Thursday, September 13, 2007

Economics and the Great Indian Dream

It was an unbelievably muggy evening in the city, something which has become more common of late, maybe there is some truth to this whole global warming affair after all. I was walking out of this mega-retail shop, the thing which stacks everything from pins to Porches. The same kind which has already wiped out your tricycle-vegetable-vendor man who comes out calling every morning and which is threatening to wipe out that very symbol of local community living - the road corner pottikadai. Digressions apart, as I walked out of the shop towards my vehicle, an old man shuffled up to me. He had his hands full of various types of Agarbathi packets, and from his forearm hung a sack-bag, which had more of the same packets. He looked terribly worn, and his left eye was clearly not serving him any purpose anymore, a long-ignored cataract having taken its toll on the eye. He walked up to me, and held out his packet.
"Sir, please buy one packet of Agarbathi sir. I came straight from Kodambakkam in the morning, haven't even had lunch. Please buy one packet sir, there's been no sales at all yet."

I hurriedly shook my head in the negative and got on to my scooter. I couldn't even being myself to look at that face again - the sallow skin with the beard gone white, the out-of-use eye, the frail body and the bag full of agarbathis dangling from the emaciated forearm. As I drove away I thought about my instinctive 'no' to the old man. There was no valid reason for me to do so, and I'm sure I could have spared ten rupees for one packet. It would've probably got his first meal of the day- at 6 in the evening. And yet I had not given him 1/20th of what I had spent in the shop just a minute ago. I nearly ploughed into the back of a truck on my way back, thinking about the whole thing.

This is not an isolated case. The boy-younger-than-me who'll be cleaning up tables at the local eatery, the platform vendor of handkerchiefs whose last sale was probably weeks ago, the man with polio whose affected leg dangles uselessly about 6 inches of the ground as he hobbles around at signals, with his outstretched arm... all images which are seared in a mind which also reads everyday about 9.5% growth and the rising middle class and the emerging superpower and all else. Where did it all go wrong?

In my simplified version of things, there are two levels that every man aims for - subsistence and luxury, in that order. In the new 'young and dynamic' India, while the transition from subsistence to luxury happens rapidly, efforts to raise people to basic levels of subsistence seems to have got left behind. And it's not as if every person who had his subsistence assured is scaling the first barrier either. There's still a substantial majority for whom it's a struggle to stay above the poverty line, but they just manage to. Those who don't, well, The Forgotten. It's not the rich-poor divide that I'm referring to. It's more like the 'can act rich'-'can just survive'-'why should I live?' divide that seems to be the divide in the India of today.

People earn more, but do more people earn more? Sure, there's a lot of things which have come up targeting this new high-income families- facilities that rival any world-class establishment, quality of services (note, this is usually mainly entertainment, or shopping) that we wouldn't have dreamed of even five years ago, so many other things. And with these places getting as many patrons as they do, it's easy for us to live under the self-deluded impression of us being a nearly-developed nation. But, as said before, the quality of your local bus service has not reached world standards. Southern Railway is still not Eurorail. And I'm not even thinking about comparing roads, lighting and other infrastructure.

I'm probably meandering but there just seem to be so many knock-on effects of the increased spending and luxury-craving lifestyle that a very few concentrated pockets of our country is witnessing today. Since when did we start buying Popcorn by the bucket?! Or dropping a 4-year old to her school which is barely 2 kilometers in a 3.5-liter, turbocharged SUV? And then bringing the monster back home with only the driver in it, till it's time to go pick up the kid, who'll probably fit in-between two people on a Scooty Pep, again. Or blindly flush around 120 bucks an hour (or whatever the bowling rates in your city is) to go and knock some big sticks with one big ball regularly on weekends? I know the great Indian dream is to eventually reach the great American dream, but that is simply not sustainable in our country. In fact, word is coming out that it's not sustainable even in America, but they of course just need to go into an oil-rich country and bomb the s*** out of them and they're good for a few more years for oil.

I agree people earn the money and they spend it as they please. I don't even think it's fair of me to say that people should maybe show a bit more prudence before they splash their wads around the next time, but I'll say it nevertheless. Demand-driven inflation will first hit the 'just surviving' section first, and soon we'll see some of them drop off below the line. Maybe your leaving the car and taking the two-wheeler or, if it's by any chance possible, public transport to work for one day will not bring the inflation from 4% to 2%. But it might bring it to 3.9999999999995%. And I think we can take that, for starters.

As Mahatma Gandhi said- Live simply, that others might simply live.

20 comments:

nivi said...

everything sounds perfect.... but for that 0.00000000000000000000005% change to come into effect it will call for a huge deal of inspiration to be given to the entire society! now is that possible???

and as far as the last line og gandhian principle is concerned... ppl out there are ready to watch all of that only in Lage raho munnabhai and nowhere else.!!!

and something similar to your agarbathi incident happened to me too today...

but seriously something needs to be done for those people living out there on the platforms!

Anonymous said...

actually the objective of this post would have been better served,had you turned around,gone back to the agarbathi man and bought the stuff.....i mean,THAT is what is needed isn't it?

anyway,i am big fan of your works and account for nearly 1/10th of your site visits!!!

Anonymous said...

*a big fan...

Ducky said...

Nivi,
I'm not arguing for social change or feasible options. These are just the plaintive cries of a saddened heart :)

Giveup,
Yes. And somehow I couldn't get myself to do it. And it was wondeing why I couln't, that I nearly drove into the truck. And thanks and keep visiting the site, though I spew sheer nonsense at times :) Are you the 'giveup' who I think you are?

CB said...

Nice post. Makes sense, yes.

it's baille said...

well first of all, a very different ducks kind of post, good.
and its never easy to have an inclusive growth. the basic flaw lies in the way we define poverty itself. just a mere line and there they are below it or above it. We should have a much more clear version of it. Probably instead of just saying lack of money classify it as lack of education, lack of information. Just treating everyone below poverty line and trying to supply the same kind of aid will never work. there are different kinds of people there daily labor, farmers e.t.c we gotta help them based on what they are and what exactly they lack.

And hey I am a big fan too. please take all your fans for a big treat at GRT :P

Anonymous said...

no da,i am not..and yeah..nowadays its not what you write, but how you write that matters...though in your case its different...so keep it going!!
and yeah,GRT..why not??

nivi said...

he he!!! now this is getting a bit like anniyan ;P... lol!!!

and yea!!! as far as the crying part is concerned thats exactly what all of us do....!!!!

sometimes i do wish how good it would have been if the world was not this complex and big.....

errr... ok... wrong call... got toooooo very philosophical i guess :P :)

Ducky said...

CB,
Thanks... and now, the power is ours :P

Baille,
Yeah da, full image make-over and all I'm going for. Well, yeah, there's a basic flaw in every system right. Now if everyone agrees on that, why aren't we doing anything about it?!

Ducky said...

Giveup,
If you know you're not the giveup I think you are, then you can be a bit more forthcoming and reveal yourself. After which I might consider the treat :)

Nivi,
Yes yes, less tension, more work.

Shazz said...

Ok... when the talk of free food/booze start up, that's when i'm ready to be a groupie... So what the hell, i'm yer fan... :P

nivi said...

ogayyyy.. one clarification... is this post only about the crying part or its expecting some change??? coz both ur previous replies seem to be contradictory...!!!

Vijay Shankar said...

Like baille said, totally different kind of Duck post.

Nice to see you getting serious and going for an image makeover, but once in a while you must revert back to the duck we are all used to.

Akshay said...

What nonsense. The underlying principle of the post is living simply and all of you guys want treat in GRT. Anand macha, stick to your principles and put treat in Muniyandi Vilas. :D

Ducky said...

Nivi,
It's not about the crying. It's about making a difference, Captain Planet shtyle :)

Wiper,
Ya da, oba the original cannot be reined in for long... I can see an idea forming already :P

Akshay,
See. You got the point. Ellunu ennaya irukkiyae da...

Akshay said...

my affliction has left me with a LOT of time for vetti useless thinking. :D

nivi said...

:)

Aneesh K Deepak Naidu said...

Good one dude......Incidentally I have stopped using all my credit cards since first of December and guess what? My spending in the last 50 days has come down by 80 percent......

I think the best solution is to scrap income tax altogether and get people to pay tax on expenditure. This solves the black money issue and the total sales in India and the consumer behaviour will be tracked.

It will encourage people to earn more, save more and cut down on spending........

Cheers!

Abhinav said...

anand,
really liked this post, especially your description of the agarbathi seller was very evocative.
particularly because i have done the same thing myself many times, and cursed myself later, and i suspect many other have as well.

if i may give my humble opinion as well - i really like the way youve linked the inflation with the poor, but i would venture to say that while inflation rates DO affect the poor, it seems a slightly roundabout way to solve the problem.
why not give a bit of money to a worthy charity? i mean, if you spent 300 rs a month last year, and you plan to increase it to 400 rs this year, why not give 20 rs to charity and increase your spending to 380 instead?
i know its obscene the amount of money middle-class-turned-upper-class are spending in india these days, but i dont think you can expect people to give up luxuries altogether. i mean, the bowling sessions that you hold in so much contempt, fair enough, but you and i indulge in all sorts of luxuries that we don't even realise. 30 rs for a cup at barista? 10k rs for a decent mobile phone? where do you draw the line?
anyways, don't mean to take a shot at you or anything, i thought this was a really really good post, and maybe we can work out some charity stuff when i come back to india :)

Ducky said...

Abhinav,
You're looking at the solution to the problem. I'm talking about the cause of the problem in the first place. Through charity, you're giving a leg-up to what, 1/100th the number who need it? And I'm talking Chennai alone.
And yes, I've accepted that it's unfair of me to ask people to not splurge. But bottom-up is the only approach any such idealistic scheme is going to work. No fiscal, monetary, administrative measure is going to make any sort of a difference as a mindset change towards prudence in the 300 million middle-class will.
And when was the last time you were in India? Barista Coffee and all minimum 60 bucks now. Don't even go there anymore :)