(contd..)When it comes to OIL,it is conveniently said Crude oil prices are not in our control. But Coal reserves are in abundance not only to meet local demand but also to export coal the way gulf exports Oil. But look at the mismanagement of arbitrary allocations, nepotism, corruption etc leading to shortages necessitating import of Coal also in addition to OIL.Why blame the middle class ? . The Re crisis is nothing but a man made thing by becoming deliberately “dysfunctional” as a protests by a corrupt Congress govt. and its Babus against its large scale corruption expose and subsequent Anna Hazare anti-corruption movement. Their motto appears to be ‘”NO BRIBE TAKING & NO CRONY CAPITALISM---NO WORK” and that is why Projects and Infrastructure works worth over Rs. 2 lac crores are reported to be not awarded yet. Perhaps the UPA govt. wants to punish and teach a lesson to the “urban middle class” because they supported anti-corruption movement and are seeking transparency, accountability, corruption free establishment. and a timely delivery of services.
Actually the Middle Class spectrum in India is very wide and so it sounds funny and seems to be a cruel joke when the author says that "Unless the middle class in society perceives that it derives some benefits from the state, it will be unwilling to finance redistribution". Where is the question of deriving benefits, when the survival itself is becoming difficult thanks to “poor governance” while rulers indulge in large scale corruption to amass wealth for themselves and in the name of RRE come up with some election gimmick schemes w/o adequate groundwork to sustain it causing instability as the column rightly points out. So it needs commitments which is totally missing.Further, as the author says, QUOTE:The history of Europe and the US suggests that typically, states provide essential services (physical security, health, education, infrastructure, etc.) first before they take on their redistribution role. UNQUOTE. Not only that this is not happening in this country but also that the rulers are just not interested and none of the Social sector schemes related to RRE are effective and are reduced to mere election gimmick. One, proper Regulation or checks and balance are not there and even where Regulator is present they are not effective as seen in 2G and COALGATE.
High level of corruption in central govt, high inflation for last 5 yrs, regular suicide of farmers, mostly in Vidarbha, M'rashtra etc r some of the achievements of this govt. Having failed on all fronts, Cong is doing gimmic in election yr by trying to fool the poor. It is playing cheap politics by bringing a ordinance in this respect, though parliament opens in last wk of July every yr. It did not bother abt this bill during last 9 yrs and is blaming the opposition for the delay in passing this bill
Govt. give food Rs.1 per KG to Poor. Cost of food to govt. will Rs.25 per kg. Govt. will give subisdy of Rs.24 per kg. This Rs.24 subsidy amount will recover form middle class people as tax. Today a middle class people is facing very difficulty in managing his/her family. Poor will purchase food at Rs.1 per kg and he sel this in market at Rs.15 per kg. Second problem is Why poor people will work if he get full month food by working one day. In future there will a problem in industries as labour problem. If industries will find worker then automatically industry will shift to other country like bangladash etc. As we know why MNG had open industry in india because of lower labour cost. So in future economy and employment in india will be in damage situation. Amratya Sen is a duffer economist. he does not know a elementry of economy. At the time of indipendance of india, west bangal economy was good. But now bad. Only because of this duffer economist.
Re: Duffer economist
by RABI KANUNGO on Jul 14, 2013 09:33 PM
A good point of observation. "Poverty anywhere is a treat to prosperity everywhere", is a standard economic prescription. That determines the quality of aggregate social distribution on prosperity and poverty together. Amartya Sen may be right by some driven romanticism, but his idea would not work in bizzare social clusters, like India. Wish, Sen should discuss economics alongwith politics of the time, or else the people and their country’s governed economy are sure to get disintegrated.
Re: Duffer economist
by RABI KANUNGO on Jul 14, 2013 09:34 PM
A good point of observation. "Poverty anywhere is a threat to prosperity everywhere", is a standard economic prescription. That determines the quality of aggregate social distribution on prosperity and poverty together. Amartya Sen may be right by some driven romanticism, but his idea would not work in bizzare social clusters, like India. Wish, Sen should discuss economics alongwith politics of the time, or else the people and their country’s governed economy are sure to get disintegrated.
What is good for the America may not be good for India.All our economist highly qualified and very good intention miss this.Since ages we are for the middle class people and eqvi distribution of wealth.Mind you America is three times bigger but its population is one third,whereas in India it is reverse so we must be very careful what our policies should be 1.Grow more food going in for genetic modification where required 2.Better storage for such production and equiv distribution of the same 3.Give more benefits for savings.This is was thinking from ages 4.Better governance and least interference 5.Strict punishment for corrupt practices howsoever he may be 6.Let people participate in infrastructure.education and health you will see the results
For some time, the old school of Socialism/Communism has been trying to sell the same in New bottle and brand called "Inclusive" Growth.
If by distributing monies and subsidies through government bills can make a nation grow, Russia would have been the finest nation in the world.
As majority of the people are still un/under educated these types of distributing poverty still has power to catch vote and the Neo Elites cartels like Amartya sen-Ahluwalia-MMS , can still sell their wine in India.
No one is against giving food grains to the poor. What was this govt doing for last nine years? Sleeping? Are all existing schemes for the poor working efficiently? What about the pilferage, corruption, wastage, logistics, etc in the new Food Security Bill. Amartya Sen is an overrated economist with no practical experience in our conditions. Our local economists are more practical and spot on.
The govt is going for a poll gimmick. We have an economist PM with no vision and his inept handling of the economy leading to high inflation and prices are there for everyone to see. The Gas price hike given to Reliance from next year without adequate study is going to push prices of everything even further and throw our entire cost control mechanism to the winds. Maybe Congress thinks let some other new govt bear the burden.
Amartya Sen cannot understand poverty cos he belongs to the super-elite class and further has married into the super rich Rotschild family. Fact is the rights narrative only emboldens the elite & creamy layers of the poorer classes. The culture of handing out doles weakens the economy & also the spirit of the people. How about the poor take some responsibility & ensure they limit their families to start with? That would be good for them & the nation's strapped resources.
D. Goelpkl afternoon, 4.20PmWednesday, July 10, 2013. the above remarks by oneEconomist on another maven ofwelfare Economicssuggeststhat itispossibleto feed indian under classmalnourishedpopulationby followingwhatSen calls RRE approach of in 10th yr by GOI launching Food security Bill. Will thellogistics andmiddleclassapparatchiki will eitherbe willing to put their shoulders to the stuck up procurement , storing andlegitimate distribution asit wouldcall formassive efforts for whichIndiansare not reputed. It may only create moresiphoning of Food Stocks into trader's nefariousmotivationsto blackMarket andalmost one fine morning wehear that allfabledaccumulatedgrain Stocks are either stolen orsoile beyondworth for consumption even by cattles lesssaid ofhumans. There isa needforrealistic appraisal of carrying massive Operationsofthisscale, lest we may endup in deadly morass of famines, of our own makings! D. Goel
Wisdom of Indian ruling class is substandard and a big suspect in terms of courage,confidence and caliber. Old guys beyond 65 are simply obsolete in active politics and a sheer waste in time and money.
