India's Poor Need More Purchasing Power, Not Doles

Bangalore: The welfare subsidies, if one recaps, were introduced by the European rulers following the French revolution to entice their subjects. Such welfare subsidies did not adversely affect the overall economy since there had been easy flow of capital - predominately generated from the captive markets of their colonies spread over the world. Similarly, in the U.S., following the anti-apartheid movement, social sector schemes were mooted to appease its socially backward communities, largely black habitants.

After the Second World War, the decolonisation process gradually set in and, with the passage of time, European colonies waned. Thus, they not only lost their captive markets but also easy access to cheaper inputs like labour and materials from their erstwhile colonies. Following globalisation-cum-opening of the global markets, stiffer competition was being faced by these countries, especially with consumer products. With the shifting scenario it became necessary for most of these nations to revisit their welfare policies, especially to prune the unsustainable social development programmes.

In contrast, India is increasingly overburdening its economy with unsustainable welfare schemes, especially using them as a political tool for gaining election mileage. Welfare schemes were rooted in India during the post-Independence era in the initial plan periods. But the core socio-economic objectives progressively got distorted into politically-motivated apparatuses, especially with the hurling of the 'Garibi Hatao (Remove Poverty) Scheme'. Following governments continued with such slogan-oriented social development programmes primarily wooing the voters as a part of competitive vote-bank politics.

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