We need to worry about the dis­hon­esty fac­tor

And must de­fine it also.

Alive - - News - by Kal­pana M. Nagh­noor

The word cor­rup­tion has be­come so com­mon that it has come to be ac­cepted as a ‘gov­ern­ment thing’! An­a­lyt­ics has said the cash flow in cir­cu­la­tion is now more than the pre­de­mon­eti­sa­tion days. It is Rs.17.97 lakh crore, which a lead­ing news­pa­per claims is 1.9%, is more in cir­cu­la­tion than be­fore the note ban. If this is go­ing to be the net re­sult of the note ban, why did the na­tion have to suf­fer the process? Why was this ill-ef­fec­tive move given such great pri­or­ity at such short no­tice? It took the na­tion by sur­prise. There is a thin line be­tween par­al­lel econ­omy, in the coun­try, which has been grow­ing, and the many le­git busi­nesses that rely on no bank­ing pol­icy.

Cog­ni­tion

How many re­tire­ment poli­cies or life in­surance poli­cies are is­sued in a year and the con­sec­u­tive years af­ter that? What is the ra­tio be­tween peo­ple who have these great plans and those who do not? I can­not give you the ra­tio as I don’t have it. But per­cep­tion tells me it is dis­mal. Per­haps the truth is the ma­jor­ity In­di­ans can­not af­ford a life in­surance pol­icy it seems like a con­trary to ex­is­ten­tial real­i­ties. What is the em­ploy­ment ra­tio be­tween or­gan­ised sec­tors and un­or­gan­ised sec­tors? This is more to do with dy­namic eco­nom­ics and the an­a­lyt­ics can do their job. The dif­fer­ence we know is huge. From the 487 mil­lion work­ers, over 90% work in un­or­gan­ised sec­tors. The or­gan­ised sec­tor em­ploys 27.5 mil­lion peo­ple, of which about 10.7 mil­lion peo­ple work in gov­ern­ment sec­tors. The truth is for a com­mon man plan­ning his re­tire­ment is, pro­duc­ing a son and hopes, he will be that ben­e­fit. In a nut­shell, a shaky in­vest­ment. With a large part of the pop­u­la­tion left lack­ing in qual­i­ta­tive ed­u­ca­tion, learn­ing has not per­me­ated into plannable cog­ni­tion as to fore­see­ing a fu­ture. The un­or­gan­ised sec­tor’s pay­outs are in cash. This is le­git­i­mate earn­ing, with­out the com­fort of an au­di­tor, com­puter, cy­ber­café, and the adroit­ness to use the phone to file taxes.

The Na­tional Ru­ral Em­ploy­ment Guar­an­tee Act 2005, pro­vides 100 days of guar­an­teed em­ploy­ment. This is dis­rup­tive in many ways. Peo­ple from the vil­lage seek jobs in cities to aug­ment their earn­ings from agri­cul­tural pro­cesses. They come to the cities for em­ploy­ment, stay in em­ploy­ment for six months and re­turn to their vil­lages, to use the ben­e­fit of the 2005 Act, so they can stay in their vil­lages amongst near and dear ones and still get paid. This causes dis­rup­tion in the cities, which em­ploy mi­gra­tory labour. We need a more sus­tain­ing gen­er­a­tion of jobs in the vil­lages.

When the ma­jor­ity pop­u­la­tion is in suf­fer­ance of such an in­abil­ity, why scream per­sonal in­come tax? Let us study the li­a­bil­ity of such a yell.

The gov­ern­ment ex­pects ev­ery in­di­vid­ual to file taxes, im­ma­te­rial that they come un­der the tax­able am­bit.

Can the in­come tax depart­ment process the non-tax­able re­turns of the num­ber of In­di­ans who should be fil­ing it? Con­ced­ing that the num­ber is too vast for such an ex­er­cise, and recog­nis­ing the fact that the ma­jor­ity does not have the where­withal, do you al­low them not to file? Is the rule not ap­pli­ca­ble to all?

Is the gov­ern­ment not im­put­ing a dou­ble stan­dard here? Does this not lead to moral de­pri­va­tion?

There is the process of du­al­ity, in the way the pop­u­la­tion is treated, and the law is ap­plied. The poor, mid­dle-class, bu­reau­cracy, politi­cians and the rich, are the seg­ments of the de­mo­graphic break-up of the coun­try.

We need to rid the so­cial ills which arise from du­al­ity in the na­ture of law and thereby breed dis­hon­esty and cor­rup­tion.

Em­ploy­ment

Il­lit­er­acy is so high, there is lit­tle chance of a per­ceived and planned life. Un­for­tu­nately, the politi­cians make use of In­dian il­lit­er­acy to their ben­e­fit. Ev­ery elec­tion the cit­i­zenry is told, they are go­ing to see a mir­a­cle. The pro­posed can­di­date is go­ing to cre­ate Utopian hap­pi­ness in In­dia. The prom­ises they make are right for em­ploy­ment. The Na­tional Ru­ral Em­ploy­ment Guar­an­tee Act 2005, pro­vides 100 days of guar­an­teed em­ploy­ment. This is dis­rup­tive in many ways. Peo­ple from the vil­lage seek jobs in cities to aug­ment their earn­ings from agri­cul­tural pro­cesses. They come to the cities for em­ploy­ment, stay in em­ploy­ment for six months and re­turn to their vil­lages, to use the ben­e­fit of the 2005 Act, so they can stay in their vil­lages amongst near and dear ones and still get paid. This causes dis­rup­tion in the cities, which em­ploy mi­gra­tory labour. We need a more sus­tain­ing gen­er­a­tion of jobs in the vil­lages.

Food pro­cess­ing in­dus­try No­body un­der­stands pro­duce bet­ter than a farmer. The gov­ern­ment rather than pass­ing bills which are pop­ulist should ide­ally part­ner with pri­vate en­ter­prise and ini­ti­ate cer­tain in­dus­tries, which will ab­sorb the va­garies of farm­ing.

The fear here will be, there will be ex­pan­sive in­dus­tri­al­i­sa­tion of farm­lands. Noth­ing can be more ridicu­lous! In­dus­tries that rely on farm pro­duce are not likely to de­stroy that. On the con­trary, they may bring in ex­per­tise in plant phys­i­ol­ogy and sub­sis­tence in arid sit­u­a­tions. There could be en­hanced biotech­nol­ogy put to good use.

Ir­ri­ga­tion

Sub­si­dis­ing seed prices and the loans given to farm­ers will not fruc­tify un­less there is suf­fi­cient wa­ter for ir­ri­ga­tion. If food can­ning in­dus­tries evolve in the vil­lages, then pri­vate en­ter­prise will find a way to ir­ri­gate those farms. Noth­ing can sus­tain with­out wa­ter. Ir­ri­ga­tion has been the bane of farm­ing life, which has been ad­dressed in a less than par­tially ef­fi­cient man­ner.

Al­ter­na­tive jobs

In­dia is the ninth largest pro­ducer of agri­cul­tural pro­duce in the world. The com­mu­nity which has helped In­dia reach here is not a rich com­mu­nity as a

ma­jor­ity. There may be a rich farmer here and there. We all know the farm­ing com­mu­nity has not grown in the way it should have. The evo­lu­tion of the farmer has not seen the growth as that of the pro­duce. The farmer has not been cog­ni­tively ed­u­cated, a few farm­ing apps only make him rely on tech­nol­ogy afar, and not in­de­pen­dent de­ci­sions. Food pack­ag­ing is an in­dus­try that needs to be looked at. It will give them al­ter­na­tive jobs when the sea­son’s agri­cul­tural pro­duce is un­favourable to an in­di­vid­ual. The run­ning of the fac­tory and labour re­quire­ment can be met. De­con­gest­ing cities and in­dus­trial ar­eas

There is a rea­son why the gov­ern­ment ear­marks in­dus­trial ar­eas and towns. The fact is not all lands are arable. There­fore, a nonarable piece of land can be con­verted into an al­lied in­dus­try to the farm­ing process. It will cre­ate jobs. It will cre­ate aux­il­iary jobs. Around an in­dus­try, a few feed­ing en­ter­prises will grow. Like a cloth­ing shop, tailor­ing unit, shoe-shops, ho­tels etc. All these ven­tures will pro­duce jobs and se­cure jobs. Self-suf­fi­ciency will grow in the vil­lages, thereby their econ­omy will be less im­mune to mar­ket fluc­tu­a­tions that may sweep across the coun­try. What we may build are strong eco­nomic cells which sus­tain even dur­ing a global melt­down.

Dis­ad­van­tages

Though in gov­ern­ment hos­pi­tals pri­mary health care is sup­posed to be free, it only comes with heavy bribes. Free ed­u­ca­tion in gov­ern­ment schools come with in­dif­fer­ent teach­ing. The list con­tin­ues. Gov­ern­ment poli­cies and of in­cen­tivis­ing low­ers pro­duc­tiv­ity. The un­e­d­u­cated pop­u­lace be­lieves in elec­tion prom­ises of pop­ulist mea­sures. Noth­ing good comes from free­bies and tor­pid in­cen­tives. These in­cen­tives are mak­ing the peo­ple non-pro­duc­tive and re­liant on dole-outs. Free dis­tri­bu­tion of rice makes men work for two weeks to earn enough money to buy liquor. Two weeks of work in a month cov­ers the liquor ex­penses. The other two weeks can be spent in drunken brawls, child and wife abuse. His wages are paid in cash. The liquor shop ac­cepts cash There is no prob­lem here. We need to un­der­stand how cash trans­ac­tions are ini­ti­ated. With labour on a daily wages con­tract not re­port­ing to work reg­u­larly, in­volves al­ter­na­tive hir­ing. This makes pay­ment via the banks, ei­ther on­line or phone cum­ber­some, delet­ing old en­tries adding new ones. Hence the em­ploy­ers pre­fer to pay by cash.

The cash-abun­dant em­ployee will spend the cash at hand, whether he

Street hawk­ers have a large pres­ence in the In­dian econ­omy. They trade in cash. Where is the sur­prise that cash flow surge has re­turned to the mar­ket? The surge prob­a­bly in­di­cates ro­bust vend­ing rather than hoard­ing. Though street ven­dors do good and steady busi­ness they hardly bank their money be­cause they suf­fer from un­planned ex­pen­di­ture.

buys gro­ceries, liquor or makes pay­ments to the mo­bile ser­vice provider. This mi­gra­tory labour will im­pede bank­ing money. These are le­git trans­ac­tions and has noth­ing to do with black money or money hoard­ing.

Street hawk­ers

Street hawk­ers have a large pres­ence in the In­dian econ­omy. They trade in cash. Where is the sur­prise that cash flow surge has re­turned to the mar­ket? The surge prob­a­bly in­di­cates ro­bust vend­ing rather than hoard­ing. Though street ven­dors do good and steady busi­ness they hardly bank their money be­cause they suf­fer from un­planned ex­pen­di­ture. Their eco­nomic in­fra­struc­ture be­ing weak, one ill­ness can ren­der them with­out buf­fer money. Though busi­ness is al­ways steady, the cash out­flow is un­pre­dictable. Hence, they fall into a debt trap. There is no money to be banked.

Tech­nol­ogy chal­lenged

While In­di­ans may be the largest mar­ket for cell­phone data users, the users can talk un­lim­ited hours. But they are not ta­lented and learned enough to use their mo­bile phones to bank their money. They are not lit­er­ate enough to write out a cheque or a chal­lan. The banks are not able to cope with peo­ple who can­not fill out their own cheques. The bank­ing process be­comes un­com­fort­able. They are go­ing to re­turn to the com­fort of cash han­dling, not be­cause they are black­mar­ke­teers or hoard­ers, but be­cause they are the ma­jor­ity In­di­ans who are chal­lenged by tech­nol­ogy and not ed­u­cated more than to just sign their names, which In­dia proudly la­bels as lit­er­acy. It's time we un­der­stood the dif­fer­ence be­tween fac­tu­al­ity and ide­al­ity.

In­dia is the sec­ond largest pro­ducer of rice (120 mil­lion tons) and wheat (80.7 mil­lion tons) ac­cord­ing to In­vesto­pe­dia. I have a sim­ple ques­tion.

Why are the ma­jor­ity of farm­ers poor and ap­pear clue­less?

There is a dis­crep­ancy here. The com­mu­nity which con­trib­utes to In­dia be­ing the ninth largest ex­porter (USD 35 bil­lion) should have on their per­son to at­test that they are a part process of the ac­claim. There is dis­hon­esty here, the farm­ing com­mu­nity is not get­ting their due. In­di­ans are not gen­er­ally get­ting their due. Un­less we as cit­i­zens do not awaken to facts that we are ruled by the dis­hon­est, we may be over­shad­owed and over­pow­ered by our neigh­bour China, which has over­come the neg­a­tives of a pop­u­la­tion prob­lem. It has grown into an econ­omy which com­mands global at­ten­tion. We can­not be taken for granted by self­serv­ing politi­cians who will even­tu­ally wreck the na­tion. They will have amassed wealth and will be able to af­ford an off­shore res­i­dence. The rest of us will be star­ing at a dis­mal life of stag­na­tion. We need to see cor­rup­tion not as gov­ern­ment process, but as dis­hon­esty. We need to waken to re­al­ity.

Or­gan­ised sec­tor em­ploys 27.5 mil­lion peo­ple, of which about 10.7 mil­lion work in gov­ern­ment sec­tors.

Peo­ple from vil­lages seek jobs in cities to aug­ment their earn­ings from agri­cul­tural pro­cesses.

Politi­cians mis­use use of il­lit­er­acy to their ben­e­fit.

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