius and Botswana) with higher levels of literacy and fewer social divisions.
The second part of the precocious model is that it entails not just precocious politics but also precocious economics. There are many ways of explaining this precocious economics model, but I focus on two.
Most countries grow by either specializing in or exploiting their minerals—as in the old model—and in some cases, exploiting their geography. But most of the post-war growth experiences have come about by becoming manufacturing powerhouses, especially starting with low-skill labour and going up the value-added spectrum. Korea, Taiwan and China are classic examples, specializing in textiles and clothing initially and now becoming major exporters of electronics, cars, IT products, etc.”
― Arvind Subramanian, Of Counsel