Friday, October 8, 2010

Who causes poverty - the poor or the rich?

This was just a passing thought as I passed by a huge hording of Mamata Bannerjee. Yes, she's all set to displace the left, but is she capable of developing West Bengal, specifically Kolkata, and pulling it out of decadence? Well, most people say 'no'. In that case, who is responsible for this mess called Kolkata? Of course, those who vote these people to power.

Arundhati Roy and other 'social activists' would say how it's sad that billionaires hold such high assets, whereas 80% of India's population earns less than $2 per day. Who is responsible for their state and the ineffectiveness of poverty alleviation programs? The Government. And who elects the Government? This 'majority' of 80%.

This is one of the arguments behind making cities like Mumbai a union territory. That would help because then those who govern this city will be directly elected by the people of the city, and not those sitting in the villages of Vidarbha. Will that result in a massive loss of revenue to the Maharashtra government? Well, there can be a memorandum of understanding under which this demerger will take place, which can ensure that flow of funds to Vidarbha isn't stopped. Anyway, most of funding in India comes from the central government, rather than the cash-strapped state governments.

Hence, the basic point being that you can't blame the so-called 'rich' for the poverty of the poor. It's a vicious cycle. They remain poor, hence they vote for the wrong guys, these wrong guys hamper effective policy-making, and hence they remain poor. It's not fair to lay all the blame for poverty on the likes of Mukesh Ambani. Okay, that guy earns a lot, but he isn't hampering your administration. Probably the blame for the mess in the slum next to our houses lies with people in the slum. Partly, but definitely.

4 comments:

Aayush Singhal said...

But don't you think something like an inheritance tax could help?I mean almost all the developed counties have it some have it as high as 40%.So it may help reduce the inequalities and hence poverty i think

Subhashish Bhadra said...

But then, don't you think the problem in India really isn't as much of a lack of resources as inefficiency? CWG, for example. Hence, an inheritance tax, that will increase the coffers - will it trickle down?

Also, why is 'reducing inequality' really so much of a priority is my essential problem? Yes, it can be a means, but really, it can't be the end. What my idea is that the focus should be to improve these guys' standard of living, and not care about the wealth of others.

Aayush Singhal said...

But how do you plan to improve the living standard then?Okay proper implementation,lees corruption all those are there but what can these guys' themselves do.I mean how do they know whether they are choosing the right person while voting?they dont have much choice also

Subhashish Bhadra said...

That is a good argument that they don't have a choice. However, RWAs in Gurgaon, and I'm sure other areas, have attempted to overcome this by fielding their own candidates. There are lots of independent candidates who stand every year. But they don't get voted to power. Why? Either because they can't spend that much or they can't reach out to so many people.

Hence, once you start giving newer faces a chance to change things, I really believe change will be slow like an elephant (not being pessimistic enough to say change won't be there at all).