These inequalities of income and status are made more striking by their magnification in the media, with its breathless worship of wealth and success. A leading newspaper routinely speaks of the India that wants to march ahead allegedly being kept back by the other India that refuses to come with them. There is a kind of Social Darwinism abroad, where the new rich promiscuously parade their wealth, while insinuating that the poor are poor because they deserve to be poor. The exhibitionism of the rich has reached its apogee in the construction of a twenty-seven-storey building in downtown Mumbai. Costing two billion dollars, and covering 400,000 square feet of interior space, this structure is meant for the exclusive use of a single nuclear family.
Rising inequalities have historically been part of the growth process all across the world. In the early phase of industrialization, the gap between the rich and the poor widens. Over time, however, these inequalities tend to come down. That, at any rate, was the experience of Europe and North America. Will later industrializers such as China and India also follow the same route? I cannot speak for China, but in India one cannot be unduly optimistic. One reason that inequalities tapered off in the West was because their governments worked effectively towards providing equality of opportunity. The contributions of the European Welfare State in providing decent health care and education to its citizens are well known. Less acknowledged, perhaps, is the part played in levelling inequalities by the outstanding system of public schools and publicly funded universities in countries such as Canada and the United States.
The situation in India is all too different. The inequalities in access to good education and health care are immense.
The school my children went to in Bangalore is world-class; the school run by the state a few yards down the road is worse than third-rate. I can avail of top-quality health care, by paying (admittedly, through my nose); my house help must go to the local quack instead. To address these disparities, outstanding work has been done by social workers in the fields of primary education and health care. Brave, selfless, utterly patriotic Indians have worked 24 by 7 to get slum and low caste children into school, and to provide them protection against dangerous diseases. Ultimately, though, the scale of the problem is so immense that their work, heroic as it is, can only very partially make up for the apathy and corruption of the state. For, only a properly functioning state can equalize the life chances of all Indians, whether men or women, high, middle or low caste, Hindus or Muslims, northerners or southerners.
Social inequalities in India are also intensified by corruption, the diversion of public money meant to generate income and employment or to provide social services, into the hands of politicians and bureaucrats. In a novel written in the early 1950s, Verrier Elwin noted how homespun khadi, once ‘the symbol of insurgence against British rule’, had now become ‘an almost official uniform, the sign of authority and power’. The rebel had become the governor; even so, the association of khadi with decency and honesty stayed on awhile. I am just about old enough to remember a time when Indian politicians were, by and large, not selfish and narrow-minded, and not on the take. As prime minister between 1964 and 1966, Lal Bahadur Shastri presided over a Cabinet of largely honest men and women.
His colleague, Gulzarilal Nanda, lived out his last days in a dark, poky flat in Ahmedabad, with no car, no fridge, etc. In those days, politicians of the left and right were often as upright (in financial terms) as those in the Centre.
There appear to have been three, overlapping, phases in the evolution of political corruption in India. The licence-permit-quota Raj of the 1950s and 1960s was the first stage. Favours were granted to particular individuals or firms in return for a consideration. The second stage, inaugurated in the 1970s, involved the ruling party taking a cut of large defence contracts. The third stage, which began at the same time but which really intensified only in the 1990s, has rested on the abuse of state power to allocate—or misallocate—land and natural resources to friends and cronies.
In a twelve-month period (roughly) beginning September 2010, the Union Cabinet was revealed to be complicit in a series of scams, the most serious of which related to the misappropriation of funds for the Commonwealth Games, and the underpricing of spectrum allocated to telecom companies.
The loss to the public exchequer in these scandals ran into billions of rupees.
Investigations showed that, in both cases, the prime minister’s office had been warned about the diversion of funds even as they were taking place. The men in charge of these schemes, Suresh Kalmadi (for the Commonwealth Games) and A. Raja (for the spectrum allocation) had been, if not on the take themselves, clearly in the knowledge that other people were on the take. For months on end, the prime minister, Dr Manmohan Singh, did not take any action against either man. Eventually, as a result of concerted pressure in the media, in the streets, and in the Parliament, and from the courts, Kalmadi and Raja were dismissed. By then the government run by Dr Singh was being spoken of as the most corrupt in Indian history. *
The scams and scandals at the Centre have been accompanied by scams and scandals in the states. At the close of the last century, my home town, Bangalore, was a showpiece for the virtues of liberalization.
Access to global markets had allowed the skilled workforce of the city to generate vast amounts of wealth, which in turn spawned a new wave of Indian philanthropy. At the beginning of the present decade, my home state, Karnataka, became a byword for the darker side of globalization. The loot of minerals and their export to China wreaked large-scale environmental damage, and polluted the political system through the buying and selling of legislators. A state once represented to the country and the world by N.R. Narayana Murthy was now being represented to itself by Janardhan Reddy.
The massive profits on mining are in part because of high international prices, but in greater part because the state charges a very low royalty on ore, allows many consignments to proceed to the ports without any royalty payments, and does not impose any environmental or labour standards on the mine operators. In October 2010, an attempt was made by the Opposition parties in Karnataka to unseat the government. According to news reports, individual MLAs were offered close to 50 crore rupees to change sides. Since many stayed where they were, it can safely be assumed that their party bid higher to retain them. Several thousand crores may have changed hands on this single transaction alone. It is a reasonable assumption that those who were willing to pay that amount were reckoning on making at least ten times as much money in the course of their government’s tenure. One may further, and equally reasonably, assume that the commission paid to politicians by private entrepreneurs was one-tenth of the estimated proceeds. These are crude estimates, but it is clear that illegal and criminal profiteering on mining in Karnataka exceeds tens of thousands of crores annually.
Mining may have caused even more destruction to the fabric of democracy in other states, notably Goa and Orissa.
Maharashtra appears to be next on the list. In the late autumn of 2010, I spent several hours in Puné with India’s finest ecologist, Madhav Gadgil. Gadgil had just been on a tour of the Western Ghats. He found a thriving agrarian economy, based on the cultivation of fruits and spices, as well as on fishing. However, there was now a massive land grab afoot, with promoters of mines, power plants, and luxury resorts working with legislators and ministers to displace local residents and destroy forests and estuaries.
To suppress opposition to these projects, the district authorities routinely impose Section 144 of the Criminal Procedure Code, which prohibits public gatherings of more than five people. Himself followed (against his will) by a police escort, Gadgil found an atmosphere of terror and intimidation, which, as he recalled, ‘struck me full in the face as I stood, for the first time in my life, flanked by policemen on three sides talking to Muslim fishermen of Nate village expressing their fear of total destruction of their livelihoods as the nuclear power plant comes up and swallows up their entire estuary as part of its
security zone.’
As Gadgil and I spoke, there was a knock on the door. It was the postman, who was carrying, among other things, a sheaf of some sixty postcards from the residents of Ratnagiri and Sindhudurg districts. This was apparently an everyday occurrence. Since I do not read Marathi, I asked Gadgil to translate a letter for me. It was from a girl in high school, who urged the scientist to keep the marauders away and save the social and natural integrity of her district.
The mining and power sector boom is in part propelled by the fetish of achieving 9 per cent growth, which, it is said in some circles in New Delhi, is necessary for India to achieve superpower status.
Those who most actively promote this ambition are a certain kind of Cabinet minister, a certain kind of corporate titan, and a certain kind of newspaper editor.
They are all, I believe, beset with a deep inferiority complex, whereby they wish desperately to be placed on equal terms in international fora with the politicians, billionaires and editors of the West. Their hope is that India’s democratic credentials and economic surge shall jointly ensure that at such places as the World Economic Forum in Davos, they are treated with as much respect—not to say reverence—as the leaders, entrepreneurs and editors coming out of Paris, Berlin, London and (especially) New York.
Willing along this superpower talk are Non-Resident Indians, particularly those resident in the United States. In the past, these had been somewhat embarrassed about their native country, its poverty and inequality especially. At the same time, by virtue of their colour and religious affiliation they had not been entirely at home in their adopted country either. Now, the expansion of the Indian economy and the listing on the New York Stock Exchange of some Indian companies has encouraged positive feelings about India, which—if articulated energetically enough—could perhaps get the Americans to treat them with greater seriousness and respect than in the past.
In truth, the superpower aspiration is as much a male, macho thing as Naxalism or Hindutva. It is likewise a fantasy, and an equally dangerous one. It has already spawned much conflict in its wake. With public policy overwhelmingly determined by the desire to achieve 9 per cent growth, we have handed over peasant and tribal lands for the most destructive forms of industrial and mining activity. By making that one number the sine qua non of national pride and honour, the central government has encouraged state governments to promote corruption, criminality, social strife, and massive and possibly irreversible environmental degradation.
To be sure, the Indian economy needs to grow at a steady rate to lift our people out of poverty. However, we must look more carefully at the components of that growth, at its distributive impacts across and between generations. We must assess different enterprises and sectors according to the kinds of employment they generate, and their varying impacts on nature. We must ensure that all processes of land acquisition and natural resource allocation are fair, just and transparent. The costs of a narrow-minded focus on GDP growth, and of a fetishization of a particular number—8, 9, 10 per cent—can be colossal. For, the GDP accounts do not subtract for the loss of water, and the pollution and destruction of land and vegetation caused by opencast mining.
The market can promote efficiency and productivity, but not ecological sustainability or social justice. The market does not value the needs of poor people who have no money; it does not value the future; and it does not value the right of other species to exist. It is thus in the rational interest of miners and industrialists to externalize the costs of degradation and pollution. (The laws to prevent this exist on the statute books, but, with a few spectacular exceptions, are not implemented.) India today is thus an environmental basket case, characterized by falling water tables, dead rivers, massively high rates of air pollution and soil erosion, unregulated disposal of toxic wastes, and the decimation of forests and biodiversity. These processes are caused by a combination of inequality and corruption. Politicians in the Centre and the states, acting at the behest of the wealthy, pass on the costs of environmental damage to the poor and to future generations.
Eighty years ago, Mahatma Gandhi had pointed to the unsustainability, at the global level, of the western model of economic development. ‘God forbid,’ he wrote, ‘that India should ever take to industrialization after the manner of the West. The economic imperialism of a single tiny island kingdom (England) is today keeping the world in chains. If an entire nation of 300 million took to similar economic exploitation, it would strip the world bare like locusts.’
These words come from an article published in the journal Young India in December 1928. Two years earlier, Gandhi had claimed that to ‘make India like England and America is to find some other races and places of the earth for exploitation’. As it appeared that the western nations had already ‘divided all the known races outside Europe for exploitation and there are no new worlds to discover’, he pointedly asked: ‘What can be the fate of India trying to ape the West?’
Along with India, China too is trying to ape the West, attempting to create a mass consumer society whose members can all drive their own cars, live in their own air-conditioned homes, eat in fancy restaurants and travel to the ends of the earth for their family holidays. Will these Chinese and Indian consumers collectively strip the world bare like locusts? Between them, they have set off a new scramble for Africa, stripping or at least strip-mining that unhappy continent to fuel their ever-growing appetite for resources. Between them, they also consolidated a military junta in Myanmar, putting their own selfish interests in minerals and energy ahead of the elementary human rights of the Burmese people.
The environmental challenges posed by the economic rise of China and India are of three kinds. First, at the global level, is the threat of rapid and irreversible climate change due to the accumulation of greenhouse gases. As the early industrializers, the West were the original culprits here; that said, the two Asian giants are rapidly making up for lost time. Second, at the regional or continental level, are the environmental (and social) costs of the ecological footprint of China and India outside their own national borders. The West has for some time worked to relocate its dirty industries to the Third World, passing on the costs to the poor and the powerless. In the same manner, the externalities of Indian and Chinese consumers will be increasingly borne by the people of other lands.
The third challenge is that posed to the environments of these countries themselves. Chinese cities have the highest rates of air pollution in the world. Rivers such as the Ganga and the Jamuna are, effectively, dead. India and China both have unacceptably high levels of air and water pollution. They have also witnessed, in recent years, the large-scale depletion of groundwater aquifers, the loss of biodiversity, the destruction of forests, and the decimation of fish-stocks.
There are two stock responses to the environmental crisis in India. One is to hope, or pray, that in time and with greater prosperity we will have the money to clean up our surroundings. The other is to see ecological degradation as symptomatic of the larger failure of modernity itself. The first response is characteristic of the consuming classes; the second, that of the agrarian romantic, who believes that India must live only in its villages, that, indeed, the majority of Indians are happy enough to live on in their villages.
Both responses are deeply wrong-headed.
Contra the rural romantic, life among the peasantry can be nasty, brutish, and short. Most Indian villagers would cheerfully exchange a mud hut for a solid stone house, well water for clean piped water, kerosene lanterns for steady and bright tube lights, a bicycle for a motorcycle. The living standards of the majority of Indians can and must be enhanced. At the same time, the living standards of the most wealthy Indians must be moderated.
The demands placed on the earth by the poor and excluded are disproportionately low; the demands placed by those with cars and credit cards excessively high. A rational, long-range, sustainable strategy of development has to find ways of enhancing the resource access of those at th
e bottom of the heap while checking the resource demands of those in positions of power and advantage. This strategy has then to be broken down into specific sectors; so that, for example, we can design suitable policies for transport, energy, housing, forests, pollution control, water management, and so on.
Once, the mainstream media (in English and Indian languages) played a catalytic role in promoting environmental awareness.
Through the 1970s and 1980s, journalists like Anil Agarwal, Bharat Dogra, Kalpana Sharma, Darryl D’Monte, Usha Rai, Shekhar Pathak and Nagesh Hegde wrote extensively on issues such as deforestation, species loss, water abuse, and sustainable energy policies. They drew in part on their own field investigations, and in part on the work of a whole array of Indian ecological scientists. However, when liberalization got underway and the economy began to show higher rates of growth, there was an anti-environmental backlash. Now, environmentalists began to be portrayed as party poopers, as spoilers who did not want India to join the ranks of the Great Powers of the world. In response to these criticisms, and sensible also of the pressures of commercial advertisers, most newspapers laid off their environment correspondents or perhaps sent them to cover the stock market instead.
Foolish or motivated newspaper editors damn environmentalists as anti-business and anti-enterprise. But, as the civil servant E.A.S. Sarma points out, ‘a small cultivator or a traditional fisherman represents as much of private initiative and enterprise’ as a large corporation. Dams, mines and beach resorts (among other activities) often pit these two kinds of entrepreneurs against one another.
Were it left to the market and to corrupt officials and politicians, the big guy would always win, and the small fellow (as well as nature itself) suffer.
Patriots and Partisans: From Nehru to Hindutva and Beyond Page 4