Worshiping poverty

There is much to gain from poverty. In contrast to Mao's war cry in China that "power flows from the barrel of the gun", the political power in India flows from the hungry mouths. There is no better shortcut in politics than being seen fighting the war against poverty.

But in the last 66 years, the war against poverty has only added more poor to the population. This has worked well for those who reap political dividend out of the growing numbers of poor. Those concerned with questions of their bellies in variably would not ask larger questions of erosion of their collective prospect.

Therefore, it's understandable why the Sonia Gandhi lead Congress, with drum-beater Rahul Gandhi, and the "famed" economist Prime Minister Manmohan Singh are keen to thrust Food Security Act at a cost of Rs 1,30,000 crore a year on the nation. The China model of growth is naturally brushed aside by the priests of poverty temple with one single broom called "democracy with socialism". Therefore, any comparison with China is largely "thinking aloud" or day-dreaming by the "idle" academician.. 

Add another Rs 30,000 crore annually (Rs 1,50,000 crore, $ 38 billion, so far in six years) sucked in by Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which would imply that India commits over Rs 1,60,000 crore ($ 40 billion) annually in the political battle against poverty. Further add another Rs 60,000 crore ($ 15 billion), which the banks let go in bearing the cost of the loan waiver of the farmers' debts, which was pushed through to buy votes for the UPA-I. The nationalized banks had taken a body blow from this act so much so that the government had to infuse more capital into them later.   

Incidentally, projects worth Rs 1,50,000 crores ($ 38 billion) of the railways are stuck for want of funds. No wonder the railways minister Pawan Kumar Bansal yawns when he speaks on the subject of bullet trains to an audience, which is largely foreign.

He knows the money in India goes to perpetuate poverty and not to build the nation. Over Rs two lakh crore ($50 billion ) is locked into unproductive activities essentially designed to "buy" votes. They create their own web wherein the life-breath of India struggles for oxygen (investment).

Admittedly, the bullet trains would not bring the poor out of their poverty curse but the infrastructure development does lift a lot of people out of the vicious cycle. 

Thirteen years ago former Prime Minister Atal Bihari Vajpayee on his birth day, 25th December, launched the Pradhan Mantri Gram Sadak Yojna (PMGSY). A large number of states have actually

A PMGSY road in the Puri district of Odisha which brought
in apartments amid paddy fields, while helping the villagers
to engage in a number of economic activities like
poultry farms, etc. 

been able to make remarkable changes in the lives of the poor who now engage in gainful employments through a host of economic activities.

If the rural road connectivity can give such windfall to the people in villages, one may imagine what could be the spin off if large projects are executed without waiting for years for the World Bank and Japan to sanction loans.

No wonder India's famed growth is now tottering at fiver per cent rate. "If India has to grow at eight per cent rate, the railways will have to grow at 11 per cent, which is currently three per cent. The funds have to be pumped into the railways infrastructure. It's not just desirable but unavoidable," said Mr V. K. Gupta, Managing Director, Dedicated Freight Corridor (DFC).

But the money is locked in activities which buy votes. "We are going to give you legal rights for foodgrains. We have given you MGNREGA. We waived off Rs 60,000 crore of the farmers' loans," Rahul Gandhi tirelessly reminds his audience everywhere; be it Karnataka or Uttar Pradesh or Bihar.

The government would like people to believe that Food Security Bill, which would cover 67 per cent of India's population, would ensure a savings of an average Rs 4,400 in the hands of the poor, which would consequently be spent in their additional consumption.  This would spur demand!

But the government avoids mentioning that by sucking 62 million tonnes of the foodgrains out of the market, the massive price spiral and the collateral damage in inflation could starve the very engine of the growth in the end. The savings of Rs 4,400 in one hand would be outmatched by erosion of a minimum Rs 10,000 from another hand, who would not spend on their demands. So, the demand may not be spurred but spiked.

For the last four years, the high inflation has baffled all. It has left the RBI (Reserve Bank of India) clueless, while drying up credit for businesses to expand and in the end bringing down the Indian economy to its feet.

One is compelled to believe the maxim that "speak as if your audience consists of idiots"; and such speakers apparently abound in the UPA dispensation.

The Bihar leader Lalu Prasad Yadav was shocked to find the Tughlaq Road, where he resides in Delhi, lined up on both sides by the SUVs on which the Sarpanch and Mukhiya (village headmen) lined up to seek tickets to contest the Assembly elections recently. 

The MGNREGA helped the petty politicians in amassing wealth. It's not confined to Bihar but is a feature of India.  In a recently held conference of the Panchayati Raj at Vigyan Bhavan, the Union ministers kept staring at rural women leaders. It was not for lust but for the fact that the rural women leaders were loaded with heavy gold jewellery. "That's what the MGNREGA has done," quipped one Union minister, with lips pressed hard against each other to stifle a laughter at the state of India's policy making.

Politics in India demands "quick-fixes". It does not matter if such "quick-fixes"further fortify the temple of poverty. The analogy of the head of the ruling party being the chief priest of the temple of poverty and her son being the conch-blower may not be far off the reality.

Habits die hard and the Congress leaders would like to continue worshiping poverty in place of commissioning programmes, which can actually take out the poor from the vicious cycle of poverty. 

The power truly flows from the empty stomach of the poor.