I have always wondered why the so called 'trickle down effect' seems to have a very small effect or actually no effect at all in India.
I understand that for all development process, it is essential that the needs be communicated from the have-nots to the government but this communication is not taking place mainly due to what i call the Language Constraint.
What is this language constraint? India is a nation comprising diverse languages and cultures. This diversity seems to have a negative impact on the economic growth and development. It is only during the 1990's , due to Globalizaton that people understood the need for English-the language of the world economy! But after this, the orignal language of the masses tend not to be learnt; as the populace feels, it does not help them in their future. This language has divided and subdivided the Indian Economy into many bits and pieces which otherwise could have been a boon for the economy as a whole and it could have enjoyed the economies of scale.
For example, the US has got Hollywood but India has Bollywood, Kollywood and so on and so forth. This is a strain on the resources.
I am looking for more literature on Income Inequalities and other inequalities. Will write more on it once i get more ideas.