Even in India, Government’s Main Function is to Choke the Economy

Gurgaon is a thriving piece of India, despite having absolutely no government services. Those who constantly agitate for descriptions of how things get done if government doesn’t step in to provide water, policing, and to take money from the productive and give it to beggars, can learn a lot from Gurgaon.

Amplify’d from www.insideronline.org

India has stumbled onto the secret to economic growth, reports the New York Times:

In 1979, the state of Haryana created Gurgaon by dividing a longstanding political district on the outskirts of New Delhi. One half would revolve around the city of Faridabad, which had an active municipal government, direct rail access to the capital, fertile farmland and a strong industrial base. The other half, Gurgaon, had rocky soil, no local government, no railway link and almost no industrial base.

As an economic competition, it seemed an unfair fight. And it has been: Gurgaon has won, easily. Faridabad has struggled to catch India’s modernization wave, while Gurgaon’s disadvantages turned out to be advantages, none more important, initially, than the absence of a districtwide government, which meant less red tape capable of choking development.

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