Thursday, February 20, 2020

Why do they refuse to learn?

"Economists of all hues now agree that structural reforms are necessary to revive the Indian economy," wrote Arun Maira. Like what Mahatma Gandhi wanted. "Gandhi envisaged a model in which producers would be owners of their tiny enterprises." "He wanted constructive workers to create wealth for themselves, and not be mere wage earners enriching remote owners." Prime Minister Narendra Modi agrees with Maira and famously advised young people to sell "pakodas' (deep fried vegetables coated in batter), which was supported by Home Minister Amit Shah in parliament. The Periodic Labor Force Survey (PLFS) of 2017-18 found, "As much as 70% of the self-employed were own account workers, an official categorization of self-employed workers who run their own establishment or enterprise (with or without partners) without hiring any workers, while 26% were unpaid helpers who assist household members in running their enterprise, but do not receive any regular wage or salary. Only 4% of self-employed were employers (who rune their enterprise by hiring workers)." 60% of the self-employed work in agriculture, and 80% earn less than Rs 15,000 per month. Majority of Indians prefer the assurance of a salaried job than being self-employed. "When factory owner Amit Nagpal closed shop and joined a call center on a fixed salary, he joined a growing trend in urban India where self-employment has become an untenable career option." Gandhi had the Indian state to maintain his poverty in style but Indians don't want to spin a 'charkha' (spinning wheel) as a career. The latest catchphrase in India is 'inclusive growth'. "The biometric-based unique identification system, Aadhaar, now ensures the poor are no longer invisible and, therefore, more empowered." In other words, inclusive growth means subsidies in India. According to the World Bank "absolute pro-poor growth can be the result of direct income redistribution schemes (subsidies), but for growth to be inclusive productivity must be improved and new opportunities for employment created". According to the World Economic Forum, an exclusive club of the very rich, inclusive growth means "concrete solutions to drive change by providing a one-stop-shop to make global business and policy practices more transparent, inclusive and sustainable" so that it can "generate high social and financial returns". The recent victory of Chief Minister Arvind Kejriwal in assembly elections in Delhi "has been partially attributed to the freebies and subsidies given to the electorate", wrote R Jagannathan. That is why 'inclusive growth' is so attractive in India. "As Winston Churchill said, the core vice of capitalism is unequal sharing of blessings and the inherent virtue of socialism is equal sharing of misery," wrote Prof Ramesh Thakur. Maira should learn.  

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