28/9/2011
32 rupees a day ! Is that all you need to become rich – exclaimed Shyla, my nine year old as I held out a tenner to the beggar on the street who had “poor thing” written all over his face .
Shyla’s response was to a newspaper article I had just read out to her (as a part of our morning ritual , on way to her school ) quoting India’s planning commission assessment that should you be able spend Rs 32 a day in the city you are not poor. The context being the poverty benchmark (BPL) assessed by the commission whom most ,despite clarifications, believe will work as an eligibility to get government subsidy . The affidavit to this effect filed in the Supreme court and approved by the Prime Minister’s office has yet again opened our eyes to the closed mindset of the authorities .
Figure this , at Rs 32 per person per day a family of four would spend Rs 3840 per month .At current prices more than half of this will fetch you a daily basic meal of potato , dal and roti . The balance would go for rent with abysmal facilities . So who pays for clothing , education, medical expenses, conveyance leave aside that little bit extra we all need to survive in the city? Or are these luxuries ?Then ,should we overlook the continuing double digit inflation and hike in fuel prices ? Besides it’s the same government which has set a daily minimum wage of Rs. 247 in the capital. Would minimum not denote a line below which income is unacceptable and therefore worthy of government support . This at time when the last two years have seen everything double — the urban Indian expenses, interest rates , average property prices and even the number of Indian millionaires . So much for the government‘s continuing double talk of equal and inclusive growth.
Governments are often wrong about being right and right about being wrong. No doubt , subsidies put pressure on the fiscal deficit and has rightfully become a concern. However reducing subsidies is only one way of reducing fiscal deficit. How about trimming government expenses , optimizing oil consumption and of course retrieving money stolen and parked in overseas accounts .In fact if you cut corruption and just ensure that subsidies reach those for whom it is provided in the first place -you may have enough to even subsidise the rich.
Besides the definition of poor purely based on expenditure is inaccurate . When seen in light of virtually no social security it is unfair. Yes, many countries do follow the expenditure method but look at China the most progressive country who resorts to the income method for better accuracy .Also, the International poverty line as defined by the UN human development report (2009) is twice as much at Rs 65 . Then if your growth rate and inflation are high like in India so should be your poverty line. By keeping the poverty line low you may take away their eligibility for grant but cannot take them for granted .Till he is not provided with the basics of education, medical protection, clean water , affordable public transport he remains poor. True, he should not be given a grant -that would weaken him. He should be given sufficient opportunities to earn a livelihood – that will strengthen his resolve . Besides , reminding him that he is poor could aspire him to do better and reminding the government that he is poor could pressure them to provide him a platform to prosper . Gandhiji said India is a rich country with poor people . Now regular exposure of scams suggests that huge amounts of money have been siphoned off to personal overseas accounts . At the same time India registers the highest growth in millionaires – India now becomes a poor country with rich people .
Poverty in india is like cancer. Both make you feel helpless and result in death after a prolonged misery. Cancer despite all efforts is yet to find a permanent cure . We hope it will. Poverty in India thankfully does have a cure if properly addressed. We hope it will. In the uncivilized world the Robin Hood approach worked- “steal from the rich to feed the poor”. In the civilized world it is –“ tax the rich and subsidise the poor” . In both cases the effect is the same except in the latter it is legal and acceptable . Just that lack of accountability in India often makes the two seem like the same – tax and theft .Personally , I am against the word “tax” and find it punishing. “Contribution” perhaps is more positive and participatory. Participation is the essence of the solution to poverty – both by the government and us as individuals – The government needs to rethink the public distribution system , properly manage the food security bill, ensure free and compulsory primary education – a constitutional right , make the rozgar yojna (employment scheme) accountable , provide adequate health insurance , clean drinking water and proper infrastructure and even work on changes in the feudal social structures . All these if properly implemented will either reduce expenses or increase income and thereby help reduce poverty . We have enough resources to manage it – some in India and some in Switzerland .On the individual’s part we can start by contributing generously to personally verified NGO’s , save fuel – it reduces our oil burden and leaves more in our hands to distribute , plant trees to make the environment cleaner and disease free – that serves better than any insurance .
And perhaps for a start we need to stop helplessly saying “poor thing”.