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June 2014

Create Opportunities and Not Entitlements

By Anil.J.Sathe, Editor
Reading Time 5 mins
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The new Government is firmly in the saddle in Delhi. After 25 years, the people of India have given a clear mandate. Right from the swearingin ceremony, this Government has made a good beginning and as they say, “well begun is half done.” The Government will now have to meet the challenge of enhanced expectations.

Subsequent to the poll results, the parties that lost have started searching for reasons for their complete rout. A number of party spokesmen have said that even though the UPA Government took substantial steps to alleviate poverty, these did not get the necessary publicity and therefore, they were unable to convince the voters. This has been cited as the prime cause of defeat. During the course of debates and discussions in the media, the ‘Food Security‘ and the ‘Right to Education’ legislations have been brandished as path breaking achievements of the UPA Government. It is this aspect of the argument that one needs to consider carefully. There can be no two views about the right of an Indian citizen to have a square meal and to avail of good education. The question is how does one achieve this? Is creating ‘entitlements‘ the correct approach or in the era of globalisation, is creation of opportunity an alternative?

The left of the Centre parties, socialists and the few surviving communists have consistently argued that globalisation is one of the prime causes of increase in poverty. They believe that the underprivileged are against globalisation and economic reforms in the manner that it is being pursued in the last 20 years. This does not appear to be the truth. If one analyses the aspirations of those sections of the public who are living in poverty, or those from the lower middle class, who are trying to make their way up the ladder, the resentment is not about those who were enjoying the good things of life, but it is about the lack of opportunity to reach where others have. As Thomas Friedman, in his book “The World is Flat” argues that voters have not said, “Stop the globalisation train, we want to get off.” They have actually said,“Stop the globalisation train, we want to get on but someone needs to help
us by building a better step stool.” This election was about envy and anger. It was a classic case of revolution, happening when things are getting better but not fast enough for many people.

The reason why the people have given such an unequivocal mandate is that they have realised that governments, both at the Centre and at the State-level have been eaten away by corruption and mismanagement and they are simply unable to deliver. It is in this context that the new Government must look at the challenges ahead. Let us consider the “Food Security” legislation. While there is no quarrel about the sentiment that every Indian must be well fed, just creating an entitlement without substantial reform in agriculture, such legislation will lead us nowhere. It would probably substitute an existing inefficient system by another. We need to create opportunities for the Indian farmer to grow more food, to store it, if necessary process it and reach it to the consumer through efficient channels of distribution where he will get the best price. The farmer needs a window of opportunity. The Indian farmer does not need doles of free power and loan waivers. What he needs is an assured supply of quality inputs and access to affordable credit. If this infrastructure is created, channels of distribution will develop and food will reach the poor at reasonable prices. Then, a far smaller number of people who do not have the requisite purchasing power will have to be supported.

Let us look at education. A young lady has taken charge of this ministry and without giving her an opportunity to function there is a controversy being raised about her educational qualification. To succeed, what is needed is not a university degree but strong political will and the desire to act honestly and fairly. The Right to Education Act creates an entitlement, but without proper planning, it will increase pressure on the existing poor education infrastructure and result in further resentment. The need is to spend more, spend well and create more quality schools which can be accessed by the lower strata of society. We have had reservations for more than six decades, and there needs to be serious debate on how far it has benefited those for whom they were meant. Apart from increase in the number of institutions, there is a need to seriously rethink about the manner of imparting education. Vocational education must be given its due share. Let us hope that the promise to spend 6% of GDP on education translates into reality and does not remain on paper.

Finally, not only must opportunities be created, but these must be created quickly. The speed of decision-making must undergo a total transition. The new Government should not attempt to be “saviours” of the poor. The endeavour must be to empower all sections of the society, to create more opportunities for wealth creation and then ensure its equitable distribution. The Indian voter has delivered. It is now the turn of the Indian politician to do so!

Anil.J.Sathe

Editor

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