by Ramtanu Maitra
India’s six percent-plus “impressive GDP growth rate” over the years has drawn much praise from the West, and its “success” has been attributed to the “magical impact” of free-market liberalization and globalization. What it really means, is that India’s low-wage-earning labor has begun to replace a section of the high-wage-earning workforce of the West. In the process, India, a nation of 1 billion-plus people stricken with utter poverty, is becoming an economic “powerhouse”—exactly the way China became one, the Indian leaders claim.
However, a visit from one end of India to the other would make one realize that India’s GDP growth is driven by only a fraction of its population. Much of the nation remains a picture of rural poverty and urban squalor. Rising social tension because of growing income disparity between a sea of poor and a decent number of middle class, is either not noticed, or ignored, by a callous and rudderless leadership that dots the entire nation. Notwithstanding the illusions of the elites, there are definite signals that some among the many hundreds of millions of poor may not watch the process with benign and dissociated neglect, but instead, could turn violent.
The poverty in India has been exacerbated by the fact that the investors, who are no longer “led” by the powerful and visionary, now invest in those parts of the country where the investment has the maximum potential—a relative term in the Indian context—to optimize profit. As a result, regional disparities are growing fast, involving hundreds of millions of people. Nearly all foreign investments in India go to its six most urban states, with 22 other less-developed states virtually ignored. This gap between cities and rural areas is keenly felt in the suburbs of India’s cities, particularly New Delhi, the capital.
Poverty Galore
The endless poverty is there for all to see; it is not hidden like it is in China. There is no escaping the fact that a handful of “skilled Indian workers,” tied to Western workplaces through telecommunication, will not be able to pull the hundreds of millions out of the grinding poverty they endure. What is needed is leadership at every level, and the most dangerous aspect of India at the present time is that it does not have any.
Lack of leadership hits one square in the face, starting at the municipal level, all the way up to the highest offices in the North Block and South Block of India’s capital. These powerful people have little real understanding of what it would take to make India a nation that cares for all of its people; indeed, they have little intent to achieve such a goal, in any case. continue reading…
