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Sustainable Welfare Responsibility of Political Parties & NGOs

Sustainable Welfare Responsibility of Political Parties & NGOs. By DR T.H. CHOWDARY Director: Center for Telecom Management and Studies Fellow: Tata Consultancy Services Chairman: Pragna Bharati (intellect India ) Former: Chairman & Managing Director Videsh Sanchar Nigam Limited &

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Sustainable Welfare Responsibility of Political Parties & NGOs

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  1. Sustainable Welfare Responsibility of Political Parties & NGOs By DR T.H. CHOWDARY Director: Center for Telecom Management and Studies Fellow: Tata Consultancy Services Chairman: PragnaBharati (intellect India ) Former: Chairman & Managing Director Videsh Sanchar Nigam Limited & Information Technology Advisor, Government of Andhra Pradesh T: +91(40) 6667-1191(O) 2784-6137& 2784-3121® F: +91 (40) 6667-1111 hanuman.chowdary@tcs.com

  2. Growth & Development • Development includes growth; the reverse need not be true. • Development –Economic Human • Humans can be happy w/o prosperity – a condition of mind. • Prosperous can live in pain with comfort! [Nurses, ICUs, Dialysis, transplants, steroids] • Human Development Index Happiness Index S683 _Dec2012

  3. S & T for Wealth Creation World GDP per Person, 1000=100 7500 4500 4000 3500 3000 2500 2000 1500 1000 500 0 Source: Angus Maddison; J.P.Morgan 1000 1200 1400 1600 1800 2000 2012 S683 _Dec2012

  4. World Population and the Poor Year Population % of the Poor 1820 1.1 billion 85% 1980 5 billion 30% 2000 6 billion 20% 2007 6.5 bln 18% 2012 7.0 bln 15% S683 _Dec2012

  5. Economic Development S683 _Dec2012

  6. Time taken to double the per capita income (1) Country UK USA Japan Indonesia S.KoreaChina Years 58 47 33 17 13 10 Since 1780 1840 1880 1965 1970 1978 S683 _Dec2012

  7. Time taken to double the per capita income (2) S683 _Dec2012

  8. Poverty came down Country Indonesia Malaysia Thailand S/pore India From % 58 37 49 24 75 (1972) (973) (1962) (1972) (1951) To % 17 14 26 10 30 (1982) (1987) (1986) (1982) (2002) Life expectancy up from 56 to 71 during this period S683 _Dec2012

  9. Development • Economic: • Family Income • Old Age Pensions • Insurance • Life, Health, Work • Human: • Health • Longevity • Education • Quality of Life ( air, water, leisure, communion…) • Stable Family • Stress S683 _Dec2012

  10. Growth of GDP; Population; Per Capita Income (PCI) & Years for doubling PCI • Lesson from China: Control population during period of growth [JRD’s advice to Nehru in 1950s dismissed.] • BPL ratio is the index: in India it came down from 70% in the 1950s to • about 30% now [BPL ratio in A P is 85% according to white ration cards & increasing.] S683 _Dec2012

  11. Wealth Creation &Poverty Reduction • Education * Population control • Free enterprise • State: intervention/involvement in infrastructure • Education * Health • Drinking water * Irrigation • Highways/Railways • Air & Sea Ports * Electricity • National water grid • All these help (1) industrialisation (ii) growth of services enterprises (3) Migrate people from Agriculture to industry & services S683 _Dec2012

  12. State Monopoly • Law&order • Defence • Internal security • Judiciary • Currency • Elections • Power Transmission (Generation by multiple sources) S683 _Dec2012

  13. Regulation • Every sector • promote competition • Consumer protection • Independent, competent, constitutional • Avoid re-employment of retired government employees in regulatory bodies S683 _Dec2012

  14. Financial Health of India (1) • Debt of Government • domestic = $ 400 bln (Rs. 22,00,000 cr) • foreign = $ 260 bln (Rs. 13,00,000 cr) • Total = $ 660 bln (Rs. 35 lakhcr) = 40% of GDP =Rs. 30,000/ Head • India’s public debt at end of Sept 2012 June 2012 =Rs. 37,63,264 cr Sept 2012 = Rs. 39,00,386 ( 52% GDP ) S683 _Dec2012

  15. Financial Health of India (2) • Interest & Principal repayment (as per budget) Rs. 2,20,000 cr • A.Ps debt: up from Rs. 54,000 cr in Y 2004; to>Rs. 1,50,000 cr now • India’s Trade gap (Imports-Exports) • Foreign exchange reserves • China- $3,200 bln; India- $295 bln • The gap is covered by • Remittances • FDI • Equity into new plants • Share market • NRI deposits S683 _Dec2012

  16. Financial Health of India (3) S683 _Dec2012

  17. Losses of some PSUs S683 _Dec2012

  18. Give-Aways (1) • Agri debt written off Rs. 70,000 cr * (A.P in addition Rs. 5000 cr) • NREGA - = Rs. 40,000 cr/yr * Paavalavaddi in A.P • No vaddi * SC/ST Rs. 1900 or • Minority = Rs. 1900 cr * Weavers= Rs. 350 cr • Fee reimbursement = Rs. 24,000/y • Student loans as of March 2012 Rs. 50,000 cr • Central &State Subsidies & Welfare Rs. 500,000 cr/yearly (85% turns into Black money) G.O.I borrowing Rs. 6/7 lakhcr) • Haj subsidy Rs. 900 cr/yr ( begun by Nehru in 1959) 2004 = Rs. 160 Cr; 2005 = Rs.185.85 cr 2009 = Rs.826cr 2012 = > Rs.1000 cr S683 _Dec2012

  19. Give-Aways (2)in A.P • Christian pilgrimage – Rs. 25,000/person • Construction of church – Rs. 200,000 /village • Rs. 20,000 for celebration of Christmas per group • Payment to madrassas • IndiraAwas cumulative total in A.P 1,75,00,000 Houses i.e 80% of families in A.P must be living in government houses ! • Rs. 6700 free electricity for farmers • Rs. 3,500 cr sub-plan for SC/ST S683 _Dec2012

  20. Give-Aways (3) • TV sets, mixers, grinders, laptops ( cell phones-) • Payment to unemployed ( 75 mln young..) • Old age pensions- • Pensions to freedom fighters • Free electricity (Rs. 6700 cr/year in A.P) • Nutrious food for pregnant women • Bicycles, dresses, shoes, sanitary towels for school children. S683 _Dec2012

  21. Give-Aways (4) • Trinamul Congress government in West Bengal financed construction of 10,000 new madrasas • Pays Rs. 5000 p/m to tens of thousands of Imams (none to Archakas) • Parties compete to provide reservations for Muslims – 5% Tamilnadu, 12% TDP & TRS in Andhra Pradesh, 20% in UP… S683 _Dec2012

  22. Give-Aways (5) • In the 5 years to 2009-10 India moved 52 mln people out of poverty ( 22.4 mln from rural areas and 28.6 mln from urban areas) • In 1973-74 the Tendulkar Commission put BPL people at 37.4% . Now it is stated to be 25% - a miserable performance. In 38 years S683 _Dec2012

  23. Give-aways (6) • G.O.A.P’s • Free electricity to farmers = Rs. 6,700 cr/y • LPG Cylinder cost Rs. 931 • Price = Rs. 410.50 • 24 lakh students availed Rs. 52,000 cr loans S683 _Dec2012

  24. India’s Subsidies (Rs. Cr) S683 _Dec2012

  25. Promises • Separate budget for Muslims - Rs.2,500cr • Separate Bank for Muslims Rs. 50,000 for a Muslim girls’ marriage • Bicycles for Muslim girl students • Loans without any security for whosoever asks • From Rs. 2/kg rice to Rs. 1 kg to free 30 kgs! • Free medical check up • All debts to be written off • Separate Budget for B.Cs S683 _Dec2012

  26. Competition in Promises of more & more Welfare • Where will money come from • Higher taxation leads to avoidance, evasion, flight to secret account in foreign banks • Less investment in industry, less jobs • Population growing @ 19 mln per year • Jobs never more than 10 mln in an year • Unemployed, unemployable, “educated” are right stuff for crime, anarchy, Maoism revolution • Reservations in Promotions • Reservation in private sector jobs • Reservation for Muslims in government & schools • Reservations for Christian Dalits • 2% of company’s pro fits for CSR S683 _Dec2012

  27. Minority Rights DayDec 12- 2012 • Under PMs 15 point Muslim First progarm 2,69,770 IndiraAwas Houses built . • Rs. 1,71,960.7 cr lent under priority sector lending • Rs. 389.96 cr for construction of 4,590 more IAY houses, 106 health centers, 1081 Anganwadi centers, 14,293 hand pumps, 19 school buildings , 613 additional class rooms, 27 ITIs, 11 Polytechnics , 77 hostels.. • Rs. 438.93 cr for scholarships • Computerization of all state Waqf Boards • 25000 more merit scholarships for Muslim girls • Grant in aid to develop ed. Infrastructure for Muslim schools • Rs.133.25cr loans to 32,374 Ms by NMDFC • More campuses for Muslim & Urdu Universities • More Madrassas • 90 Muslim Districts S683 _Dec2012

  28. What are the costs/penalties (1) • Highway programs * Electricity • Defence * Security • Quality education * R&D; manufacture • Justice; not enough courts, judges • PHCs starve – Arogyasree for benefit of corporate hospitals • Jalayagnam – Mobilisation money? • Canals w/o dams • Dams w/o canals • Already costs up 3 times • Moral fiber destroyed • Dependency • Promoting idleness S683 _Dec2012

  29. Costs & Penalties (2) S683 _Dec2012

  30. Costs & Penalties (3)Parties Prosper S683 _Dec2012

  31. What should be done(1) • Limit welfare to one child families • Stop when 2nd child comes • Reservations for one –child in a family • Only for one generation • NREGA work only in project areas • Those who seek, should move; tented accommodation/dormitary, project school • Unemployment dole for one year only • No fee reimbursement • But merit scholarships and interest free loans S683 _Dec2012

  32. What Should be done (2) • Stipulate political parties should estimate costs of “welfare” they promise and state thro’ what taxes/measures they would raise revenue for the welfare • Political Parties Regulatory Authority of India to ensure accountability, transparency & liability for default and inner party democracy. • Stop vote bank building through religion ad caste specific welfare, and laws and rules & privileges, favours S683 _Dec2012

  33. What NGO’s may do (1) • Educate public about duties, work and self-help ethic • Call parties to publish costs of welfare they promise and how they would raise revenue • Assist financially and intellectually, entrepreneurship among educated young • Institute scholarship, supply resource/talent persons to schools/colleges thro’ chairs /programs • Adopt schools/colleges to improve quality of teaching/learning S683 _Dec2012

  34. What NGO’s may do (2) • Institute extension lectures • Partially fund Panchayat/Municipal plans for libraries, tree-plantation, sanitation (drains, sewers, toilets, community baths; link roads, ware-house, school-building, function hall…) • Open old-age homes • Open orphanages • Fund Ekal Schools in tribal areas S683 _Dec2012

  35. Abraham Lincoln “You cannot bring about prosperity by discouraging thrift. You cannot strengthen the weak by weakening the strong. You cannot help the poor by destroying the rich. You cannot establish sound security on borrowed money. You cannot keep out trouble by spending more than you earn. You cannot build character and courage by taking away man’s initiative and independence. You cannot help men permanently by doing for them What they could do for themselves.” (Source: Freedom First, May 1989) S683 _Dec2012

  36. NaniPalkhiwalaOn India’s governance • History will record that the greatest mistake of the Indian republic in the first 50 years of its existence was to make less investment in human resources- education, family planning, nutrition and public health- than in brick and motor dams and factories. • We have too much government and too little administration; too many laws and too little justice; too many public servants and too little public service; too many controls and too little welfare. • Indian liberalisation encounters formidable opposition from three quarters. • The top heavy bureaucracy reluctant to shed its enormous powers • Influential politicians who prefer to let socialism remain the opium of the people and of whom it can be truly said that if ignorance is bliss, they should be the happiest men alive. S683 _Dec2012

  37. NaniPalkhiwalaOn India’s “Socialism” • Quite a few Indian businessmen men who are much interested in their own personal prosperity than in the future of the country and who preferred to flourish in the non competitive environment. • These three are the obstructionist forces…India continues to remain the only significant country in the free world to hold aloft the tainted and tattered flag of socialism. • “ We shut our eyes to the fact that socialism is to social justice, what ritual is to religion and dogma is to truth”. • Socialism as practiced in India has been a fraud: Our brand of socialism did not result in transfer of wealth from the rich to the poor but only from the honest rich to the dishonest rich • •The sleeping sickness of socialism is now universally acknowledged – but not officially in India… The public sector enterprises are the black holes, the money guzzlers and they have been extracting and exorbitant price for India’s doctrinaire socialism. S683 _Dec2012

  38. NaniPalkhiwalaon Laws & Taxes • A law suite once started in India is the nearest thing to eternal life ever seen on this earth…. • Over taxation corrupted the national character overtly. The nation survived only because the tax system continued to breathe through loopholes and the economy used to breath through window of tax evasion. • We have too much Government and too little administration; too many laws and too little justice; too many public servants and too little public service, too many controls and too little welfare. S683 _Dec2012

  39. This presentation & Many more can be seen and downloaded from my website:www.drthchowdary.net S683 _Dec2012

  40. DhanyawadThank You S683 _Dec2012

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