Friday, February 13, 2015

There is no class war in India.

It is a mystery why Jawaharlal Nehru, who saw himself as the last Englishman to rule India and was educated in England, did not follow the English path to economic growth. Compulsory school education for all, with truancy officers to enforce school attendance, a National Health Service to offer the same quality of care to everyone free of charge, State Pension for everyone after certain age, paid for by a National Insurance Scheme, and a high quality manufacturing sector born of the Industrial Revolution. Nehru chose to follow socialism and chose the USSR as his inspiration. During his time a few families became very wealthy by acquiring monopoly licenses to set up businesses. Imports were severely restricted by high taxes so everyone used whatever shoddy products were available. There was very little difference in lifestyle between the poor and the middle class. People commuted by bicycles, rickshaws or buses. You had to wait 5 years for a telephone connection, apply for permission to buy cement to build your house and wait for hours to withdraw cash from a bank. Even in 1972 we were reusing glass syringes and needles after boiling and catheters after sterilising in Lysol. Poverty of the people led to poverty of the nation so that the government had to pledge 20 tonnes of gold in London to meet its balance of payments crisis in 1991. Mr Narasimha Rao started reforms by reducing duties on imports, introducing competition in telecoms and allowing foreign television channels. From 1947 to 1998 the Congress ruled India apart from short intervals when disgruntled Congressmen became prime ministers by joining the Janata Dal. From 1998 to 2004 the BJP formed the first non-Congress government at the center but the Congress came back to power by promising freebies and increased its seats in 2009. Another economic calamity followed and in last year's elections the BJP won absolute majority with 282 seats while the Congress was reduced to just 44 seats. In 2013 a new party, called the Aam Aadmi Party was born in Delhi and within months was able to win 28 seats in assembly elections. A few days back the AAP swept into power with 67 seats out of 70 seats in the Delhi Assembly by promising a load of freebies. We do not know if the Congress created AAP as an alter ego or whether Congress supporters have shifted allegiance to Mr Kejriwal to get back to power but there is no difference between the Congress and the AAP. The margin of victory shows that not just the poor but almost everyone voted for the AAP. The middle class also wants freebies, such as lower electricity bills, civil servants want a return to relaxed working times and parents want lower education fees. Thus, there is no class war in India. We are all beggars.

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