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Friday, September 30, 2011

Child labor, Inflation and Recession



Double dip recession is already in progress. Sovereign default is imminent, even though I don't believe that developed countries will allow it to happen. USA and European countries are facing unprecedented situation to handle the economic situation. Under these situation developing countries are only hoping that it does not get worse to avoid the effect due to globalized economy.

Already BRIC countries are facing GDP growth slowdown, even though its very high in comparison to developed nations, but that is not sufficient to manage the economic welfare of the huge population and remove poverty. During the last decade of boom, income has consistently risen above 10%, which was taken granted by the people and forcibly govt had to increase the salary of the public servants. Recently the WSJ published the IIP data of India which has consistently declined as compared to the last year. This was expected due to uncertain global economic conditions and much more than that due to  rapid increase in the interest rate by Reserve Bank of India (Indian central bank).

RBI has consistently raised the repo and reverse repo rate for 12 consecutive time. During the last quarter, RBI clearly specified their main aim of reducing the inflation from current ~10% to about 5%. The more worrying fact about the current inflation figure is that during survey expected inflation is 12% which is going to further worsen the situation. The higher expected inflation will make people to spend more now than save money for future use. The more supply in money will cause further inflation. Hence it is expected that RBI will stick to its main agenda in near future to remove the uncertain economic condition by taming the inflation.

WSJ came up with a very surprising argument regarding the rising inflation. It said that inflation is caused by increase in student enrollment in rural area. Although enrollment and literacy has increased in last few decades but inflation is problem of last few years only. Government sponsored schools have also increased and Right to Education have also helped to increase the enrollment. Most people in India know that these laws, policy and proposals are only on paper. RTE is almost unimplemented. Regarding enrollment of rural population, the attendance is only on paper. Many time teachers themselves don't come, so expecting student's attendance is not possible. Yes mid day meals have helped increase in student enrollment and their attendance.

More prominent reason is probably that the NREGS which gives guaranteed work for 100 days with minimum fixed wage. This must have saved lot of exploited people who were earlier living in a very poor condition. It must have raised the minimum wage which caused other wages also to rise and hence raising the production cost in rural areas. Also, the wages are linked to inflation which will further cause inflation. One most important factor which is not accounted during the discussion of inflation is the role of illegal money floating in the economy. The real estate playing the major role in urban inflation. Lot of money supply is coming from corruption which is causing inflation to rise. So does the obscenely high paying jobs of selected few causing high demand.

The inflation control is the highest priority, and rightly so, for the central bank. But removing child labor, making better working and living condition, better health and education while reducing inequality and corruption should  be on priority. Although its not under the control of RBI but the government must continue to design policy for better life to the citizens and more importantly implement it properly.    

A dalit lady or a simple individual or nothing?

The recent news item under state news about a missing woman Ms Bhanari Devi did not receive much media attention and provided hardly any details about the history of the woman or her link with the Public Health and Water Resource Department minister Mahipal Maderna . Only after the woman’s husband accused the minister the news got some media attention and CBI enquiry got started.

The simple case that I understood after combining multiple information sources is that the woman Ms Bhanari Devi was a dalit woman working as a nurse in government service. She was also coming recently in regional songs and very recently received offers for roles in good production. The minister has a long history of involvement in multiple cases including one murder case for which he was also in jail for some time. The minister had some sexual relationship with the woman and due to a CD leak showing them compromising position. There is very remote possibility that female went missing because of any reason other than minister’s possible involvement in this case. The minister must have understood possible loss of his reputation due to CD scandal. 

The case is not very different what has happened in multiple cases involving atrocity on woman. What makes this case special is the woman was a dalit and the involvement of a minister Mahipal Maderna belonging to a dominant Jat community.

The irony of the situation is that woman’s commission has not spoken a single comment on this incidence. More so, even the SC/ST commission is sleeping in this matter. The media which did not stop a single minute coverage of Mr Anna Hazare has much better things to do, they have headline news items that Sachin Tendulkar moved to his dream house, Paris Hilton party and her 100 USD donation to a Mumbai beggar. Strangely the 100 USD got torn after a family fight, that is also covered in the national media. But, the vibrant democracy which was willing to sleep in Ram Leela Maidan and going for candle light march in case of Jessica Lal murder has no idea that such a gruesome incidence has happened in Rajasthan with a possible involvement of a minister. 

The strange situation doesn’t stop here, the CBI has started its enquiry and who knows when will they come up with their findings. But, the minister is enjoying his freedom in a public office, and no one is demanding his resignation. Not even the opposition party BJP. Unwanted incidences happen all the time across India but no one becomes so much deaf and dumb to close their senses. Woman’s commission, SC/ST commission, opposition party and media are silent observer.

Why is there so much difference? Its time people come together to give a common response to unwanted elements in the society. The minister must resign from his position until the CBI enquiry gets over and he gets a clean chit. Being a dalit woman, Ms Bhanwari Devi is receiving more problem that any other would have received. She is undergoing the pain of a woman, murdered due to sexual relationship and then being a dalit receiving no attention or support from the public. Prof. Amerthya Sen has rightly stated that dalit women faces double challenge in a society, living a woman’s life in a male based society and then getting discriminated as a dalit. She was a dalit lady or even a simple woman, in both the cases she must get justice and the guilty get the due punishment.

But the question is was she was a dalit lady or a simple woman or no one?