Transcript PCI - PVP Siddhartha Institute of Technology

‘Social and Moral Consequences
of Growth and Development’
DR T.H. CHOWDARY
Director: Center for Telecom Management and Studies
Chairman: Pragna Bharati (intellect India )
Former: Chairman & Managing Director
Videsh Sanchar Nigam Limited &
Information Technology Advisor,
Government of Andhra Pradesh
T: +91(40) 6667-1191/ 2784-6137(O) 2784-3121®
F: +91 (40) 6667-1111, 2789-6103
[email protected]
[email protected]
Talk at Rajiv Gandhi University of Knowledge Technologies
23rd July, 2008
Growth & Development
• Development includes growth; the reverse
need not be true.
• Development –Economic
Human
• Humans can be happy w/o prosperity – a
condition of mind.
• Prosperous can live in pain with comfort!
[Nurses, ICUs, Dialysis, transplants, steroids]
• Human Development Index Happiness
Index
Direct Tax Collections
A healthy 35% rise in tax collection in Fisc.2008
350000
300000
250000
200000
150000
100000
50000
0
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Sector
Budget Allocation
in 2003-04
Budget allocation
in 2008-09
Agriculture
3,262
10,075
Education
7,024
34,400
Health
6,983
16,534
Rural Development
and Land resources
11,320
18,972
Road Transport and
High Ways
7,236
14,066
Sarva Siksha Abhiyan
1,951
13,100
Midday Meal Scheme
1,175
8,000
Integrated Child
Development Scheme
2,356
6,300
Rural Employment
Scheme
4,986
16,000
Development
• Economic:
– Family Income
– Old Age Pensions
– Insurance
• Life, Health, Work
• Human:
–
–
–
–
–
–
Health
Longevity
Education
Quality of Life ( air, water, leisure, communion…)
Stable Family
Stress
Objectives of any Humane Society
• Alleviation of poverty/Deprivation
• Reduction (or optimisation of inequality.
• Care of the aged and sick (family incomes;
Regional Prosperity)
• Achieving the Objectives
• Without growth in wealth, poverty cannot
be alleviated
• Equality can be achieved in poverty for all
Wealth accumulates ….Men decay….
Ill fares the land to hastening ills a prey,
Where wealth accumulates and men decay,
Prices and lords may flourish or fade,
A breath can make them as a breath has made,
But a bold peasantry, their country’s pride
When once destroyed can never be supplied
- Goldsmith in Deserted village.
‘I want an India where the peasants are not beguiled or
intimidated into giving up their lands for Mr. Nehru to
build castles in thin air through co-operative farming…”
--Rajaji
With Growth of the economy (GDP)
• Country’s wealth increases
• International trade increases
• India imports outstrip exports [in 2007-08 they
were $239 bln & $ 155.5 bln respectively]
• The gap [%89 bln =Rs.3,60,000 cr] is covered
by
– Remittances
– FDI
• Equity into new plants
• Share market
– NRI deposits
Unequal Benefits
• The entrepreneurial
The educated
The skilled gain the most
• The illiterate
Inadequately educated
Rural pop dependent on agriculture will gain
the least
Inequality tends to increase
• Educated / Enterprising / Business / Trade
/ Industry i.e knowledge workers / people
become millionaires
• Rest gain due to wage increases
• Coastal, urban, industrial areas prosper
faster than the rest
• In India Urban PCI is 7 times the rural &
• Is increasing [like in China]
Levels of GDP Per Capita (in 1990 PPP Dollars)
Asian Countries 1950-99*
1950
1960
1970
1980
1990
Japan
1999
1,926
3,988
9,715
13,429
18,789
20,431
Korea S
770
1,105
1,954
4,114
8,704
13,317
Thailand
817
1,078
1,694
2,554
4,645
6,398
439
(4.39)
619
673
(5.93)
753
783
(12.40)
878
1,067
(12.59)
938
1,858
(10.11)
1,309
3,259
(6.27)
1,818
4.1:1
5.9:1
12.4:1
14.3:1
14.4:1
11.2:1
China
India
Ratio of
richest to
poorest
Note: * Adopted from Basu, Kaushi, 2005, Globalisation, Poverty and
inequality. What is the Relationship? What can Be Done, Wider, Pager
No.2005/32
Per Capita Income (PCI)
Developing Countries
Country
PCI
Korea*
17,930
Developed Countries
Country
PCI
USA
37,500
Mauritius *
Malaysia *
Brazil
Thailand
11,260
8,940
7,480
7,450
Ireland
Japan
Netherlands
UK
30,450
28,620
28,600
27,650
China *
Sri Lanka *
Indonesia *
4,900
3,730
3,210
Germany
France
Singapore
27,460
27,460
24,180
India
2,880
Israel
19,200
* Countries which achieved Independence after India)
Poverty/Inequality
(1/2)
* Growth/Development & Inequality
• Who profits/gains or losses
• There can be no alleviation of poverty
without growth; but Growth can create
inequalities;
• True; Inequality can grow with growth
but…
Poverty/Inequality (2/2)
• “Deng Tsiao Ping’s dictums
- It is glorious to be rich
• It matters little whether the cat is black or white as long
as it can catch the rats
• Some people will have to become rich before the poor
can be helped to get out of poverty
• Hu Jintao: Prez of China
“Harmonious Society”
“From party-building to nation-building”
“Socialism” with Chinese characteristics
• One Child norm since 1978; debate now for a second
Child.
Growth of GDP; Population;
Per Capita Income (PCI) &
Years for doubling PCI
Period GDP
1951 to 3.5
2000
20049.0
07
POP
2.8
PCI
0.7
YRS
70
1.8
7.2
10
•Lesson from China: Control population during period of growth [JRD’s
advice to Nehru in 1950s dismissed.]
•BPL ratio is the index: in India it came down from 70% in the 1950s to
about 30% now [BPL ratio in A P is 85% according to white ration
cards & increasing.]
South & West India Vs
North & East India
•
•
a.
b.
c.
d.
Privatisation of Higher Education:
Result: Difference in
Rate of population growth
Literacy/Education
Casteist parties in UP/Bihar
Empowerment before enlightenment
Containing Inequality
• Education
• Re-skilling [Agriculture &
traditional professional labour]
• Population Stabilisation
[No negatives; simply withdraw
welfare/subsidies]
• Population Migration [Internal
and overseas]
Social consequences (1)
• Social cohesion undermined
• Nation-hood in jeopardy
• Increasing claims for extreme backwardness
(In A P: Madiga X Mala;
Kapu X OBC;
RJ: Gujjars X Meenas
Dalit Xtians; Dalit Moslems
• Violence, insurgency, separation, terrorism,
lawlessness increase
Social consequences (2)
Competition to be listed as backward Castes
1950
1970
2006
Kaka
Kalelkar
Mandal
Arjun
Singh
3500
4500
6300
•Castes in Andhra Pradesh284
•Forward
•B Cs (Recognised)
•B Cs (pending)
•S Cs
•Moslems backward?
5
105
120
54
* Poor, voting multitudes demand welfare/ reservations/ proportional representation
*Backwardness as weapon for entitlement and empowermtn.
Social consequences (3)
• Illiteracy, poverty & large families are a vicious
circle
• Child labour:
[A Municipal Employee (minority) in Kadapa has >40 children.
Paalamuru: Child labour sustains families]
• China froze population increase with only one
child norm since 1978
• Remedy: Education; Obligatory one/two child
norm on pain of welfare termination.
Social consequences (4)
•
•
•
•
•
•
•
•
Populism, Politics – for –Power
“Minority” promoted on basis of religion
State Funding (Buying) of Elections (votes)
NREG
Loan waivers
Free everything
Example:
Communal Budget
Minister fo Minority Affairs budget increased from Rs.500 cr to
Rs.1,000 cr
Multi-sectoral development for 90 Moslem districts Rs.3,780 cr
Prematric scholarship Rs.80 cr.
A P Budget for Moslem Scholarships:
2003-04 05
06
07
09
Rs.4 Cr
Rs.30 Cr
Rs.90 Cr
Rs.1207 Cr
Rs.10 Cr
Social consequences (5)
• Modernising madrassas Rs. 45.45cr
• Maulana Azad education Funding: Rs. 200 cr in
2007-’08 + Rs. 60 cr in 2008-’09
• 544 public sector bank branches for Moslems
upto March 2008; many more in 2008-09
• “Minority” special recruitment to Central Para
military forces
• National Minority Development & Finance
Corporation (Rs. 50 cr in 2004-’05 plus--(Source: Para 47 of F.M’s Budget Speech)
Whose Development Needs to be First?
Why Moslem First? Why not Scheduled Tribes, Scheduled Castes?
Stock of SC & ST Engineers & Doctors in Andhra Pradesh
Andhra Pradesh : Census 2001
Total in the State
Of which
SC
ST
Engineers
3,27,032
19,590 (6%)
Doctors
63,325
3,943 (6.2%) 861 (1.35%)
SMZs (Special Moslem Zones)
3,559 (1.08%)
Moslems (Backward?) Representation
in A P Government Service
A P Govt Servants
Muslims
9,48,980
77,919
Moslems Representation
9.26%
Moslem population (2001)
9.2%
How Caste Can Wither Away
•
Profession – Education – Access
•
Opportunity to change profession
[A washerman’s son, a barber’s som. A bhangi’s son, a farmer’s son,….when educated, quits the
father’s profession and village too]
•
Urbanisation & Emigration
“Breaths there a student so dull
Who to himself doth not say
I want to go to America … “
“Educate our masters” - Disraeli
“…above all things do not do harm….”
- Hippocrates
Migrations of People
• Latinos, Asians into USA
• Africans, Arabs, Turks, Pakis & Bangladeshis
into Europe
• Han Chinese into Tibet, Xingjiang
• Bangladeshis into Assam, Bengal, Bihar, and
Mumbai and Palamuru [A P]
• “Bihari” workers into Assam, Mumbai, Punjab
• Racial, religious linguistic, regional ( eg:
Telengana) conflicts
Environment & Natural Resources
• Increasing energy consumption: Coal, oil,
bio-fuels [food shortage] Measure:
KWHrs/$ GDP
• Pollution; CO2, emissions; Ozone layer
holes; Sea levels rising; rivers, Lakes and
seas unhabitable for fish….
• Many species disappearing
• Water shortage; shrinking ground water
• Planet unlivable for humans
Moral Questions (1)
• Can poverty be eliminated (like caste
being annihilated); but both castes &
poverty growing according to government
figures (white rations cards, housing for
the
• Can inequality be eliminated?
(in N.Korea, Cuba, former USSR & pre
1978 China except the New Class, all
were equal in poverty)
Moral Questions (2)
Conspicuous consumptions
• Shopping Malls
• Marriage & birth-day bashes
• Party Congresses (even CPM & CPI’s in Hindu
in 2008]
• Mansions / Palaces for the rich ( Jubilee Hills,
Banjara Hills etc…)
• Air-conditioned pre-;Py & High Schools, children
bussed in a/c vehicles
• How can there be common “national, fraternal,
citizenship”
Essentials for Prosperity
•
•
•
•
•
•
•
•
•
•
•
Human Resource [education]
Entrepreneurship, not entitlement & Employment
Duties,not rights ( Every right is in a duty fulfilled)
Saving to form capital
Proper use of resources to generate surpluses/profit
Work Ethic First;
Welfare must be related to work
“He who does not work, neither shall he eat…”
- V I Lenin
Labour Productivity
Lower Trade Barrier
Private [domestic & foreign] capital, competition [eg.telecoms]
Flight of capital, talent, easy under globalisation
Answer to Social & Moral dilemmas
of
Development & Growth
* Indian concept of :
• Right Education and Culture
• Vasudhaiva Kutumbakam
• Isavaasyamidam sarvam
• Parasparam bhaavantah sreyoparamavaapsyatha
• Aanoh bhadraah ritavo yaantu viswatah
• Mutual, reciprocal, respect; value for pluralism
• Harmonious Society
• Om Sahanaavavatu, sahanu bhunaktu
• Sahaveeryam Karavaavahaih
• Tejasvinaavadheetamastu
• Maa Vidvishaavahaih,
• Om! Shantih, shantih, shantih!
• May we protect ourselves together,
experience/ enjoy together, perform
valorous deed together, not quarrel among
ourselves, may our learning be brilliant.
• Peace, peace, peace !!! ( for all,
everywhere, all the time))
Abraham Lincoln
Said:
• You cannot bring about prosperity by discouraging thrift
• You cannot strengthen the weak by weakening the
strong
• You cannot help the poor by destroying the rich
• You cannot establish sound security on borrowed money
• You cannot keep out trouble by spending more than you
earn
• You cannot build character and courage
• by taking away man’s initiative and Independence
• you cannot help men permanently by doing for them
• what they can do for themselves
•
-
Socialism: Wise thoughts from
Sri Nani Palkhiwala (1/3)
• Socialism as practised in India has been a fraud: Our brand of
socialism did not result in transfer of wealth from the rich to the
poor but only from the honest rich to the dishonest rich
• The sleeping sickness of socialism is now universally
acknowledged – but not officially in India… The public sector
enterprises are the black holes, the money guzzlers and they
have been extracting and exorbitant price for India’s doctrinaire
socialism.
• A law suite once started in India is the nearest thing to eternal
life ever seen on this earth….
Socialism: Wise thoughts from
Sri Nani Palkhiwala (2/3)
•
History will record that the greatest mistake of the India Republic in
the first 50 years of its existence was to make less investment in
human resources-education, family planning, nutrition and public
health-than in brick and motor dams and factories.
•
Over taxation corrupted the national character overtly. The nation
survived only because the tax system continued to breathe through
loopholes and the economy used to breath through window of tax
evasion.
•
We have too much Government and too little administration; too many
laws and too little justice; too many public servants and too little
public service, too many controls and too little welfare.
Socialism: Wise thoughts from
Sri Nani Palkhiwala (3/3)
• Indian liberalisation encounters formidable opposition
from three quarters.
a)
The top heavy bureaucracy reluctant to shed its
enormous powers
b)
Influential politicians who prefer to let socialism
remain the opium of the people and of whom it can be
truly said that if ignorance is bliss, they should be the
happiest men alive.
c)
Quite a few Indian businessmen men who are
much interested in their own personal prosperity than in
the future of the country and who preferred to flourish in
the non competitive environment.
“…..Our Independence maybe lost for ever…………!!!”
(1/2)
-Dr B R Ambedkar’s speech after writing the Constitution
“Here I could have ended. But my mind is so full of the future of our country that
I feel I ought to take this occasion to give expression to some of my
reflections thereon. On 26th January 1950, India will be an Independent
country. (Cheers) What would happen to her Independence? Will she
maintain her Independence or will she lose it again? This is the first thought
that comes to my mind. It is not that India was never an Independent
country. The point is that she once lost the Independence she had. Will she
lose it a second time> it is this thought which makes me most anxious for
the future. What perturbs me greatly is the fact that not only India has once
before lost her Independence, but she lost it by the infidelity and treachery
of some of her own pr. In the invasion of Sindh by Mahommed-Bin-Kasim,
the military commanders of King Dahar accepted bribes from the agents of
Mohammed-Bin-Kasim and refused to fight on the side of their King.
-
(2/2)
“…..Our Independence maybe lost for ever…………!!!”
-Dr B R Ambedkar’s speech after writing the Constitution
•
It was Jaichand who invited Mahommed Ghori to invade India and fight against Prithvi Raj
and promised him the help of himself and the Solanki Kings.
•
When Shivaji was fighting for the liberation of Hindus, the other Maratha noblemen and the
Rajput Kings were fighting the battle on the side of Mogul Emperors. When the British were
trying to destroy the Sikh Rulers, Gulab Singh, their principal commander, sat silent and
did not help to save the Sikh Kingdom. In 1857, when a large part of India had declared a
war of Independence against the British, the Sikhs stood and watched the event as silent
spectators.
•
Will history repeat itself? It is this thought which fills me with anxiety. This anxiety is
deepened by the realization of the fact that in addition to our old enemies in the form of
castes and creeds we are going to have many political parties with diverse and opposing
political creeds. Will Indians place creed above country? I do not know. But this much is
certain that if the parties place creed above country, our Independence will be put in
jeopardy a second time and probably be lost forever…….”
•
Source: The Makers of Indian Constitution – Myth and Reality by Sheshrao Chavan,
Bharatiya Vidya Bhavan publication
-
“People who are elected”
“If the people who are elected are capable and men of
character and integrity they would be able to make
the best even of defective Constitution. If they are
lacking in theses, the Constitution cannot help
the country. …there is fissiparous tendency arising out
of various elements in our life. We have communal
differences, caste differences, language differences,
provincial difference. It runs them of strong character
men of vision, men who will not sacrifice the interest of
the country at large for the sake of smaller goods and
areas and who will rise over the prejudices which are
born of these differences. We can only put an
account will prove out such men in abundance. “…
-Dr Rajendra Prasad - from the speech at the final
adoption of the Constitution.
In Conclusion (1/4)
• All men are created equal but become
unequal due to differences in nurture
(Home) and education (School/college,
teachers and company)
• Never was there in history and anywhere
equality among all. Intensity of inequality
varied.
• Never in any nation/any country was [or is]
there a time when there were no poor.
In Conclusion (2/4)
• Definition of poverty differs
• Poverty line shifts upwards (like our
creamy layer) as GDP grows.
• Inequality tends to minimum as countries
become poorer and poorer
• Equality in poverty is possible. Inequality
tends to increase as prosperity [GDP]
increases.
In Conclusion (3/4)
• The levellers of inequality are,
– (a) education for all,
– (b) population stabilisation as state policy (as in
China) till reasonable level of per capita income
is achieved.
• Both mean Human Resource Development
First. [Not this or that Community First]
• We can alleviate but not eliminate poverty,
inequality and backwardness.
In Conclusion (4/4)
• Preya (pleasing) is different from Sreya (true and
lasting welfare).
• The wise choose and work for sreya;
• The un-wise choose preya.
• Noble teachers, noble leaders
• Educate, inspire, ignite;
• The ignoble idiotise.
• Let us be wise; noble; Gurus
• Like the Rishis (seers) of all lands.
Dhanyawad:
Thank You