Do freebies given by political parties bridge the financial gap?

 The financial divide between privileged and underprivileged – A problem that political parties have left unresolved for ages. Should people come forward to bridge this gap?

-        J. Murali Krishnan

 

Election is a celebration not only for the political parties but also for people who wait for announcements made by them which could be distribution of cash to offering subsidies and free schemes. While majority of the political parties focus on people from the underprivileged section of the society, two crucial questions linger in a common man’s mind. Do freebies and subsidies really help the poor? Are they really bridging the financial gap between the privileged and the underprivileged? Welfare schemes like free mid-day meal and breakfast scheme in government and government-aided schools, free books and notebooks to school children, PDS, etc. do benefit a major chunk of people. However, it’s been years since these welfare schemes were launched by successive governments. It remains a mystery and the claims made by the political parties that the schemes have really brought people out of poverty is highly debatable. The schemes have definitely provided access to various basic needs like clean water, toilet, electricity, etc. But did they or do they build wealth for those people? The recently released World Inequality Report places India on top of the list with respect to the wealth owned by rich people. It says the top 10% of earners capture about 58% of national income, while the bottom 50% receive only 15%. Income converts to wealth. The report further says that the top rich 1% own about 40% of wealth in the entire country. That’s a huge divide.

It is important for us to understand how workers are spread across different occupations to ascertain how freebies/subsidies work. Education predominantly decides the kind of occupation a person chooses to do; and occupation principally decides the kind of income a person can earn, be it daily wages or monthly income. There are still a quite a lot of people living in villages in India. Our cultural roots and tradition also influence the kind of employment we choose for living. As different governments form either at the centre or state, politicians try to woo the people by promising various schemes focusing on the jobs they do. So, it is important to know why such schemes play or expected to play a pivotal role in building wealth. The industry boom that our country has seen in the last 20+ years has brought several multinational companies to set up their base here or at least move their production sites to India. While labour comes cheap, the government is also interested in providing space to create job opportunities. These factories are set up in the outskirts of cities and close to towns and villages. They attract quite a lot of youth (skilled youth) to get jobs. All these factories and companies come under the organized sector. The jobs they create can be white collar or blue-collar. Ideally, this should be taking the country forward and build wealth for many people. But according to the Economic Survey 2021-22 report, in India, there are 53.5 crores workers of which nearly 44% are in unorganized sector. Agriculture still tops with 23.27% in that. This is a huge percentage. A country like ours with large population, this percentage of people in unorganized sector will continue to depend on welfare schemes unless those schemes really help them to build wealth. The jobs do not promise them a standard income or assist them in building wealth. The earning which came from the land, is now coming from factories.   

The free gas cylinder scheme to houses in villages have helped several women from fetching wood from forests. It not only saved their time but some of them started working and/or acquired other skills as well. Previously women used to bring firewood from far off places and burn them to cook. Burning wood was detrimental to their health and also to the environment. The free gas cylinder scheme has definitely addressed both these issues. The construction of toilets is another scheme that has stopped open defecation in villages to the maximum extent possible. This invariably improves public health as well. Other schemes like free electricity have helped students and girls to study in the evenings; digital bank accounts have stopped corruption to a maximum extent possible and accounted the so far unaccounted cash. The free cycle scheme has definitely helped girls and other students who have difficulty in accessing transport in villages and towns to use them to reach their educational institutions. Earlier people were suffering from multidimensional poverty, which has been brought to control. Our country’s Niti Aayog’s Multidimensional Poverty Index says that freebies and subsidies have helped reducing poverty which includes access to cooking fuel, sanitation, drinking water, electricity, housing and bank accounts.

Bringing people out of poverty, especially those who have difficulty in accessing basic needs, is absolutely essential. It is the duty of the elected governments and the civil society to do their best in addressing them. However, it remains only a short-term solution. It does not provide a long-term or rather a permanent solution. When people depend on cash or freebies or subsidies, the inclination to work and earn slowly comes down. What is seen in the beginning as a support becomes a right and a demand. People expect every political party to dole out freebies and distribute cash in every election. This invariably affects the fundamental structure of democracy too. It opens the gates to bribery, illegal transactions of money, income tax defaults, and many such problems. Ultimately the motive, with which freebies and subsidies are introduced, does not address the root cause of the problem of bringing people of out of poverty. It does not create wealth. Freebies do not invest on human development but strains the public finances leading to economic instability and huge debts to the exchequer. In the long run it is not sustainable. Elected governments must focus on human development by creating job opportunities, building skills among youth, improving the quality of education to strengthen the hands of people to be able to live their lives with confidence without expecting anything from political parties.

When a society is divided depending on the wealth people possess, the power and authority to question or to raise questions become lopsided. Government run by a few, who see stake at every decision taken to personally benefit themselves, will not be able to see the development of the country and its people. Such ulterior motives will never help a country to develop or lead it on the path of development. In today’s world, war with neighbours or social unrest within a country is never a solution. It only weakens the democratic   system. Protests are not bad but the cause for them are. People shouldn’t be coming out to protest to meet their basic needs or for freebies and subsidies. They should be questioning corruption or delays in execution of projects or unjustified rules and laws, etc. Unfortunately, when the financial gap continues to increase, only one section of people gets benefitted in building their wealth. It could lead the society to either autocracy where only wealthy people have a say in the government. The society becomes unstable where everyday life is filled with protests, dharnas, bandhs, and sometimes even violence. When development is distributed, it benefits every class and section of people. It strengthens democracy. It builds a healthy society of participation wherein people become curious about development and come forward on their own in the welfare of the country. Freebies and subsidies are a good start and a temporary solution in addressing poverty, but governments and political parties must focus on building a long-term vision for the country. This transformation is essential for today and for tomorrow.