Ihab Salloum[ad_1]
“India is not a poor country. It is a poorly managed country.” ~ William Nanda Bissell
Let me tell you about this fascinating individual named William Nanda Bissell. He holds the esteemed position of CEO at Fabindia, a remarkable company that sources and promotes the work of 40,000 craftspeople from various corners of India. These skilled individuals, such as potters, weavers, and carpenters, rely on their incredible talents to survive and thrive. Bissell has authored a remarkably engaging book titled “Making India work”, which captivated me with its unique approach and substantial ideas for the betterment of India.
Bissell confronts India’s poverty head-on, pointing out that we cannot claim to be a superpower when 60% of our population endures abysmal living conditions. His transformative ideas aim to generate wealth from the very bottom of the societal pyramid, rather than relying on a trickle-down effect.
Inspired by the visionary insights of Mahatma Gandhi, who had the remarkable ability to foresee and offer solutions to the challenges that India would face in the twenty-first century, Bissell’s ideas align with Gandhi’s fundamental principles of sustainable living. Gandhi advocated for need, not greed, as the foundation of all consumption. He called for appropriately scaled institutions, encouraging decentralized and accessible local establishments. He also warned against blindly imitating the industrialization and consumption patterns of the Western world.
The book revolves around four central ideas:
1. Scaling down government:
Bissell recommends a simplified 4-level structure of governance. The Community, representing approximately 25,000 people, becomes the fundamental active unit of government, replacing the Panchayats. The next level is the Area, which consists of 100 contiguous communities, replacing the district. Then, there is the Region, encompassing 10 Areas and replacing the State. Finally, the Nation resides at the highest level. Bissell advocates streamlining the government’s role to primarily enforce individual rights, establish standards, and regulate and monitor compliance. He believes this structure would significantly reduce India’s bureaucratic workforce, which currently amounts to a staggering 22 million, down to a modest 2 million government servants.
2. Ending Poverty:
In contrast to the current scattered approach towards poverty alleviation, where less than 10 paise to the rupee actually reaches the intended beneficiaries, Bissell proposes a voucher system known as Targeted Catalysts. This system guarantees that every impoverished individual receives six essential services: nutrition, drinking water, sewage disposal, education, healthcare, and legal assistance. These vouchers can be redeemed by private service providers, who will be reimbursed by the government. Bissell suggests that the reimbursement value will increase based on the provider’s quality rating, rewarding those who deliver better services.
3. Simplifying Taxation:
The countless taxes in existence today, including income tax, capital gains tax, sales tax, and excise duty, discourage productivity and come with high compliance and collection costs. Bissell proposes a simplified tax system primarily based on a property tax, amounting to 1% of the property value annually, collected by the Community. He argues that while the current tax system generates about $120 billion in revenue, the new system could generate $300 billion at a fraction of the cost. This shift would empower the Community government, as the bulk of revenue collection and spending on Targeted Catalysts would occur at the local level.
4. The Real Cost:
Bissell identifies the reason why contemporary capitalism is failing to deliver – it fails to account for the real costs associated with a product, such as its production, environmental, and disposal costs. He emphasizes the need to incorporate these real costs into pricing. Additionally, as citizens, we are entitled to clean air and water. Bissell proposes environmental exchanges, enabling communities that invest in biodiversity, forests, and clean water to trade credits with communities lagging behind. This approach encourages greater investments in environmental preservation. Bissell also outlines a transition plan and the establishment of a National Asset Corporation that would utilize the value of public sector assets to fund government downsizing and other transition expenses.
‘Making India work’ is an absolute must-read for the New Constructs community. While the ideas presented in the book will undoubtedly evolve through dialogue, they provide a solid foundation for reimagining governments not only in India but worldwide. I encourage you to read the book and share your thoughts with all of us.
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