Tuesday, January 21, 2020

Rising inequalities put question mark on sustainability of capitalism



Recently, the rights group Oxfam released a study titled "Time to Care", just ahead of the annual Meet-Greet-Eat-Retreat (MGER) event of the world's rich and powerful in Davos, the famous ski resort of Switzerland. The study once again highlights the burgeoning economic inequalities in the world and its potential impact on the global socio-economic conditions.
The report highlights that presently the personal wealth of 2153 global billionaires is more than the combined wealth of 4.6billion, which is about 60% of the planet's human population.
In Indian context, the conditions appear to be even worse. As per the report, the combined wealth of top 63 richest persons in India is more than the annual budget of the country, which was Rs24.42trn n FY19. The report further states that India's richest 1% people hold more than 4x the combined wealth of 953 million people who make up for the bottom 70% of the country's population.
The statistics are staggering by any standard.
Within overall parameters of the economic inequality, the gender inequality is even more alarming. As per the report, it would take a female domestic worker 22,277 years to earn what a top CEO of a technology company makes in one year.
The report further states, that women and girls put in 3.26 billion hours of unpaid care work each and every day -- a contribution to the Indian economy of at least Rs 19 lakh crore a year, which is 20 times the entire education budget of India in 2019 (Rs 93,000 crore).
The report suggests that even a meager 2% (of GDP) direct public investments in the care economy could potentially create 11 million new jobs. The women who are forced to "take care" of the household spend billions of hours cooking, cleaning and caring for children and the elderly. They get little time for education, skill building to be able to earn a decent living or have a say in how our societies are run, and who are therefore trapped at the bottom of the economy.
Another study presented by Edelman, highlighted that this unsustainable skew in global wealth and income, may be fast eroding the confidence in the system of capitalism itself.
The rise of socialism on both sides of the Atlantic may just be a harbinger of this trend.
Back home, the rise in the cases of civic unrest in past few years needs to be viewed from this angle also. The Patidar agitation in Gujarat, the farmers' protest in Maharashtra, the tribal protests in central India, the student protests across the country over a variety of issues may have one underline theme, i.e., economic stress and poor visibility of livelihood and growth.
In my view, it would be completely wrong to assume that the recent student's protests are merely to oppose recent amendment in the Citizenship law, or proposed population enumeration exercises.
The fact is that a common Indian youth is disillusioned, totally frustrated and deeply distressed.
First, the education they are getting is very expensive and mostly sub-standard.
Second, the employability quotient of youth graduated from most of the universities is abysmal.
Third, there are not enough job opportunities even for those who are competent. The conditions are truly pathetic beneath the facade of elite IIMs, IITs and ISBs.
Dismissing the protests merely as anti BJP propaganda would be monumental blunder on the part of the administration and the entire political establishment.

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