Thursday, August 18, 2005
The Start of Pro-Poor Wave in Indian Politics?
Do the poor finally matter?
Ever since the UPA government came to power last year, it would appear that the poor have become bigger blips on the radar of the ruling classes than they used to be. Especially in contrast to the former government's 'India Shining' eyewash, it seemed possible to believe that pro-poor policies may actually gain a pre-eminent position in the political agenda of the central and specific state governments.
Today, that promise seems to be gathering momentum, as the National Rural Employment Guarantee Act goes into force, with a guaranteed 100 days of employment to every rural household in the country, with a minimum daily wage of Rs.60. Of course this and other such large-scale pro-poor policies are likely to (and indeed should) be criticised for implementation problems, particularly those associated with rent-seeking incentives by local, district and state level bureaucrats and politicians. Regardless, the UPA government has doubtless taken a significant first step in even bringing such a policy onto the agenda, and in deep in the realm of coalition politics, succeeded in getting it passed.
Interestingly, state governments across India have also followed this example, including the recent announcement by the government of Tamil Nadu under J Jayalalithaa, of a massive social security scheme for small and marginal farmers whose lives are constantly threatened by the risk of debilitating shocks. Of course, successive regimes in this state have been trailblazers, even by international comparison, in terms of pushing through such universalistic redistributive measures. Note in this context that the state introduced the Chief Minister's Noon Meal Scheme as early as 1982, and its phenomenal effectiveness in reducing childhood malnutrition and increasing enrolment rates for primary education have played a role in the recent Supreme Court directive to all other states to follow suit (or at least attempt to do so). Nevertheless, such policies are at least less likely to encounter political obstructions in an atmosphere charged with much more (at least rhetorical) support for pro-poor redistribution.
Also notable in this context is the powerful popular wave that carried YS Rajasekhara Reddy to the Chief Minister's seat in Andhra Pradesh. Under the reprehensible moral burden being in power while more than 4000 distressed farmers across the state committed suicide, Chandrababu Naidu was trounced in the State Assembly elections, despite his close connections with big industry and the ubiquitous World Bank. YSR, as he is known, immediately waived all dues of farmers on account of electricity consumption, in an effort to contain the visceral impact of debt. While the effectiveness of this measure has been compromised by developments beyond the control of state politics, it is possible that the situation might have been worse in the absence of a course correction in the orientation of policy.
In some senses, the time is right for India Shining to partner with the India Poverty Alleviating, just as the private sector assumes the driving seat in a number of industries and helps deepen India's position as one of the fastest growing economies in the world. Increasingly, the state should continue to improve the lot of the 'other half', that second India that has been the neglected child of the motherland thus far. In fact as time goes by, this approach is less a policy choice and more a developmental compulsion.
Ever since the UPA government came to power last year, it would appear that the poor have become bigger blips on the radar of the ruling classes than they used to be. Especially in contrast to the former government's 'India Shining' eyewash, it seemed possible to believe that pro-poor policies may actually gain a pre-eminent position in the political agenda of the central and specific state governments.
Today, that promise seems to be gathering momentum, as the National Rural Employment Guarantee Act goes into force, with a guaranteed 100 days of employment to every rural household in the country, with a minimum daily wage of Rs.60. Of course this and other such large-scale pro-poor policies are likely to (and indeed should) be criticised for implementation problems, particularly those associated with rent-seeking incentives by local, district and state level bureaucrats and politicians. Regardless, the UPA government has doubtless taken a significant first step in even bringing such a policy onto the agenda, and in deep in the realm of coalition politics, succeeded in getting it passed.
Interestingly, state governments across India have also followed this example, including the recent announcement by the government of Tamil Nadu under J Jayalalithaa, of a massive social security scheme for small and marginal farmers whose lives are constantly threatened by the risk of debilitating shocks. Of course, successive regimes in this state have been trailblazers, even by international comparison, in terms of pushing through such universalistic redistributive measures. Note in this context that the state introduced the Chief Minister's Noon Meal Scheme as early as 1982, and its phenomenal effectiveness in reducing childhood malnutrition and increasing enrolment rates for primary education have played a role in the recent Supreme Court directive to all other states to follow suit (or at least attempt to do so). Nevertheless, such policies are at least less likely to encounter political obstructions in an atmosphere charged with much more (at least rhetorical) support for pro-poor redistribution.
Also notable in this context is the powerful popular wave that carried YS Rajasekhara Reddy to the Chief Minister's seat in Andhra Pradesh. Under the reprehensible moral burden being in power while more than 4000 distressed farmers across the state committed suicide, Chandrababu Naidu was trounced in the State Assembly elections, despite his close connections with big industry and the ubiquitous World Bank. YSR, as he is known, immediately waived all dues of farmers on account of electricity consumption, in an effort to contain the visceral impact of debt. While the effectiveness of this measure has been compromised by developments beyond the control of state politics, it is possible that the situation might have been worse in the absence of a course correction in the orientation of policy.
In some senses, the time is right for India Shining to partner with the India Poverty Alleviating, just as the private sector assumes the driving seat in a number of industries and helps deepen India's position as one of the fastest growing economies in the world. Increasingly, the state should continue to improve the lot of the 'other half', that second India that has been the neglected child of the motherland thus far. In fact as time goes by, this approach is less a policy choice and more a developmental compulsion.
# posted by Narayan Lakshman @ 10:46 AM 
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