Need Housewife Economics
For the benefit of third world pseudo democracies, a pseudo discipline, development economics, evolved. It assumes that resources are centrally controlled and that the common people, incapable of taking care of themselves, should be fed with plan funds and promises. Over eighty per cent funds get consumed in overheads such as a bloated bureaucracy, misuse of authority, wastage of resources, corruption, faulty decisions and incomplete projects. The state borrows heavily to support staff salaries, corruption and repaying unproductive loans. Unable to deal with poverty, an important contribution of the discipline is evolution of a number of poverty indicators.
Development economics took India to the brink of bankruptcy. Forced to open the economy, the leadership took credit for reforms. It is now heavily dependent on foreign loans and direct investment. This may land India into foreign domination worse than colonialism --- a neo-colonialism.
We need simple housewife economics. Local governments do housekeeping, that is, control resources to handle all local matters. The higher level governments provide infrastructure and coordinate but do not interfere.