> when I walk by a child slaving in a teashop.
You know quite well that child labor is illegal in India and we have a huge enforcement problem. When you walk by such a child, why don't you report this to the cops? Why don't you pass on this information to CRY or some such NGO. Have you tried speaking to the guy who employs the kid and tried to get the child enrolled in some school?
My point precisely is that as a dispassionate observer, you are not doing anything to solve the problem. I will state why I believe there is reason for hope.
When I had gone to get my driver's license in Hyderabad, I was turned down on the pretext of not knowing some archaic clauses because I did not come through an agent and hence had not bribed the person incharge. However, next time round, there was a redhat system on which I had to give my test (no more answering questions to some guy). Now there is a very clean smooth system with very little scope of corruption.
A billion plus population and a poor one at that will lead to chaos. To jump from that to a country disintegrating calls for quite a leap of faith. I highly doubt that there has been a study of failed states to definitively conclude that your figures lead directly to a disintegrating state.