From 1776 voting rights were confined to only educated and economically established males. The American Supreme Court verdict in 1963 extended the voting rights to all including women to shift the character of legislations to serve interests of majority from employers to employed. The swing of legislation to serve social security interests of huge majority began to slash profit margins of huge economic empires. Their panic and brain waves of advisors generated the global economy concept. To facilitate the fleeing the American capital claimed their mission of eradicating poverty of poverty ridden people.
The fleeing capital could not land in another democracy with universal franchise. The Narsimha Rao in 1991 and the Vajpayee government in 1999 offered them fertile grounds but failed to entice the big capital to rush to India. Narendra Modi converted the governance in India to a single man empire in formation of his government but even that could not entice any group to India even though the major units were looking for more lucrative slots after their failed operations from China since 1979. Despite the deceptive display, the Prime Minister Narendra Modi could not hide that he depended largely on approval for the authority that abhorred rapid economic growth due to its fears of being reduced to irrelevance with the economic comforts of larger numbers.
He resorted to the route of extra parliamentary methods to overcome resistance to his reforms. He had to abandon his reforms when three front shops of the Sangh also opposed his reforms attempts. Most pragmatic economists could not comprehend the purpose of his harsh economic measure of demonetization in November 2016. He listed three objectives for such a harsh measure. He achieved his real objective as the Sangh could not openly criticize him nor could it disturb him though NaMo clearly indicated his determination to follow the path laid by Mahatma Gandhi and no any other schism.
In last week of March 2020, he resorted to the lock down on all economic, social, cultural, entertainment and religious activities as a strategy to fight the corona virus pandemic. He obviously exaggerated the possible dangers from the pandemic though it had not spread. He justified his decision as life saving to be his priority to all other activities. He had ruled the state, Gujarat for 12 years to clearly visualize the impact if production process was halted even for a day. He had imposed the lock down for 52 days as the first installment.
There is no evidence available of his gearing up the structure to meet such grave situation that was to emerge from his severe strategic step. The Prime Minister Indira Gandhi had spent 64 days in preparing her administration for the consequences that were to flow from entry of armed forces into the Golden Temple in June 1984. She was given a blank cheque by the opposition on April 1 1984 to deal with the man perpetrating violence for his objective of Khalistan. But the Prime Minister Narendra Modi imposed even more grave measure. He could not have missed visualizing the grave impact on sixty per cent of Indian population dependent on the daily earning by at least one in the family. The scheme for free supply of adequate quantum of food for three months announced twenty four hours later indicated his awareness of impact and his intent of continuing the lock down for three months.
In 220 days of the lock down only eight million were infected but seven and half million also recovered. These statistics in media do not reveal the sources of information or the method of collection of data though it is obvious these figures are not of patients, infected or recovery, medically examined and certified. Infected are apparently of the upper strata of urban areas, and mostly from economically advanced states. Even death toll figures suggest that overwhelming numbers were of old suffering from other debilities.
That raises a curious query why poor were spared by the invisible tiny but virus spreading germ. Normally the pandemics take larger toll of poor as they get caught easily and but cannot get medical assistance due to their poverty. This has happened often enough in every epidemic that India suffered in last four decades even when India has fortified its medical system.
The stoppage of industrial production and trade did not bring any revenue to government as no tax was due but the union government and state governments had to incur extra expenditures not provided for in their annual allocations to meet contingencies due to the pandemic. The deficit in revenue has its consequences. 500 employees including doctors in government hospitals in Delhi alone had to take agitation route to high light the non-payment of their salaries for seven months. Even state administrations had to indulge in brick baiting to high light nonpayment of their share in the taxes on goods and services. The union government has used up all its reserves and funds from various saving schemes.
The Prime Minister offered a package of Rs. 21 crore as the assistance to the small and medium sized industrial enterprises. The government also agreed to bear burden of Rs. 65000 crore as interests on bank loans and borrowings by private sector units to restart their production. The NaMo government acquired funds by foreign debts. Today every Indian carries on his or her shoulders the debt burden of Rs. 25251. The economy would take longer time to recover though the upper strata would need to bear with heavier tax burden to fill in the empty offers of the union and state governments. Indications are every consumer would need to pay more tax on goods and services in new financial year. All the burdens were imposed on people only because of the political message that NaMo wanted to deliver? But to whom is answered in closure of religious establishments.
THE ECONOMIC DETERIORATION
Vijay Sanghvi - 2020-10-31 10:29
Narendra Modi did win the clear mandate of the Indian electorate in 2014 on his promise to accelerate the economic growth rate. In seven years of his regime delivered the reversal at the faster rate. The severe impact of the Lock down that pushed the economy to a total collapse will take several years to restore the economy to the level he had inherited. He spent huge sum on his globetrotting to lure capitalists to park their ventures in India. He could not induce a single one as he could not visualise that the capital was running away to escape the changed contours of democracy in America.