From trickle-down to bottom-up, India needs to rethink its economics

[prasad1]

Share:

Facebook X (Twitter) WhatsApp Email Share Link

India is ranked 102nd in the Global Hunger Index, 2019. It is way behind the other Brics countries: Brazil is 18th, Russia is 22nd, China is 25th, and South Africa is 60th. India is also behind all its neighbours: Sri Lanka (66), Nepal (73), Bangladesh (88), and Pakistan (94). A Unicef report on stunted growth in children also puts India towards the bottom of the global list. Now that India’s GDP growth is floundering, the blame game has begun. Who is responsible for the declining growth of the GDP and the slackening of consumer demand — the National Democratic Alliance government running into its sixth year, or the United Progressive Alliance government which ruled in the 10 before?

The truth is that India’s problems are much deeper, and are not visible through the measurement of its GDP. India’s citizens have been let down by a flawed economic model which both political dispensations have adopted. Its premise is that growth at the top will pull the bottom up. It has not. India’s economic policymakers should consider the other way: The growth of human development at the bottom will push up growth at the top. It is worth noting that China reached the levels of human development (health and education), which India is still striving to, 30 years ago when China’s economy was much smaller than India’s is now. Human development provided the foundation for China’s remarkable growth.

Employers in India complain about the poor quality of India’s abundant human resources, a fundamental cause of which is poor education in government schools. The Delhi government’s mission to improve education in government schools, which serves the masses, has produced impressive outcomes. Thus, its citizen-centric policies are improving the economic fundamentals for investors by increasing consumer demand and building human capabilities too.

Delhi has the lowest power tariff among all Indian cities. The state government has also been expanding access to cheap power with special concessions to the poorest consumers. The consumer base of the distribution companies has expanded by over 20%. Despite constant reductions of tariffs for five years, the financial performance of the three (all private) distribution companies has improved, and they have been upgraded to stable by rating agencies. It is a win-win for citizens and businesses.

From trickle-down to bottom-up, India needs to rethink its economics |Opinion

Investing in human capabilities will yield sustainable growth in the long-term. Delhi is showing the way

www.hindustantimes.com

 

[krish44]

It is wishful thinking that empowering the poor will fuel growth.

Indian poor have got used to freebies -free power,water,food at rationed rates , free health care and they think it is their right.

We are only supporting and breeding more poverty.

Once the poor lose the will to work for earning a living , they are likely only to turn to drinking and drugs.

There can be no successful bottoms up approach in india.

Even in US ,obama care for the coloured got jettisoned after trying .

Making private sector perform through incentives may work out better.

This will help govt find money for feeding the have nots.

 

[Brahmanyan]

It is wishful thinking that empowering the poor will fuel growth.

Indian poor have got used to freebies -free power,water,food at rationed rates , free health care and they think it is their right.

We are only supporting and breeding more poverty.

Once the poor lose the will to work for earning a living , they are likely only to turn to drinking and drugs.

There can be no successful bottoms up approach in india.

Even in US ,obama care for the coloured got jettisoned after trying .

Making private sector perform through incentives may work out better.

This will help govt find money for feeding the have nots.

Poverty cannot be eliminated by doling free items. It will encourage losing individual's initiative to earn by doing a job.

British understood this well.
During 1876 and 1878, the people of Chennai suffered from the terrible Great Famine which was named தாது வருஷப் பஞ்சம் and more than six million people perished. The 8 km (5 mi) stretch, linking the Adyar and Cooum rivers, was built in 1877-78 at a cost of ₹3 million as af famine relief work. The canal was named the Buckingham Canal in 1878 because the link, was built on the orders of the then Governor, the Duke of Buckingham and Chandos. In exchange of gruel centres கஞ்சி த்தொட்டி were opened to feed the labour. Ultimately the length of this Canal was increased to cover a total distance of 796 km (494 mi) from Marakkanam Lake to Peddaganjam in AP.
Apart from this Canal, I am given to understand many highways and railways were built during this period to help the suffering of the people.
Slowly Governments should withdraw all freebies and uneconomic subsidies, instead they should provide expertise to learn trades to the people.
Brahmanyan
Bangalore.

 

[Jaykay767]

The freebies should be kept at a minimum like the food stamps in the USA. This will ensure people don't get used to it, and become laid back.

The best option for india is the Amma canteen concept, so the poor can be well fed, and beyond that for housing, etc..he has to work hard.

The reason we need some base minimum freebies is that there wil always be people who will fall below the poverty line due to unfortunate circumstances of illnes, etc...

 

[Brahmanyan]

Yes, Amma Canteen initiative and free food in religious places are very good initiatives of Government of Tamil Nadu.
In Karnataka, most of the Temples and Mutts offer good food to the Pilgrims who visit. I have seen such liberal distribution of food in many Ashrams in Himalayas, they are called "Anna kshetra". I have seen even in Bhojbasa at remotest corner in Himalayas on the way to Gaumukh there is an Ashram called Lalbaba Ashram, they offer place to stay and food 24 hours free of cost.
However people should be trained to perform some useful work and earn their money.
Brahmanyan
Bangalore.

 

[vrkmmol]

It is wishful thinking that empowering the poor will fuel growth.

Indian poor have got used to freebies -free power,water,food at rationed rates , free health care and they think it is their right.

We are only supporting and breeding more poverty.

Once the poor lose the will to work for earning a living , they are likely only to turn to drinking and drugs.

There can be no successful bottoms up approach in india.

Even in US ,obama care for the coloured got jettisoned after trying .

Making private sector perform through incentives may work out better.

This will help govt find money for feeding the have nots.

Dear Krish,
I do not subscribe to your point freebies have spoilt Indian poor. Please get into Chennai Central station area and see how many poor work in the early hours Without the efforts of non-"freebie addicted" people you may not vegetables,milk and so many . I live in Bangalore ,though I am from Chennai. There are no freebies here. Here the poor are a Cosmopolitan crowd-Tamilians,Keralites,Telugu,Odiya,Bihari,NorthEast _all work hard. The servicing woman in our home works in 7 houses She has to forcibly pay Rs.1000 premium for a LIC policy for her both kids, failing which they are sent out of school A new initiative of this Central Govt so that they can get LIC money for that spending. We are not supporting and breeding more poverty. They want to come out of BPL but our political system is a cruel enemy to them. So next election we get a chance to vote ,let us be thoughtful. Pl don't castigate the poor