India’s poor need a hand, not alms

Subsidies have not transformed into policy to eliminate poverty and lead the people on the path of development

Large sections of Indians have remained poor for a very long time due to various social and economic reasons. It is necessary for democratic governments to succour them so that they become equal partners in production and consumption, and get trained to earn incomes, save, invest and pay taxes. Instead of this effort towards development, India has a continuing tradition of providing subsidies, freebies, foodgrains and medical services to the poor. The implied disdain, and even cynicism, are tantamount to treating them as mere recipients of government-sponsored alms.

Politicians are competing to promise freebies, including in election manifestos, as a budgetary routine. This implies the poor are treated as a bribe/favour-receiving vote bank by potential and incumbent elected representatives. Clearly, this subsidy tradition has just been a politically attractive palliative. It has never transformed into a policy to eliminate poverty and lead the masses on a path of development and socio-political-economic growth. In principle, all developments and initiatives to alleviate poverty have to lead to this growth.

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In India, the poor are mostly confined to villages, with many of them waiting to migrate to cities. A large number of these potential migrants are unprepared to fit into city-based employment in the service and manufacturing sectors. They lack the training, skills and endowments in capital investment concomitant with urban living. In sum, their migration is seldom into a life of dignity or fulfilment.

This state of affairs has to be remedied. There are opportunities now; people including villagers are far more literate than in previous decades. Absolute poverty or destitution has declined even though relative poverty or inequality has increased, leading to discrimination and injustice and the absence of a level playing field. This is a problem that has not been addressed. People are in various stages of poverty and they require well-planned transition support in their socio-economic ascent consisting of both capital allocation and manpower training. Just as poverty is diverse, its remedies also have to be innovative, specific, institutionalised and diverse. This is possible now since literacy and post-school education have improved significantly and are diversifying. Add to this the decline in birthrates and reduction in family sizes, which contribute to personal efforts and aspirations.

This transition has to be supported by society, governments and all stakeholders including the family, neighbourhood and institutions focused on social masonry and democratic vigil. The government on its part has to further activate the minimum wage policy including adjusting rates to inflation regularly. Various kinds of surveys including the general census, socio-economic census and caste census need to be expedited. This is necessary to design allocation policies and for the planning of institutions and their agenda for local relevance. The findings of these surveys will contribute to public knowledge and further enable transparency and democratic control of governments — at the level of Parliament, state legislatures and free press. Poverty elimination and transition support are issues of accountability and social audit.

Germane to the poverty problem is the growing socio-economic structural issue. Even as economic growth is increasing, proportionately more and more incomes and benefits are accruing to the capital investing class, but less and less to the working class, including the poor working largely in unorganised sectors in villages and cities. This trend is behind the inequality issue afflicting the world and India. We seem to be unable to handle increased mechanisation and the Schumpeterian ‘creative destruction’ with regard to technological advances and newer processes coming into place. Even as the eagerness to provide an ambience of ‘ease of doing business’ is growing, the issue of unemployment and the rights of workers are getting short shrift.

Workers’ rights have their own centuries-old history, struggle and evolution. Their 8-hour working days, minimum wages, social, economic, family and health security have to be protected in the context of freedom, democracy and human rights.

India has been a member of the International Labour Organisation (ILO) since the early 1920s, and its terms and covenants have to be followed with regard to our workers. Training of young workers with a view to constantly upgrading their skills has to be given high priority. This policy and collaboration among all stakeholders are sure to reduce inequality and imbalance between the incomes of labour and capitalists.

The poor, agriculturists and factory workers will be enabled to lead a life of dignity and climb the ladder of socio-economic progress.

(The writer is former
professor, Maharaja’s
College, Mysuru)