India is today seen as developing and shining. It is seen as the emerging global economic power. The country that we see emerging before us has shining metropolises with McDonalds, fancy malls, flamboyant cars, expensive clothes and India is the most important market for this all. And we’d quickly jump to the conclusion that we are progressing in the right direction and that all this would eventually pull every one out of poverty. But from where I see it, our country is jumping into a pit from where it’d be hard to come back. We are developing a country where the “urban middle class” is progressing for sure, but this is also one country where near 80% of the population lives below Rs 20 a day, a country whose hunger is comparable to that of Sub-Saharan Africa. Surely a nation where poverty forces 15 year old girls into prostitution cannot be developing by any standards. And all this is making permanent damage to the society. It is such societal neglect and oppression that leads to violent outbursts which we often call ‘Terrorism’. The fault I believe is our own.
That India is growing at miraculous rates is very easily perceived as an indicator for a prosperous future. Much of this perception and inference is based on growth theories which would predict that economies (conditionally) shall converge over time. But what worries me is that the span of “time” is not certain. It has definitely not happened till now. Standard economic theory would also tell you that during the course of development as countries move from being agro based economies to the phase of industrialization the inequality first increases and then declines. All this looks very attractive on paper but we never realize the cost that comes during the transition phase – the phase of increasing inequality.
The last 50-60 years has not shown us convergence of any sorts and if we may just care to ponder a little deeper into this... its a lifetime! So on what basis do we claim that we are developing for the good? Specially when a lot of this so called “necessary evil” is permanent damage. A household once put into the darkness of poverty, at least in my opinion, has almost negligible chances to come out of the vicious cycle. And yet we talk of no reservation and equal opportunity when we are the ones putting families into the death knell and denying them the very opportunity that we ask for.
Let’s put things in perspective. I personally do not buy too much from Amartya Sen but one thing that he did put down on paper stands out essential and very common sense, just that with all the westernization we seem to be loosing of it all. In simple terms increasing inequality should increase poverty. After all a society where everyone has access to a maruti car vis-a-vis one in which some can buy just bicycles and others Hondas is better off even if the aggregate incomes in both societies is the same. There shall be a degree of stability and more happiness in such a society. Just consider two brothers with one chocolate each compared to a situation where only one sibling gets all the perks. The consequences are just a micro and over-simplified picture of what is happening around us. This concept of relative poverty is one that is used by most European countries and if we were to use a similar approach for India we would surely be performing miserably.
Seeing India in this light, the growth that we are looking at shall increase inequality to a very great and perhaps irreparable level. In the name of industrialization, we are snatching away land from the tribals, which I might remind you is un-constitutional. What country is it which uses its own military against its own defenceless citizens? Have we ever thought why the Naxal Movement is so strong? We talk about carbon reduction, global warming and eco-friendly systems and spend millions of dollars on huge conferences. And then it’d appear such ironic when we’d try to take land away from the tribals who live in perfect harmony with nature for so called development.
Land acquisition can be given a lot rationality and in it the cost is most often forgotten. In China, for example, farmers refused to give away their land even when they were offered two residential apartments against it. Reason, well not that they would earn less but because they’d become socially inactive landlords. They preferred staying active farmers. Just shows how important self respect is for the human beings.
One of my professors at the Delhi School once asked a question to a renowned pro-market economist. He said that instead of giving the farmers the present discounted value of their land while acquiring it, why not pay the present discounted value of the investment a company makes to it and the remaining capital to the society. Its the same logic turned on its head. The economist, well did not have any answer.
See, my views are not leftist or anti-industrialization. All I’m trying to say is that in any actions we take we should not forget some members of the society. So right now, if development means McDonalds for some and hunger for others I am against it. If development means food, health care, cheap medicine, equal right to education to all... then that is the direction I’d want the country to progress. There is no need to grow too fast if in growing slowly we can take everyone along...
