Economic Highlights

New Delhi, 24 January 2014

                                                                         Rising Number Of Poor

                                                                        WEF, INDIA AT A LOSS

                                                                           By Shivaji Sarkar

It has been a fortnight of churning – nationally and internationally. Political parties in India and leaders at the World Economic Forum meeting in Davos are critical of the lib-globe model of economy, concerned of labour but finally spread out a roadmap to strengthen corporate hold on global populace. Somehow the world leadership is wary of breaking away from the past. Is it unsure, confused? Is it not finding a new path to help the common man?

The political leadership has yet to take up cudgels to break from the past and set a new economic course though there is agreement that the post-Soviet so-called “liberalization” has ushered in a regime of untold miseries. The World Economic Forum founder Prof Klaus Schwab echoing the concern says, “The world is more inter-connected, more inequitable and more volatile”. He has reasons. Though he does not speak of spiraling profits of the corporate he is obliquely critical of them as “the world now has 75 million jobless youth”.

What Schwab says is symptomatic of the rising number of poor, not only in countries like India, but in Europe and the US. The US despite some stated improvement in job situation, employs only half the number that was employed six years back. Europe has an average unemployment of 12.1 per cent, but in countries like Greece and Spain it is 27.8 per cent and 26.7 per cent respectively.

As the world is still talking of “labour reforms”, Schwab is concerned as only three lakh workers against 1.9 million (19 lakh) in EU have secured job contracts. It is no better in the US. Healthcare benefits have been cut by 40 per cent in Europe and the US. Needless to say the workers remain the worst exploited in India. Inequity is rising. “The next era of globalization cannot create as many risks and inequities. It has to reshape demands, collective insights and collaborative action”, says Schwab.

This has created political uncertainties. Since 2008, 20 of the 27 European governments changed political leadership. The US is seeing the uncertainties as political opponents hold up the approval of budgets. Entire Middle East – Libya, Tunisia, Sudan, Egypt, Syria, Iraq – remains in crisis.

India is no exception. Political parties are grappling to regain trust. They have not yet learned from the global failures. Inequities are increasing. Despite severe economic crisis, rising prices are boosting corporate profits. In many cases, as recent balance sheets show profits are beyond 20 and 30 per cent – keeping pace with inflation. It is only the common man, who is losing in terms of purchasing power, jobs and livelihood.

The road map spread out by Congress 2014 campaign leader Rahul Gandhi, BJP Prime Ministerial nominee Narendra Modi or even the fledgling conglomerate Aam Admi Party, which does not have an ideology, is thinking only in terms of the corporate. The “aam aadmi” apparently, though in focus for his votes, does not figure in the broader goals.

Delhi Chief Minister Arvind Kerjriwal sets up a committee to formulate AAP’s economic policy. Of the seven members, except one all have corporate background.

Rahul Gandhi’s speeches at FICCI and Talkorta AICC meet have been music to the corporate as he promises to continue with “reforms”. It means the common man’s suffering would continue. He speaks of ending poverty. So did his grandmother, Indira Gandhi, who coined her party’s slogan as ‘garibi hatao’ (remove poverty). But we find the number of poor has more than doubled since 1971 and at 81 crore, officially admitted, is almost close to the 1991’s population of 84 crore.

Modi’s speech at Ramlila Ground in Delhi speaks of agriculture, dairy, North-East, youth strength, participatory democracy and employment. He speaks of high prices and the need to contain these through a price stabilization fund to insulate the poor. But somewhere he also is dazzled by the corporate jargons of – talent, tourism, technology, trade and tradition. India neither needs Modi’s “golden quadrilateral of bullet train network” nor does it want to privatise the last bastion of the people-friendly Railways.

Recall that in 2004, the then Andhra Pradesh Chief Minister Chandrababu Naidu had gone hi-tech. That was a major disconnect with the people and he paid a price.

Modi needs to recalibrate the vision. India needs an efficient railway. Each superfast train has hit the poor severely. Their normal trains run late ten months a year. They are forced to travel “cattle class”. If he wants to invest in railways, it should be for running all trains on time, provide minimum comfort to the travelling poor at affordable – not heightened – cost, even without reservation and should not lose money for cancellation of tickets. It is symptomatic of the country’s needs.

People want empathy. They want to feel they are part of the same developing country. Bullet trains can wait. But is there anyone who can restore the glory of once prestigious Janata Express? That would connect the people to the rulers.

The issue is not just unemployment. It is also under-employment and the culture of hire and fire, even in Government jobs now by giving an employee a bad name by his boss. People want that to be corrected. They want that if someone is thrown out of job to boost profits of the employer, the employee’s pay and perks (that is his economy) should also be protected.

The WEF is also now mulling how the line between labour and enterprise could blur. Almost everyone is silent on the retrograde “reforms” on the labour front. Political parties have to speak for the working class. They are just not voters who help form governments. They are the people without whom no economy could be made robust.

The last 20 years of Manmohanomics have ignored the workers, farmers, artisans, small and medium entrepreneurs. During this period the safety of bank deposits have been put at stake as large borrowers have eroded the base of Indian banking.

Now we speak of agriculture data bank. Good. But this country with 70 crore people employed in agriculture wants it to be made the base of the economy. It cannot be left to the corporate to create mayhem in the rural market. People want that clarity in outlook.

Elections should not be the time for rhetoric. It is the opportunity for reshaping the society, politics and business. The country’s poor want a practical, neither elitist nor elusive, vision for growth and development. ---INFA

(Copyright, India News and Feature Alliance)