Of inequality and poverty
Notwi thstanding
Prime Minister
Narendra Modi's
thundering declarations
on tomorrow's New
India, the most critical
issue of inequality has
not drawn much of his
government's attention.
I am not questioning the Prime Minister's
honourable intentions. I am also not blaming him for
the country's growing inequality and its related
phenomenon of poverty. It is the legacy of the
Congress rule of over sixty years. It was Prime
Minister Indira Gandhi who raised the war cry of
"Garibi Hatao", but without much result on the
ground. Herein lies India's tragedy.
The country's political class has been following the
one track approach of slogan mongering to take
people on the garden path of Shining India but with a
limited and lopsided success on the ground.
True, anti-poverty programmes have been launched
at several stages of our history by different leaders
with great fanfare. Still, the bitter truth is that the
The latest data from Credit Suisse shows that the richest one per cent Indians own 53 per
cent of the country's wealth. Ironically, it is "far ahead of the United States where the richest
one per cent own 37.3 per cent of total wealth. Even the paper by economists Thomas
Piketty and Lucas Chancel tells us how the top one per cent has grown at 130 times of the
bottom 50 per cent and the middle 40 per cent at a three times higher rate than the
bottom half.
problem of poverty remains with us as acute as ever
before. Nearly 300 millions of people (30 per cent) of
the population are still struggling for two square meals
a day.
The main reason for this situation is that the muchneeded
basic changes in the institutional structure
have remained unattended. No wonder, the
"inegalitarian structure" of our society has continued
to grow. In due course, this has created "a long gap"
between "verbalization" (of enactment of laws) and
implementation of policies of reforms.
Even decentralization of power has not produced
the desired results. If anything, it has led to
concentration of power in the hands of "petty
plutocracy". I am sorry to say that Prime Minister
Modi has also not given much thought to structural reforms necessary for handling the twin problems of
poverty and inequality which are very much
interlinked directly as well as indirectly.
Therefore, we
continue to see readymade poverty bazaar with
hungry mouths, and famished and pot-bellied
children. What can be more tragic than the fact that
India still ranks 100th among 119 developing
countries on the Global Hunger Index (GHI).
It so happens that the basic issue of poverty has got
entangled in politics of our leaders, their cronies and
half-baked and leaky programmes of poverty
elimination. We have now disquieting reports of
growing inequality in the country. What is not being
realized by the ruling class is that the increasing
inequality tends to slow down even the ongoing efforts
on poverty reduction, apart from undermining the
sustainability of economic growth.
The World Economic Forum's Global Risks Report
clearly states that economic inequality will lead to a
wide range of health, education and social problems
like mental illness and violent crimes.
The Johannesburg-based company New World
Wealth report says that "India is the second-most
unequal country globally, with millionaires controlling 54 per cent of its wealth. With a total individual wealth
of $ 5,600 billion, it is among the 10 richest countries
in the world and yet the average Indian is relatively
poor".
What a paradoxical situation! The latest data from
Credit Suisse shows that the richest one per cent
Indians own 53 per cent of the country's wealth.
Ironically, it is "far ahead of the United States where
the richest one per cent own 37.3 per cent of total
wealth. Even the paper by economists Thomas Piketty
and Lucas Chancel tells us how the top one per cent
has grown at 130 times of the bottom 50 per cent and
the middle 40 per cent at a three times higher rate than
the bottom half.
Of course, there may be varied angles of looking at
inequality and poverty. For instance, economic
liberalisation is said to have raised 138 million people
above the poverty line between 2004 and 2011. The
new opportunities emanating from liberalisation have
even created 3,000 Dalit millionaires.
And in the changing socio-economic atmosphere,
Dalits have begun to assert themselves in their search
for freedom from social subjugation. Even in Gujarat,
young Dalits stand up to the upper caste groups to
defend their right to grow
pointed moustaches.
These are happy signs of
change in the old socioeconomic
order! Still, we
cannot yet ignore the harsh
fact that millions of people
are still left behind in the
country's onward marches
towards development.
According to Oxfam, this sharp rise of inequality in
India…"will lead to slower poverty reduction,
undermine the sustainability of economic growth,
compound the inequalities between men and women,
and drive inequalities in health, education and life
chances".
While working for policy changes, do India's
politico-bureaucratic masters take these harsh socioeconomic
facts into account? I doubt it. The country's
ruling class is known for its insensitivity towards the
poor and the have-nots. We know how income
disparities have been playing havoc in areas relating to
education and health care, to the disadvantage of
disprivileged sections of society.
What is particularly disappointing is that over three
years of the Modi government has not proved to be
any different from the earlier Congress regimes.
Not that the problem of economic inequality cannot be handled effectively. This is a matter of policy
choices and reforms in taxation and social spending.
First, tax reforms have to aim at redistribution of
resources in such a way that profit- making companies
and rich individuals pay more taxes and thereby help
in redistribution of wealth rationally for the greater
good of society. This is what I call a fair play in a
developing society like India.
What is particularly disappointing
is that over three years of the Modi
government has not proved to be
any different from the earlier
Congress regimes.
The 2017 Oxfam report says
that India spends only three per
cent towards education and 1.1
per cent towards health. Even
South Africa spends much
more on education and health.
Is this not shameful? It shows
lack of right political focus on
the part of the Indian
leadership. In the
circumstances, how can India honour its global
commitment of attaining the Sustainable
Development Goals by 2030 and ending poverty for
the 300 million people by that year? It is time Prime
Minister Modi reviewed his lop-sided policies which,
rightly or wrongly, give the impression of his tilt in
favour of the rich.
It is good that Narendra Modi talks about allinclusive
growth. But how is it possible unless he
makes "inclusion" and "income distribution" an
integral part of his national policy and economic
reforms? The authorities need to realise that the
ongoing widening income disparities will not only
affect the economic growth but also endanger the
country's social stability. At stake is India's honour and
standing in the comity of nations as a country that
cares for its citizens of all races and religions in a fair
and just manner!