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SOME
BASIC FACTS ABOUT INDIA’S POLITICAL,
SOCIAL
AND ECONOMIC DEVELOPMENT
by George Mathew
Director, Institute of
Social Science New Delhi
Introduction
India has a sub-continental dimension, covering an area of
32,87,263 sq.km, with a population of 846.30 million as on 1 March 1991.
According to the 1993 estimate India’s population is 896,567,000. The
annual population growth rate for 1980-93 was 2.0%. The second most
populous country in the world, India is the home of 16% of the world’s
population and accounts for 2.42% of the total world area. The population
of India as recorded at each decennial census from 1901 onward has grown
steadily except during 1911-21 when it showed a decline. In absolute
terms, the country’s population has increased by 161.12 million during the
decade 1981-91, which is ten times the population of Australia and more
than twice that of Germany.
An encouraging feature is the decline in the growth rate of
population which marginally decreased from 24.66% in 1971-81 to 23.85%
during 1981-91.
India comprises 25 states and seven union territories (see map). In
most states the population growth rate declined during the decade.
However, seven states and three union territories, which account for
one-third of the country’s population, recorded an increase in the growth
rate. Nagaland registered the highest growth rate of 56.86% while Kerala,
the lowest rate of 13.98 %. Uttar Pradesh continues to be the largest
state, population-wise, with 16.44% of the people, followed by Bihar
comprising 10.21% of the country’s population.
Bombay metro is the most populated city with an urban population of
12.60 million, followed by Calcutta with 11.02 million, Delhi with 9.42
million and Madras with 5.42 million. The population density (inhabitants
per sq.km.) has gone up from 216 in 1981 to 273 persons in 1993.
Other important facts (1991) are:
Crude Birth rate |
30.5 |
|
Crude Death rate |
10.2 |
|
Infant Mortality rate |
91.0 |
|
|
1980 |
1993 |
Population age 0 to 5 |
29% |
25% |
Population age 6 to 14 |
38% |
34% |
Percentage of
Urban population to total population |
|
26.00 |
|
1981 |
1991 |
Percentage of |
|
|
total workers to total population |
36.70 |
37.68 |
Percentage of
male workers |
52.62 |
52.56 |
Percentage of
female workers |
19.67 |
22.73 |
|
1980 |
1993 |
Daily newspapers, copies per 1000 |
21 |
32 |
Radio receivers
per 1000 inhabitants |
38 |
79 |
|
1980 |
1990 |
Television receivers
per 1000 inhabitants |
4 |
32 |
Declining Sex Ratio
One of the most disturbing aspects of the Indian census is the
decline in the female proportion of the population. The sex ratio (number
of females per 1000 males) in India has been generally adverse to women.
The ratio has also declined over the years except in the decade 1971 to
1981 when it slightly improved from 927 to 934. In 1991, it fell again to
927 per thousand males. The state of Kerala, known for its high physical
quality of life like high literacy and with near more than one-fifth of
its population Christians, presents a sharply different picture as the sex
ratio is 1036 females per 1000 males. The inhuman neglect of girl child
and discrimination against women account for this abnormal trend.
Political
India has a functioning democracy, the largest in the world. More
than 500 million people – 18 years and above – out of its 844 million
(1991) elected members of the Lower House of the Parliament in the latest
general elections held in May and June 1991. Fifty-three per cent voters
exercised their franchise in the latest elections. The percentage, though,
was considered to be the lowest ever in the history of Indian elections.
Higher levels of people’s participation has been a hallmark of Indian
elections. For the last 44 years since Independence, democratic elections
have been a regular feature in this country.
The political ethos today in India is rooted in the long years of
the National Movement for Independence. India’s first organized attempt to
overthrow British colonial power was in 1857 but it took the shape of a
mass movement or mass struggle in the early decades of the present
century. It permeated all levels of social life. Political education
became part of Indian life through cultural organisations, educational
institutions, reform movements, caste and communal associations and, above
all, the plurality of parties, their ideologies, and media. Literature,
art, theatre, etc. grew around the themes of nationalism and democracy. It
is not wrong to say that today India is an “intensely political land and
politics is in the people’s bloodstream.” Competing ideologies and parties
attempt through all available means to educate the masses on issues
affecting them, not only on the eve of elections but even at other times.
In India there will be an election every year at one or another place,
state or local level, if not a by-election to the Parliament. Each general
election is a near social revolution in its magnitude and sweep. The
discussions and de-bates are not confined to local issues; they are
analysed in public meetings, from a national and international
perspective. People know that their collective future is determined by the
political process and that they have a stake in it. This means not
indifference but active participation in elections.
India is one of the biggest functioning democracy in the world. But
superimposed on a feudal social framework unexposed to real democratic
traditions the people find it difficult to make a real success of their
newly found democratic praxis. Once charismatic leaders like Pandit Nehru
who practised democratic principles were removed the weakness of this
democracy surfaced. The ruling party which ruled most of the time has
degenerated.
A situation that has been developing in the recent past causing
concern for the future of democracy is that of tensions and violence
during campaigning and voting – in some regions to the extent of impeding
the electoral process. In the 1991 elections more than 200 people lost
their lives in election-related violence. This has resulted in politics
and politicians being shown in a bad light, as well as a decline in
political standards.
The institutions of democracy – parties, press (media), parliament,
judiciary and local self-governments – create political awareness and
therefore these institutions have to be nurtured and carefully protected
by all democratic societies. India has had ups and downs in this vital
area but on the whole there has been a fair amount of public awareness and
protests whenever political expediency tried to subvert the institutions
of democracy. The late Mrs. Indira Gandhi as Prime Minister attempted in
her own way to bend these institutions to suit her interests but the
people of India asserted their democratic rights and have continued to do
so whenever they have felt that there have been subtle or not so subtle
attempts at manipulation.
Perhaps the potential danger to India democracy is the tendency to
mix religion with politics. Hindus constitute 82.63% of India’s
population. This majority religious community is not homogeneous but
constituted of many hierarchically placed castes and tribes. Some of them
may not even identify themselves as Hindus. In the last few elections
Hindu upper caste symbols were evoked by one of the political parties,
Bharatiya Janata Party (BJP), and its front organisations to gain power.
As a result, from an average 11% vote that this party used to get, it
garnered 24% of the votes in the 1991 elections to the Parliament. This
trend, if continued, can pose a threat to India’s secular character,
minorities, and democracy itself. When religion and politics mix in the
name of protecting a majority religious community’s interests, then
fascism is not far away.
However, the 1993 November elections to four State Assemblies have
demonstrated that peoples of India do not approve extreme right-wing
Hindutva to come to power. The BJP lost its hold oil three out of four
States it ruled from 1991-92.
The recent 73rd and 74th Constitutional Amendment has given
constitutional status to local bodies below and at the District Level,
known as panchayats. There will be about 500 district level, 5000 Block
(middle level) and 2,30,000 village panchayats within the next one year.
2600000 elected members will take office from 1994, out of which 80,0000
will be women (one-third seats are reserved for women).
Literacy
For the purpose of census a person is deemed as literate if he or
she can read and write any language with understanding. The literacy rate
in the country, excluding J&K, is 52.21% (64.13 for males and 39.29 for
females). The pupil – teacher ratio at primary level in 1980 was 45 and it
has risen to 47 in 1990. The percentage of female teachers at primary
level in 1980 was 27% and in 1990 it rose slightly to 28%.
The National Policy on Education (NPE) adopted in 1986 and updated
in 1992 constitutes a landmark in the Indian educational policy. Having
recognised the problem of working children, NPE proposes to tackle it with
a programme of non-formal education as an integral part of a strategy to
provide basic education for all. There are an estimated 153 million Indian
children between the ages of 6 and 14 years. The age specific enrollment
ratio is estimated to be 80%. Yet, there are still over 28 million
out-of-school children in the 6-14 age-group, over 14 million of whom
according to official estimates are working children. The drop out rate is
also high: nearly half the children who enter class 1 drop out before
reaching class V and two-thirds before class VIII. The target population
of the National Literacy Movement (NLM) are the 121 million illiterates in
the 15 to 35 age-group. With all these India can still claim the “dubious
distinction” of leading the world in the number of illiterates.
Human Rights
The Indian sub-continent has been the scene of numerous ethnic and
political conflicts. To quell unrest, India has unfortunately resorted to
the enactment of laws at both national and state levels which contradict
the provisions of the International Covenant on Civil and Political
Rights, to which the Government of India is a signatory. The National
Security Act (NSA), the Terrorist and Disruptive Activities Prevention Act
(TDAPA), the Disturbed Areas Act (DAA) and the Armed Forces Special Powers
Act (AFSPA) are of particular concern in this respect. In the states of
Kashmir, Punjab, North East and Andhra Pradesh, the Government of India is
engaged in paramilitary operations which have involved arbitrary arrests,
detention without trial, destruction of citizen’s properties,
extra-judicial executions and deaths in police and army custody.
The Indian Government was under pressure to do something about its
human rights policies and record. The pressure, explicitly and implicitly,
took the form of the Government of India being told by International Aid
Agencies that unless there was some positive evidence to show that it was
doing something about human rights, India would not be entitled to
economic and financial aid and support.
In 1992, the Government of India made a proposal to establish a
Human Rights Commission and the Parliament passed the bill to constitute
the National Commission on Human Rights in 1993.
The human rights and civil liberties movement in the country which
is strong and active, is highly critical of the way the Human Rights
Commission was established as they saw in it a move to appease
international organisations, institutions and powerful lobbies abroad.
Minorities
Hindus, the religious majority in India, comprise 82.6% of the
population of our country. Muslims are the largest religious minority.
Though Muslims constitute only 11.4% of India’s population their absolute
number, 92 million, makes them the second largest national population in
the world. Christians, numbering 16.2 million form 2.4%, Sikhs 2.0%,
Buddhists 0.7% and others including unclassified persons constitute 0.4%.
To evaluate the efficacy of various safeguards in the Constitution for the
protection of the religious minorities and to make recommendations to
ensure effective implementation and enforcement of all the safeguards and
the laws, a Minorities Commission was set up in January 1978.
Lower Castes And Tribals
The caste system is unique to India. The 82.6% Hindus (except the
tribals) are hierarchically divided into castes on the basis of purity
pollution principle and division of labour by ascription. The move to do
away with the caste system in the independent India has met with little or
no success. On the contrary, caste identi-ties have been strengthened and
play an important part in bargaining in the political and economic
spheres. The assertion of rights by the once op-pressed castes in recent
years has resulted in brutal suppression and conflicts bordering on caste
wars. India’s 51.6 million tribals (7.8% of the total population), are
considered part of the Hindu population. Although the country has
excellent laws to protect the rights of the tribals, the development path
embarked upon by India, that has involved the construction of large dams,
super thermal power plants, large-scale mining etc., has uprooted them
without adequate measures for their rehabilitation, resulting in their
economic and cultural impoverishment. India has 104.7 million (15.8%)
lower castes commonly known as Scheduled Castes.
Child Labour
Varying estimates abound as to the number of working children in
India. According to the 1981 census, work is defined as “participation in
any economically productive activity.” Main workers are those who have
worked for the major part of the year preceding the date of enumeration
and whose main activity has been in either cultivation or as agricultural
labourers or in household industry or in other work. Marginal workers are
those who have done some work but cannot be classified as main workers.
According to the 1981 census, there were 13.59 million working children in
India. The National Sample Survey revealed that there were 17.36 million
working children in India. Using another yardstick, the Operations
Research Group comes to the following conclusions:
A working child is that child who was enumerated during the survey
as a child within 5 to 15 age bracket and who is at remunerative work, may
be paid or unpaid, and busy any hour of the day within or out-side the
family... estimated working children in our country are around 44.0
million. Out of these about 21.0% are in urban areas and the rest are
rural based.
While the census definition appears to be unreasonably restrictive
since it is unwilling to recognise that children play a very important
economic role, even if it is not directly productive, the ORG figures seem
closer to reality and underline the enormity of the problem.
Article 24 of the Indian Constitution prohibits children below the
age of fourteen from working in any factory, mine or other hazardous job.
Yet, children are routinely found employed in mines, on construction sites
and in factories in carpet weaving, beedi making, gem industry and so on.
Article 39 of the Directive Principles of State Policy directs the states
to ensure just and humane conditions of work. The Child Labour Regulation
Act, the Factories Act and other industrial legislations do exist
according to which the present situation of child labour is not in
consonance with the dignity of a child.
While India’s child labour laws prohibit children from being
employed in factories and mines, where wages are high, their provisions do
not apply to cottage industries, restaurants, households and the
agriculture sector, where wages are low. In fact, the agricultural sector
stands out as the biggest single employer of child labour in India.
In India, it is primarily female children who maintain the
household in both rural and urban areas by undertaking non-productive
activities like caring for younger siblings, cooking, cleaning, washing
and fetching water. Parents are thus able to go out and work as wage
labour because the household work is done by their children, especially
daughters.
The bias against the female child is both the cause and the effect
of relegating her to such a role in contrast to the more productive type
of work that the male child is typically engaged in.
Though a large number of female children assist their mothers in a
variety of home based industries, they largely remain outside the ambit of
the child labour law for it relates only to those children working outside
their homes in work-shops, factories, etc.
The existence of bonded labour in India has been recognised for
long. Despite progressive legislation, it is not uncommon in parts of the
country for parents to pledge their children to employers – in both the
agricultural and urban unorganised sectors – against loans taken with the
understanding that the child will work throughout its life for a pittance.
Appallingly, many children when adults buy their freedom by offering their
offspring in exchange.
Economic Situation
Indian economic situation today presents a kaleidoscopic picture
that conveys hopes to some and frustrations to many.
At the time of Independence the expectations were raised very high.
The early Five-Year Plans fully reflected it. There was a perspective of
high growth, full employment, reduction of poverty and above all a
socialist pattern of society based on distributive justice and equality of
opportunity. The socialist pattern, clearly not a dogmatic variety sought
to give the “commanding heights” to the public sector and control the
private sector so as to serve social goals. A series of controls of
production, prices, imports, physical control to direct scarce and
essential commodities, location of industries, development of backward
areas, etc. have been introduced. Unfortunately, this led to a controlled
regime that bred inefficiency and corruption. While Thatcherism and
Reagonism gained popularity in the West and capitalist world increasingly
took to an era of liberalization and globalization, India too gradually
welcomed liberalization. But that, in turn, led to heavy borrowing to
finance increased the imports. Borrowing was easier than taxation and
politically more popular. Total external debt increased from 20.6 billion
in 1980 to 71.6 billion in 1991 — a 248% increase as against 71% increase
in GNP. As on March 31, 1993 the official figure of debt is $93 billion as
against 83.5 billion for China. No wonder net flow of funds is turning
negative. By June 1991, the foreign exchange resources were pushed down to
a nadir, not enough to meet even 10 days imports for a big country of the
size of India. India’s credit rating which was on A+, fell to a B. The
country also found it difficult to meet her debt service obligations. It
was at this juncture that the IMF-World Bank inspired structural
adjustment policies were clamped down on India.
The Industrial Policy Statement of July 22, l 991 which came close
on heels of the announcement of the new economic reform, a policy towards
greater decontrol and delicensing was announced. The role of public sector
has been reduced and the number of industries exclusively under public
sector was reduced to just 8. A regime of privatisation has been started
in full force.
It is to be noted that Indian industry has over the years developed
a highly diversified structure, considerable entrepreneurship and a vastly
expanded capital market. This was in no small measure due to the
autonomous and self-reliant path India has pursued over the years.
India has also built up a stable agricultural sector. Today, she
has become self-sufficient in food grains. But except in Kerala land
reforms were not implemented. The rural sector remains highly skewed and
hierarchical.
Now the pertinent question is whether the regime of liberalization,
globalization and privatisation will help the country achieve the
cherished goals for which it fought the British? The answer is a firm no.
The comprador business interests and the large middle class and upper
echelons of society welcome the change as heralding a new world order. The
WTO which will be in place from July 1, 1995, will usher in a global
capitalist world order dictated more by considerations of profit. This
will undermine the nation-State’s efforts to help the marginalised, poor
and the needy without entitlements to participate in the market. Already
the style of development has done the damage. The country’s economy has
been hijacked by corrupt politicians, bureaucrats and business people.
Indians are now part of what they call “emerging nations” with freedom for
international capital to operate in India while millions of small man
categories are denied of credit. International financial community is
finding India an attractive place for investment. From the near-zero
situation today’s fore amounts to $17 billion. This is an all-time high
and is expected to grow. It shows that inter alia foreign investors are
prepared to park their hinds in India. Now really India faces what some
economists call a Dutch disease. While this surges ahead the two questions
need be answered. First, are the increase in financial capital improving
production or are we ushering a casino economy? Second, do the financial
reforms help the credit needs of vulnerable sections of society? The
answers are clearly in the negative.
The sum and substance of what is said is that the new reforms
are targeted towards the 250 and odd million people who only can be part
of the market friendly regime. For a country with over 870 million
population the question is can we leave the rest of 600 and above to the
mercies of the market. The trickle down theory is totally irrelevant.
In India, by government’s own admission, 42% of its
population is below poverty line (those who cannot afford a daily intake
of 2100 calorie), nearly one-fifth of the total urban population, or
20.1%, is poor. Independent scholars, however, estimate the incidence of
urban poverty to be around 37 percent. The most disturbing feature of
these official and independent estimates relates to the figures on the
absolute number of urban poor. While official estimates show that there
has been a significant decline in the number of urban poor from 47.3
million to 41.7 million between 1982 to 1988, independent estimates
indicate just the opposite trend, an increase in the absolute number of
persons in absolute poverty, from 69.2 million to 77 million for the same
period. Experts apprehend that the discouraging trend pertaining to the
growth of absolute numbers of urban poor in India has accelerated after
the introduction of the economic reform process since the 1990s. It is
estimated that during 1991-92, the first year of the adjustment and
stabilization process of the Indian economy, there has been an overall
increase of 10.7 million in the number of poor in the country, of which
2.6 million has taken place in urban areas.
The New Economic Policy (NEP)
The Government has undertaken sweeping economic changes since July 1991
that at best services the interest of merely the tiny, privileged
minority. Under pressure from the World Bank, International Monetary Fund,
and the internal lobbies the trend is to integrate the economy into the
global market ignoring local, political, economic conditions and cultural
backgrounds. India is compelled to start from an unequal situation. The
opening up policy undermines self-reliance, in the long term pursuit of
independent development path. Fears are expressed whether it will even
affect the nation’s sovereignty and independence. The NEP has resulted in
devaluation of rupee, inflation, rise in prices of essential commodities,
cuts on education, health and social welfare. The government for all
practical purposes is withdrawing from its responsibility of providing
social security and welfare to the poor.
Implications Of GATT
The overall tendency will be towards expansion of agri-business
enterprises and bringing more land under export oriented cash crops at the
expense of subsistence agriculture. This will lead to larger concentration
of land at the top and swelling of the ranks of landless agricultural
labour.
This is a direct onslaught on the impoverished masses. The
traditional knowledge systems about seeds, live stock and agriculture as
well as soil re-generation and water management will be destroyed.
The NEP and the GATT has political implications too. The elected
representative and the entire parliamentary process may lose its power to
represent the people’s grievances. Democratic rights face abridgment with
talk of moratorium on protest, struggles and strikes. Workers and union
rights will be curtailed to suit the regiments of TNCs and local
industrialists with amendments of labour laws. The military and paramilitary
are being strengthened to control and suppress people’s organised
struggles.
There is sigh of hope in the protest movements gathering momentum
against the NEP and GATT. There are groups and articulate sections of
intelligentsia thinking of alternative economic policies which have
generated considerable interest throughout the country.
Environment
At the time of India’s Independence, our priority was the provision
of the basic human needs of food, fuel, shelter, health, employment, etc.
This was also reflected in the Five Year Plans. In the early 70s problems
related to environment began to receive the direct attention of the
central government. Nearly 10 years later, in 1980, the Department of
Environment was set up. From 1985, there is a full fledged Ministry of
Environment and Forests to serve as the focal point in the administrative
structure for the planning, promotion and coordination of environmental
and forestry programmes.
Environmental protection and ecological balance are essential to ensure
that development is sustainable in the long run. Environmental problems in
India can be broadly classified as (i) those arising as negative effects
of the very process of development, and (ii) those arising from conditions
of poverty and underdevelopment.
The Environment (Protection) Act 1986, is a landmark legislation as it
empowers the Central Government to take all necessary measures for
protection of the environment and to plan and execute a nation-wide
programme for prevention, control and abatement of environmental
pollution, including laying down standards for discharge of environmental
pollutants and for quality of environment. It aims at plugging the
loopholes in the other related acts.
The Ministry of Environment and Forests announced a National Policy
for Abatement of Pollution in 1992, according to which the key elements
for pollution prevention are adoption of best available clean and feasible
technologies rather than end-pipe treatment. This implies serious
consideration of production process changes which involve significant
improvement in energy and water conservation.
Under the same policy, 17 categories of heavily polluting and
environmentally critical industries have been identified for introduction
of pollution control measures through economic and policy instruments on a
priority basis. The industries are cement, thermal power plants,
distilleries, sugar, fertilizers, oil refineries, among others.
The Central Pollution Control Board (CPCB) has identified 13
grossly sly polluted stretches of rivers Sabarmati, Subernarekha, Godavari,
Krishna, Indus (tributaries), Sutlej, Ganga (tributaries), Yamuna, and a
few others to formulate short-term result oriented programmes.
The Environment Ministry has identified 19 critically polluted
areas in the country which need special attention as regards pollution
control. These include Vapi (Gujarat), Singrauli (Uttar Pradesh), Korba
(Madhya Pradesh), Talcher (Orissa), Howrah (West Bengal), Chembur (Maharashtra),
Najafgarh (Delhi), among others.
Sixty per cent of air pollution in India is due to
emissions of vehicles moving on the roads network. Although traffic
density and petrol and oil consumption are not high as compared with those
in the developed countries, the rate of pollutant emission per vehicle in
India is 35% higher than that in the USA on account of poor maintenance of
vehicles and roads, lack of traffic planning, a high proportion of old,
overused vehicles, crowded highways and a large proportion of two and
three wheelers.
The objective of all development is to enhance the economic and
general well-being of the people so that their standard and quality of
living can be improved. It is imperative to incorporate environmental
aspects in development projects right at the inception stage, to prevent
the erosion and contamination of the resource base itself. Environmental
Impact Assessment (ElA), which was introduced in the country in 1978, is a
handy tool to assess the environmental compatibility of the development
projects in terms of their location, suitability of technology, efficiency
in resource utilization and recycling etc. At present ElAs are done for
almost all major projects including thermal power, mining, river valley,
industries, atomic power, new towns, communication projects etc. Projects
which are sensitive and located in already environmentally degraded areas
and those which are central government projects costing over Rs.200
million, are also subject to EIA.
Forests are a renewable source and contribute substantially to
economic development. They also play a major role in enhancing the quality
of the environment. India has an area of 75.23 million hectares notified
as forests, of which 40.6 million hectares is classified as re-served and
21.5 million hectare is protected forests. About 19.47% of the total
geographical area of the country is under actual forest cover.
Priority areas are: (a) Conservation of bio-diversity including
forests, marine life, and mountain ecosystems; (b) Conservation of soil
and moisture and prevention of pollution of water sources; (c) Control of
industrial pollution and wastes; (d) Access to clean technologies; (e)
Tackling urban environmental issues (safe drinking water, sanitation
facilities and garbage disposal); (f) Strengthening environmental
education, training, awareness and resource management; (g) Alternative
energy plan.
In spite of government regulations environmental degradation is
going on because of extreme poverty of the people and politician-official-busines/industry
nexus.
Social Security
Social security has been listed in the Concurrent List of the
Constitution signifying the responsibility of both the Centre and the
States in this sphere. The task of providing meaningful social security
continues to be challenging in view of financial as well as operational
constraints, high incidence of poverty, unemployment, illiteracy and the
large size of unorganized/informal sector.
The permanent social security benefits provided through legislative
measures like Workmen’s Compensation Act, Employees State Insurance Act,
Employees Provident Fund & Miscellaneous Provisions Act, Maternity Benefit
Act, and Payment of Gratuity Act, etc. cater to mainly organised urban
labour comprising less than 10% of the total labour force. Most of the
States/UTs have pension schemes for the old and disabled, but due to
eligibility criteria of income and age, only about 9% of old-age
population gets the benefit of pension. In the last few years, group
insurance schemes for landless agricultural labourers, life insurance
scheme for Integrated Rural Development Programme (lRDP) beneficiaries and
group insurance for certain categories of workers belonging to weaker
sections of the society have been introduced. The coverage under permanent
social security measures, however, continues to be small.
Emphasis is, therefore, being given to transitory measures of
social security. These include special employment and anti-poverty
programmes, welfare programmes for development of women, children, weaker
sections of the society, handicapped and disabled persons, Public
Distribution System for supply of essential commodities at low prices, and
subsidised education and basic health care. The National Renewal Fund has
been established to fund schemes for compensation, retraining and
redeployment of workers affected by economic restructuring.
Rural Poor
More and more areas under the cultivation of food crops have now
been planted with export oriented cash crops. This has led to
non-availability of food leading to starvation and hunger among the rural
poor. With drastic reduction in subsidies, majority of the poor cannot
afford to purchase food grains from the open market. The government
schemes to help the poor, for instance, IRDP have declined from Rs. 3.4
million in 1989-90 to Rs. 2 million in 1992-93. The employment generated
under the JRY (Jawahar Rozgar Yojana) also declined from 864 million
man-days in l989-90 to 778 million man-days in 1992-93. In both, the
decline was pronounced during the period of SAP, the years 1991-92 and
1992-93.
The logic of liberalization prevalent in the industrial sector
holds true also for the agricultural sector. In the name of efficiency
small farmers are gradually driven out of agriculture by big farmers and
agribusinesses. This has become a major area of concern especially in
relation to the question of food security which is critical in a country
where a third of the population lives below the poverty line. The gross
area under food grains cultivation came down from 127.7 million hectares
in 1988-89 to 126.8 million hectares in 1991-92. As against this,
cultivated area under cash crops has shown magnificent increase during
same period. This trend towards commercialization will only intensify with
the export-or-perish principles being now vigorously pursued under SAP.
Further, a disturbing trend is observed in terms of the per capita
availability of food grains which declined from 494.5 grams per day in
1989 to 476.4 grams in 1992.
Moreover such averages of macro statistics reveal little about food
security at the threshold level. Growing food stocks and availability are
meaningless if households lack the purchasing power or resources to ensure
an adequate nutritional intake. Further, security at household level may
reveal nothing about intra-household distribution of food, which by
convention discriminate against women. Clearly then, the notion of food
security must be considered in terms that reach beyond a simple
stock-taking of government storage facilities.
Besides, the government is amending the land ceiling laws to
provide easy access of MNCs to penetrate the agricultural and food
processing industries. Number of legislations and regulations to protect
the small and marginal farmers and agricultural workers remain on paper
and unimplemented with the meagre benefits of the measures being siphoned
away by big farmers and farm-lords.
The export-drive will lead to further inequalities in land
ownership. Small land owners, without the means to shift production to
more profitable export crops will have no option then but to sell off
their lands and become landless labourers. Employment opportunities are
minimum in the export-crops, the sector being highly capital intensive.
This will lead to massive unemployment, mass migration, disruption of
family and family life, child labour and intensified exploitation of
women. Thus, the globalization of agriculture leads to the demise of rural
life and society.
Urban Poor
During the decade of the ‘80s there has been considerable shrinkage
in employment opportunities. The rate of growth of employment has been
decreasing every year during the decade. The later half, 1987 to 1990 has
actually witnessed negative growth rate in employment in the private
sector and the rate in public sector was only around 1.5%. The official
figures based on registration in employment exchanges underes-timate the
severity of unemployment and under the liberalized process of economic
competition, the industry will begin to retrench workers which was not so
easy even in the recent past. Along with the “exit policy” that is sought
to be implemented, employees will be forced to choose between unemployment
and a lower wage rate. Moreover with the full adoption of market economy
in Indian conditions where labour supply exceeds demand, the real wages
will be compressed by 30-40% of the present level. Unskilled labour with
very low bargaining power because of its unorganised character and poverty
will hit the hardest.
Since the last couple of years a new phenomenon of employees
resorting to employment of contract and casual workers is noticed. This
has led to further drop in the strength work of the permanent work force.
According to one assessment out of a total of 300 million in the work
force, nearly 270 million persons work as casual or contract workers or
self-employed.
The shrinkage of job opportunities in rural areas forces growing
migration of rural people and thus to an increase in urban population —
from 29 million in the ‘60s to 56 million in the ‘80s.
The situation has led to a perceptible increase in
indebtedness of the rural poor. In the absence of institutional mechanism
local issuers advance money to the toilers at rates as high as l00% and
use goons to recover interest and capital with criminal intermediation and
even torture. This is one factor which leads to the almost all-pervasive
criminalisation of the city.
The criminalisation is now also a political phenomenon. The
external reactionary forces are based upon criminal terror which permeates
both the work sites and the residential areas. The subsequent erosion of
democratic institutions is capitalised upon by forces of religious
fundamentalism and communalism who receive no mean aid from the policy
paralysis on socio-cultural issues of the Central and State governments.
Women are, of course, the special victims of this abysmal
urban conditions. The shrinking job market renders them unemployed. They
then fall into the trap of the highly exploitative contract labour system.
Self-employment schemes have been more or less uniform failures. These
have not led to the empowerment of women but only pushed them into the
money economy on the most adverse terms. The current spurt in
globalisation and liberalisation will further depress their incomes,
intensify their exploitation and deteriorate their workshop conditions.
This, obviously, leads to deterioration of living standards and
conditions. Health already vulnerable due to malnutrition, hard work and
violence suffers even more. Commercialisation of health services deprives
them of even the minimum relief.
Women are also targets of dubious and hazardous population control
technologies, once again heavily pushed by the international financial
institutions. Cynically the authorities use them as guinea pigs and play
havoc with their bodies, minds and lives.
The helplessness on the one hand and the rampant consumerism and
commercialisation on the other propels many women into prostitution. Not
only are they demanded thus but put in bondage, subjected to violence and
ultimately smitten with STDs and AIDS.
In the last two decades, most rapidly growing cities have become
the symbols of unequal development. These islands of prosperity deny the
urban poor even the basic right to shelter. As a result, they are forced
to live on pavements, railway tracks etc. Under pressure to release urban
land for non-housing purposes or for expensive residential complexes, the
State responds with demolition and eviction of the urban poor from their
dwellings. The threat of eviction is an ever-present danger with guarantee
to alternative site almost non-existent.
Authorities fail to realise that the urban poor are an integral
part of urban society and they have to play a key role in maintaining the
informal economy of most of the metropolises, a major contribution which
goes unrecognised. In this sector too privatization and monetization has
made its impact. People are lured into the logic of privatization schemes
by the promise of security of tenure. Often this leads to the eviction of
the poor in favour of schemes for high and middle income sections. The
promise of alternative accommodation under “sites-and-services” schemes
becomes meaningless as people under the pressure of inflation and
unemployment are unable to repay loan installments. This is all the more
true as the alternative sites are invariably far away from places where
people have their livelihood, (where they can work as domestic workers or
petty vendors, recycle waste, ply rickshaws, etc.) As the Jawahar Rojgar
Yajana scheme has been cut by 38%, loans for self-employment are also not
easy. Under economic pressure people will sell their right to
accommodation and again squat elsewhere illegally.
Conclusion
“The Asian miracles,” or “the Asian tigers” and the “emerging
economies” phenomena, are all indicative of the new economic development
taking place in Asia. This rapid economic development in several parts of
Asia has brought with it new problems as well as possibilities.
It is clear that market-based economic policies, alone, cannot
create conditions to eliminate poverty and unemployment. In fact, the
inequalities created by market forces and their distortions will worsen
existing social crises in parts of Asia. In other words, country
experiences in Asia show that growth alone cannot and will not solve the
problems of poverty and unemployment without state intervention.
The tendency of several Asian countries to incur large expenditures
on defence during the Cold War period must give way to diverting those
resources to social sectors. Mahbubul Haq has summed it up succinctly: “It
is time for the politicians and the generals to interpret national
security not just for their land but for their people. Not just
territorial security but human security.” At the same time, the post-Cold
War scenario must not give space for economic conflict or economic warfare
resulting in the domination of one economy over the other.
In Asia, social justice for the deprived sections – minorities,
women, oppressed castes, indigenous people – is the priority. If appropriate
actions are not taken the gap between the burgeoning middle class, with
its consumerist values, and the poor will continue to widen. There is an
urgent need for the rich and affluent to reorient their life styles and
consumption patterns because the available resources of Asia are not
enough to sustain these high consumption levels of a few.
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