Flawed Priorities

It is widely accepted that GDP growth cannot be a measure of a country’s development. Measuring development is very complex but there are certain accepted measures, one of them being Human Development Index (HDI). Human development Index combines three dimensions – A long and healthy life (Life expectancy at birth), Education Index (mean years of schooling and expected years of schooling), a decent standard of living (per capita GNI). India is ranked 134/187 in this index. Iraq, Syria, Palestine, Iran, Sri Lanka and Thailand are some of the countries that are ranked above India in this index.

If we look closely at the HDI of various states in India the findings are more shameful. If Uttar Pradesh and Bihar were independent countries, they would be ranked 5^th and 12^th in terms of population respectively & 148/187 and 161/187 respectively in HDI’s. Eight of India’s least developed states (BIMAROU states +Assam) constitute 47.62 % of India’s population with their combined HDI lying in the low HDI zone. I can safely say that India is an under-developed country.

India is a socialist country as mentioned in our constitution. It can be argued that the policies India have adopted since 1990s have been of capitalist nature but in truth those steps were means and not the end. The end was to generate sufficient income for the country, boost employment, and increase revenues of the government which could be utilized for development. Distributive justice is important component of socialism whereby government undertakes measures to tax the rich and spend on welfare of the poor.

But Indian spending priorities are flawed. While the ultra rich drive their SUVs on government subsidized Diesel, the government keeps financing the losses of Air India which has no utility for the poor. Spending Billions on enriching the infrastructure of metropolis and comparatively well off states has lead to more migration and unplanned urbanization which has created greater problems. Most of the developmental subjects (health, education etc) are in the state list but governments of the poor states have very less funds at their disposal. Further, expenditure from central quota is based on discretion of the central ministries which are mostly politically motivated.

In recent years, India has increased its defense spending. India has become a donor to some under-developed countries. India also organized the CWG games to showcase itself to the world. It can be argued that these spendings are of strategic concern. But the truth is – India chose these ahead of other pressing needs.

One half of India booms and other is under-developed. The priorities of the Indian development story are flawed.

Growth is painful

Ask the teenager about growing wisdom tooth. Ask a chubby guy about growing belly. Ask the middle class family about growing budget. Ask the poor parents of a growing daughter. Ask the parents of growing disabled child. Ask the poor man about growing prices. Ask the slum of a growing city. Ask the rivers and forests about propulation growth. Ask the nature about industrialiasation. Ask the humanity about growing intolerance. Growth is invariably accompanied by unavoidable evils that leads to pain. Why do we want growth then ?

You need to mine aluminium or build a dam so you decided to clear up some thousand hectares of forest land. Take the tribals out of forest, give them homes and work in a town and education for their kids. You call this development. Let us see who are happy ? The MNC which got the project, the bureaucrat that gave the clearances, government which can boast of growth. Who bears the pain - the atmosphere which would have more CO2 at its disposal, the biodiversity, the tribals whose community is completely broken and identity is lost. Right, this was a happy case scenario when the tribals get what they are promised. Reality- 10 % of the tribals die in the process of opposing such projects, political bodies use the opportunity to gain political mileage but do actually nothing. 30 % of them join the naxals. 60 % make up for the slums and work at construction sites.

Growth is accompanied by inflation. Growth is for the rich but inflation is for the marginal. The big corporates earn huge profits, where does the money go ? To the rich shareholders, hefty bonuses to the CEOs and nothing to the aam aadmi. The rise in prices of basic goods and services affects the aam aadmi and not the corporates.There is growth in prices of grains and vegetables but why is the farmer still poor ? Because the grain and vegetable has changed some 10 hands in between the farmer and the consumer and those 10 hands(business) made all the money.

India has been growing at more than 8 % (average) since the last 6-7 years. I can see urbanisation but not without slums and increased crime. I can see the stock market booming, the FIIs making money but only at the loss of the retail investor. I can see the rich guy travelling on subsidised petrol but 60 % agricultural lands are still unirrigated and monsoon dependent. I can see hill city Lavasa coming up but i cannot see more than 5 MBBS doctors in Dantewada (population of 70 Lakhs). I saw green revolution and India attain food sufficiency but i still see India as the most malnutritioned country. I see Ambani topping Forbes list but I still see India low on human development index.

It is the crisis of growth. Growth is painful !