[sbinews] Social Sector spending
- From: sbistcbangalore@xxxxxxxx
- To: sbinews@xxxxxxxxxxxxx
- Date: Sat, 13 Dec 2003 07:54:33 +0500
Is social sector spending a waste?
Social sector spending is not relevant now
[ FRIDAY, DECEMBER 12, 2003 12:13:51 AM ]
B Jhunjhunwala
Economist and Commentator
Digvijay Singh focused on the social sectors but the people have rejected this
model. The first reason is that education and health are assets only if there
are opportunities in the economy, and a liability otherwise. The knowledge of
English and mathematics is beneficial if the graduate can land himself a job.
If not, he often becomes a parasite on his family. He becomes a ‘babu’ and
considers working in the field below his dignity. And he cannot get a job
because there is no industry. And there is no industry because there are no
roads. The correct way is for the government to invest in infrastructure and
create higher incomes and let people buy education and health from the market
from those higher incomes. The role of the government in social sectors should
be restricted to regulation of private providers and delivery of these services
in selected backward districts which do not have private providers in adequate
numbers.
The second contribution of Digvijay Singh was his focus on rural development.
This strategy too is against the march of history. The village was a necessity
when agriculture was done through bullocks. Small habitations had to be located
such that draught animals could walk to the field, work and return. Nowadays
tractors have replaced bullocks in vast areas. It is no longer necessary to
live in small habitations. Therefore, villagers have become town-oriented. They
would like to live in towns and manage their fields from there.
Moreover, the levels of income possible from agriculture are limited even if
new technologies like water management, vermiculture and organic manuring are
used. There are limits to how much capital can be combined with an acre of
land. The low use of capital in agriculture means that the productivity of the
agricultural labourers will be low and so also their wages. The village people
see this. Their unskilled brothers who have migrated to the city earn Rs 3,000
per month easily while they cannot reach that level despite all their efforts.
The writing on the wall is loud and clear. People want infrastructure and good
governance at the state level, and the development of small towns. The December
1 polls mark the end of the era of social sector spending.
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