Wednesday, June 30, 2010

MGNREGA and Its Social Impact

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), is considered to be one of the biggest social scheme in post independent India. It's huge in its outlay, coverage and promise. Even, the extent of hope it has generated is enormous. Providing a job guarantee to one person in a family, for 100 days in year, in a country like India, is not small amount of promise. In that sense, this scheme is very ambitious in it's intent and quite big in its form.

Since its inception, it has been under the scanner of policy makers, thinkers, and the common man. No one has taken out their gaze from the scheme. Everyone is discussing about the capacity of the scheme to alleviate the poverty. The mainstream media is talking only about the mis-utilization of funds and showing utmost concern for proper use, but is paying least attention to the social ramification it is manifesting in the hinterland. Even, within the intellectual circles, discussion about its social impact is not so appreciable.

The first social impact of the scheme is- increased dignity of labour. Landlords have now started respecting the labourer. Wages have gone up. Working hours have come down. Other benefits have also been given at work site. This is all because of scarcity of labour that MGNREGA has created.

The second considerable change that can be witnessed is caste function in a society. There is no explicit assertion of caste by wealthy or land holders. As every one is assured of 100 days work with subsidised food, no one is under the mercy of any wealthy man or landlord. Though, this hypothesis of mine is much more exaggerating, but still it has substance.

The long term impact of the scheme is very promising. I think, over period of time, agriculture will become expensive occupation. The current landlords will surely feel the shortage of labour. To survive in the changed scenario, one has to be more innovative, enterprising. Our landlords lack both. Thus, they are forced to sell their lands to those who can provide required inputs. For this, Govt. has to impose tax on holding the land, like Minimum Alternate Tax in draft Direct Tax Code. By which every land holder has to pay some percentage of total value of the land as tax. This makes holding costlier and social equity will happen very fast. I feel this might be the vision of the Govt.

Now the point is when all this is going to be more visible. With, UIDIA or AADHAAR, as it has been called, Govt. is betting heavily upon the technology. If Govt. can achieve what it is, either explicitly or implicitly, contemplating even by half a mark; then its going to be most successful scheme of independent India. Our job is just to watch. Let's do that.


INDIA- A "Nation-State" or "State- Nation" or "State-Tribe"?

Sociologically countries are divided as such. Most of the European countries are 'Nation- States'. It means they have evolved from tribe to community then to nation and finally 'State' is created over the nation. It's considered to be very natural phenomenon in a particular country's history.

However, some nations are created after creating the 'State' (Read sovereign Govt.) for it. For example: India. India never evolved naturally as a nation on common ethos. British consolidated it for administrative purpose and when they left; they gave 'State' for this vast geography. In that sense, India is a State-Nation. Thus, State was created; then the Nation.

Sometimes, I feel, Does India even fit to this bill? I mean- 'State Nation' category. Recently, we are seeing, more tribal instinct of the people in India coming open. We see people beating the thief as if no law to punish his or her crime, emergence of khap panchayat's as an instrument to regulate the marriages, etc. are the very visible signs to consider India as tribal country. So, I made another class; State-Tribe. (Sociologically such class exists or not- I have no clue!) Some of these pictures confirm the tribal instincts in our daily lives-

1. Consider you are moving in a bike; suddenly you notice a strange thing- that the person who is coming opposite of your direction; tells you to take diversion because he or she finds that you are not carrying helmet. If you move in same direction, you will be caught by Police. This is one form of tribal instinct.

2. I recently saw Bangalore Police commissioner saying " Criminals will be brought to books"- I saw him saying this in TV channel. The next day one of the Kannada news paper reported- "Criminals will be handed over to the people" (Exact Kannada version" Aparaadhigalannu Janara kaige oppisutteve" This I have made loose translation). It's a another version of expression of tribal instinct.

Post liberalization, when money started trickling down in the hands of the people, tribal instinct of them has been more assertive and, for a worse, more decisive. Now, people feel that they can have their own 'system' because they have money. To make things worse, electoral politics has become more competitive and to keep their currency floating, politicians just patronage these behaviours.

I think this is really a serious problem. To alleviate this, we have to have robust police system, rule of law, and culture to respect such systems. Yes. I do agree that these things are very alien to Indians. But, you have to be, sometimes, too optimist to see these things in reality.





"Necessity is the Mother of Invention and Innovation"

It was an old adage. But, I tweaked it to add "Innovation" and made it much more relevant to reflect the current time. I always wondered with it and asked myself - Was it really true saying? The answer was quite confusing and I used to have more opaqueness than clarity each time I revisited it.

I start with Europe. Most of the European countries were geographically small and lacked natural resources. When, industrialization started in England people started moving to cities and their urge to stay in city and be out of feudal system was their prime concern. In those days- there was 'necessity' to have dignified living. This was fueled by liberal religious thinking, which made the people to let their inquiring mind to work its fullest. Thus, started the birth of technological inventions.

The business modules which were created to accommodate these technological breakthroughs were fat -in a sense- less attention paid to getting MORE with Less. Colonies created to serve these business modules and it was fine till colonies were obedient. Over a period of time, they became unmanageable politically and turned uneconomical as a consequence of former. Thus, most of the colonies, by 1990's got their freedom.

These colonies, once rich in natural resources, were brought to pittance level. They were exploited to their root and left nothing. Most of these countries were now having more people to feed and less availability of people to work. Thus, they started thinking of doing MORE with less. Era of innovation has begun.

Time has taken full cycle. 'Necessity' is now more visible in these erstwhile colonial countries. This has started fueling more innovation than costly invention. Leaner business modules are created to serve the poor people. To add to this drive, these countries businesses come with no legacy. This legacy- I am speaking in terms of already created technology, organisational structure etc. For these countries canvas is quite white, of course, they can paint any picture they like.

With the recent financial crisis, and its impact on European countries, making me to feel that my hypothesis is correct- in most of the terms. 'Necessity' is present everywhere. But it is more forceful in India and China. Moreover, legacy of the European countries is not allowing them to innovate. Conversely, India and China are doing it-innovation- with more vengeance. So , they have lesser impact of the crisis.

I feel, India and China are going to get most of the benefit of this crisis. More European countries are going to loose political clout in world political sphere. Power is tilting towards India and China. Europe and America have to accommodate these new power houses.

Process driven industries, where economy of scale is at heart, are going to be in third world countries. India is acting both- as hub for process driven industries and base for knowledge creating industries- at the same time. However, I feel, western world can come back as a base for knowledge driven industries. Their strength lie in exporting knowledge to the world than anything else.

Still the picture is quite opaque and surrounded with thick cloud. Nothing can be said now. But one thing is sure- Now, my tweaked adage is becoming much more clearer to me. Hope you also feel the same!

Tuesday, June 29, 2010

Peer pressure and post liberalization era

I wonder sometimes - what if I were to born somewhere in 50's ? I would have reached my 20's by 1970's. At that point in time, India was at the height of socialism. Most of the people did not get the jobs; even if one managed to get one - that was obviously the Govt. job- that was even obviously mean paid. In those days, every one was 'alike'- in terms of getting opportunity and capitalizing it- and hence, there was less peer pressure.

Post liberalization, Indian economy started accommodating people in private sector with never dreamt pay packages. Especially in southern states, it was a bachelor's degree that required to get one descent job. In late 90's, people simply made their career in outsourcing industry with one degree at their disposal.

But, there is one negative social impact of this liberalized era that makes me to think from quite some time-Peer pressure. Now, every parent wants their child to learn English. And after graduation, wanted him or her to start earning. With cheap and easy credit, erstwhile luxury has become necessary. Thus, we see heavy peer pressure to earn, save, and have some 'necessary' things like home, car etc. which once considered to be luxury within Indian psyche.

I think this is unnecessary and uncalled for. Now, we have every opportunity to do what we think we are best at. We get much better education, job, money to fund the ideas, what not. But, still social pressure is huge to earn early and get 'settled' soon! This is more evident in those families who have just moved to middle class post liberalization. There anxiety or even I would rather say- deep rooted fear of moving again to lesser class in social ladder- make them to put heavy peer pressure on their children.

I see this is going to be normal phenomenon for quite sometime- say another 10 years. Hopefully, after this initial bad period, every one can be relieved off this peer pressure and can be allowed to do what she thinks fit and necessary.

Sunday, June 27, 2010

Finishing schools and foreign university bill

Indian education system, as we all know, will not allow you to think much. Its more tilted towards following something rather than creating.

To capitalise this poor situation, finishing schools have assumed significance. They started making students 'industry ready'- making students employable. It's all about teaching relevant syllabus of the course- which a student has already learnt- with little bit interdisciplinary approach. Thus they minted money over last 10- 15 years.

The entry of Foreign universities and change in the outlook of the Indian universities made me to think of relevance of these finishing schools and their economic viability. The gap they wished to fill is getting narrowed and hopefully, will never exists in near future.

I need to see the nature of Foreign university bill and the response it triggers among Indian universities. If that turns out to be for better, then the future of finishing schools is really scary.


Fuel price hike and Indian psyche

Central Govt., with its recent decision to hike the fuel price, has triggered Indian irrational psyche to come open. Everywhere, we see people started talking quite irrationally about the rationality of the hike!

Still India has to understand that the Govt. is not always the caretaker. Over a period, it assumes the role of enabler. However, Indian middle class is somehow unable to understand this and always wish the Govt. to be the caretaker! I feel, it requires at least, another 10 years for us to understand the Govt. as enabler rather than caretaker.

Let us see how India progresses on this.