by dr t.h. chowdary director: center for telecom management and studies chairman: pragna bharati...

By

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]@satyam.com

Talk @ Staff College, Osmania University , Hyderabad : 27 th Sep 2008

Building a Powerful, Prosperous, Intellectual &

Ethical NationDevelopment & Inequality

THC_CTMS S396_ Sep '08 2

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


0

50000

100000

150000

200000

250000

300000

350000

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Direct Tax Collections

A healthy 35% rise in tax collection in Fisc.2008


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


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 prideWhen once destroyed can never be supplied

- Goldsmith in Deserted village.

‘I want an India where the peasants are not beguiled orintimidated into giving up their lands for Mr. Nehru to build castles in thin air through co-operative farming…”

--Rajaji

Wealth accumulates ….Men decay….


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 illiterateInadequately 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 1999

Japan 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

China 439(4.39)

673(5.93)

783(12.40)

1,067(12.59)

1,858(10.11)

3,259(6.27)

India 619 753 878 938 1,309 1,818

Ratio of richest to poorest

4.1:1 5.9:1 12.4:1 14.3:1 14.4:1 11.2:1

Note: * Adopted from Basu, Kaushi, 2005, Globalisation, Poverty and inequality. What is the Relationship? What can Be Done, Wider, Pager No.2005/32


Developing Countries Developed Countries

Country PCI Country PCI

Korea* 17,930 USA 37,500

Mauritius * 11,260 Ireland 30,450

Malaysia * 8,940 Japan 28,620

Brazil 7,480 Netherlands 28,600

Thailand 7,450 UK 27,650

China * 4,900 Germany 27,460

Sri Lanka * 3,730 France 27,460

Indonesia * 3,210 Singapore 24,180

India 2,880 Israel 19,200

Per Capita Income (PCI)

* 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.


Period GDP POP PCI YRS

1951 to 2000

3.5 2.8 0.7 70

2004-07

9.0 1.8 7.2 10

Growth of GDP; Population;

Per Capita Income (PCI) &

Years for doubling PCI

•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

• Privatisation of Higher Education:

• Result: Difference in

a. Rate of population growth

b. Literacy/Education

c. Casteist parties in UP/Bihar

d. 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 OR: Kandhas X Paanas• 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 5•B Cs (Recognised) 105•B Cs (pending) 120•S Cs 54•Moslems backward?

* Poor, voting multitudes demand welfare/ reservations/ proportional representation*Backwardness as weapon for entitlement and empowerment.



• 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.



• 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 crPrematric scholarship Rs.80 cr.A P Budget for Moslem Scholarships:

2003-04 05 06 07 09Rs.4 Cr Rs.10 Cr Rs.30 Cr Rs.90 Cr Rs.1207 Cr



• 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)• NMAUV – Urdu Medium Polytechnics & B Tech courses• Reversion to pre-1948 Sept 17 status


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%) 3,559 (1.08%)

Doctors 63,325 3,943 (6.2%) 861 (1.35%)

SMZs (Special Moslem Zones)


A P Govt Servants 9,48,980

Muslims 77,919

Moslems Representation 9.26%

Moslem population (2001) 9.2%

Moslems (Backward?) Representation in A P Government Service


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 … “

I want my caste as BC/ST

“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


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, Rs.200 cr House for Mukesh Ambani with a helipad on the terrace etc…)

• Air-conditioned pre-;Py & High Schools, children bussed in a/c vehicles

• How can there be common “national, fraternal, citizenship”


Abraham LincolnSaid:

• 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 • -


“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 Dahir accepted bribes from the agents of

Mohammed-Bin-Kasim and refused to fight on the side of their King. -

“…..Our Independence maybe lost for ever…………!!!”

-Dr B R Ambedkar’s speech after writing the Constitution

(1/2)


• 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 -

“…..Our Independence maybe lost for ever…………!!!” -Dr B R Ambedkar’s speech after writing the Constitution

(2/2)


“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.

“People who are elected”


Dhanyawad:Thank You

by dr t.h. chowdary director: center for telecom management and studies chairman: pragna bharati...

Documents

growth development development

objectiveswithout growth

restin india urban pci

optimisation of inequality

inequalitiestrue inequality

men decay

educatedthe skilled

bln respectivelythe