Economic Highlights
New Delhi, 7 August 2015
Seven Lost Decades
WHERE HAVE WE ERRED?
By Shivaji Sarkar
It is time for stock-taking. India is completing 68 years of
freedom from colonial rule. August 15, 1947 was supposed to be the fulfillment
of a dream for self-rule, freedom from poverty, affordable if not low prices,
industrialization, rapid growth and pride. Pride we have despite inability to
achieve either of these.
Our dependence on the West that should have almost been
minimal has increased. The planning of Jawaharlal Nehru, socialism of Indira
Gandhi, liberal globalism of Manmohan Singh has virtually taken us nowhere.
Disparity and poverty has increased. Almost double the population at the time
of Independence
suffers from absolute poverty now. Crony capitalism thrives and taxes remain at
a socialistic high. How would you explain robbing people, earning around Rs
22,000 a month, 33 per cent of their income in direct taxes?
The British ensured that we produced nothing and survived on
cheap exports mostly raw materials to sustain their industry. Sadly, that remains
the policy till today. Except sundry items our exports comprise mostly of raw
minerals, handicrafts, gems and jewellery, readymade garments, basmati rice,
cotton yarn, vegetable juices, some other agro products, meat, essential oils,
stainless steel, bit of pharmaceutical products, low-cost machinery, transport
equipment and services. At $757 billion, it remains mere 1.7 per cent of global
trade almost equal to 1.4 per cent way back in 1951.
The nation without any doubt is not changing. The fashion is
to blame the present government. That is obvious. But this NDA government
certainly is not responsible for accumulation of muck of the past seven
decades. In reality, all non-Congress regimes had herculean tasks of freeing
the country of the misrule of previous regimes.
The Janata Party government--1977-1979 -- had to busy itself
in correcting legal and other misdeeds done during the Emergency, 1975. The
Janata Dal government of VP Singh was a victim of contradictions, many say
stoked subtly by Rajiv Gandhi’s Congress that was thrown out of power in 1989.
The 1996-98 United Front and 1999-2004 Atal Behari Vajpayee’s NDA governments
were able to contain the scams and corruption. In fact, Vajpayee’s moves did put
a check on prices and black money, which is a major irritant today.
But before Vajpayee could do much more, the Congress bounced
back once again. Then began again an era of inflation, scams, corruption,
policy paralysis and showering of bonanza to industrialists (not industry);
something this country had done since Independence.
Nehru was misdirected to believe that rapid industrialization and
licence-permit rule would ensure growth and the farm sector could be
overlooked. It only fortified corruption and official- industry nexus.
In reality, corruption was institutionalised unfortunately
by Indira Gandhi. She had said, “Corruption is a global phenomenon” at the
height of the Jayaprakash Narayan’s Sampoorna Kranti, a clarion call
against rising graft.
With assiduous efforts what India had achieved in import
substitution and creating a manufacturing base for many goods was lost with the
acceptance of five billion SDR loan from the International Monetary Fund (IMF) by
a “reformed” Indira. Gradually, it led to the severe balance of payment crisis
forcing then Prime Minister Chandra Shekhar to mortgage gold with Bank of
England, in 1990.
It followed with the pernicious Manmohanomics that virtually
wiped out whatever little manufacturing base this country had created. The so-called
opening up of the economy was the beginning of neo-colonialism, which till this
day this country finds difficult to get rid of. Not surprisingly even the
shaving blade and soap are now once again being manufactured by multi-nationals
by wiping out the indigenous manufacturers.
The latest socio-economic survey reveals that the Government
led by a particular party only had misdirected priorities and in seven decades absolute
poverty increased. Families in these days of high inflation subsist on an
average monthly income of Rs 5,000. Agriculture and rural population suffered
the worst. The then Planning Commission wizards ignored the vital farm sector
that supports at least 54 per cent of the population, over 75 crore. This
neglect led to stagnation, if not fall of the industry and abysmal conditions
for the rural-agro sector.
The other sector that suffered the worst is the working
class. None -- Nehru, Indira, Rajiv Gandhi, Narasimha Rao or Manmohan Singh -- cared
for them. A bogey was created that labourers had failed the industries,
ignoring that industrialists in 1950s, 60s or 2010s have not paid trillions of
rupees due to the workers while gobbling up Rs 42 lakh crore ‘incentives’ for the 2008 western crisis that did not
touch this country. A mere Rs 2.5 lakh was allocated in the last ten years, not
actually spent, for the rural and agro sector.
The workers died but not one industrialist was prosecuted.
The industry even did not pay sugar or cotton farmers’ dues. So farmers were
forced to commit suicide or died with their families of severe starvation. Industrialists,
again not industry, robbed the banks of over Rs 3 lakh crore. The story of
exploitation is too well known.
India tried to ape the West, which is now
collapsing for its unethical economic practices. The western workers, farmers,
consumers are the worst sufferers. Their lifetime savings, pension funds were
all robbed of by the unscrupulous corporate, whose profits soared.
But for the government recapitalizing banks with people’s
money, Indian banks are in no better shape. The poor small defaulters’
properties are auctioned but large borrowers sing the song. It is not good
economy. India
has to come out of this syndrome. A change is must.
India has to be a harbinger for ushering
in people-oriented economy. The last man has to be the decision maker,
not a mere receiver. Policies have to be reoriented from the present
industry-investment orientation. The individual has to be enabled, just not
empowered. A strengthened rural family would not seek doles. Each individual
and his family have to prosper, an essential for the prosperity, not just
growth, of the nation.
People expect Prime Minister Narendra Modi to take care of these
at the 69th Independence Day address. His last Red Fort speech had
promised seven things, including Jandhan, Make in India and Swachha Bharat. This time
people want him to address the issues of the rural sector in a sharper way and
create the indigenous strength. The path, in the face of sharks which have
penetrated different political parties and bureaucracy, is indeed not easy. But
people are made to believe Modi can write the new economy that would not be a
copy of the West as a road to real prosperity. Will he be able to deliver or
remain just selling big dreams? --- INFA
(Copyright,
India News and Feature Alliance)
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