Wednesday, March 18, 2009

Indian economic model - apprenticeship vs jobs

State Finances

The All India average of wages, salaries and pensions for Sate Governments is 32.8% of revenues. Gujarat at 16% is at half the national average. In fact the only state to come close to Gujarat is Sikkim which is at 21.2%.

Now this interesting.

Getting employees in Gujarat is difficult. The average Gujarathi is more interested in self employment - rather than a job. Lifelong employment as an economic model was a colonial introduction.

Now that is a good economic model for rest of India to follow. Traditional jobs in India were more in the nature of apprenticeships rather than the Western concepts of jobs and employment. The Indian apprenticeship model ensured high levels of initiative and innovation - and a disincentive towards slavery. It also made India into a sustainable and low cost economy.

Appears that Gujarat is the only state which now follows this model.

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