Well, we are back at this fabulously greedy topic, aren’t we after a while?
There are many poor countries in the world, India being one with a per capita income of USD 1,581 as per World Bank data. This is GDP per capita and on the basis of purchasing power parity, India’s per capita income is estimated to be USD 6,088. On both measures, India ranks below more than 100 other nations. So, it is reasonable to assume that India is one of the poorer countries, though the GDP is growing at over 7% currently (the fastest for any of the largest 10 economies of the world).
One can argue that these low figures would have been even lower had the socialist policies of the erstwhile Congress governments continued to be in place. That would probably be true, but then the Congress government changed its long standing socialist philosophy in 1991 when India encountered an unprecedented balance of payments crisis. For the past quarter century or so, successive governments have improved their focus on economic development (though not at the pace required, and definitely not at the speed at which Communist China was able to pursue economic growth). Hence, it is also reasonable to say that India shifted surely and steadily towards a Capitalist model of economic growth, in simple terms. It was actually more complex than what I am stating here, but then we wish to understand the essential truth rather than analyze voluminous economics data.
So, we have now arrived at an inflection point in the GDP growth curve. In the process of the rapid growth over the past several years, India managed to create scores of billionaires, and Capitalism was no longer a bad word in the Indian lexicon. Startups mushroomed in Bangalore, Hyderabad, Chennai and Gurgaon. Venture Capital Funds flocked to India. The India IT Story was going great guns. More jobs were getting created. And what not?
However, one sad thing is the ignorance of our Capitalists on how to behave and live in one of the poorest countries on earth, and how to contribute to the less fortunate in society. In essence, it was a required tenet that Capitalists anywhere on the planet who have made billions for themselves need to become real philanthropists to aid society in ways more than just creating some jobs in the economy. Their role does not stop with just creating a few thousand jobs. And, they are not supposed to flaunt their wealth by building skyscraper homes in the midst of slums. Just look at the top few billionaires in the world, mostly in U.S. and Europe – they are all philanthropists and do not flaunt their wealth. They get engaged in issues which afflict societies all around the world – in Africa, in India, in South America, etc., They apply their minds to solving some of the biggest problems facing humanity.
What about Indian billionaires?
Except for one or two, you don’t hear from the rest on what they are doing towards alleviating poverty, improving water supply, providing power to villages, enhancing availability of quality education, etc., And, surely none seem to be heeding the advice of the Indian Prime Minister on moderation in everything. Nobody is even questioning the generation of wealth by these Capitalists (though there is enough talk on how it was done with the help of greedy government officials in most cases, but not all), or creation of jobs. What is sincerely needed is their application of mind to resolving some of the most intransigent challenges faced by India and its poor people who live below the poverty line.
Now it gets interesting. India moved away from Socialism to Capitalism sometime in the early to mid Nineties. Is it time for India to revisit Socialism (as Bernie Sanders tried to do in the recent U.S. Presidential Election Campaign)? Is it important for the Indian Government to become more interventionist than it actually already is? Is its pleading for Corporate Social Responsibility falling on deaf Corporate ears of the Capitalist oligarchy? Is it critical at all for the government to be involved in any kind of business?
Well, history is not a predicator of what is to come. With Social Media, the population (at least the younger ones which India does not lack in very good numbers) is “always” connected, and the injustices in society are being discussed more aggressively than in the past. The discussion is also different this time as it is not the corporate cookies afraid of losing their jobs who are talking in hushed tones. It is really the teenagers and the early twenty somethings who are very confident of their future, who are engaged in these conversations.
All these things presage a good development for India – if there is one country which can pull together its young people power into productive causes, it would be the Indian New Age Capitalists a.k.a. Startup Ventures. Such initiatives would eventually wrest control from the traditional oligarchs by implementing suitable business model innovations.
Interesting, right? Let us see what happens in the near future.
6th November 2016