Indian Economy II : The Termite Attack
India gained its freedom after centuries of foreign rule in 1947. We inherited not only a ruined economy, but a exploitative corrupt system of governance which was designed to serve the colonial masters. Those who have visited a DM in his bungalow in any small town will agree that it was a small replica of a palace of Roman Emperor. To reach the house a poor man has to walk half a kilometer under watchful eyes of security and servants, when he reaches there he see a high ceiling colonial construction. After waiting for an hour or two in the verandah, you are ushered in a long hall where he walks another ten fifteen steps to reach a huge table on other side of which sat the DM all powerful public servant. All these things were designed to create a awe of the administration in the subjects so that they remain timid and law abiding.
The freedom was gained after prolong struggle which was a mass movement. All ordinary citizens participated led by upper class western educated leaders. The dawn of the freedom was marred by the partition of the country and the communal violence which followed it. The country took some time to settle down. The new political leaders were idealist and wanted to give their followers social and economic freedom. Having no experience of governance they have no idea how to translate their dreams into reality. The path they choose was foreign to Indian culture. For centuries India thrived on its agriculture and cottage industries. Agriculture, business, salaried employment, bagging is the graded choice of vocation (उत्तम खेती. मध्यम बान, अधम चाकरी, भीख निदान). Mahatma Gandhi and some national leaders who have a connect with the rural India and knew the importance of village and cottage industries. The new political leaders gave no heed to these suggestions which were rooted to the ground. Mahatma’s name was used as a mask and his policies and suggestions were dumped. In every Indian office you will find a photograph of the Mahatma and in every town a statue and a road named after him.
Mixed economy, a combination of communist, socialist and capitalist system; was adopted, all these systems were alien to Indian culture and ethos. The public sector were created to stimulate growth. This was a good concept if restricted to capital intensive infrastructure projects only, but slowly the government machinery spread like a Amarbel(A parasite vine which flourishes at the cost of the host tree). The government entered aviation sector (Air India), watches, tractors (HMT), Scooters(Scooters India Limited), textiles, and what not. It has nothing to do with national development or poverty eradication or employment generation. The bureaucrats, who were masters in exploiting the masses misguided the novice rulers , the elected representative. A politician bureaucrats nexus developed. The top appointments were offered to the bureaucrats who in turn served the political masters through their control on public sector companies resources. The termites began to set in.
Agriculture was the main stay of the Indian economy for centuries. India has a unique geography. Himalayas act as a barrier for Monsoon winds coming from triangle shaped coast from three sides. There are three distinct seasons. With arteries of large and small rivers spread all over the country and with multiple climatic zones; India has the potential to become the vegetable, fruit flower supplier of the world. Alas, the new political master infected with the ideology of socialism wanted to industrialize the nation by pumping investment in large public sector enterprises. The industrial wages are dependent on food grains prices. To keep food grain prices low and consequently the industrial wages down the brilliant bureaucrat come up with an innovative idea of minimum support price mechanism. In the guise of protecting the farmers against market forces the government created a system of Agriculture Produce Market Committee. The farmer was not allowed get the benefit of free market. There were unnecessary restriction on movement of food grains. MSP became maximum price instead minimum support price. Logic is simple, if government with infinite resources at its command buys wheat for Rs 200 per quintal why a private trader will pay Rs 210 for the same. Industrialization of colonial Britain was financed by the blood of the Indian farmer, for industrialization of free India his remaining blood was sucked up.
It is not that no investment is made in Agriculture. Large irrigation dams were made but these benefitted a small number of farmers. In this too the decision makers failed India. With large number of rivers in India and typical topography, mid and small size irrigation project can be made with relatively smaller investment. Local Kings of erstwhile princely states and British made so many such projects scattered all over India. The system of subsidies given in agriculture benefitted industry and traders more than the farmer.
There were massages for course correction. The success of Green revolution and of Amul, which is nothing but a cottage industry. Huge success of cottage industries like cycle industry (Ludiana), clocks(Morwi), Readymade Industry (Tripur), Fire crackers (Shivakashi), sent a massage to any responsive government, but nothing changed.Controls are increased in one pretext or other. One after another a government agency entered the life a citizen to make it a living hell.
The colonial British Raj created a exploitative class of money lenders. The post independent India developed a class of DALAL, the middlemen. The Dalal came from all sections, he may be petty politician, an advocate, a public servant and so on. From small works like getting a gas connection, or a electric connection, getting a bank loan, getting ownership paper of you own land to big contracts, getting a factory license , big ticket arm deals there is a facilitator to short cut the system.
Everyone wanted a piece of the cake. Using the influence of the politicians the industrialist took loan from the banks, no industry was set up and consequently loan not repaid, the banks took legal recourse and attached the assets, but the money has already been syphoned off. Social workers created thousands of NGOs, getting funds from government or international agencies for one cause or other, helping themselves and no one else. All schemes made by the government for generating employment, SEEUY, IRDP, SJSRY, MANREGA are all fraud perpetuated on the innocent public. These schemes created no sustainable job.
The Indian public cheated by its own people hoping for a better tomorrow waited for some time. At the time of election tried one combination after another but with no result. The NAGNATH replaced SANPNATH. Most unfortunate part of it is that the greatest beneficiary of the freedom, getting subsidized almost free education at the premier institution like JNU, AMU, DU, IITs and IIMs, joined the class of exploiters rather than coming to the help of poor masses.
In order to remain in power, the politician lured the voters though free water, free electricity, free meals, cheap food grains, loan waiver and so on. The people watched in helpless frustration. All out efforts were made to divide people in religion, caste, regional lines to win the election to milk the nation for another five years. The termites have reached the every nook and corner of the nation.
