Economic
Highlights
New Delhi, 14 March 2014
The Great Loot
NO MORE MANMOHANOMICS!
By Shivaji Sarkar
Daunting tasks remain for the country’s
new prime minister. The last ten years of virtual non-governance have taken the
country down the hill almost in on all spheres. It would not be easy for even
the strongest person to ascend the coveted chair to take the country out of the
morass. People want a break from Manmohanomics.
The problems are multifarious. Job
opportunities are shrinking, poverty is rising – statistics do not picture
reality, manufacturing and industrial growth touched the bottom, farm sector is
facing too many odds, education and real estate have become expensive and
galloping inflation makes people squirm every day. As living becomes expensive,
opportunities shrink, corruption rises– this is snatching someone else’s lawful
rights.
Indeed, it is a complex task. The
new government, whichever one it may turn out to be, would have to come up with
a new vision and iron-fisted governance. It cannot be enamoured with the Mumbai
stock sensex rising to 22000. That is no index of performance of the economy,
as sensex is gambling by the richest to create an illusory world for the
deprived.
Public-private-partnership model of
economy of Manmohan Singh, the CAG has testified, has not only failed it has
led to loot of public (government) assets by private (corporate) virtually with
the least or no investment. Airport and highway (toll) developments, petroleum
basins, coal blocks, spectrum and private insurance are the stark instances of
private corporate models for continuously robbing the poor citizens to satiate
the greed. Sahara and Sharadha are no
exception even there are Religare types of mafioso.
It has also led to the collusion
between the bureaucracy and the corporate evidenced in the latest court
hearings on Neera Radia links. Vast stretches of land in Uttar Pradesh, Haryana,
Andhra Pradesh, Karnataka and where not, have been handed over to the rich for
a song. Yes, the political leaders be it the SP, BSP, DMK, Chavans, Reddys, have
also benefited from these deals.
The robbed were poor tribal people
(as in Niyamgiri in Odisha) or poor farmers as in the Ganga valley, where only
one company holds the jagir for all lands in 1000 km stretch in UP from
Noida to Ballia. It is so in many other so-called developing States. Would the
new prime minister be able to reverse it?
Food and other prices are being
continuously manipulated by a combination of large corporate cartels. The
liberalization of their operations has caused prices to soar by over 42 per
cent in less than four years. Pre-poll “fall” of price index to around 8 per
cent is actually over the continuing inflation. Wages, according to estimates,
have not risen to match it. Official figures say wages rose by around 11 per
cent in all these years. India Inc has projected an average salary increase of 10.3
per cent for 2013, according to the Annual Salary Increase Survey by Aon
Hewitt.
Those in unorganised sector even do not have this
“luxury”. No wonder some international rating agencies like Moody’s have
questioned the Government’s claim of alleviating 14 crore poor. The rating
agencies hint that almost that many people have become poorer.
Rising salary is not a solution. It
increases costs and pushes up inflation. The solution lies in bringing down the
prices. The Government has enough teeth to do it. One wonders whether the new
government would act for the country and its people or the coveted large
conglomerates.
The pricing
of petroleum, the so-called under recoveries, pegging indigenously produced gas
price with international ones, consequent high fertilizer and many other linked
up products virtually put the blame for commodity and transport cost inflation
on government decisions. The bureaucracy (mis)guides the political masters and
they fall for it. The voters do not want such masters. They also want
de-bureaucratising decision-making. Induction of large number of bureaucrats by
political parties does not boost the confidence of the people.
The farm
sector is surviving because of individual entrepreneurship despite rising input
costs. High inflation has hit them hard but the farm produce does not get the
required price as suggested by the Swaminathan commission. Corporatisation and
futures’ markets have created speculation supported by the UPA Government
mechanism. No political party theoretically opposes it.
Rural voters
are being edged out. Their sufferings have increased. Despite MNREGA, the
exodus to ill-equipped cities has not stopped. Does any political party have a
programme to address this? Economic advisers, such as former
Planning Commission member Raja Chelliah, had even admitted in 1989: “We have
to give up our preoccupation with industry and concentrate on agriculture”. This
has not happened.
Is there
really a demographic dividend? In reality, it has meant increased supply of
cheap labour to high profit earning corporate. The course durations and costs
of education have quadrupled. Large number of youth is burdened with high debt
even before they are into jobs. The government has remained a silent or rather a
collusive spectator. The gap between the people and the Government is widening.
The people cry. Nobody listens to them as bureaucrats are inaccessible and politicians
listen but do not act. Would that change Indian economy?
Ill-conceived policies and
succumbing to western pressures for allowing virtual free import of goods under
WTO have led to virtual outsourcing of manufacturing to countries such as China and South Korea. India now
produces nothing except cars of foreign makers. Industries are gasping.
Entrepreneurship is diminishing. This is certainly not the way for survival.
Growth is a misnomer.
Since 1991, it is being said that
bias would be towards employment generation. It has only shrunk. Pumping in
money has not solved problems. Poor pay high taxes, salaried pay it through
their nose, the rich gets away. High taxes have stymied activities. One hopes
the new regime makes India
the least taxed country.
The banking
sector, supposed to have been the strength of the Indian economy, is gasping.
High losses, called Non-Performing Assets, for the past four years have increased
the risk to the people. It may bust unless strong steps are taken. It is a
tinder box. High hopes are pegged on the new regime that takes over after Lok Sabha elections.
Everyone wants to see how it acts to create an El Dorado and adds a new paradigm. --- INFA
(Copyright, India
News and Feature Alliance)
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