Why India is still a poor country?

Why are we still a poor country?

Sanjay Macwan, May, 10, 2013

 

In his recent article, Manishankar Ayyar, poignantly states:  “India may be growing, but not Indians!” [1] 

To all those who think that India is a fast developing economy this comes as a disbelief.  It sounds like a contradiction in terms but it is true. Very few Indians have gained economic progress from an average Gross Domestic Product (GDP) growth of 7.3% in the last few years[2]. Rural India continues to face extreme poverty and marginalization while urban infrastructure growth is being highlighted. It is a painful reality that while infrastructure, roads, rails, bridges, automobile and other such infrastructures are growing the majority of Indians are not benefiting from this growth. Rampant Poverty and hunger continue to haunt the establishment as they struggle to find sustainable solutions. Recent studies have proven that our claims of economic growth are far from being truthful.

World Bank analysis reveals that 32.7% of Indians (400 million) continue to live on $1.25 a day and 75.6% Indians (828 million) live on less than $2 a day.[3] The current economic model has failed the 213 million Indians who go hungry every night! [4]  This growth model has not benefited millions of organized and unorganized workers whose rights are being violated. They are paid disproportionately to the industrial growth and ever rising inflation. It has failed the 43% of children under the age of five who are malnourished[5]. It has also failed the three million girls and women who are trafficked and exploited for sex in India every year, 40% of which are under the age of 18[6]. It has failed the 16.5 million of child laborers, 12.6 million of whom are engaged in hazardous occupations[7]. This pseudo-capitalist economic model that develops the developed and not the poor has failed us all.

We boast of economic advancement and improvement, but the measures used are designed to mask the realities faced by the populace. While the rich continue to acquire wealth –– the standard of living is declining for the very poor. The wealthy have acquired more wealth and the poor have been pushed even further below the poverty line.

 

Ironically, the government seems to be aware of this complexity but is playing with the numbers and redefining the definitions upon which poverty and hunger are measured. It came as a huge embarrassment to Indians when Tendulkar Committees’ suggested that “anyone with a daily consumption expenditure of Rs. 28.35 and Rs. 22.42 in urban and rural areas respectively is above the poverty line[8]”. Such redefinition is shameful and reveals the bankruptcy of economic interventions in place to help the poor.

In addition inflation inhibits the poverty lines from effectively measuring the standard of living of the poor. According to an Asian Development Bank study, “A sustained 10% increase in domestic food prices could push an additional 64 million people, or almost 2% of Asia’s 3.3 billion people, below the poverty line of $1.25 a day[9].” The majority of these people would be in India. Such relatively small increases in inflation levels have a terrible impact on standard of living of the poor.

 

In contrast, the wealthy are acquiring more wealth. Unequal wealth distribution is evident as the top 5% of households possess 38% of the total assets of India and the bottom 60% of households own a mere 13%. This disparity is more glaring in urban areas where 60% of the bottom households own just 10% of the assets[10] and 20% of Indians continue to hold 40% of the income[11].

It is obvious that the economic model has failed us and we, as citizens, have failed each other. Government efforts to have “inclusive growth” and to help the poor and marginalized are managed ineffectively and are plagued by corruption. The Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), a $9 billion program designed to provide 100 days of employment annually for the rural poor, is riddled with corruption and mismanagement[12]. The shortcomings of this program almost outweigh its benefits.

 

Another program, focused on reducing rural poverty, expending $1.7 billion, is the National Rural Livelihood Mission. Like the MNREGA, this program has all but failed those it was designed to empower. The Public Distribution System (PDS) continues to be the most corrupt segment of all Government Schemes. The poor and hungry, for whom those projects are developed, are denied basic right and needs[13].  Flagrant corruption mars the effectiveness of these programs and undermines the integrity of the participants. 

 

The picture painted here is indeed bleak, and a far cry from what India claims in terms of GDP growth and the title “Superpower”. It is indeed true that we are not a superpower, rather we are super poor[14].

 

It seems that the government’s intention is good, programs are well designed and yet their development model has not helped its citizens. While we may have a good economic framework in place perhaps it is good to bring a moral dimension to this issue to provide possible solutions to this complexity.  The current economic framework is being weakened by corruption, ineffective implementation, and socio-cultural inadequacies and points to improper foundations upon which it stands. This is a moral supposition. Our nation is rooted in widely practiced caste system and struggles with the ideas of essential human equality and equal rights. While an economically advanced, just and equal society is intended, there is no place to anchor these attempts. In a society where correct ideas of justice, equality and morality are not foundational, any model of economics and governance is destined to fail.

 

Are these issues concerns of only the secular world, or is there a Christian responsibility to actively engage in and through these broken systems to improve them? A biblical foundation is essential for a just and fair society and unless Christians endeavor to incorporate this foundation, the poor and marginalized of our society will continue to struggle for a holistic life. Here are some areas where Christians should get themselves involved.

 

Foundations matter: The Bible may not be an economic textbook or provide economic theories but it does provide guidelines under which society should be governed; under equal, fair, good and just principles. Thomas Aquinas, in his monumental work, Summa Theologica, raised the question, “what is a just price?” and “how should we deal with poverty?”. In Institutes of the Christian Religion, John Calvin discusses government and economics in great detail, stating that economics is not outside the domain of Christian thinking. If anything, we need to engage more actively in this arena and bring a strong biblical framework to it.

 

The Bible provides a moral framework in which any model of development should be rooted in. Within this framework lies the biblical understanding of human nature, that all human beings are created in the image of God, and have an inherent understanding of right and wrong. People are capable of doing the right thing and taking care of each other but we chose to give into our sinful nature, driven by self-indulgence, greed, power and exploitation. This Biblical view of equality is in direct contrast with the Indian view of Caste and Karma which continues to perpetrate and sustain unjust practice of governing which harms the welfare of its citizens. The current economic framework of India could cause one to think that there is a systematic effort to keep some people living in poverty. We must assess the current socio-cultural and religious framework against the biblical framework to find sustainable solutions. It is incumbent for Christians to provide just foundations for just governance.

 

Law and Justice: We love justice but conveniently ignore to abide by the law. Ours is a country where a woman is raped every 22 seconds and a child is raped every 76 minutes and only one in every four accused in the crime gets convicted[15]. It is outrageous that there are 3.2 crore cases pending in various Indian courts[16]. We have a shameful and tainted history of 1984 Sikh riots and 2002 Gujarat riots when thousands were killed out in the open and the law seemed completely paralyzed! Almost every day we have hundreds of cases where laws are being broken and justice denied. Former Chief Justice of India, who headed a government appointed committee to examine crimes against women, Late Justice J.S. Verma made an observation that we need a mindset change in order to curb crime against women. He seems to be suggesting that there is something fundamentally wrong about our view of other human beings, especially women. This can be easily extended to other areas of life and can be concluded that there is something fundamentally wrong with our view of law and justice. It is about time that we look at what the Bible has to say about law and justice.  

 

Every legal system anchors itself in the natural law which is essentially moral in nature. Every effort that undermines moral argument destroys the very framework upon which law stands.  We must be reminded from the Bible that the laws that govern the land are given under the sovereign authority of Heaven. All Indians, Christians included, must abide by the laws of the land and develop an interdependent and economically healthy society. If the laws are contradictory to the higher moral laws given by God, legitimate means are available and should be used to exercise civil disobedience within the legal framework. It is vital for the Christians to be vibrant and vigilant and to play an important role in building a society and a nation.   

 

The Bible has over 2000 verses on the issue of poverty and Justice! The God of the Bible loves justice and hates injustice[17]. He hates all kinds of injustices, be it economic, social, political or religious. Biblical vision of justice is about having a just, equal and fair life for all people, especially for the poor, marginalized, homeless, and those who are vulnerable. Biblical version of justice has Shalom– peace, as its purpose. When God’s justice is established into this world, peace will prevail. To attain such peace, in the world where powerful people are systematically infringing rights of the powerless and continue to violently abuse them God of the bible wants us to “Seek Justice” [18]

 

Electoral politics: India is the world’s largest democracy. We have been entrusted with the responsibility of electing leaders who would work for the common good. Not only is it important to obey the law, it is also part of the Christian calling to be actively participating in the electoral politics and change the way a Government functions so that positive changes are brought about for the most vulnerable in society. Democracy provides an avenue for the citizens to exert this right and determine as to how they are governed. Taking this responsibility seriously is essential to have just and fair governance if India’s rampant poverty, hunger and inequality problems are to be addressed. Christians, as concerned Kingdom citizens, should be passionately leading the charge to reform the Government and roll out strategies for programs that will effectively curb the country’s poverty rates and abysmal human rights record.

 

Distribution, Charity & Philanthropy: Just distribution of natural resources, food, education, health resource, land rights and all other such rights are required for society to advance, poverty to be alleviated and social issues to be addressed. The rich and the super-rich must come forward and distribute the excess of what they have. Charity and philanthropy must characterize society, not just at the level of the super-rich, but also in the middle classes. The Bible provides some interesting insights to understand this. Exodus 23 refers to sparing the land on the 7th year for the poor. Acts 4 encourages sharing and caring of each other. The Book of James emphasizes on religion that is incorporated into works. Christians needs to incorporate such patterns of life and be an example to the world as to how equality positively affects the society as we share and care.

 

It is the responsibility of the Christian community to act in such a way. Citizens in general and Christians in particular are accountable for the resources the country holds now and those which the country will hold in the future. Taking responsibility and ownership comes through contributing to society, paying taxes. Beyond simply paying taxes, just distribution of resources is also a kingdom issue, a moral responsibility.

 

Corruption: India is (almost) synonymous with the term corruption. We have had innumerable scams in recent years where public offices misused resources through corrupt means. From the Bofors’ defense deal to the recent Coalgate and Railgate Scams. We have mastered the art of corruption. In recent years, we have had Fodders Scam, Telgi Scam, Satyam’s Corporate Scam, CWG Games Scam and Harshad Mehta’s stock market scam. If we quantify this embezzlement, the menace of corruption in the country totals to a whopping Rs 15,55,000 crores. [1] The majority of the population perceives law enforcement agencies as inherently corrupt. Shockingly, our judiciary is also not spared from this same accusation. Almost all the departments of our government are affected from this disease.

The common man is also not averse to this disease. According to one study an individual spends over Rs 2,000 as a cost of corruption[19]. From getting a ration card or adhar card or a passport we prefers to bypass the system by paying a bribe. We prefer paying a bribe to the police, a ward officer or higher level government officials in order to expediently acquire what we are entitled to as citizens. We contribute to the network of corrupt systems by our acts of commission and omission. We have become complacent. We no longer see systems and people with an inherent value, divinely designed, which should not be violated. Rather, we continue to indulge in corrupt ways and means. It seems we are inherently corrupt, our souls have become corrupt and so have we. A corrupted exchange of money to gain a specified end, just like an abuse of human rights, is an action flowing out of a corrupted heart.

This means that corruption is not only an economic or political issue; it is also a moral issue.

 

Combatting injustice, inequality, poverty and hunger must start by addressing the soul. Overcoming the bankruptcy of innovation to help the poor, and the apathy in our society to bring about change, must start by addressing the soul. The heart of the matter is the matter of the heart. It is important to proactively take measures to end corruption, to ensure that all dealings – individual, corporate or government-related – are free of corruption.

 

India has the capacity for self-sufficiency, but it can be actualized through just, equal and corruption-free governance. This is only possible when citizens, especially Christians, of the world’s largest democracy actively participate and support their government to govern its people. It is vital for us as Christians to contribute to the government efforts in having a just and equal society, adequate distribution of resources and eradication of poverty and hunger.

 

History has many Christians who shaped the paths of nations. To sight a few, William Wilberforce (1759-1833) fought for 40 years to abolish slavery in England. Rev. Martin Luther King Jr. (1929-1968) fought for the equal rights for the African Americans. Indian history boasts of William Carey (1761-1834) who led the Bible translation into 34 languages and formed 100 rural schools encouraging the education of girls. He also introduced the concept of the savings bank to assist poor farmers. He fought against SATI (burning of widows) that led to its ban in 1829.  They understood the biblical mission as an integration of both traditional evangelism and transformation of public justice systems, especially for the poor and vulnerable. India awaits such saints who would prepare the land with basic foundations of freedom, justice, equality, and morality so that the Gospel would make sense to the masses.

 

The lives of the poor and vulnerable will only be changed through an economic model which prioritizes equal empowerment, just distribution of resources, shared responsibility for the state and a rejection of corruption. The failure of the current economic model to care for the populace is a political, economic, and a moral issue. The Christian community must take ownership of these issues and act to address the burdens of those who are impoverished. We cannot be passive observers of injustice and inequality; contributing to the evils with inaction. The Genesis Commission (Gen 1:28), The Great Commission (Mt 28:18-20) and The Nazareth Manifesto (Lk 4:18-19) combined together call us into action to establish God’s just Kingdom in India.

 

India’s poor and hungry, marginalized and vulnerable, women and children, will continue to be impoverished and face inequality and injustice if Christians continue to remain inactive in the matters that concern God’s heart.  Remember, Worship involves both our emotions and our actions.

 

*Sanjay Macwan works as a Director of International Justice Mission, Mumbai. Views expressed here are personal.


[1] Waiting for ‘the end’ May 06, 2013, The Week

[2] http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG

[3]“Poverty and Equity.” The World Bank. 2013. <http://povertydata.worldbank.org/poverty/country/IND>.

[4] http://articles.timesofindia.indiatimes.com/2012-01-15/india/30629637_1_anganwadi-workers-ghi-number-of-hungry-people

[5] “Overview: India.” World Food Programme. <http://www.wfp.org/countries/india/overview>.

[6] Nair. P.M and Sankar Sen. 2005. Trafficking In Women and Children in India. New Delhi: Orient Longman Pvt. Ltd: 17.

[7] “Children in India.” . Comfort for the Nations. Web. 9 May 2013. <http://comfortforthenations.org/india.html>.

[8] http://www.thehindu.com/news/national/now-planning-commission-lowers-the-poverty-line/article3013870.ece

[9] “Inflation to bog down India growth, push lakhs into poverty: ADB.” Economic Times. 27 Apr 2011: n. page. Web. 9 May. 2013. <http://articles.economictimes.indiatimes.com/2011-04-27/news/29479182_1_food-prices-food-inflation-export-bans>.

[10] http://indiatoday.intoday.in/story/rich-and-poor-division-penury-hdr-planning-commission/1/157212.html

[11]  “Poverty and Equity.” The World Bank. 2013. <http://povertydata.worldbank.org/poverty/country/IND>.

[12] http://online.wsj.com/article/SB10001424052748704081604576143671902043578.html

[13] http://online.wsj.com/article/SB10001424052748704081604576143671902043578.html

[14] http://www.outlookindia.com/article.aspx?285076

[15] http://www.firstpost.com/india/a-rape-every-22-mins-what-makes-us-so-complacent-489080.html

[16] http://articles.timesofindia.indiatimes.com/2011-12-20/india/30537308_1_subordinate-courts-pendency-crore-cases

[17] Isaish 61:8

[18] Isaiah 1:17

[1] http://www.rediff.com/business/slide-show/slide-show-1-rs-1886000-crore-laundered-out-of-india-in-10-years/20110718.htm

[19] http://www.rediff.com/business/slide-show/slide-show-1-rs-1886000-crore-laundered-out-of-india-in-10-years/20110718.htm