Three that Made a Revolution

Another excellent post from Samir Varma, this time on the 1991 reforms in India that launched India’s second freedom movement:

Three men you’ve probably never heard of—P.V. Narasimha Rao, Manmohan Singh, Montek Singh Ahluwalia—may be the three most important people of the late 20th century.

Bold claim. Audacious, even. Let me defend it.

Here are the numbers. In 1991, over 45% of Indians lived below the poverty line—roughly 400 million people. By 2024, extreme poverty in India had fallen to under 3%.

That’s 400 to 500 million people lifted out of poverty.

The largest democratic poverty alleviation in human history.

….So there they stood.

The precipice was visible. A Hindu politician from a dusty village in Telangana who spoke 17 languages and wrote novels nobody wanted to read. A Sikh economist from a village that no longer existed, who took cold showers at Cambridge and kept dried fruits in his pockets. Another Sikh economist who’d been the youngest division chief in World Bank history and wrote a memo that would change a country.

Three men. All products of a civilization that absorbs contradictions—that somehow fits Hindus and Sikhs and Muslims and Christians and Jains and Buddhists and Parsis into one impossibly diverse democracy. A civilization where, as I’ve written before, any statement you make is true, AS IS its opposite.

India was bankrupt. The gold was gone. The Soviet model they’d followed for forty years was collapsing in real time. Every assumption that had guided Indian economic policy since independence was being revealed as catastrophically wrong.

The intelligentsia still believed in socialism. The party cadres still worshipped Nehru’s memory. The opposition would scream about selling out to foreign powers. The bureaucracy would resist losing its control. The protected industries would fight to keep their monopolies.

But the three men had something their opponents didn’t: a plan. The M Document—the years of thinking—the technocratic expertise accumulated across decades. They had political cover—Rao’s tactical genius, his willingness to let Singh take the heat while he worked the back channels. They had credibility—Singh’s Cambridge pedigree, Ahluwalia’s World Bank experience, Rao’s decades of political survival.

And they had something else: the crisis itself. The one thing that could break through forty years of socialist inertia. The emergency that made the previously impossible suddenly necessary.

Varma tells the story well. For the full history consult the indispensable The 1991 Project, full of documents, oral histories and interviews.

Hat tip: Naveen Nvn.