The 21st century is often referred to as the Asian century with India and China as the two emerging powers. The rapid socio-economic development of these two great nations represents a new hope for a world free of poverty and hunger. In this context, the 60th Republic Day of India is an occasion to celebrate this new dawn. India is the biggest democracy that is moving ahead with great poise and confidence in the historic task of nation building and the socio-economic uplift of its people. We in Nepal wish to see a prosperous and strong India which we hope will be a strong and inspiring force for peace and development throughout the region and world.

India’s achievements during the last 60 years are truly remarkable and have demolished some pet theories on the links between development and democracy. First, there is a strong line of thinking which asserts that the values of liberal democracy are incompatible with the rapid development of the economy. Democracy, it is said, is a luxury that the poor countries can ill afford because they lack the resources and the institutional infrastructure to manage the conflict ridden divisive tendencies of democratic politics. The alternative proposed can range anywhere from radical one party Marxism, like in Nepal, to some form of dictatorship. The great Indian experiment in democracy in the last 60 years has shown that poor people value liberty and freedom as anybody else and are capable of managing their politics. Democratic politics is not always smooth; at times it can be rough and bumpy. Nevertheless, India has shown that democracy as a form of governance and a way of creating new entitlements in the economy is the best guarantee of success in the task of building a nation.

Second, Indian experience in democratic politics clearly points out that rapid economic expansion and democratic values can go together provided the government creates the right kind of incentives to unleash the creative potential of the masses. During the first 40 years of democracy in India the growth rate of the economy hovered around 4 %. The “commanding height model” that relied on an interventionist government was the paradigm for development during this period. Exasperated with the low rate of growth, some scholars and politicians wondered if it was at all possible to grow rapidly in a democratic framework. The expansion of the Indian economy during the last two decades has conclusively answered this question. The Indian economy is a new growth dynamo in the international scene and aims to expand at 7 % even when leading economic powers of the world are busy declaring recession.

How has this transformation been possible? The answer is simple and yet fundamental. It is based on the core assumption that even the poorest and the downtrodden will work hard and save more if they feel that the economy provides them the opportunity for improvement. Rapid economic development requires the government to institutionalise an incentive structure that allows the people to use their talent to take advantage of new opportunities for creating wealth and income. Democratic governance in India has responded to this challenge. It is not the government but the people who are now the creators of wealth in India. Out of a national investment of 35 % of GDP almost 26 % comes from the private sector. It is this transformation that explains the dynamism of Indian economy and it has been achieved under a democratic polity where the rulers cannot stifle the voices of the people. The Indian economic miracle is also the miracle of democracy and the supremacy of the people.

Third, India like Nepal is a multi-religious, multi-ethnic and multi-lingual country. When India achieved independence over 60 years ago there was scepticism about the chances of unity under a democratic framework. This great historic enterprise in nation building is now on its way to success. There has been rage and fury along the way and it may probably continue for some years to come, but the overall trend has been that of unity in diversity within the ambit of a rapidly expanding economy and a system of governance that is based on the democratic foundation of constitutional checks and balances, free press and a commitment to respect civil, political and economic rights of over one billion people.

In Nepal, we are in the process of a historic transition from a feudal past to a democratic future where citizens of all regions and ethnicity can come together within the framework of democracy and peace. It is a difficult transition that is generating a lot of anxieties. In tackling our problems, there is much we can learn from India’s experience in institutionalising democracy as a positive force for peace, development and nation building. In this process we need understanding from our friends and neighbours so that the journey towards a prosperous Nepal becomes a smooth ride.

Dr Lohani is co-chairman of the Rastriya Janasakti Party