Lessons from the Great Depression for India
Like Roosevelt did for the US in the 1930s, India must fix past inconsistencies, realise its potential, boost industry
Sself-reliance — these ideas have influenced us for decades. Earlier, they pushed us towards freedom from colonialism. Today, they generate some amount of controversy. India revisited the idea of self-reliance when Prime Minister Narendra Modi addressed the nation last week. He told us that India will emerge from the coronavirus disease (Covid-19) crisis as a self-reliant nation.
But what is self-reliance? How can we achieve it? Can self-reliance achieve the sort of freedom we once wanted? From the radicals to the moderates, people believe that freedom, as it stands today, is incomplete. But it is India’s democratic set-up that allows them the right to dissent, to question, and to protest across the country. When the British left India, Winston Churchill believed that the gulf between the Hindus and Muslims would not be bridged easily. Today, 73 years since, India stands a united country, having proved many naysayers like Churchill wrong.
To overcome crises and grow as a country, leadership is important. The Great Depression, which gripped the United States (US) in the 1930s, is being discussed in the context of the economic aftermath of Covid-19. The economic downturn began in the US around the end of 1929, with a sharp dip in production and GDP, and a sharp increase in unemployment. Production also dropped significantly in other industrialised countries of Europe.
It was in these dark days that Franklin D Roosevelt was elected president. He had a monumental task ahead of him, but he proved that leadership is forged in the crucible of crises. Roosevelt took several hard decisions to stabilise agriculture production and improve the quality of life for farmers. In 1933, onefourth of the workforce was unemployed. By forming the Tennessee Valley Authority, Roosevelt began the construction of dams and power stations. He took measures to control floods — a common occurrence at that time. In 1935, he instituted the social security Act which guaranteed pensions.
The federal government took on the responsibility to ensure meals for children of the unemployed. Under the head of public work administration, his government provided direct financial assistance to at least three million people. To fund this, he increased the taxes on the rich. Roosevelt’s efforts led to the birth of a new nation.
Consumerism became the new way of life. Theustransformedintoasuperpower.world War II began around this time and the US assumed a leadership role. Roosevelt was engaged in two battles, one on the domestic front and the other on the global battlefield.
Let us circle back to India. While we do not have all the advantages that the US has, why can we not aspire to become an economic superpower? We have the largest pool of graduates in the world. Yet, India is the source of a massive brain drain. The talented young men and women who have gone from India to different countries have contributed immensely by sheer intelligence and hard work.
But now, when they are under pressure to come back, due to economic setbacks as a result of the pandemic, India needs to ensure that these valuable resources are used to enhance domestic productivity. When Mahatma Gandhi, Jawaharlal Nehru and Subhas Chandra Bose came back to India armed with the ideas that they picked up from different countries, they played an important role in the freedom struggle. These young people with bright minds can help find a way out for India, and carry on the baton in different sectors.
India has taken several steps to mitigate the problems brought on by the crisis. It has used the Mahatma Gandhi National Employment Guarantee Scheme to help those without work; it has lent a helping hand to many industries; it has provided funds for industries that were struggling; it has stepped up the free distribution of rations for the people who are vulnerable. A lot is being done, but this is not nearly enough. India needs to think about the long-term.
At a time like this, we have to use our resources to the maximum benefit. For example, India is the largest producer of cotton — our global share is 23%. But are we able to leverage it enough in being central to global brands? Even Bangladesh is ahead of India. The plight of Indian cotton farmers is worrying. Many have committed suicide as a result of poor income generation and loans which they could not pay back. But farm produce for the international market is one of the many options that India has. The country is filled with opportunities in both rural and urban areas. Health, tourism and digital technology are a few sectors that have enormous potential that needs to be realised. In the last 30 years of liberalisation, India has achieved a great deal. But there have been inconsistencies in our growth path. This must be looked into.
The virus has proved a terrible equaliser. Everyone is going through difficulties in different degrees. India must now examine how these can be turned into an opportunity in the long-term while ascertaining who needs a helping hand in the short-term.
The path India and its people choose today will determine the future of the nation.
In his recent article, Prime Minister Narendra Modi stated that the poor are often beneficiaries of the transformational impact of technology. He said that technology demolishes bureaucratic hierarchies, eliminates middlemen, and accelerates welfare measures. He spoke of technology as being transformative for education.
Finance minister Nirmala Sitharaman announced a slew of measures for the education sector as a part of the ~20 lakh crore economic package, which is intended to get the economy back on track. The key principles behind the education sector reforms are equity and access for students. She dwelt on adopting innovative curricula and pedagogies, concentrating energies in gap areas, being more inclusive and integrating technology at every stage to push human capital.
Let us look at access. When I assumed charge, I focused on the gross enrolment ratio (GER) in higher education. Of the total population in the age group of 18-23, which is around 150 million, only 26.3% (37 million) are enrolled in the education system. China, which had the same GER of India in the 1990s, has brought it up to 48%. The United States is at 88% and the United Kingdom is at 60%. This calls for deep introspection. Though we have made rapid strides to increase access in the past six years, I feel that the tipping point has arrived. To create a new India, and face the immediate challenge to education posed by the coronavirus disease (Covid-19), we need a paradigm shift in the manner of in which youth can access the education system.
The other bedrock on which the announcements were based on is equity. In a diverse country like India, we need to look at how to provide equal opportunities for learning so that a student in a rural setting gets the same education material as that of a student in an urban one. How can we ensure that the learning outcomes of students in a certain age group or even a certain grade across society are the same?
We have tried to find solutions to improve equity and access during and after the Covid-19 crisis. The PM has been firmly behind India’s trajectory of progress and development from an information society to a creative one. The Digital India campaign launched by the government has led to a digital revolution. Today, India has 504 million active Internet users, more than the population of the United States. Riding on the success of Digital India, the ministry of human resource development (MHRD) has launched a comprehensive initiative called PM e-vidya which unifies all efforts related to digital/online/on-air education for further expansion of e-learning in higher education. In other words, we are liberalising the open, distance and online education regulatory framework.
Digital learning through the PM e- Vidya and Open Distance Learning (ODL) in higher education will create equal access to teachers in integrating technology into their curriculum for students of varied geographies and backgrounds. This will ensure that no child is left untouched by the power of technology and education. We envision technology as a catalyst in bringing equity to society.
The new education paradigm will take the best of the traditional classroom and digital learning to empower students and teachers as outlined in the new education policy. Equity is the cornerstone of all educational decisions, ensuring all students can thrive in the education system. The approach to equity and inclusion will be kept common across schools and higher education. The ministry of human resource development will continue to ensure equitable access to quality education, with special emphasis on socioeconomic disadvantaged groups across schools and higher education, providing each student with access to the best in learning resources, and teachers across the world. The policy’s vision includes the following key changes to the current system. One, moving towards a higher educational system consisting of large, multidisciplinary universities and colleges, with at least one in or near every district. Two, the building of free boarding facilities in the form of hostels. Three, revamping curriculum, pedagogy, assessment, and student support for enhanced student experiences across schools and higher education. Four, strengthening of open schooling. Five, a substantial increase in scholarships at private/philanthropic universities for disadvantaged and underprivileged students. Six, the creation of a gender-inclusion fund. Seven, and most important, creating a cohort of highly motivated and rigorously trained teachers for all learners.
The pandemic has presented new challenges and also opportunities for our education system. India is ready and equipped to reimagine the future of digital education through PM e-vidya while addressing the needs and rights to education for every child. This will mark an era of progress where school and higher education institutes will be enabled to foster constant innovation and become more resilient.