Tuesday, August 22, 2017

May seem easy but it is very difficult.

S Ray wrote about "The cold truth jobseekers face" in India. Why? "The bleak situation we have here is a result of the Indian youth's obsession with textbook education and white-collar jobs, and a consequent disdain for skill development and professional training courses." The government is spending thousands of crores on skill development centers but young people are not convinced. "Data provided by the National Skill Development Corporation (NSDC) shows that despite partnering with private companies, it has succeeded in training less than one crore people since May 2014." Will they be guaranteed jobs once they finish training? When the Prime Minister urges youth to be 'job creators' rather than 'job seekers', in his Independence Day address, it means that the government has no idea on how to create jobs. Trouble is that people need some income straight away to survive. When just 27.9 million people, out of a total population of 1,300 million, filed income tax returns this year, it shows how poor people really are. Given a chance people would prefer a steady salary than the uncertainty of trying to run their own business. Although there is no causality between ease of doing business, or EoDB, and a rise in economic growth there is a definite correlation between per capita GDP growth and EoDB, wrote Prof V Dahejia. What is most worrying is that year-on-year job creation is falling instead of rising, wrote H Jethmalani. Prof V Wadhwa warned of an impending shock to business leaders in India because they are resistant to change. This is because of Industry 4.0 which will be driven by Artificial Intelligence and robotics. So, the problems are very well known, but what are the solutions. NITI Aayog, which has replaced the erstwhile Planning Commission, presented a paper stressing employment generation. It said that industry should be concentrating on exports, rather than on the domestic market, there should be a shift from small enterprises to large companies and there should be a shift from informal to the organized sector. When you export you have to compete against others who are also trying to sell to the same customers, so this encourages innovation and productivity, wrote Prof R Hausmann. Why go to so much trouble when you can sell rubbish to citizens. As for increasing size of companies, Japan has 4.7 million small enterprises, employing about 30 million people, compared to just 13 thousand large enterprises, employing about 14 million people. Increasing education will not decrease inequality, wrote Nobel Prize winner, Paul Krugman. It is all about power and those who have power are not going to let go. In the case of India they are politicians and civil servants. The system gives them power, why should they change the system?

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