Tuesday 26 February 2019

“CURE” the “Doori”?


Last week, I watched Gully Boy. The song “Doori” strongly resonated with me. Was it the filming, the acting or the lyrics, I’ll never know. I had a “woke” moment at the time and was left pondering over the concept of “Doori. “Doori” means distance but in the song means “inequality” and is touchingly portrayed.

Now, let me warn you, this piece doesn’t tell you something you haven’t read/heard about in media in the past. But it simply tries to reinforce some key points that somehow seems to escape the decision makers.

So, let me take you through my train of thought after the song stopped playing

1)      Should a country like India worry about inequality? – Hot topic in the global media is “Inequality”. Questions on whether the rich must be taxed more and how the marginal tax rates should be increased are the never-ending ongoing debates which I’ve lost track of. But does India need to think about it right now? NOT AT ALL. We don’t have the luxury or the time to do that. Get rich and get rich fast – should be the focus of the state. Increase the size of the pie by making opportunities available.
2)      How to get rich fast? – By learning a lesson or 2 from China. Chinese economic reforms brought the poverty down from 88% 4 decades ago to 6% in 2 years ago. This massive downfall in poverty levels was achieved due to many experimental policies and by primarily opening the country’s economy globally. I’m clearly oversimplifying here and I’m obviously not qualified enough to handle a question of this magnitude. However, I know we have a template. A template we can learn from. A template tried and tested. A template, that is China.
3)      CURE the problem: If there’s one thing I’ve learned after being a part of corporate, reading books on effective communication – it is to come up with quirky, easy to remember acronyms!
So, I came up with one – CURE: Collect, Understand, Revise, Execute

Collect Quality data: Due to the lack of good quality data, India struggles to get a handle on how serious certain issues are. For ex: From fudging reports by NSSO (allegedly) to outright denying it, the current government is failing to do enough about the job crisis at hand. The demographic dividend is now a ticking bomb and no more an asset that we posed it to be, globally. The inconsistency in the stories, datasets of NSSO and EPFO tell us, is all the more a reason why we need more serious discussions and actions on collection of more data. NSSO data is collected once every 5 years, Census data – once every 10 years, the labour bureau’s employment surveys last happened in 2015-16. CMIE (Center for Monitoring Indian Economy) happens every year. But higher frequency, better quality data means better analysis, right?

Understanding the gaps: Again – oversimplifying this, but analyzing data from various sources will lead to a better understanding about the variables at play that create or amplify the problem. This will help us distinguish what needs attention from what could be allowed to take a back seat.

Revise the laws: Labour laws in India have been a roadblock in creating more feasible employment opportunities over the years. Lack of medium size enterprises increase the pressure on large size enterprises to employ people in high numbers that causes unintended imbalances. Though this sector has been liberalized, there is scope for a lot more and there are detailed analyses carried out on this subject which are all linked towards the end of this article that I have read in the past to fairly understand how deep rooted this issue really is.

Evaluate and Execute schemes: There have been a lot of discussions on “Minimum income guarantee” and how all the “poor” would receive money from the government every month to support them for basic food necessities. But I believe the root of the problem is not addressed with schemes like this. Governments currently and in the past have spent abysmal amount of money on subsidies and loan waivers when the root cause for increasing job crisis is rapid urbanization and asymmetry of information between the demand in skills and the supply of jobs. People employed in agriculture are also quickly moving away, seeking jobs in cities. Integration of this population in cities and their transition to non-agricultural jobs should be made smooth – this must be the aim of any scheme that government of today plans to introduce.

I’m not sure if “Doori” will go away any time soon, but we have seen examples backed with enough evidence that it’s possible to lift people out of poverty. We only need to pay attention and believe in incremental measures to “CURE” this problem.


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